| insurance.
(D) To the extent that the expense provisions differ
from the historical expenses, the filing must provide additional support
for the expense provisions underlying the rates. Provisions for commissions
and brokerage expenses; other acquisition expenses; general expenses;
taxes, licenses, and fees; and profit and contingencies must be displayed
and a sum computed. For filings submitted under Insurance Code Chapter
2251, the expense provisions must exclude disallowed expenses.
(E) When additional expense provisions are included,
such as the net cost of reinsurance or an expense offset from fee
income, the filing must include expected or historical experience.
Support for provisions for the net cost of reinsurance may include
reinsurance premiums, expected reinsurance recoverables, and a description
of reinsurance coverage including attachment points and limits.
(10) Loss cost information for reference filings. This
information consists of the following:
(A) the TDI file number or SERFF tracking number of
the loss costs being referenced;
(B) the derivation of the proposed loss cost multiplier
including any loss cost modification factor and the following expense
and profit provisions:
(i) commissions and brokerage expenses;
(ii) other acquisition expenses, adjusted to remove
disallowed expenses;
(iii) general expenses, adjusted to remove disallowed
expenses;
(iv) taxes, licenses, and fees; and
(v) underwriting profit and contingencies;
(C) supporting documentation for loss cost modification
factors other than 1.00;
(D) the loss cost multiplier to be used as of the effective
date of the filing;
(E) the loss cost multiplier used immediately before
the effective date of the filing; and
(F) the effective rate-level change due to any change
in the loss cost multiplier.
(11) Profit provision information. This information
consists of a description of the methodology, assumptions, and support
for the assumptions used to arrive at the profit provisions underlying
the proposed rates.
(12) A side-by-side comparison. This comparison must
show any differences between the previously filed and the proposed
rates, rating manual, rules, or other supplementary rating information.
(13) A mark-up. This is a copy of the previously filed
rates, rating manuals, rules, or other supplementary rating information
indicating the differences between it and the revised version, with
any new language or factors underlined and the deleted language or
factors in brackets with a strikethrough, or other clearly identified
or highlighted editorial notations referencing the new and replaced
language or factors.
(14) Sample premium impacts by selected ZIP codes.
These are sample premiums and premium changes based on all changes
included in a filing for certain specified policy types and ZIP codes.
(15) Rate filing templates. These are found in the
Filings Made Easy Guide and provide insurers with an optional means
of providing certain supporting information and supplementary rating
information.
(16) Third-party data information. For each third-party
data set, this information consists of the following:
(A) the name of the data vendor or source;
(B) a description of the data, such as a data dictionary,
that includes the name for each data element and the corresponding
definition;
(C) a description of how the data is used in ratemaking
or otherwise used to determine rates or premiums; and
(D) a list of the rating variables that reflect use
of the data.
(17) Third-party model information. For each third-party
model, this information consists of the following:
(A) the name of the model vendor or source;
(B) the model name and version number;
(C) a description of the model;
(D) a description of the model input;
(E) a description of how the model output is used in
ratemaking or otherwise used to determine rates or premiums; and
(F) a list of the rating variables that depend on the
output of the model.
(18) Other information. This includes any other information
required by the Commissioner necessary to determine that the rates
meet the rate standards.
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| Source Note: The provisions of this §5.9332 adopted to be effective November 16, 2014, 39 TexReg 8694; amended to be effective July 28, 2019, 44 TexReg 3640; amended to be effective July 1, 2020, 45 TexReg 3635; amended to be effective January 8, 2024, 49 TexReg 41 |
