Commissioner’s Bulletin # B-0024-96

Attention: State Filings Department

RE: "Property and Casualty Filings Made Easy" Manual

The enclosed second edition of the " Property and Casualty Filings Made Easy" manual is provided to all companies for use in preparing and submitting property and casualty rule, rate and form filings.

Although many of the amendments to the manual are editorial in nature, the following changes are of special importance:

Introduction, Filing Transmittal, Section I-Form and Rule Filings, Appendix

• In an effort to provide easier access to the transmittal form a new section "Filing Transmittal" is created which contains all information pertinent to the transmittal form. The filing transmittal form, instructions and affidavit are now included in this section in lieu of the appendix.
• New Item 11 is added on the transmittal form requesting information regarding the status of a filing in other states.
• Wording is added on pages FORMS-1 and RATES-1 to clarify the number of copies required for group filings.
• Item 3 is amended on page FT-2 to emphasize the importance of providing a company filing number.
• "Excess Liability (Excluding Auto)" and "Excess Umbrella" are added to the lines of insurance under Item 6 on page FT-2.
• Text is amended in rule numbers 28 TAC §5.1301-§5.1309 and 28 TAC § 5.9101 pursuant to amendments adopted in March, 1996.
• Information is added relating to Workers' Compensation filings throughout the manual-including the addition of a section for Workers' Compensation and Employers' Liability to Section 1 - Form and Rule Filings.

Section II-Rate Filings

• The tables found on pages RATES-2-5 of the previous edition of this manual are deleted. The same information contained on these pages is now compressed into a single table found on page RATES-3. The new table conveniently lists the various types of filings and the information required for each type. The information required for first time filings and no prior experience filings is now compared with that information required for second and subsequent filings.
• Page RATES-2 in the new edition summarizes the impact of the recent tort reform legislation for Texas insurers. All rate filings effective on or after January 1, 1996, that include the certain liability lines of insurance, will be required to comply with the mandatory filing requirements outlined in Commissioner's Bulletins B-0049-95, B-0053-95 and B-0061-95 in addition to the filing requirements contained in this manual.
• The Filing Affidavit, Exhibit K, found on page RATES-30 of the old manual, is no longer required.
• Numerous improvements are made to Exhibits A-I and the instructions for these exhibits are now found on pages RATES-7-26. Some examples include:

  Instructions for Exhibit A on page RATES-5
  "Calculation and inclusion of the statewide weighted average current and proposed flex percentages are required for each coverage/form and for all coverages/forms combined. All territories and classifications must be included, even if only some of them are being changed. The latest year's direct written premiums should be used as the weighting values. If there are no direct written premiums, use and attach an estimate of the anticipated premium distributed by coverage/form."

  Form for Exhibit B on page RATES-8
  Exhibit B now requests information on percent of the proposed discount as well as the percent of the current discount.

  Instructions for Exhibit E on page RATES-15
  The 110% of Industry Median values by line of insurance are now listed for the years 1993 and 1994.

The Texas Department of Insurance is committed to assisting you in the process of submitting filings. Our staff will make every effort to be responsive to your company's specific questions and concerns. We encourage your comments and recommendations regarding the manual and the filing process. Please direct your comments regarding form and rule filings to:

Any questions or comments regarding rate filings should be directed to:

Marilyn Hamilton, Manager
Commercial Lines
Property & Casualty Insurance Lines