Rules Update
As expected, the rules we are waiting for are being held up by a new requirement that new rules not have a negative fiscal impact. TDI says we should see the “Not WC Notice” proposed rule in the next few weeks. Deputy Commissioner Mark Worman confirmed that the proposed life and annuity rules will be coming out soon, but without the substantive changes TALHI members were concerned about. The proposal will only include the reorganization of the life and annuity rules. Stay tuned.

TDI Meeting on Maintenance Tax Rates
The TDI staff met yesterday to release their proposed maintenance tax rates for 2019. The life/health rate will be the same at 0.0040. This is the maximum rate allowed by law. Of interest is the fact that the TDI estimates current revenue required to regulate life/health insurance. This is estimated to be $21,973,809. This includes allocation of actual TDI direct expenses for life/health such as policy form approval, financial analysis, legal, consumer complaints, and indirect allocations for Commissioner, Comptroller, and Attorney General. At the maximum rate, TDI estimates it will collect $18,794,640. This $3,179,169 difference is expressed as a shortfall. Other lines of business such as property/casualty and title make up this difference for funding. The good news is that this shortfall is less than in previous years because of increasing revenues in the life/health line.

One other item of interest for TALHI members is the overhead assessment rates. These rates fund the financial division and are paid by Texas domestic insurers and a foreign insurer if they are subjected to an examination. These rates are projected to increase because TDI did not participate in any examinations of foreign insurers.

The proposed 2019 rates will be published in a formal rule change.

Attached are the following documents:

1. TDI agenda & tax & assessment methodology

2. The proposed maintenance tax and assessment rates for 2019

3. The comparison of maintenance tax & assessment revenues

Races to Watch
Early voting is underway in Texas ahead of the November 6 election. Be sure to keep your eye on these races worth watching.

Job Opening
TAHLI has been contacted by a recruiting firm about a job opening for CEO of a life insurance company in Texas. For more information click here.

Next Member Call
The next member call will take place Thursday, November 1, at 10 am Central (note the change from our usual Wednesday schedule). To call in, dial 1-888-537-7715 and enter code 200-68-174# when prompted. The agenda will be posted on both the website and mobile app prior to the call.

Calendar

November 1, 2018
TALHI Member Call, 10 am

September 23-25, 2019
TALHI Round Up, Horseshoe Bay Resort

Jennifer Cawley
Executive Director
(512) 656-2850 (Mobile)
(512) 472-6886 (Office)