Texas Department of Insurancewww.tdi.state.tx.us - Consumer Helpline 1-800-252-3439
COMMISSIONER'S BULLETIN NO. B-0087-98December 22 1998 TO: ALL INSURANCE COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS OR OTHER INSURERS WRITING AUTOMOBILE INSURANCE IN THE STATE OF TEXAS TEXAS PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE BENCHMARK RATES AND FLEXIBILITY BANDS On December 8, 1998, the Insurance Commissioner, in accordance with the statutory requirement of Article 5.101 of the Texas Insurance Code, made the following determinations as they relate to benchmark rates for voluntary private passenger and commercial automobile rates. The Commissioner ordered changes in benchmark rates for voluntary private passenger automobile insurance. The overall change for private passenger automobile insurance was -5.5%. The Commissioner ordered no change to the commercial automobile benchmark rates. The changes in the private passenger automobile benchmark rates by coverage are summarized in the attached machine letter and rate bulletin. The changes in the benchmark rates ordered by the Commissioner are effective at 12:01 a.m. on February 15, 1999. For flex rate filings, Article 5.101, ' 3(e) of the Texas Insurance Code states that within 30 days of the effective date of the benchmark rates each insurer that proposes to write that line of insurance during the effective period of the benchmark rates shall make a rate filing with the Texas Department of Insurance. This rate filing is still required for commercial automobile, even though the commercial automobile benchmark rates are not changing. The new rates take effect on the date specified by the insurer, but not later than the 60th day after the date of filing the rates with the Department. For policies effective on or after the effective date of the benchmark, February 15, 1999, and prior to the effective date of the new flex rate filing, the insurer's previously filed rates based on the January 20, 1998 benchmark rates shall apply. Any policy effective on or after the effective date of the new flex rate filing must be written using the new rates. Enclosed for your use are revised rates, premiums, rating factors and instructions (called the "machine letter") for companies utilizing EDP equipment to generate February 15, 1999 voluntary private passenger benchmark rates. Also enclosed for your use are the new voluntary private passenger rate tables (called the "rate bulletin"), similar in format to those that will soon appear in the Texas Automobile Rules and Rating Manual. A machine letter and rate bulletin is not attached for commercial automobile, because the commercial auto rates effective February 15, 1999 are the same as those effective January 20, 1998. The attached private passenger auto machine letter and rate bulletin include rates for risks written in the voluntary market only. The assigned risk rates, effective April 1, 1998 for private passenger auto and March 1, 1998 for commercial auto, remain in effect until revised by a subsequent Commissioner's Order. The bodily injury liability rates in the attached machine letter and rate bulletin reflect the temporary mandatory rate reductions due to tort reform. The rate reduction factors to be used in completing TDI Form TR-1-R that must accompany your flex rate filings are as follows:
All flex rate filings should be submitted to:
Questions regarding private passenger and commercial automobile rate filings should be directed to the Property and Casualty Actuarial Section at (512) 475-3017. Sincerely, Philip O. Presley Download 2/15/98 Private Passenger Auto Machine Letter (Voluntary Only) in PDF or in EXCEL For further information, contact: ChiefClerk@tdi.state.tx.us |
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