Rate and Form Regulation for Property and Casualty Lines

Insurance Lines Affected

This section specifically applies to all personal and commercial lines of insurance. By law, this does not apply to workers' compensation.

Rates and Rating Plans

Insurers develop their own rates and rating plans (including class rating on any risk) subject to certain requirements for reasonableness and adequacy. Rates must be filed with TDI with the required documentation and may then be used immediately, subject to a hearing if TDI, an insured or the public insurance counsel have a problem with the filing. TDI may disapprove the filing and order the insurer to cease using the rates. Until December 1, 2004, personal auto rates are handled under the old benchmark rating law and residential property rates are subject to more restrictive prior-approval rules.

Policy Forms

Policy forms to be used by each insurer must be filed with TDI at least 60 days prior to the proposed effective date. If TDI has not disapproved the filing within 60 days or requested an extension for another 60 days, the insurer may begin using the forms.

These provisions allow companies to file and use upon approval the standard ISO forms or any forms they have developed themselves.

Large Risk Law

Special forms can be used for large risks, as defined:

  • total insured property values of $5 million or more;
  • total annual gross revenues of $10 million or more;
  • total premium of $25,000 or more for property insurance or $25,000 or more for general liability, or $50,000 or more for multi-peril.
The insurer is not required to file these forms for approval.