Commissioner´s Bulletin No. B-0046-97 announced the discontinuance of the use of the Texas Commercial Property Rating Manual (formerly known as the Texas General Basis Schedules or GBS) effective July 1, 1998. Commissioner´s Bulletin No. B-0043-98 (copy attached) postponed the implementation date of the new schedules until January 1, 1999, to allow insurers time to reprogram systems to accommodate the ISO rating schedules and to introduce new corresponding policy forms.
The purpose of this bulletin is to remind insurers that effective January 1, 1999, the Insurance Services Office (ISO) will discontinue use of the Texas Commercial Property Rating Manual (GBS) for calculation of Group I (Fire) and Group II (Extended Coverage) specific property loss costs. All rating quotations for specifically rated commercial property risks surveyed by ISO on or after January 1, 1999, will be based on the Specific Commercial Property Evaluation Schedule (SCOPES). In addition, the ISO Class Rating Schedule will also be effective January 1, 1999, and ISO will discontinue providing specific commercial property rates on commercial property risks eligible for and subject to class rating.
Insurers writing commercial property insurance in Texas must file to reference the use of the ISO schedules as outlined in Commissioner´s Bulletin # B-0043-98, on or before January 1, 1999.
The Department realizes that a few insurers may not be able to meet this effective date. Insurers unable to implement the new schedules must notify the Department to request an extension for implementing the ISO rating schedules. A request for an extension must be received by the Department prior to January 1, 1999. The Department may grant up to a three (3) month extension for the use of the Texas rating system. ISO has agreed to provide a Texas rate converted from the ISO schedules for insurers granted an extension by the Department.
Questions regarding the contents of this bulletin should be directed to Richard Baker, Manager, Commercial Oversight Inspections, at 512-322-2259. Reference filings of the new commercial property rating schedules should be accomplished using the applicable TDI transmittal form and submitted to the TDI Intake Unit.
Requests for extension of the use of the Texas rating schedules should be addressed to:
Ms. Alexis Dick, Deputy Commissioner
Inspections Group
Texas Department of Insurance
P.O. Box 149104 MC 103-1A
Austin, Texas 78714-9104
Information regarding commercial property inspections and new commercial filings may also be obtained from ISO Customer Service Dallas office at (972) 733-0798
Alexis Dick
Deputy Commissioner
Inspections Group, MC 103-1A
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