The Commissioner of Insurance adopts amended 28 TAC §3.3307, concerning loss ratio standards and refund or credit of premiums. The amendments are adopted without changes to the proposed text as published in the April 23, 2021, issue of the Texas Register (46 TexReg 2694). The rule will not be republished.

REASONED JUSTIFICATION. The current Medicare Supplement Data Call rule in 28 TAC §3.3307(f) requires Medicare supplement individual or group policy issuers to annually submit to the Texas Department of Insurance (TDI) their refund or credit calculations on Medicare supplement insurance policies to document the calculations they must make each year in determining any need to refund premiums to policyholders. TDI's Actuarial Data Team currently collects this calculation data; however, there is no further requirement on the team to subsequently use it. This results in a depletion of TDI manpower and resources to create a large repository of frequently unused data.

Amendments to §3.3307 change the requirement to provide the data to TDI to simply provide that issuers keep the data and make it available to TDI upon request. This change will ease this potentially costly burden on issuers, as they will no longer be required to annually file their calculations with TDI, and also maintain TDI's access to that data when needed. Issuers will keep the calculations on file and make them available should the Commissioner need that information to review trends in loss ratio standards and refund or credit of premiums in the interest of consumer protection and market fairness.

The amendments to §3.3307(f) remove the reporting requirement to submit an issuer's refund or credit calculation to TDI by May 31 each year. The amendments replace this with a requirement that issuers retain documentation supporting their refund or credit calculations for five years and that they provide the information to TDI upon request and in the manner prescribed by the Commissioner. An amendment is also adopted for Figure: 28 TAC §3.3307(f) to remove the final page of the Medicare Supplement Refund Calculation Form. This page is used only for reporting data under the section, and it is no longer necessary because issuers will no longer be required to report that data to TDI.

In addition to the previously described amendments, for consistency with current agency style, the adoption order changes the word "percent" to the percent symbol in §3.3307(a)(1) and (2); (c)(1) and (2); and (d)(1)(F), (3), and (4)(B) and (C).

SUMMARY OF COMMENTS. TDI did not receive any comments on the proposed amendments.

STATUTORY AUTHORITY. The Commissioner adopts the amendments to 28 TAC §3.3307 under Insurance Code §1652.103 and §36.001.

Insurance Code §1652.103 provides that the Commissioner may adopt rules that provide for a process for reviewing and approving or disapproving a proposed premium increase relating to a Medicare Supplement Benefit Plan.

Insurance Code §36.001 provides that the Commissioner may adopt any rules necessary and appropriate to implement the powers and duties of TDI under the Insurance Code and other laws of this state.