Texas Department of Insurance Exempt Filing Notification Pursuant to the Insurance Code, Chapter 5, Subchapter 5.96 ADOPTED The Commissioner of Insurance has adopted amendments to Rule IX A. and B., deletion of endorsements WC 00 03 08 Partners, Officers and Others Exclusion Endorsement and WC 00 03 10 Sole Proprietors and Others Coverage Endorsement and addition of endorsements WC 42 03 08 Partners, Officers and Others Exclusion Endorsement and WC 42 03 10 Sole Proprietors and Others Coverage Endorsement of the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance (the Manual). The amendments were proposed in a petition filed by the staff of the Workers' Compensation Division of the Texas Department of Insurance on October 16, 1996. Notice of the proposal (Reference Number W-1096-45-I) was published in the October 22, 1996, issue of the Texas Register (21 TexReg 10442). The amendments were considered at a public hearing held on November 26, 1996, at 9:00 a.m. under Docket Number 2261 in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street in Austin, Texas. The petition was filed to implement the provisions of Subchapter F, Chapter sec.406.097, Labor Code as added by the 74th Legislature in House Bill 1089. Section 406.097, Labor Code provides that a sole proprietor, partner, or corporate executive officer of a business entity that has elected to provide workers' compensation coverage is entitled to benefits under that coverage as an employee unless the sole proprietor, partner or corporate executive officer is specifically excluded from coverage through an endorsement to the policy or certificate of authority to self-insure. In addition, a corporate executive officer(s) of the named insured may be excluded from coverage. Lastly, a sole proprietor or partner of a covered business or a corporate office with an equity ownership in a covered business or a corporate office with an equity ownership in a covered business of at least 25% may be excluded from coverage even though building or construction contracts require the contractor to provide workers' compensation coverage when work is being performed for a government entity. In addition to the changes to Rule IX A. and B., endorsements WC 00 03 08 Partners, Officers and Others Exclusion Endorsement and WC 00 03 10 Sole Proprietors and Others Coverage Endorsement are being deleted and endorsements WC 42 03 08 Partners, Officers and Others Exclusion Endorsement and WC 42 03 10 Sole Proprietors and Others Coverage Endorsement are being added. The Commissioner adopted, with several changes to the proposal as noticed in the Texas Register, the amendments to the rules and endorsements set forth above. Based on written comments on the proposal, the Commissioner adopted changes to Rule IX A. 3. b. to indicate that a corporate executive officer(s) of the named insured with less than 25% equity ownership in the named insured may be excluded from coverage at the insurer's option and to delete the last two sentences of that section. The Commissioner also adopted changes to endorsement WC 42 03 10 as a result of written comments on the proposal. These changes include (1) adding language in the opening paragraph of the endorsement to indicate that an election was made for coverage to be provided for persons that are excluded from coverage by the workers' compensation law and (2) combining Notes 1 and 2 of the endorsement into one Note and add a Note to reflect that the endorsement can be used to provide coverage for employees who are excluded from coverage by law but have elected to be covered. The amendments as adopted by the Commissioner of Insurance are shown in exhibits on file with the Chief Clerk under Reference Number W-1096-45-I, which are incorporated by reference into Commissioner's Order Number 96-1405. The Commissioner has jurisdiction over this matter pursuant to the Insurance Code, Article 5.96. The notification is made pursuant to the Insurance Code, Article 5.96, which exempt action taken under Article 5.96 from the requirements of the Administrative Procedure Act (Government Code, Title 10, Chapter 2001). IT IS THEREFORE, THE ORDER of the Commissioner of Insurance that the amendments to Rule IX A. and B. and deletion of endorsements WC 00 03 08 Partners, Officers and Others Exclusion Endorsement and WC 00 03 10 Sole Proprietors and Others Coverage Endorsement and the addition of endorsement WC 42 03 08 Partners, Officers and Others Exclusion Endorsement and WC 42 03 10 Sole Proprietors and Others Coverage Endorsement of the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance , which are attached and incorporated hereto are hereby adopted to be effective on January 1, 1997. The agency hereby certifies that the adopted amendments have been reviewed by the legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 4, 1996. TRD-9617520 Caroline Scott Assistant General Counsel Texas Department of Insurance Effective date: January 1, 1997 Filed: December 4, 1996 The Commissioner of Insurance has adopted amendments to Section D of the Appendix and Sections III and X of the Texas Experience Rating Plan of the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers