TEXAS DEPARTMENT OF INSURANCE
Notification Pursuant to the Insurance Code, Chapter 5, Subchapter L
As required by the Insurance Code, Article 5.96 and 5.97, the Texas Register 
publishes notice of proposed actions by the Texas Board of Insurance. Notice of 
action proposed under Article 5.96 must be published in the Texas Register not 
later than the 30th day before the board adopts the proposal. Notice of action 
proposed under Article 5.97 must be published in the Texas Register not later 
than the 10th day before the Board of Insurance adopts the proposal. The 
Administrative Procedure Act, the Government Code, Chapters 2001 and 2002, does 
not apply to board action under Articles 5.96 and 5.97.
The complete text of the proposal summarized here may be examined in the offices 
of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas 78714-
9104.)
This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure Act.

Texas Department of Insurance
Adopted Action
The Commissioner of Insurance has adopted the revised Texas Workers' 
Compensation Classification Relativities (Classification Relativities) and the 
revised table to amend the Texas Basic Manual of Rules, Classifications, and 
Experience Rating Plan for Workers' Compensation and Employers' Liability 
Insurance (Manual). The revised Classification Relativities replace those 
adopted in Commissioner's Order No. 96-1038. The revised table concerns the 
Expected Loss Rates and Discount Ratios used in experience rating. The revisions 
were proposed by the Texas Department of Insurance staff (TDI staff) in a 
petition filed on July 2, 1998. Notice of the proposal (Reference No. W-0798-17-
I) was published in the July 17, 1998 issue of the Texas Register (23 TexReg 
7446). The revisions were considered at a public hearing under Docket No. 2372, 
held on August 18, 1998 at 9:00 a.m. in Room 100 of the Texas Department of 
Insurance Building, 333 Guadalupe Street in Austin, Texas. 
No comments to the revisions were received. 
The Commissioner adopted the revised Classification Relativities and the revised 
Expected Loss Rates and Discount Ratios without changes to the proposal as 
noticed in the Texas Register. 
The Commissioner has determined that the revisions to the Classification 
Relativities and the revisions to the Expected Loss Rates and Discount Ratios 
contained in the Manual are necessary to more accurately reflect the changes in 
experience due to enactment of legislation as well as the changes that occur 
with the passage of time due to occurrences such as technological advances and 
improvement in safety programs. The Commissioner has also determined that the 
TDI staff should review, and revise if necessary, the Classification 
Relativities and the Expected Loss Rates and Discount Ratios on an annual basis 
to ensure that they reflect the experience in Texas as accurately as possible. 
The Commissioner has jurisdiction of this matter pursuant to Articles 5.60 and 
5.96 of the Texas Insurance Code. 
The revised Classification Relativities and the revised Expected Loss Rates and 
Discount Ratios are on file in the Chief Clerk's Office of the Texas Department 
of Insurance under Reference No. W-0798-17-I and are incorporated by reference 
into Commissioner's Order No. 98-0998. 
This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts action taken under Article 5.96 from the requirements of the 
Administrative Procedure Act (Government Code, Title 10, Ch. 2001). 
Consistent with the 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. 
This agency hereby certifies that the adopted revised Classification 
Relativities and the revised Expected Loss Rates and Discount Ratios contained 
in the Manual have been reviewed by legal counsel and found to be a valid 
exercise of the agency's legal authority. 
TRD-9813726
Lynda H. Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: January 1, 1999
Proposed Action publication date: July 17, 1998
Filed: August 28, 1998