On October 25th, TDI held a stakeholder meeting where they released their 2019 proposed maintenance tax rates. The proposed rates are good news for property/casualty insurers:
The auto rate will be decreased by 5.8%
Fire and allied lines decreased by 12.2%
Casualty insurance will be reduced by 25.4%
Workers compensation rates will remain the same, with the exception that WC research/evaluation will be reduced by 37.4%
These proposed rates will be published in the Texas Register on November 9, 2018. There is a 30 day comment period before the amended rules can be adopted. It is anticipated these will be adopted by January 10, 2019.
The overhead assessment rates for the financial division will be increasing. The admitted asset rate increased by 65.8% and the premium receipt increases by 43.3%. It is expected that only Texas domestics will pay this overhead assessment in 2019 because the TDI did not participate in any examinations of foreign companies. The overhead assessment is subject to premium tax credits.
Copies of the hand-out materials made available at the meeting are linked below:
A document showing maintenance tax and assessment revenue. This is the revenue the TDI needs for regulation of the various lines of business and the anticipated revenue that would be raised for each line.
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