Texas OKs NCCI’s Workers’ Comp Loss Cost Filing Effective July 1

The National Council on Compensation Insurance’s (NCCI’s) advisory loss cost filing for Texas with an effective date of July 1, 2021, has been accepted by state insurance regulators.

The Texas Department of Insurance reported that for all workers’ compensation policies written with an effective date on or after July 1, 2021, insurers should use one of the following rate bases:

For policies with an effective date on or after July 1, 2021, insurers should not base their rates on the NCCI loss costs from July 1, 2020, or any prior year’s loss costs or relativities.

Texas Insurance Code Section 2053.003 requires each insurer to file with TDI all rates, supplementary rating information, and reasonable and pertinent supporting information for risks written in Texas. Insurers’ rate filings should use the most recently available data and information.

Insurers that currently write workers’ compensation insurance and plan to continue writing that coverage on or after July 1, 2021, should submit a rate filing no later than June 1, 2021.

The rate filing must be submitted in SERFF, and should contain the information specified in the attached Summary of Actions Required by Insurers 2021, including the Notice of Carrier Intent and Certification.

An insurer that is not currently writing workers’ compensation insurance but plans to write its first policy with an effective date on or after July 1, 2021, should send its rate filing to TDI at least 30 days before the effective date of its first policy.

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Source: TDI