TITLE exempt-filings

Texas Department of Insurance

Final Action on Rules

EXEMPT FILING NOTIFICATION COMMISSIONER’S ORDER NO. 06-0304 PURSUANT TO THE INSURANCE CODE, CHAPTER 5, SUBCHAPTER L, ARTICLE 5.96 ADOPTION OF AMENDMENTS TO THE TEXAS BASIC MANUAL OF RULES, CLASSIFICATIONS AND EXPERIENCE RATING PLAN FOR WORKERS’ COMPENSATION AND EMPLOYERS’ LIABILITY INSURANCE TO CLARIFY FOR WORKERS’ COMPENSATION PURPOSES "PARTNERS" INCLUDES GENERAL PARTNERS AND LIMITED PARTNERS

The Commissioner of Insurance adopts amendments proposed by the staff of the Workers’ Compensation Classification, Premium Calculation and Research Division of the Property and Casualty Insurance program at the Texas Department of Insurance (Department) to the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers’ Compensation and Employers’ Liability Insurance (the Manual). The adopted amendments clarify that general partners and limited partners are entitled to be covered under a workers’ compensation policy and that general partners and limited partners can be excluded from coverage under a workers’ compensation policy if the policy is endorsed accordingly. The adopted amendments also clarify the basis of premium for each general partner and/or limited partner covered under the workers’ compensation policy.

The Commissioner adopts the amendments as proposed in the staff’s petition filed on February 14, 2006. Notice of the proposal (Ref. No.W-0206-02-I) was published in the February 24, 2006 issue of the Texas Register (31 TexReg 1313). No hearing was requested on this matter. The Department received no comments concerning the proposed amendments.

The adoption amends the Manual as follows:

1. Amends Rule V F.3.b., relating to Miscellaneous Values-Payroll Limitation, to include clarifying language indicating that, for the purposes of this rule, "partners" includes general partners and limited partners.

2. Amends Rule IX B., relating to Partners and Sole Proprietors, to include clarifying language indicating that, for the purposes of this rule and the endorsements used to implement this rule, "partners" includes general partners and limited partners.

The adopted amendments are more particularly set forth in the applicable portions of the Manual that are attached hereto and made a part hereof for all purposes.

The Commissioner of Insurance has jurisdiction over this matter pursuant to the Insurance Code, Article 5.96.

The amendments, as adopted by the Commissioner, are on file in the Chief Clerk’s Office of the Texas Department of Insurance under Reference No. W-0206-02-I and are incorporated by reference into Commissioner’s Order No. 06-0304.

This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Government Code, Chapter 2001 (Administrative Procedure Act).

IT IS THEREFORE THE ORDER of the Commissioner of Insurance that amendments to the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers’ Compensation and Employers’ Liability Insurance as described herein and set forth in the exhibit attached to this Order, and incorporated into this Order by reference, be adopted 15 days after notice of adoption is published in the Texas Register .

TRD-200601888

Gene C. Jarmon

General Counsel and Chief Clerk

Texas Department of Insurance

Filed: March 29, 2006