There are several dates coming up in the next few months that are critical in the implementation of House Bill 3697, passed during the 76 th Legislature, which amends Insurance Code Article 5.76-5 by adding § 10A. This bulletin serves to remind you of those dates in an effort to have all insurance companies be in compliance with Rule XX of the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance (the Manual).
No later than September 1, 2000, insurance companies are required to send qualifying policyholders their proportionate share of the refunded maintenance tax surcharge received from the Texas Workers' Compensation Insurance Fund (the Fund). The letter adopted as Exhibit B of Rule XX in the Manual must accompany the check to each policyholder.
If an insurance company determines that it has no qualifying policyholders for one or more recoupment periods, then by September 1, 2000, the insurance company shall return that refunded maintenance tax surcharge to the Fund for deposit in the Fund´s surplus.
By January 1, 2001, insurance companies have several reports that are required to be filed with the Texas Department of Insurance (TDI).
- The first report shall contain the list of qualifying policyholders who received payments or notification of a credit through the U. S. Mail. This report shall include:
a. the name and mailing address of each policyholder receiving a check or credit;
b. the amount of that check or credit; and
c. the date the check was sent or re-sent if prior check was returned or the date the credit was given.
2. The second report shall contain the list of qualifying policyholders who were not paid their proportionate share because the amount was less than $25. This report shall include:
a. the name and mailing address of each policyholder, and
b. the amount of the proportionate share.
3. The third report shall contain the list of qualifying policyholders who were due a check but who the insurance company could not locate even after making a diligent effort to do so. This report shall include the name, address and toll-free telephone number of a person at the insurance company who a policyholder may contact to provide a current address to be used for re-sending the check. It shall also include:
a. The named, last known mailing address of the policyholder;
b. The Federal Employer Identification Number (FEIN) of the policyholder; and
c. The amount of the proportionate share due the policyholder.
This information will be provided to the Fund for newspaper publication.
4. The fourth report shall contain the amount, by recoupment period, for which there were no qualifying policyholders.
Please be aware of these upcoming deadlines and take the required action by the date specified in the statute/rule.
Yours very truly,
Nancy Moore
Deputy Commissioner
Workers' Compensation
Mail Code 105-2A