On November 24, 1997, Commissioner´s Bulletin No. B-0046-97 was issued by the Texas Department of Insurance announcing effective July 1, 1998, the Insurance Services Office (ISO) would discontinue the use of the Texas Commercial Property Rating Manual (formerly known as the Texas General Basis Schedules) and all rating quotations for specifically rated commercial property risks surveyed by ISO on and after July 1, 1998, would be based on the Specific Commercial Property Evaluation Schedule (SCOPES). Property and Casualty insurers writing commercial property insurance in Texas were advised to reference file the new schedules on or before July 1, 1998.
The aforementioned Commissioner´s Bulletin No. B-0046-97 is superceded by this Commissioner´s Bulletin No. B-0043-98 which sets forth information relating to the implementation of new commercial property rating schedules to be used for determining rates on commercial property risks in Texas.
Based on discussions with many of the major commercial property insurance writers in Texas, it is evident that most insurers cannot transition from the existing Texas commercial rating schedules to the new ISO countrywide commercial property rating schedules by July 1, 1998. In order to allow insurers sufficient time to complete the transition to the new ISO countrywide commercial property rating schedules, the Department is postponing the implementation date of the new schedules until January 1, 1999. This extension should allow most insurers time to reprogram systems to accommodate the new ISO rating schedules and to introduce new policy forms to correspond with the ISO rating schedules.
Effective January 1, 1999, the ISO will discontinue use of the Texas Commercial Property Rating Manual (formerly known as the Texas General Basis Schedules) for calculation Group I (Fire) and Group II (Extended Coverage) specific property insurance loss costs. All rating quotations for specifically rated commercial property risks surveyed by ISO on and after January 1, 1999, will be based on the Specific Commercial Property Evaluation Schedule (SCOPES). In addition, the ISO Class Rating System will be effective January 1, 1999, and the ISO will discontinue providing specific commercial property rates on any commercial property risk eligible for and subject to class rating. Insurers writing commercial property insurance should file to reference the use of the following commercial property rating schedules on or before January 1, 1999:
| Document | ISO Filing Submission Number | TDI Reference Number |
| ISO Class Rating Rules and Revision of Specific Property Rating | CF 94-OCL1 | TDI-96-200-ISO-CLR-MR |
| ISO Classification Table for Division Five Fire and Allied Lines | CF 94-OCT1 | TDI-96-200-ISO-CLR-CT |
| ISO Tentative Rate Endorsement CP 99 93 Fire and Allied Lines |
CF 94-OTRF1 | TDI-96-200-ISO-CLR-PF |
| ISO Class Loss Costs and Revision to Specific Property Rating | CF 94-RLC1 | TDI-96-200-ISO-CLR-PLC |
| ISO Fire Suppression Rating Schedule | CF 94-RFSRS | TDI-96-200-ISO-CLR-FSR |
| ISO Specific Commercial Property Evaluation Schedule (SCOPES) | CF 96-RCFRS | TDI-97-200-ISO-SCOPES-PLC |
| ISO Multistate Group II Causes of Loss Manual Rules | CF 97-R97CD | TDI-98-200-ISO-BGIICD-MR |
| ISO Group II Causes of Loss Loss Costs and Territorial Multipliers |
CF 98-RCDI | TDI-98-200-ISO-BGIICD-LC |
The ISO will continue to provide rating quotations to insurers based on the existing Texas commercial rating schedules until January 1, 1999. Questions regarding the contents of this bulletin, the filing of rating schedules by insurers or the implementation of new commercial property rating schedules should be directed to Richard Baker, Manager, Fire Inspections at 512-322-2259. Reference filings of the new commercial property rating schedules should be accomplished using the applicable TDI filing transmittal form and submitted to the TDI Intake Unit.
Information regarding commercial property rating may also be obtained from the ISO customer service Dallas office at (972) 733-0798.
Alexis Dick
Deputy Commissioner
Inspection Division, MC 103-1A