Part 1. TEXAS DEPARTMENT OF INSURANCE
Chapter 13. MISCELLANEOUS INSURERS
Subchapter D. RISK RETENTION GROUPS AND PURCHASING GROUPS
The Commissioner of Insurance adopts amendments to §13.313, concerning the annual registration filing date for purchasing groups. The amendments are adopted without change to the proposal published in the February 22, 2008, issue of the Texas Register (33 TexReg 1485).
REASONED JUSTIFICATION. The adopted amendments to §13.313(c) are necessary to change the current annual registration filing dates for purchasing groups and to establish a single annual registration filing date requirement of on or before July 1 of each year. This change to a single annual registration filing date will standardize the filing requirements in Texas with those of other states. Purchasing group industry representatives requested that the Department consider adopting a single annual registration filing date for all purchasing groups because the majority of states have already done so. In addition, the current requirement, which allows multiple registration filing dates, results in an inefficient use of Department resources; requiring the same annual registration filing date for all purchasing groups will enable the Department to more efficiently utilize its resources.
The amendment to §13.313(c) also requires each purchasing group to file its current information on Form PG1R instead of Form PG1. This change is necessary because Form PG1R specifically requires only information directly relevant to the renewal of a purchasing group's registration, whereas Form PG1 requires all information relevant to the initial registration of a purchasing group. The adopted amendments also amend §13.313(a) and (b) to replace the reference to the State Board of Insurance with a reference to the Commissioner of Insurance. This change is necessary because the State Board of Insurance was abolished effective September 1, 1994, and the Commissioner of Insurance was granted the authority previously granted to the State Board of Insurance, pursuant to Acts 1993, 73rd Legislature, ch. 685, §1.23. The adopted amendments to §13.313(a) and (b) update statutory references in accordance with the nonsubstantive revised Insurance Code. The adopted amendments also delete §13.313(b)(6) which requires the use of Form PG2, a form no longer used because the collection of premium taxes from purchasing groups is a function of the Texas Comptroller of Public Accounts, and not the Department.
HOW THE SECTION WILL FUNCTION. Amended §13.313(c) changes the current annual registration filing dates for purchasing groups and establishes a single annual registration filing date requirement. Amended §13.313(c) requires purchasing groups to file current information on or before July 1 of each year on Form PG1R. Amended §13.313(a) and (b) replace the reference to the State Board of Insurance with the updated reference to the Commissioner of Insurance, replace obsolete statutory references with updated references in accordance with the nonsubstantive revised Insurance Code, and delete §13.313(b)(6) to no longer require the use of obsolete Form PG2.
SUMMARY OF COMMENTS AND AGENCY RESPONSE. The Department did not receive any comments on the proposed amended sections.
STATUTORY AUTHORITY. The amendments are adopted pursuant to the Insurance Code Chapter 2201 and §36.001. Section 2201.008 provides that the Commissioner may adopt rules necessary to carry out Chapter 2201, relating to the regulation of risk retention groups and purchasing groups. Section 36.001 provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on April 22, 2008.
TRD-200802121
Gene C. Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: May 12, 2008
Proposal publication date: February 22, 2008
For further information, please call: (512) 463-6327