Liability Insurance (the Manual). The amendments were proposed in a petition filed by the staff of the Workers' Compensation Division of the Texas Department of Insurance on October 16, 1996. Notice of the proposal (Reference Number W-1096-46-I) was published in the October 22, 1996, issue of the Texas Register (21 TexReg 10443). The amendments were considered at a public hearing held on November 26, 1996, at 9:00 a.m., under Docket Number 2262 in Room 100 of the Texas Department of Insurance Building, 333 Guadelupe Street in Austin, Texas. The petition as noticed, requested the consideration of amendments to the Manual to amend Section D of the Appendix of the Manual to delete the reference to the Department and require insuring companies to automatically file with the designated statistical agent all data required by the Texas Workers' Compensation Statistical Plan in accordance with its provisions. The change to Section III of the Texas Experience Rating Plan of the Manual amends part D. to require experience to be used in the calculation of the experience modifier to be reported to the designated statistical agent. The change to Section X of the Texas Experience Rating Plan of the Manual requires insuring companies to automatically file with the designated statistical agent all data required by the Texas Workers' Compensation Statistical Plan in accordance with its provisions. The amendments as adopted by the Commissioner of Insurance are shown in exhibits on file with the Chief Clerk under Reference Number W-1096-46-I, which are incorporated by reference into Commissioner's Order Number 96-1407. The Commissioner has jurisdiction over this matter pursuant to the Insurance Code, Article 5.96. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Government Code, Chapter 2001 (Administrative Procedure Act). IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the amendment to Section D of the Appendix and Sections III and X of the Texas Experience Rating Plan of the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance, which are attached and incorporated hereto are hereby adopted to be effective on January 1, 1997. The agency hereby certifies that the adopted amendments have been reviewed by the legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 4, 1996. TRD-9617522 Caroline Scott Assistant General Counsel Texas Department of Insurance Effective date: January 1, 1997 Filed: December 4, 1996 The Commissioner of Insurance has adopted amendments to the Texas Workers' Compensation Relativity, Expected Loss Rate and Discount Ratio for Code 8837 - Charitable or Religious Organization - All Operations and Drivers. The amendments were proposed by the staff of the Workers' Compensation Division of the Texas Department of Insurance in a petition filed on October 16, 1996. Notice of the proposal (Reference Number W-1096-47-I) was published in the October 22, 1996, issue of the Texas Register (21 TexReg 10443). The amendments were considered at a public hearing held on November 26, 1996, at 9:00 a.m., under Docket Number 2263 in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street in Austin, Texas. The petition as noticed, requested the consideration of elimination of the revised classification relativity, the revised expected loss rate and discount ratio related to Code 8837, which were adopted by the Commissioner in Commissioner's Order Number 96-1038 dated September 10, 1996. As noted in the staff's petition, under Board Order Number 95621 dated June 2, 1992, Code 8837 was amended from a classification with a promulgated rate or relativity to an "a" rated classification due to the wide variance of work performed by the various charitable and religious organizations being classified under that code. By making Code 8837 an "a" rated classification, the insurance company writing coverage for this classification can use rates reflective of the various activities performed by specific entities classified under this classification. A fixed relativity, expected loss rate and discount ratio for Code 8837 is not proper. The Commissioner has jurisdiction of this matter pursuant to the Insurance Code, Article 5.96. The amendments as adopted by the Commissioner of Insurance are on file with the Chief Clerk under Reference Number W-1096-47-I, which are incorporated by reference into Commissioner's Order Number 96-1406. This notification is made pursuant to the Texas Insurance Code, Article 5.96, which exempts it from the requirements of the Government Code, Chapter 2001 (Administrative Procedure Act). IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the revised workers' compensation relativity, the revised expected loss rate and discount ratio for Code 8837 Charitable or Religious Organization - All Operations & Drivers as adopted by Commissioner's Order Number 96-1038 dated September 10, 1996 are hereby eliminated effective January 1, 1997. The agency hereby certifies that the adopted amendments have been reviewed by the legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 4, 1996. TRD-9617523 Caroline Scott Assistant General Counsel Texas Department of Insurance Effective date: January 1, 1997 Filed: December 4, 1996