Texas Adopts Revised Workers’ Comp Classification Relativities

March 9, 2016

Texas Insurance Commissioner David Mattax has issued an order adopting revised workers’ compensation classification relativities. The order reduces the overall level of the classification relativities by 10 percent.

A public hearing under Docket No. 2784 was on Dec, 16, 2015, to consider the proposed revisions. TDI received no oral comments at the hearing, and one written comment during the comment period.

The one commentor asserted that the proposed 10 percent reduction was insufficient, and concluded that the loss costs and relativities could easily be reduced by 20 percent.

After considering that suggestion, the commissioner found that TDI staff’s proposed 10 percent reduction to the overall relativities is reasonable, the order states.

Per the commissioner’s order, insurers may use the revised classification relativities immediately. However, the revised classification relativities must be used for all policies with effective dates on or after July 1, 2016, unless the insurer files an alternative classification rate basis.

The order may be found online at: http://www.tdi.texas.gov/orders/index.html.

Source: Texas Department of Insurance

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