Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter A - AUTOMOBILE INSURANCE › Division 4 - LOSS CONTROL INFORMATION FOR COMMERCIAL AUTOMOBILE LIABILITY INSURANCE › Section 5.303 - Evaluation and Inspection of Loss Control Information and Services

Current through Reg. 49, No. 28; July 12, 2024
At least every two years, the State Board of Insurance
						will conduct an evaluation of the loss control information/services of each
						insurer writing commercial automobile liability insurance in Texas.
(1) Location of evaluations. Evaluations will
					 be conducted in Texas at a company home office, division office, regional
					 office, or office closest to Austin, unless otherwise arranged through mutual
					 consent between a representative of the director of loss control regulation for
					 the State Board of Insurance and a representative of the insurer. Companies out
					 of state with no office in Texas will be required to bring necessary files to
					 Austin. The insurer shall bring all account files selected by the director of
					 loss control regulation from all Texas company offices or operating locations
					 to the selected evaluation location. All affiliated companies of an insurer
					 shall be evaluated at the same time and place.
(2) Notification and preparation.
					 Notification and preparation for evaluations shall proceed as contained in
					 subparagraphs (A)-(F) of this paragraph.
(A)
					 Notice of date of evaluation. The director of loss control regulation will
					 notify each company of the proposed date of the company's evaluation a minimum
					 of 60 days in advance of the evaluation.
(B) List of policyholder accounts. At least
					 45 days prior to the date set for the evaluation, the company must provide the
					 director of loss control regulation with a list of policyholder accounts, by
					 premium grouping and servicing location. The list shall be separated by
					 affiliated insurance companies, including the name and policy number of each
					 policyholder, and arranged in order of descending premium.
(C) Notice of accounts to be evaluated. Upon
					 receipt of this list, the director of loss control regulation will select those
					 accounts to be evaluated, notify the company, and specify each account for
					 which an evaluation worksheet must be prepared by the company. Worksheet forms
					 will be provided to the company at the time the accounts to be evaluated are
					 identified.
(D) Information
					 required. The company will have at least 30 days from the time the accounts are
					 selected to complete the worksheets. Information on the worksheet will include
					 the following:
(i) account identification and
					 location;
(ii) estimated annual
					 premium;
(iii) description of
					 operations;
(iv) date of last
					 safety visit, or direct communication (if any);
(v) accident data;
(vi) loss potential of risk;
(vii) information submitted to policyholders
					 for loss control purposes;
(viii)
					 number and type of vehicles;
(ix)
					 number of drivers;
(x) loss ratio;
					 and
(xi) effective date of
					 policy.
(E) Delivery of
					 information to the board. Five working days prior to the inspection, the
					 insurer must deliver the completed worksheets to the Loss Control Regulation
					 Division, State Board of Insurance. Information from account files and other
					 appropriate information and documents shall be made available to the inspectors
					 during the evaluation.
(F) Possible
					 policyholder visit. If considered necessary, the inspector may visit a
					 policyholder to make further evaluation of the loss control information and
					 services provided. If requested by the inspector, a representative of the
					 insurer shall make the necessary notifications and arrangements and shall be
					 afforded the opportunity to accompany the inspector. If the director of loss
					 control regulation for the State Board of Insurance considers it appropriate,
					 the inspector will make the visit without notifying the insurer.