JERSEY CITY, N.J., Sept. 10, 2003 — A new law signed by Governor Rick Perry changes the way Texas regulates insurance and clears the way for Insurance Services Office, Inc. (ISO) to provide advisory information services to insurers for four lines of insurance — commercial auto, personal auto, homeowners and dwelling fire. The legislation also establishes new rate filing standards and procedures for these four lines.
ISO's latest advisory services for these four lines in the Texas insurance market include:
Until the new law was signed on June 11, 2003, Texas prohibited insurers from using advisory organizations' loss costs information on personal auto, homeowners and dwelling fire. The law also restricted the rates, rules and policy forms insurers could use in the regulated market for homeowners, dwelling, personal auto and commercial auto insurance.
Under the new law, which brings the Texas insurance market in line with the rest of the country, advisory organizations will be able to provide insurers the full portfolio of multistate products, including loss costs, rules and policy forms for these lines of insurance. The legislative change also enables insurers to use their multistate programs more easily in Texas.
"The new legislation streamlines the way insurers do business in Texas," said Kevin B. Thompson, ISO senior vice president. "Instead of maintaining a separate Texas-specific company program, insurers can now use the ISO multistate program, making their in-state operations easier and more efficient," he added.
ISO had previously filed and received approval for its homeowners and commercial auto insurance policy forms from the Texas Department of Insurance (TDI). ISO will file to remove various state exceptions to the commercial auto forms to bring them in line with the multistate program. ISO also will file its multistate dwelling and personal auto forms with the TDI as well as loss costs and rating rules for all four lines.
ISO will host two half-day seminars in October to review the impact of the new legislation on the Texas insurance market. The first, on October 1, is at the Courtyard By Marriott near The Galleria in Houston. The October 2 event is at the Crowne Plaza Hotel — North Dallas Addison. The seminars are complimentary but require advance registration, which closes on September 26.
ISO is a leading source of information, products and services related to property and liability risk. For a broad spectrum of commercial and personal lines of insurance, ISO provides data, analytical and decision-support products; consulting; data processing; and technical, statistical and actuarial services. ISO field services include on-site rating and underwriting services and the evaluation of community loss-mitigation efforts. ISO's products help customers with sales and prospecting, underwriting, rating and quoting, customer management, policy administration, product development, claims administration and fraud detection. ISO's AIR Worldwide subsidiary provides technologies to assess and manage natural and man-made extreme-event risk. Through its ISO Claims Services, Inc. (iiX unit) and Intellicorp subsidiaries, ISO provides motor vehicle reports and criminal-records information and through its AscendantOne unit delivers rating, quoting and policy-administration solutions. In the United States and around the world, ISO serves insurers, reinsurers, agents, brokers, self-insureds, risk managers, insurance regulators and other government agencies.