The Texas Department of Insurance issues the attached mandatory call to all companies writing property, residential, medical malpractice, other general liability, products liability, fidelity, surety, and automobile insurance in Texas and is designed to collect information relating to disallowed expenses.
Section 2251.052 of the TIC prohibits the consideration of disallowed expenses in the determination of individual company rates for lines of insurance regulated under TIC Chapter 2251. This call is designed to provide quantification of such "disallowed" expenses as defined under §2251.002 of the TIC. Note also that Section 5.9331(b)(1) of Title 28 of the Texas Administrative Code provides that for filings made in accordance with Chapter 2251 of the TIC, the following are no longer considered disallowed expenses: payments to advisory organizations licensed to do business in Texas for services authorized by Subchapter B, Chapter 1805 of the TIC for the development of statistical plans, data collection and reporting, the development and distribution of prospective loss costs, supplementary rating information, policy forms and endorsements, research, and the performance of inspections, and other reasonably related activities.
You must complete and return this call in accordance with the general instructions no later than April 23, 2012. Underlying data, individual source documents and other information utilized in the development of your call response must be maintained in your records for a minimum of two years following the date of your submission to the department.
Reporting instructions, forms, and affidavit can be found on the Department's website at http://www.tdi.texas.gov/bulletins/index.html.
Submissions:
Upon completion of the form, please save the Excel file using the following naming standard:
For group filings enter the file name as: GRP# DER2011.xls. Example: "GRP 1234 DER2011.xls" For individual company filings, enter the group number as "0" followed by the five-digit NAIC company number. Example: "GRP 0 12345 DER2011.xls" Please e-mail the Excel file to datacall@tdi.state.tx.us, using the Excel file name as the subject, and fax the signed, notarized (ink-stamp notary seal) affidavit to 512-463-6122.
Failure to comply with the requirements of this call within the time limits specified may constitute a violation or violations of the Insurance Code and may subject the insurer to the penalties provided by law.
Questions concerning this call should be directed to Data Services at 512-475-1878.
Gary Gola
Regulatory Policy, Property & Casualty, Data Services
Forms and Instructions