2002 TEXAS DISALLOWED EXPENSE CALL FOR CALENDAR YEAR 2001 EXPERIENCE

Home Bulletins bullet02 B-0005-02 February 19, 2002 To:   ALL INSURANCE COMPANIES, CORPORATIONS, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS, OR OTHER INSURERS LICENSED TO WRITE FIRE AND ALLIED LINES, HOMEOWNERS MULTIPLE PERIL PRIVATE PASSENGER AUTOMOBILE AND COMMERCIAL AUTOMOBILE IN THE STATE OF TEXAS Re:   2002 TEXAS DISALLOWED EXPENSE CALL FOR CALENDAR YEAR 2001 EXPERIENCE Pursuant to the authority of Texas Insurance Code §38.001, the Texas Department of Insurance requests all companies writing property, residential and automobile insurance in Texas to submit information relating to disallowed expenses on the attached forms. Article 5.101, §3 of the Insurance Code, prohibits the consideration of certain incurred expenses in the determination of benchmark and individual company rates for lines of insurance regulated under the flexible rating program. This call is designed to provide quantification of such "disallowed" expenses on a countrywide basis. This call must be completed in accordance with the instructions and returned no later than April 1, 2002 . 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 after April 1, 2002. Failure to comply with the requirements of this call within the time limits specified shall constitute a violation or violations of the Insurance Code and shall subject the insurer to the penalties provided by law. Questions concerning this call should be directed to Julie Jones at the Texas Department of Insurance at 512-475-3027. Sincerely, Clare Pramuk, Director Data Services Property and Casualty Division Attachments in PDF or WORD For more information, contact: ChiefClerk@tdi.texas.gov