TX Calls For WC And Employers’ Liability Rate Filings For 2010 Public Rate Hearing

Dallas, TX (CompNewsNetwork) - The Texas Department of Insurance calls for workers' compensation rate filings applies to all insurance companies subject to Texas Insurance Code, Chapter 2053 and §2051.002 that write workers' compensation and employers' liability insurance on a direct basis in Texas.  Section 2053.056(a) requires the Commissioner of Insurance (Commissioner) to hold a rate hearing each biennium to review rates to be charged for workers' compensation insurance in this state.  Section 2053.056(b) requires each insurance company subject to Chapter 2053 and §2051.002 to submit its rates, supporting information and supplementary rating information to the Commissioner. 

This call outlines the process by which insurance companies are required to submit the necessary rate filings and supplementary rating information. Rate indications must be included and must be based on other than large deductible data.  Rate indications at the group level are acceptable if the companies in the group normally make rate filings on a group basis.  However, if rate level indications at the group level are provided, actuarial justification for individual company rate level differences within the group must also be provided.   

In addition to the elements typically used to develop rate indications, certain additional data is requested in certain areas.  This additional data is described in Part 3 of the attached document (Additional Data Request). 

If rate indications are being calculated on a group basis, instances where group-level information is being used should be clearly indicated, as should any instances where company-specific information is being used.

If a rate filing that meets the requirements of this call was submitted by a company on or after 04/01/10, and the company wishes to use that filing as its response to this call, a reference to that filing must be provided.  If the filing met some, but not all, of the requirements of this call, the additional material must be provided in addition to the reference to the previously submitted rate filing.  In addition, the referenced filing must have been based on other than large deductible experience through 12/31/09, valued no earlier than 12/31/09. 

Any filing made pursuant to this call is not considered a new rate filing under the Insurance Code §2053.003(b) if the insurer does not propose any change in its existing rate deviations. 

Insurers are reminded that pursuant to §2053.004, rate filings, including any supporting information filed, are open to public inspection as of the date the filing is made. 

Insurance companies authorized to write workers' compensation insurance in Texas that do not currently write workers' compensation insurance should send a letter or e-mail to Elizabeth Buhro indicating this.  

Rate filings are due by 08/02/10, and should be mailed or delivered to the Intake Unit.  Responses through SERFF are also acceptable.

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