On August 21, 1997, the Commissioner of Insurance, in accordance with the statutory requirement of Article 5.101, Texas Insurance Code, ordered changes in benchmark rates for the above-listed residential property coverages. The changes in benchmark rates by coverage were summarized in a "machine letter" dated December 15, 1997.
A mistake was found in the machine letter dated December 15, 1997. Dwelling-Table A (1-Yr Base Fire Rates, page 34) was incorrect. Enclosed for your use is the revised Dwelling-Table A with the corrected base fire rates. Please make the appropriate changes in your dwelling fire base rates.
The changes in the benchmark rates ordered by the Commissioner are still effective February 1, 1998. For flex rate filings, Article 5.101 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.
The new rates take effect on the date specified by the insurer, but not later than the 60th day after the date of filing of the rates with the Department. From and after the effective date of the benchmark, February 1, 1998, and prior to the new filing, the insurer's previously filed rates shall remain in effect. Any policy effective on or after the effective date of the new flex rate filing must be written using the new rates.
All flex filings should be submitted to:
TEXAS DEPARTMENT OF INSURANCE
PROPERTY AND CASUALTY INTAKE UNIT (MC 104-3B)
P.O. BOX 149104
AUSTIN, TX 78714-9104
We apologize for any inconvenience this revision may cause.
Questions regarding residential property rate filings should be directed to Charles Lowe, Property & Casualty Actuarial Section, 512-475-3019, or to Christi Wooley, Property & Casualty Actuarial Section, 512-475-3016.
Sincerely,
Philip Presley, FCAS, MAAA
Chief Property & Casualty Actuary
Technical Analysis Division