General Expense Information: 110% of Industry Median

Home Bulletins 2001 B-0018-01 April 30, 2001 To:   TO ALL INSURANCE COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS OR OTHER INSURERS WRITING AUTOMOBILE INSURANCE AND ALL INSURANCE COMPANIES, CORPORATIONS, MUTUALS, ASSOCIATIONS, OR OTHER INSURERS WRITING RESIDENTIAL PROPERTY INSURANCE IN THE STATE OF TEXAS Re:   General Expense Information: 110% of Industry Median The Texas Insurance Code, Article 5.101 Section 3(o)(1) prohibits the use in rate calculations of certain administrative expenses that exceed 110% of the industry median. The following information is published for use by all companies writing Residential Property, Private Passenger Automobile, or Commercial Automobile Insurance subject to Article 5.101. The information concerning the industry median should be reflected in any rate indications utilizing 1998 or 1999 expense data. 110% of Industry Median Line 1998 1999 Fire 7.8 7.7 Allied Lines 6.3 6.7 Homeowners 5.6 5.7 Private Passenger Automobile Liability 5.9 4.8 Physical Damage 4.4 4.1 Commercial Automobile Liability 6.8 6.6 Physical Damage 6.7 7.1 Note: Each line of insurance that a company writes in Texas is counted separately in determining the median. Questions regarding this bulletin should be directed to Tammy Rowland, Property and Casualty Actuarial Section, 512-475-3021. Sincerely, Philip O. Presley Chief Actuary Property & Casualty For more information, contact: ChiefClerk@tdi.texas.gov