2003 TEXAS DISALLOWED EXPENSE CALL FOR CALENDAR YEAR 2002 EXPERIENCE

Home Bulletins 2003 Bulletins B-0008-03 March 3, 2003 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:   2003 TEXAS DISALLOWED EXPENSE CALL FOR CALENDAR YEAR 2002 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. 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 15, 2003. 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 15, 2003. The forms, instructions, transmittal form, and affidavit should be downloaded from the Department's website located at www.tdi.state.tx.us. Click on the Popular Links drop down box, choose Data Calls, and scan down to Disallowed Expense Forms (the exact address is www.tdi.state.tx.us/company/indexpc.html#datacalls_ind). If you do not have internet access or are unable to download the forms, please contact Michael Davis at 512-322-5029 and the forms may be mailed, faxed, or e-mailed. 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 Michael Davis at the Texas Department of Insurance at 512-322-5029. Sincerely, Clare Pramuk Director, Data Services Property and Casualty Division Attachments in PDF or WORD For more information, contact: ChiefClerk@tdi.texas.gov