Texas Department of Insurance

COMMISSIONER'S BULLETIN #B-0018-09

April 10, 2009

TO: ALL INSURANCE COMPANIES, CORPORATIONS, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS, OR OTHER INSURERS LICENSED TO WRITE FIRE AND ALLIED LINES, MULTIPLE PERIL CROP, FARMOWNERS MULTIPLE PERIL, HOMEOWNERS MULTIPLE PERIL, COMMERCIAL MULTIPLE PERIL, INLAND MARINE, MEDICAL MALPRACTICE, OTHER GENERAL LIABILITY, PRODUCTS LIABILITY, PRIVATE PASSENGER AUTOMOBILE, COMMERCIAL AUTOMOBILE, FIDELITY, AND SURETY IN THE STATE OF TEXAS

RE: 2009 TEXASDISALLOWED EXPENSE CALL FOR CALENDAR YEAR 2008 EXPERIENCE

Pursuant to the authority of Texas Insurance Code §38.001, the Texas Department of Insurance requests all companies writing property, residential, medical malpractice, other general liability, products liability, fidelity, surety, and automobile insurance in Texas to submit information relating to disallowed expenses.

Section 2251.101 of the Insurance Code, prohibits the consideration of certain incurred expenses in the determination of individual company rates for lines of insurance regulated under this article.  This call is designed to provide quantification of such "disallowed" expenses as defined under §2251.002.

Please note:  Section 5.9331(b)(1) of Title 28 of the Texas Administrative Code provides that for filings made in accordance with Chapter 2251 of the Insurance Code, the following are no longer considered disallowed expenses:  payments to advisory organizations licensed to do business in Texas for services authorized by Subchapter B, Chapter 1805 of the Insurance Code for the development of statistical plans, data collection and reporting, the development and distribution of prospective loss costs, supplementary rating information, policy forms and endorsements, research, and the performance of inspections, and other reasonably related activities.

This call must be completed in accordance with the general instructions and returned no later than May 15, 2009.  Underlying data, individual source documents and other information utilized in the development of your call response must be maintained in your records for a minimum of two years following the date of your submission to the department.

Please download the forms, instructions, reporting forms, and affidavit from the Department's website located at: http://www.tdi.state.tx.us/bulletins/2009/documents/B-0018-09-attach.xls

Submissions:

Upon completion, please save the Excel file according to the following standard:

For group filings enter the file name as: GRP# DER2008.xls.  Example:  GRP 1234 DER2008.xls   For non group, single company filings, enter the group number as “0” followed by the five-digit NAIC company number.  Example: GRP 0 12345 DER2008. Please e-mail the Excel file to datacall@tdi.state.tx.us, using the Excel file name as the subject, and fax the signed, notarized (ink-stamp notary seal) affidavit to (512) 463-6122.  If a crimp-style notary seal is used, please send the original affidavit to the address listed below.  If unable to e-mail submission, please send a copy of the Excel file on CD with the signed, notarized original affidavit to the address listed below.  You do not need to submit a hard copy of the report.

Mail:                                                               Courier:

Texas Department of Insurance             Texas Department of Insurance

Attn:  Gary Gola                                               Attn:  Gary Gola

Data Services (MC 105-5D)                            Data Services (MC 105-5D)

P.O. Box 149104                                             333 Guadalupe Street

Austin, TX  78714-9104                                  Austin, Texas  78701

Failure to comply with the requirements of this call within the time limits specified may constitute a violation or violations of the Insurance Code and may subject the insurer to the penalties provided by law.

Questions concerning this call should be directed to the Data Services Division at the Texas Department of Insurance at (512) 475-1878. 

Gary Gola
Property & Casualty, Data Services
Forms and Instructions

For more information contact: PropertyCasualty@tdi.state.tx.us