Texas Register, Volume 37, Number 35, Pages 6819-7008, August 31, 2012 Page: 6,941
6819-7008 p. ; 28 cm.View a full description of this periodical.
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EXAS DEPARTMENT
S R AN CE Notification Pursuant to the Insurance Code, Chapter 5,
OF INSURANCE Subehapter L
As required by the Insurance Code, Article 5.96 and 5.97, the Texas Register publishes notice of proposed actions by the
Texas Department of Insurance. Notice of action proposed under Article 5.96 must be published in the Texas Register not
later than the 30t day before the proposal is adopted. Notice of action proposed under Article 5.97 must be published in the
Texas Register not later than the I 0d day before the proposal is adopted. The Administrative Procedure Act, Government
Code, Chapters 2001 and 2002, does not apply to department action under Articles 5.96 and 5.97.
The complete text of the proposal summarized here may be examined in the offices of the Texas Department of Insurance,
333 Guadalupe Street, Austin, Texas 78701.
This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the
Administrative Procedure Act.Texas Department of Insurance
Proposed Action on Rules
EXEMPT FILING NOTIFICATION PURSUANT TO TEXAS IN-
SURANCE CODE CHAPTER 5, SUBCHAPTER L, ARTICLE 5.96
The staff of the Texas Department of Insurance (TDI) filed Petition
No. W-0812-06-I on August 16, 2012. The petition requests that
the commissioner amend Rule IV A. and Appendix B. of the Texas
Basic Manual of Rules, Classifications and Experience Rating Plan
for Workers' Compensation and Employers' Liability Insurance to bet-
ter conform the manual's instructions to the statutory requirements for
workers' compensation classification codes. Staff requests that the pro-
posed amendments be effective 15 days after notice of adoption of the
changes is published in the Texas Register
Article 5.96 and 2053.051 (a)(1) and 2053.053 of the Texas Insurance
Code authorize TDI to file this petition and the commissioner to take
the requested action. Article 5.96 authorizes TDI to prescribe, promul-
gate, adopt, approve, amend, or repeal standard and uniform manual
rules, rating plans, classification plans, statistical plans, and policy and
endorsement forms for various lines of insurance, including workers'
compensation insurance. Section 2053.05 1(a)(1) requires TDI to deter-
mine hazards by class, and 2053.053 states that insurance companies
writing workers' compensation policies may not use hazard classifica-
tions other than the classifications established by TDI. No statute re-
quires TDI to make these classification code assignments.
The proposed amendments to Rule IV A. would clarify that a carrier
may select classification codes to use when issuing a quote or when
issuing a new or renewal workers' compensation policy; and a carrier
may change, add, and delete classification codes on a workers' com-
pensation policy. When selecting, changing, or adding classification
codes for a workers' compensation policy, a carrier may only use clas-
sification codes contained in the manual.
The proposed amendments to Appendix B. 1. would delete the provi-
sion that requires current policies to show the classifications approved
for the expiring policy with payrolls updated to reflect current condi-
tions, as the other proposed amendments make this provision unneces-
sary.
The proposed amendments to Appendix B. 2. would clarify that a car-
rier may change, add, and delete classification codes on a workers'
compensation policy, as long as the carrier uses classification codes
contained in the manual.
The proposed amendments to Appendix B. 3. would delete the provi-
sion that classification codes assigned by an insurance company to apolicy covering an employer who previously was a non-subscriber to
the workers' compensation law may be subject to change by TDI, and
clarify that a carrier may select classification codes to use when issu-
ing a quote or when issuing a new or renewal workers' compensation
policy, as long as the carrier uses classification codes contained in the
manual.
The proposed amendments would delete Appendix B. 4. because TDI
will no longer determine classification codes, and the proposed amend-
ments would renumber Appendix B. 5. to accommodate the other
amendments.
The amendments are necessary to better conform the manual's instruc-
tions to the statutory requirements for workers' compensation classifi-
cation codes. These changes will make the process of changing clas-
sification codes more efficient for insurance companies, because they
will be able to act without having to wait for TDI approval, and more
efficient for TDI, because TDI will not have to use its resources to ap-
prove classification codes.
You may review copies of the staff petition and the proposed exhibits
in the Office of the Chief Clerk of the Texas Department of Insurance,
333 Guadalupe Street, Austin, Texas 78714-9104. For further informa-
tion or to request copies of the petition and proposed exhibits, please
contact Sylvia Gutierrez at ChiefClerk@tdi.state.tx.us, (512) 463-6327
(Reference No. W-0812-06-I).
The commissioner may approve these amendments without a hearing.
If you wish to comment on the petition or request a hearing, please
submit two copies of your comments within 15 days after the publi-
cation of this notice. Send one copy to the Office of the Chief Clerk,
Texas Department of Insurance, Mail Code 113-2A, P.O. Box 149104,
Austin, Texas 78714-9104. Send the other copy to Nancy Moore, Di-
rector, Workers' Compensation Classification and Premium Calcula-
tion Office, Texas Department of Insurance, P.O. Box 149104, Mail
Code 105-2A, Austin, Texas 78714-9104.
TDI publishes this notification pursuant to Article 5.96 of the Texas
Insurance Code, which exempts action taken under this article from the
requirements of the Administrative Procedure Act (Government Code,
Title 10, Chapter 2001).
TRD-201204358
Sara Waitt
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: August 17, 2012EXEMPT FILINGS August 31, 2012 37 TexReg 6941
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Texas. Secretary of State. Texas Register, Volume 37, Number 35, Pages 6819-7008, August 31, 2012, periodical, August 31, 2012; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth253227/m1/121/: accessed April 30, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.