On September 8, 2000, the Commissioner of Insurance, in accordance with the statutory requirements of Article 21.81, Texas Insurance Code, ordered changes in rates for private passenger and commercial automobile insurance obtained through the Texas Automobile Insurance Plan Association (TAIPA) - the assigned risk plan. The commissioner ordered private passenger TAIPA rates for bodily injury liability coverage to be 87.4% above the voluntary benchmark rates and property damage liability coverage to be 24.4% above the voluntary benchmark rates. The Commissioner also changed rates for private passenger personal injury protection to 206.8% above benchmark, UM bodily injury to 242.5% above benchmark, and UM property damage to 196.1% above benchmark. The overall rate change was -6.1%. The voluntary market commercial automobile benchmark rates will apply to such vehicles written through TAIPA.
The changes in the TAIPA rates ordered by the Commissioner are effective for all policies effective on and after December 1, 2000.
The revised rates, premiums, rating factors and instructions (called the "machine letters") for companies utilizing EDP equipment to generate December 1, 2000 involuntary private passenger and commercial rates are available for downloading at the Department's website: www.tdi.state.tx.us. Look for Commissioner's Bulletin No. B-0052-00) under "Bulletins" in the "Latest News" section of TDI's website home page. Also available for downloading are the new involuntary private passenger and commercial rate tables (called the "rate bulletins"), similar in format to those that will soon appear in the Texas Automobile Rules and Rating Manual. These are available in Excel and PDF formats. Please note that the voluntary rates included on these pages are the same as were previously released with Bulletin B-0046-00 "Private Passenger and Commercial Automobile Benchmark Rates and Flexibility Bands (Machine Letters and Rate Bulletins)." The assigned risk rates were simply added to the pages previously distributed.
In addition to the new TAIPA rates, additional revisions to the voluntary commercial auto machine letter and rate bulletin that were released with Bulletin B-0046-00 dated August 10, 2000 have been made. The revisions made are as follows:
1. Pages 1, 2 and 6 of the Commercial Auto Rate Bulletin have been replaced with the revised pages 1, 2 and 6. The Combined Liability Increased Limits Factors have been corrected to be consistent with the Machine Letter.
2. Pages 11, 13 and 17 of the Commercial Auto Machine Letter have been replaced with the revised pages 11, 13 and 17. The Combined Liability Increased Limits Factors have been corrected to be consistent with the Rate Bulletin.
If you are unable to download the machine letters and rate bulletins, a hard copy can be requested. Contact Lisa Garza at 512-475-3017.
Other questions regarding private passenger or commercial automobile should be directed to Tammy Rowland, Property and Casualty Actuarial Section, 512-475-3021.
We apologize for any inconvenience these revisions may cause.
Sincerely,
Philip O. Presley
Chief Actuary
Property & Casualty
Available for downloading:
TAIPA pages:
Private Passenger Auto Rate Bulletin in EXCEL or PDF
Private Passenger Auto Machine Letter in EXCEL or PDF
Commercial Auto Rate Bulletin in EXCEL or PDF
Revisions to Bulletin B-0046
Commercial Auto Rate Bulletin in EXCEL or PDF
Commercial Auto Machine Letter in EXCEL or PDF