On November 15, 2000, the Commissioner of Insurance signed Order 00-1248 adopting amendments to the Texas Automobile Rules and Rating Manual (Manual) to conform the rules to the changes adopted in Commissioner's Order 00-0909 in regard to the Private Passenger Personal Injury Protection (PIP) and Medical Payments (MP) coverages. The amendments to the Manual adopted by Order 00-1248 include amendments to Rule Section IV, Rule 80; Rate Section IV, Rule 77; and Rate Section VII, Rules 120, 123, 129, 132, and 136. Order 00-1248 provides for an effective date to be the later of a) December 16, 2000, or b) the effective date that applies to an insurer's required November 1, 2000 rate filing under the Insurance Code, Article 5.101, Section 3(e), and to be applicable to all policies that become effective on or after such date.
Background: The rating structure for private passenger PIP and MP was changed by Commissioner's Order 00-0909 dated August 10, 2000. Under the previous rating structure, premiums were not individually calculated; instead, they were determined by the placement of an associated Bodily Injury liability premium into one of six ranges. Pursuant to Commissioner's Order No. 00-0909, premiums for PIP / MP are now independently calculated by applying a driver class differential and an increased limits factor to a territorial base rate, an approach similar to that currently used for the Bodily Injury and Property Damage liability coverages. Because several rules in the Manual relied on the previous PIP / MP rating structure, it was necessary to amend those rules to conform to the rating structure implemented by Order 00-0909. The amendments clarify the rating methodology insurers should use when calculating PIP and MP insurance rates for the following vehicle classes: named non-owner; motor homes; all-terrain vehicles; antique, collectible and special interest automobiles; dune buggies; golfmobiles; golf carts; and motorcycles. The amended rules are to be used in conjunction with the new rating system that went into effect with the November 1, 2000 benchmark rates.
The amendments to the Manual rules are available for downloading at the Department's website: www.tdi.state.tx.us. Look for Commissioner's Bulletin No. B-0061-00 under "Bulletins" in the "Latest News" section of TDI's website home page.
If you are unable to download the adopted amendments to these rules, a copy can be requested by contacting Lisa Garza at 512-475-3017 or by email Lisa.Garza@TDI.STATE.TX.US. Questions regarding this Bulletin should be directed to Tammy Rowland, Property and Casualty Actuarial Division, at 512-475-3021, or by email tammy.rowland@tdi.state.tx.us.
Sincerely,
Philip O. Presley
Chief Actuary
Property & Casualty