This bulletin announces the 1998 call for information and summarizes the changes in this year's reporting requirements. The acknowledgment of receipt form included with this letter should be returned to and received by the Texas Department of Insurance (TDI) no later than June 10, 1998. The original, completed report forms must be submitted to:
Mail
The Texas Department of Insurance
Data Services MC 105-5D
ATTN.: Betty Flores
P.O. Box 149096
Austin, TX 78714-9096
Courier
The Texas Department of Insurance
Data Services MC 105-5D
ATTN.: Betty Flores
333 Guadalupe Street
Austin, TX 78701
If you would like an electronic copy of the call, an Excel copy (Click here to download forms - "excel_f.zip" 403 KB) is available on our Web page to download. Our address is www.tdi.state.tx.us. You may also call and request a copy be sent to you. If you use the electronic version, please submit your data both electronically and in printed copy.
1. Title Company Call for Experience
Pursuant to the authority of Article 9.07(b) of the Texas Insurance Code (TIC), the department requires all insurance companies writing title insurance in Texas to submit information relating to title insurance experience. The following reports must reflect your Texas experience for calendar year ended December 31, 1997.
Form 1 Texas Title Insurance Income Exhibit
Form 2 Texas Title Insurance Expense Exhibit
Form 3 Determination of Net Addition to Unearned Premium Reserve
Form 4 Analysis of Income Items Reported as Service Charges and Miscellaneous Income
Form 5 Loss Development Exhibit
Form 6 Loss Adjustment Expense Development Exhibit
Form 7 Designation of Affiliated Agencies
Form 8 Designation of Direct Operations
Form 9 Premium and Loss By Amount of Liability Report
Schedule S-1 Transaction Report
Schedule S-2 Reconciliation Report
Schedule S-3 Liability Distribution Report
Schedule S-4 Endorsement Report
Schedule S-5 Special Charges and Credits Report
Schedule S-6 Co-Insurance Report
ALTA Uniform Financial Reporting Plan Income Statement Summary
ALTA Uniform Financial Reporting Plan Balance Sheet Summary
Aggregate Form A
Affidavit
Instructions for completing Forms 1, 2, 5, 6, and 9 are included. Forms 3, 4, 7, and 8 are self explanatory. Please refer to your copy of the Texas Title Insurance Statistical Plan for instructions on completing Schedules S-1 through S-6. The experience reported on these Schedules is to be prepared on a "direct basis". That is, in reporting premiums and losses, data on reinsurance assumed is to be excluded and no deduction is to be made for reinsurance ceded. Companies must utilize only the statistical codes contained in the Texas Title Insurance Statistical Plan. In addition, Income Statement and Balance Sheet Summaries are included. These summaries are to be completed by following the instructions of the American Land Title Association Uniform Financial Reporting Plan. An instruction sheet is also included.
Please submit your title insurance experience according to the instructions provided. No alterations of the exhibits will be permitted. Should it become necessary to explain any of the items reported, please do so in a separate attachment. Enter the name of the company reporting in the space provided on each form.
2. Summary of Changes
TDI made a few changes to the title agents' statistical report which transfer to the company call on Form 2. Aggregate Form A reflects the changes relevant to the agents call. We have used a "¨" symbol and underlining to identify revisions. Please note the following changes:
· The definition of an affiliated agency has changed. The new definition is:
"A title agency is an affiliated agency if 10% or more of its ownership is held by a title underwriter or if it is a member of a holding company structure that includes an underwriter." See Texas Insurance Code, Article 21.49-1, Section 2.
· Advertising expense item (Form A, line B-8) now includes promotions, entertainment and meal expenses
· Employee travel expense item (Form A, line B-9) now includes lodging and education expenses
· Agent/Underwriter split is 82.25%:17.75%
Statistical reports must be postmarked by July 13, 1998. Failure to meet this deadline and/or to provide accurate data may result in the imposition of sanctions by the Department.
Questions concerning this Call should be directed to Betty Flores at 512-475-1877 or Michael Davis at 512-322-5029
Sincerely,
Clare Pramuk
Data Services Director
Mail Code 105-5D