Texas Insurance Codes 5.60
From Wcc
§ 5.60 Rating
| (a) For workers' compensation insurance, the Board shall determine hazards by classes and fix classification relativities applicable to the payroll in each of the classes as shall be adequate to the risks to which they apply. The relativities:
(1) shall be designed to encourage safety; (2) may be territorially based; and (3) may reflect differences in losses between employers of high and low wage earners within the same class. (b) The Board shall adopt a uniform experience rating plan. The rating plan shall encourage the prevention of accidents and consider the peculiar hazard and experience of individual risks, past and prospective, within and outside this state, and all other relevant factors. (c) This subchapter may not be construed to prohibit any stock company, mutual company, including the Texas Mutual Insurance Company, reciprocal or interinsurance exchange, or Lloyd's plan from issuing participating policies; however, a dividend to policyholders under Subtitle A, Title 5, Labor Code, may not take effect until approved by the department. Such a dividend may not be approved until adequate reserves have been provided, those reserves to be computed on the same basis for all classes of companies operating under this subchapter. (d) The Board shall revise the classification system and rating plans not later than March 1, 1993, and subsequently shall revise the system and plans at least once every five years. Acts 1951, 52nd Leg., p. 868, ch. 491. Amended by Acts 1953, 53rd Leg., p. 64, ch. 50, Sec. 9. Amended by Acts 1989, 71st Leg., 2nd C.S., ch. 1, Sec. 13.06, eff. Jan. 1, 1991; Acts 1991, 72nd Leg., 2nd C.S., ch. 12, Sec. 18.05, eff. April 1, 1992; Subsec. (c) amended by Acts 2001, 77th Leg., ch. 1195, Sec. 2.05, eff. Sept. 1, 2001. |
