Texas Register, Volume 15, Number 94, (Volume 2), Pages 7361-7389, December 18, 1990 Page: 7,372
7361-7389 p. ; 28 cm.View a full description of this periodical.
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companies that declined coverage outside of
the MAP because of the commenter's opinion
that this information should not be maintained
for any statistical purpose. The board's re-
sponse is that this requirement serves two
functions. The first is to verify that the risk has
been unable to secure voluntary coverage.
The second function is to provide information
to the MAP coordinator and staff to prevent
duplication. There is no plan to use the infor-
mation for any other purpose. The
commenter suggested rewarding the last sen-
tence of 5.6611(a) to take into account that
underwriting guidelines are basic rules which
an underwriter must use in conjunction with
the underwriter's evaluation and judgment.
The board agrees and has changed the word-
ing.
The new sections are adopted under the In-
surance Code, Article 5.76-2, 5. 01, which
directs the State Board of Insurance to estab-
lish a voluntary market assistance program
and to adopt rules as necessary to implement
the statute.
5.6601. Definitions. The following words
and terms, when used in 5.6603 and
5.6605-5.6615 of this title (relating to
Processing Fee; Data Collection Responsi-
bilities of the MAP Coordinator; Additional
Responsibilities of the MAP Coordinator,
Types of Statistical Information Main-
tained: Use of Data; Eligibility; Review
Process: Participating Insurers: Confidenti-
ality; Policy Forms and Terms; Request for
Market Search Forms; and Agents) shall
have the following meanings, unless the
context clearly indicates otherwise.
Automated market consultation program-A
screening process using, artificial intelli-
gence software maintained on the auto-
mated system; data contained in the
program includes the risk consideration cri-
teria for participating insurers.
Board-The State Board of Insurance.
Eligible participants-Those risks which
have been unable to secure coverage except
through the Texas Workers' Compensation
Insurance Facility Employers' Rejected
Risk Fund.
MAP-The market assistance program for
workers' compensation insurance mandated
by the Insurance Code, Article 5.76-2,
5.01, and implemented within the Workers'
Compensation Division of the State Board
of Insurance.
MAP coordinator-The person directing the
daily operation of the MAP.
Originating agent-A local recording agent
who does not hold an appointment to repre-
sent the ultimate insurer, as specified by the
Insurance Code, Article 21.14, or a salaried
representative.
Participating insurer-Any insurance com-
pany admitted to o business in Texas and
currently writing workers' compensation in-surance in the voluntary market in Texas.
Request for market search-A form submit-
ted to the MAP containing risk informationfor input into the automated market consul-
tation program.
Risk consideration criteria-Requirements
established by each participating insurer
that are used to determine whether the in-
surer may consider a submitted risk.
TWCIF-Texas Workers' Compensation In-
surance Facility.
55.6603. Application Fee.
(a) MAP operations shall be at least
partially self-supporting. Each submission
to the program shall be accompanied by a
processing fee assessed as follows :
(1) risks developing estimated
annual premiums up to $10,000--$50; and
(2) risks developing annual pre-
miums in excess of $10,000=$100.
(b) Standard premium is defined as
the state premium on the basis of authorized
rates, any experience rating modification,
loss constants, and minimum premiums.
The expense constant shall be excluded
from determination of the standard premi-
um.
(c) The board may adjust the
amount of such fees if the board determines
they are excessive or inadequate.
(d) Fees required by this section
shall be paid by cash, money order, or
check. Money orders and checks shall be
made payable to the State Board of Insur-
ance.
5.6605. Data Collection Responsibilities of
the MAP Coordinator. The MAP coordi-
nator shall have the following duties with
respect to data collection:
(1) maintaining the automated
market consultation program to ensure that
each participating insurer's risk consider-
ation criteria are maintained and updated as
required;
(2) obtaining and maintaining
information on any type of risk experienc-
ing voluntary workers' compensation insur-
ance availability problems and reporting
these problems to the board; and
(3) compiling and reporting in-
formation.
5.6606. Additional Responsibilities of the
MAP Coordinator. The MAP coordinator
shall have the following responsibilities in
relation to the processing of requests for
market search:
(1) receiving, reviewing, pro-
cessing, and maintaining files of requests
for market search submitted to the MAP:
(2) ensuring that risk consider-
ation criteria for all participating insurersare current;
(3) analyzing each request formarket search and maintaining file informa-
tion on the following:
(A) source of each submis-
sion (agent, insured, etc.);
(B) length of time required
for placement;
(C) participating insurers
who accept or decline submitted risks;
(D) limits or modifications in
insurance required for placement (e.g., de-
ductible required);
(E) nature of the risk; and
(F) reasons the risk was un-
able to secure voluntary coverage initially,
including names of companies that de-
clined;
(4) compiling and reporting in-
formation from each submission to assist in
the data collection required by this section
and 5.6607 of this title (relating to Types
of Statistical Information Maintained);
(5) maintaining confidentiality
required under 5.6612 of this title (relating
to Confidentiality); and
(6) answering questions from in-
sureds, insurers, the board, the legislature,
and the general public concerning the oper-
ation of the MAP.
5.6607. Types of Statistical Information
Maintained. Reports containing the fol-
lowing statistical information will be gener-
ated on a monthly, quarterly, and annual
basis for the purpose of maintaining pro-
gram efficiency:
(1) number of requests for mar-
ket search;
(2) number of initial matches
made;
(3) breakdown of matches made
including, but not limited to:
(A) governing class code;
(B) loss ratio;
(C) premium;
(D) geographical location;and
(E) new/existing business;
(F) company:
(4) number of risks written in
the voluntary market as a result of the pro-
gram (listed by company);
(5) number of risks meeting cri-
teria, but declined by company for other15 Te~e 732 Dcme 8 90 TxsRgse
15 TexReg 7372 December 18,
1990 Texas Register
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Texas. Secretary of State. Texas Register, Volume 15, Number 94, (Volume 2), Pages 7361-7389, December 18, 1990, periodical, December 18, 1990; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth201790/m1/16/: accessed May 11, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.