TITLE exempt-filings

Texas Department of Insurance

Proposed Action on Rules

EXEMPT FILING NOTIFICATION PURSUANT TO THE INSURANCE CODE CHAPTER 5, SUBCHAPTER L, ARTICLE 5.96 ADOPTION OF NEW AND/OR ADJUSTED 2002 MODEL PRIVATE PASSENGER AUTOMOBILE PHYSICAL DAMAGE RATING SYMBOLS FOR THE TEXAS AUTOMOBILE RULES AND RATING MANUAL

The Commissioner of Insurance, at a public hearing under Docket No. 2510 held at 9:30 a.m., February 12, 2002 in Room 100 of the William P. Hobby Jr. State Office Building, 333 Guadalupe Street in Austin, Texas, adopted amendments proposed by Staff to the Texas Automobile Rules and Rating Manual (the Manual). The amendments consist of new and/or adjusted 2002 model Private Passenger Automobile Physical Damage Rating Symbols and revised identification information. Staff's petition (Ref. No. A-1201-22-I) was published in the December 28, 2001, issue of the Texas Register (26 TexReg 11055).

The new and/or adjusted symbols for the Manual's Symbols and Identification Section reflect data compiled on damageability, repairability, and other relevant loss factors for the 2002 model year of the listed vehicles.

The amendments as adopted by the Commissioner of Insurance are shown in exhibits on file with the Chief Clerk under Ref. No. A-1201-22-I, which are incorporated by reference into Commissioner's Order No. 02-0158.

The Commissioner of Insurance has jurisdiction over this matter pursuant to Insurance Code Articles 5.10, 5.96, 5.98, and 5.101.

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

Consistent with Insurance Code Article 5.96(h), the Department will notify all insurers writing automobile insurance of this adoption by letter summarizing the Commissioner's action.

IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the Manual is amended as described herein, and the amendments are adopted to become effective on the 60th day after publication of the notification of the Commissioner's action in the Texas Register.

TRD-200201124

Lynda Nesenholtz

General Counsel and Chief Clerk

Texas Department of Insurance

Filed: February 22, 2002

Final Action on Rules

EXEMPT FILING NOTIFICATION PURSUANT TO THE INSURANCE CODE, CHAPTER 5, SUBCHAPTER L, ARTICLE 5.96 ADOPTION OF WORKERS' COMPENSATION ENDORSMENT: TEXAS - AUDIT PREMIUM AND RETROSPECTIVE PREMIUM ENDORSEMENT WC 42 04 07

The Commissioner of Insurance adopted Texas - Audit Premium and Retrospective Premium Endorsement WC 42 04 07 to be added to the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance (the Manual). The staff of the Workers' Compensation Division of the Texas Department of Insurance proposed the endorsement in a petition filed on December 14, 2001. Notice of the proposal (Reference No. W-1201-23-1) was published in the December 28, 2001, issue of the Texas Register (26 TexReg 11055). The adoption of the endorsement was considered at a public hearing held under Docket No. 2511 on February 12, 2002 at 9:30 a.m. in Room 100 of the William P. Hobby Building, 333 Guadalupe Street in Austin, Texas.

The purpose of the endorsement being added to the Manual is to establish a due date for audit premiums and retrospective premiums pursuant to the National Association of Insurance Commissioners (NAIC) Statement of Statutory Accounting Principles (SSAP) No. 6. According to SSAP No. 6, the policy or contract provisions governing the audit premiums and retrospective premiums must address the due date for these types of premium if the uncollected premium (either accrued or billed) is to be considered an admitted asset by the insurance company.

The staff recommended two nonsubstantive changes to the endorsement filed with its petition on December 14, 2001. The proposed endorsement was entitled "Texas - Audit Additional Premium and Retrospective Additional Premium Endorsement." The staff recommended changing name of the endorsement by eliminating the word "additional" both times it is used in the title of the endorsement. Staff recommended this change so that the title of the endorsement would conform to the language of SSAP No. 6. With this change, the name of the endorsement is "Texas - Audit Premium and Retrospective Premium Endorsement." In addition, staff recommended that the typographical error in the first line of the endorsement be corrected to change the "of" to "or."

The endorsement as adopted by the Commissioner of Insurance is on file with the Chief Clerk under Reference No. W-1201-23-I, which is incorporated by reference in Commissioner's Order No. 02-0175.

The Commissioner has jurisdiction over this matter pursuant to the Insurance Code, Articles 5.56, 5.57 and 5.96.

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 the Texas - Audit Premium and Retrospective Premium Endorsement WC 42 04 07 be added to the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance, which is attached and incorporated hereto is hereby adopted to be effective fifteen days after notice of this adoption is published in the Texas Register .

TRD-200201198

Lynda Nesenholtz

General Counsel and Chief Clerk

Texas Department of Insurance

Filed: February 26, 2002