On August 30, 2001, the Commissioner of Insurance (Commissioner), in accordance with the statutory requirements of Article 5.101, Texas Insurance Code, entered Commissioner's Order No. 01-0828 establishing new benchmark rates for residential property, which is composed of homeowners, tenants, and dwelling fire, extended coverage, additional extended coverage and physical loss form. The Commissioner ordered changes in benchmark rates for the above-listed residential property coverages. The overall residential property rate change is +0.7%. The Commissioner also ordered changes in the rating territory of one county. The changes in benchmark rates by coverage are summarized in the machine letter (see below).
The changes in the benchmark rates ordered by the Commissioner are effective November 1, 2001. For flex rate filings, Article 5.101 of the Texas Insurance Code states that within 30 days of the effective date of the benchmark rates each insurer that proposes to write that line of insurance during the effective period of the benchmark rates shall make a rate filing with the Texas Department of Insurance (Department).
The new rates take effect on the date specified by the insurer, but not later than the 60th day after the date of filing of the rates with the Department. From and after the effective date of the benchmark rates, November 1, 2001, and prior to the effective date of the new filing, the insurer's previously filed rates shall remain in effect unless the insurer makes an additional filing based on the previous benchmark rates for new policies or policies renewing prior to the specified effective date of its new rates.
Please refer to the rating examples for homeowners and dwelling coverages for detailed examples of the rating rules. These examples are intended to illustrate most of the rating rules in the Texas Personal Lines Manual, and as such, do not necessarily represent scenarios that would actually occur.
Also included in the machine letter are references to public protection classification 8B and deletions of outdated rate capping and previous key rate references as adopted in Commissioner's Order No. 01-0815, published in the September 7, 2001, issue of the Texas Register (26 TexReg 6969), with the rates updated in accord with the Commissioner's benchmark rate order. The amendments to the Texas Personal Lines Manual adopted in Commissioner's Order No. 01-0815 are applicable to be effective on and after December 31, 2001, with the rates updated in accord with the Commissioner's Order No. 01-0828.
The revised rates and rating examples (machine letter) are available for downloading at the Department's website: www.tdi.state.tx.us. Look for Commissioner's Bulletin No. B-0037-01 under "Bulletins" in the "Quick Links" drop down box on the website's home page. If you are unable to download the machine letter, a hard copy can be requested by contacting Lisa Garza at 512-475-3017.
All flex filings should be submitted to:
TEXAS DEPARTMENT OF INSURANCE
PROPERTY AND CASUALTY INTAKE UNIT (MC 104-3B)
P.O. BOX 149104
AUSTIN, TX 78714-9104
Questions regarding residential property rate filings should be directed to J'ne Byckovski, Property & Casualty Actuarial Section, 512-305-7527.
Sincerely,
Philip Presley, FCAS, MAAA
Chief Property & Casualty Actuary
Property & Casualty
Attachments:
Texas Personal Lines Machine Letter in Excel or in PDF