Final Action on Rules
The Commissioner of Insurance has adopted the amendments proposed by the
Texas Department of Insurance staff in a petition filed on November 15, 2000.
Notice of the proposal (Reference No. W-1100-31-I) was published in the November
24, 2000, issue of the
Texas Register
(25
TexReg 11735). The purposes of these amendments are to revise the table concerning
the Expected Loss Rates and Discount Ratios by classification used in experience
rating, which is contained in the Texas Basic Manual of Rules, Classification
and Experience Rating Plan for Workers' Compensation and Employers' Liability
Insurance, (Basic Manual) and to amend the Texas Workers' Compensation Classification
Relativities Table (relativities table) to add Code 0923 and to indicate that
the code will be "a" rated. These amendments are necessary to make the tables
consistent with the adopted amendments to the Manual proposed by TDI's Workers'
Compensation division staff under Docket No. 2475. Under Docket No. 2475,
a new classification was adopted for residential domestic workers whose workers'
compensation premium is based on payroll. The amendments proposed under Docket
No. 2476 were considered at a public hearing held on December 18, 2000 at
1:30 p.m. in Room 100 of the Hobby Building, 333 Guadalupe Street in Austin,
Texas.
The Commissioner adopted the amendments with no changes to the amendments
proposed by staff. The adopted amendments include an amendment to relativities
table and a revised table amending the Basic Manual concerning the Expected
Loss Rates and Discount Ratios.
The Texas Department of Insurance received no comments concerning Docket
2476.
The Commissioner has jurisdiction of this matter pursuant to Articles 5.60
and 5.96 of the Texas Insurance Code.
The Commissioner has determined that it is necessary to revise the relativities
table and the table in the Basic Manual as proposed by staff so that they
will be consistent with amendments to the Basic Manual adopted by the Commissioner
under Docket 2475.
The amendments to the relativities table and to the Basic Manual are on
file in the Chief Clerk's Office of the Texas Department of Insurance under
Reference No. W-1100-31-I and are incorporated by reference into Commissioner's
Order No. 01-0010.
The notification is made pursuant to the Texas Insurance Code Article 5.96,
which exempt action taken under Article 5.96 from the requirements of the
Administrative Procedures Act (Government Code, Title 10, Ch. 2001).
Consistent with the Texas Insurance Code, Article 5.96(h), prior to the
effective date of this action, the Texas Department of Insurance will notify
all insurers affected by this action.
The agency hereby certifies that the amendments to the relativities table
and to the Basic Manual have been reviewed by legal counsel and found to be
a valid exercise of the agency's authority.
IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the amendments
proposed by staff to the relativities table and the Basic Manual are adopted.
IT IS FURTHER ORDERED that the revised relativities are available to be
adopted by insurers immediately and that their use is mandatory for all policies
with an effective date on and after January 1, 2001.
IT IS FURTHER ORDERED that the revised table amending the Basic Manual
is effective fifteen days after notice of this adoption is published in the
Texas Register.
TRD-200100078
Lynda Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: January 5, 2001
The Commissioner of Insurance adopted amendments to the Texas Basic Manual
of Rules, Classifications and Experience Rating Plan for Workers' Compensation
and Employers' Liability Insurance (the Manual) proposed by the staff of the
Workers' Compensation Division in a petition filed on November 10, 2000. Notice
of the proposal (Reference No. W-1100-30-I) was published in the November
24, 2000, issue of the
Texas Register
(25
TexReg 11734). The amendments were considered at a public hearing held under
Docket No. 2475 on December 18, 2000 at 1:30 p.m. in Room 100 of the Hobby
Building, 333 Guadalupe Street in Austin, Texas. The purposes of these amendments
to the Manual were to establish a new classification for residential domestic
workers whose workers' compensation premium is based on payroll, to amend
Rule XV of the Manual to include the new classification and to make editorial
changes to Rule XV of the Manual. Prior to the adoption of these changes,
the Manual allowed the premium for residential domestic workers to be calculated
on either a per capita basis or a payroll basis. However, there was not a
separate classification to use if the premium for residential domestic workers
was calculated on a payroll basis rather than on a per capita basis. Adoption
of these recommended changes provide a classification for residential domestic
workers regardless of whether the premium is determined on a per capita basis
or a payroll basis.
The adopted changes add Code 0923 "Domestic Workers - Residences: Payroll
Basis" to both the Alphabetic and Numeric Classification Sections of the Manual.
In addition there are changes to Rule XV Domestic Workers - Residences to
add a reference to Code 0923, to clarify that both Codes 0913 and 0923 are
"a" rated classifications, and to make editorial changes to the rule that
are necessary to eliminate conflict or confusion.
The amendments to the Manual as adopted by the Commissioner of Insurance
are shown in Exhibit 1 on file with the Chief Clerk under Reference No. W-1100-30-I,
which are incorporated by reference in Commissioner's Order No. 01-0009.
The Commissioner has jurisdiction over this matter pursuant to the Insurance
Code, Articles 5.60 and 5.96.
The Commissioner determined that it was necessary to adopt the staff's
recommended changes to the Manual to provide a classification for residential
domestic workers regardless of whether the premium is determined on a per
capita basis or a payroll basis.
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).
The agency hereby certifies that these amendments to the Manual have been
reviewed by the legal counsel and found to be within the agency's authority
to adopt.
IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the amendments
adding code 0923 and recommended changes to Rule XV of the Texas Basic Manual
of Rules, Classifications and Experience Rating Plan for Workers' Compensation
and Employers' Liability Insurance, which are attached and incorporated hereto
are hereby adopted to be effective fifteen days after notice of this adoption
is published in the Texas Register.
TRD-200100079
Lynda Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: January 5, 2001