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Tex. Ins. Code § 2053.054

USE OF INCURRED CLAIMS EXPERIENCE IN FUTURE RATINGS REQUIRED

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff

(a) Regardless of a change in a policyholder's ownership, control, management, or operations, incurred claims experience must be used in future ratings to ensure that an employer does not evade an unfavorable or high-cost experience.

(b) On application by an affected party, the department may modify a rating under Subsection (a) on proof that a change in a policyholder's management or operations is clearly designed to result in a probable reduction of the insured's loss experience.

(c) The commissioner shall adopt rules necessary to implement this section.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.