Texas Register, Volume 46, Number 17, Pages 2627-2862, April 23, 2021 Page: 2,694
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(c) Copies of all calculations, work papers, and other data used
in documenting the credit insurance experience must also be main-
tained for no less than five years at the home office of the company
and be available for examination by the Commissioner.
The agency certifies that legal counsel has reviewed the pro-
posal and found it to be within the state agency's legal authority
to adopt.
Filed with the Office of the Secretary of State on April 6, 2021.
TRD-202101431
James Person
General Counsel
Texas Department of Insurance
Earliest possible date of adoption: May 23, 2021
For further information, please call: (512) 676-6584
28 TAC 3.5702
STATUTORY AUTHORITY. TDI proposes the repeal of 3.5702
under Insurance Code 1153.005 and 36.001.
Insurance Code 1153.005 authorizes the Commissioner to
adopt rules to implement Insurance Code Chapter 1153 re-
garding credit life insurance and credit accident and health
insurance.
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.
CROSS-REFERENCE TO STATUTE. The proposed repeal of
3.5702 implements Insurance Code Chapter 1153, which au-
thorizes the Commissioner to adopt rules regarding credit life in-
surance and credit health insurance and to adopt premium pre-
sumptive rates for various classes of business and terms of cov-
erage
3.5702. Instructions for Preparing Forms.
The agency certifies that legal counsel has reviewed the pro-
posal and found it to be within the state agency's legal authority
to adopt.
Filed with the Office of the Secretary of State on April 6, 2021.
TRD-202101432
James Person
General Counsel
Texas Department of Insurance
Earliest possible date of adoption: May 23, 2021
For further information, please call: (512) 676-6584
SUBCHAPTER T. MINIMUM STANDARDS
FOR MEDICARE SUPPLEMENT POLICIES
28 TAC 3.3307
The Texas Department of Insurance (TDI) proposes to amend
28 TAC 3.3307, concerning loss ratio standards and refund or
credit of premiums.
EXPLANATION. The current Medicare Supplement Data Call
rule in 28 TAC 3.3307(f) requires Medicare supplement individ-
ual or group policy issuers to annually submit to TDI their refundor credit calculations on Medicare supplement insurance poli-
cies, 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 subse-
quently 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 would change the requirement to pro-
vide 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 would
no longer be required to annually file their calculations with TDI,
while maintaining TDI's access to that data when needed. Insur-
ers would 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 require-
ment to submit an issuer's refund or credit calculation to TDI by
May 31 each year. The amendments replace this with a require-
ment that issuers retain documentation supporting their refund or
credit calculations for five years and that they provide the infor-
mation to TDI upon request and in the manner prescribed by the
Commissioner. An amendment is also proposed for Figure: 28
TAC 3.3307(f), to remove the final page of the Medicare Sup-
plement 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 con-
sistency with current agency style, TDI proposes to change 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).
FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATE-
MENT. Barbara Snyder, chief actuary of the Life and Health Di-
vision, has determined that during each year of the first five years
the proposed amendments are in effect, there will be no measur-
able fiscal impact on state and local governments as a result of
enforcing or administering the sections, other than that imposed
by the statute. Ms. Snyder made this determination because
the proposed amendments do not add to or decrease state rev-
enues or expenditures, and because local governments are not
involved in enforcing or complying with the proposed amend-
ments.
Ms. Snyder does not anticipate any measurable effect on local
employment or the local economy as a result of this proposal.
PUBLIC BENEFIT AND COST NOTE. For each year of the first
five years the proposed amendments are in effect, Ms. Snyder
expects that administering the proposed amendments will have
the public benefit of conserving agency resources and alleviating
the regulatory burden on companies of aggregating and submit-
ting data to TDI.
Ms. Snyder expects that the proposed amendments will impose
a cost on stakeholders to implement the retention responsibil-
ity for this data. The cost could involve some small data storage
expenses associated with the proposed record retention require-
ment. However, those costs are expected to be minimal and,
overall, they will be offset by companies' savings from no longer
being required to annually aggregate and send TDI data.46 TexReg 2694 April 23, 2021 Texas Register
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Texas. Secretary of State. Texas Register, Volume 46, Number 17, Pages 2627-2862, April 23, 2021, periodical, April 23, 2021; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1330690/m1/68/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.