Revised workers' compensation classification relativities – instructions on making rate filings

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Bulletins

2019

B-0001-19

April 26, 2019

To:

All insurers writing workers' compensation and employers' liability insurance in Texas

Re:

Revised workers' compensation classification relativities – instructions on making rate filings

Commissioner's Order No.

2019-5949

, dated April 26, 2019, adopted revised Texas workers' compensation classification relativities. The order decreased the classification relativities by an average of 15 percent overall from the July 1, 2018, level. The change for any given classification is between -36.3 percent and 6.3 percent.

For workers' compensation policies with effective dates on or after July 1, 2019, the order requires each workers' compensation insurer to use the revised classification relativities unless the insurer files one of the following alternative classification rate bases:

An insurer's own independent insurer-specific classification relativities.

The National Council on Compensation Insurance (NCCI) loss costs effective on July 1, 2019.

Insurers may not use any prior years' relativities or loss costs as the basis of their rates for policies with an effective date on or after July 1, 2019.

Actions Required of Insurers

Insurance Code Section 2053.003 requires each insurer to file with TDI all rates, supplementary rating information, and reasonable and pertinent supporting information for risks written in this state.

Insurers currently writing workers' compensation insurance that plan to continue writing that coverage on or after July 1, 2019, must submit a rate filing no later than June 1, 2019. The rate filing must contain the information specified in the attached "Summary of Actions Required by Insurers 2019."

Insurers' rate filings should use the most recently available data and information

in this state.

Insurers currently writing workers' compensation insurance that plan to continue writing that coverage on or after July 1, 2019, must submit a rate filing no later than June 1, 2019. The rate filing must contain the information specified in the attached "Summary of Actions Required by Insurers 2019."

Insurers' rate filings should use the most recently available data and information. An insurer that is not currently writing workers' compensation insurance but plans to write its first policy with an effective date on or after July 1, 2019, must send its rate filing to TDI at least 30 days before the effective date of its first policy.

Filing Forms and Exhibits

The

Property and Casualty Filings Made Easy Guide,

which is available on the TDI website at

www.tdi.texas.gov/pubs/pc/rspceasy.html

,

is an aid for making rate filings in Texas. Insurers may provide the required information using the current versions of the exhibits in the

Filings Made Easy Guide

, or their own exhibits and formats.

Property and casualty insurers must comply with the filing requirements in Title 28, Texas Administrative Code, Part 1, Chapter 5, Subchapter M, Division 6. Section 5.9934 addresses the requirements for each rate filing submission. Each of these requirements (along with other categories of information that may be requested) is described in detail in Section 5.9332 (Categories of Supporting Information).

This bulletin and attachments are located on TDI's website at

www.tdi.texas.gov/bulletins/index.html

.

Where to Send Filings

Submit filings by SERFF. You may also mail or deliver filings to Property and Casualty Filings Intake at the appropriate address:

Mail to:

Deliver to:

Texas Department of Insurance

Property and Casualty Filings Intake

MC 104-3B

P.O

332 (Categories of Supporting Information).

This bulletin and attachments are located on TDI's website at

www.tdi.texas.gov/bulletins/index.html

.

Where to Send Filings

Submit filings by SERFF. You may also mail or deliver filings to Property and Casualty Filings Intake at the appropriate address:

Mail to:

Deliver to:

Texas Department of Insurance

Property and Casualty Filings Intake

MC 104-3B

P.O. Box 149104

Austin, TX 78714-9104

Texas Department of Insurance

Property and Casualty Filings Intake

(MC 104-3B), Tower 1, Room 103

333 Guadalupe Street

Austin, TX 78701

TDI Contact

For more information, please contact Nicole Elliott in the Property and Casualty Actuarial Office by phone at 512-676-6700 or by email at

pcactuarial@tdi.texas.gov

.

Attachments

Summary of Actions Required by Insurers 2019

Notice of Carrier Intent and Certification

Exhibit A: Revised Classification Relativities

For more information, contact:

PropertyCasualty@tdi.texas.gov

Last updated:

7/25/2019