Regarding Amendments to Article 5.55 of the Texas Insurance Code and changes in rate filing requirements for insurers writing workers' compensation insurance in Texas

Home Bulletins Bulletins for 2005 b-0031-05.html July 22, 2005 To:   ALL INSURANCE COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS RECIPROCALS, ASSOCIATIONS, LLOYDS, OR OTHER INSURERS WRITING WORKERS' COMPENSATION INSURANCE IN THE STATE OF TEXAS AND TO AGENTS AND REPRESENTATIVES AND THE PUBLIC GENERALLY Re:   79th Legislature, Regular Session 2005, Amendments to Article 5.55 of the Texas Insurance Code and changes in rate filing requirements for insurers writing workers' compensation insurance in Texas The purpose of this bulletin is to notify insurers writing workers' compensation insurance policies in Texas of changes to the Texas Insurance Code, enacted by House Bill 7 (HB7), 79th Legislative Session, Regular Session 2005. Beginning September 1, 2005, in order to comply with the changes to Article 5.55, insurers must consider and include information on overall individual risk variations based on loss or expense considerations for each experience year used in the rate filing. Such individual risk variations would include schedule rating and negotiated experience modifications. Also included should be the effect of changes in these overall individual risk variations on premiums. These should be reflected in adjusting premiums to current rate levels. HB7 also established that both rates and premiums established under Article 5.55 may not be excessive, inadequate, or unfairly discriminatory. Although the effective date of the amendments to Article 5.55 is September 1, 2005, insurers will not be required to submit a new filing at this time if there are no changes to the current rate filing on file with the Texas Department of Insurance. However, rate filings submitted with an effective date on and after September 1, 2005, must comply with the new requirements. The department maintains the Filings Made Easy guide to assist insurers in submitting filings and complying with statutory requirements. The changes in law will be reflected in the updated Filings Made Easy guide to be published by August 15, 2005. The guide may be found at http://www.tdi.state.tx.us/company/rspceasy.html Questions regarding this bulletin may be directed to Elizabeth Buhro, at 512-305-6747 or elizabeth.buhro@tdi.state.tx.us. ________________________ Philip Presley, Chief Actuary Property & Casualty Program For more information, contact: ChiefClerk@tdi.texas.gov Last updated: 1/30/2018