| (a) This section provides a rate regulatory procedure
for commercial multi-peril policies.
(b) The word "rate," when used in this section, means
the cost of insurance per exposure unit, whether expressed as a single
number or as a prospective loss cost, with an adjustment to account
for the treatment of expenses, profit, and individual insurer variation
in loss experience, including any application of individual risk variations
based on loss or expense considerations.
(c) Rates for commercial multi-peril policies are subject
to the rate regulatory provisions of Insurance Code Chapter 2251,
concerning Rates, except as provided in subsections (d) and (e) of
this section.
(d) For a commercial multi-peril policy described in
this section, Lloyd's plans, reciprocals, and interinsurance exchanges
must file with TDI a schedule of the amounts to be charged policyholders
or applicants and the amounts of any rate changes for all lines of
insurance that are included in the commercial multi-peril policy,
including commercial property and inland marine lines of insurance.
The schedule must include any amount charged, including rates, policy
fees, service fees, and other fees that are charged or collected under
Insurance Code §550.001, concerning Solicitation or Collection
of Certain Payments. Commercial multi-peril policies that contain
lines of insurance other than those specified in subsection (e)(1)
- (6) of this section are subject to the requirements of subsection
(c) of this section.
(e) To receive a reduction in filing requirements under
this section, a commercial multi-peril policy filed by a Lloyd's plan,
reciprocal, or interinsurance exchange may contain some combination
of only the following lines of insurance:
(1) general liability;
(2) commercial property;
(3) commercial casualty, including boiler and machinery,
commercial crime, commercial glass, and professional liability, but
excluding commercial automobile, fidelity, surety and guaranty bonds,
financial guaranty, and workers' compensation;
(4) medical professional liability;
(5) inland marine; and
(6) garage insurance, including all coverages and endorsements
included in the Texas Garage Policy, except for those coverages specifically
rated on the basis of risk characteristics of the automobile or the
person driving.
(f) Nothing in this section may be construed to preclude
the exemptions for Lloyd's plans, reciprocals, and interinsurance
exchanges in Insurance Code §2251.003, concerning Applicability
of Certain Subchapters, from rate filing for commercial property and
inland marine lines of insurance, provided these lines are not included
in a commercial multi-peril policy.
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