Committee Votes to End Relativities Method

State-determined relativities moved a step closer to extinction this week when a House committee approved a bill to do away with ratemaking method. The House Business and Industry Committee voted 7-0 in favor of SB 1336. Sponsored by Sen. Judith Zaffirini, D-Laredo, the bill passed the Senate in April and is now headed for a House vote. Texas is the only state left that employs its own classification rating system, and only about 30 of the 300 comp insurers in the state utilize the method. Most now follow the National Council on Compensation Insurance's annual loss cost filings, whic...