Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 5 - PROPERTY AND CASUALTY INSURANCE
Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION
Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES
Section 5.4136 - Association Rate Filings

Universal Citation: 28 TX Admin Code § 5.4136

Current through Reg. 50, No. 13; March 28, 2025

While there are outstanding public securities payable under Insurance Code §§ 2210.612, 2210.613, or 2210.6131, or outstanding class 1 public securities issued before June 1, 2015, the association:

(1) must consider its obligations for the payment of public securities payable under Insurance Code §§ 2210.612, 2210.613, or 2210.6131, and class 1 public securities issued before June 1, 2015, including the additional amount of any debt service coverage that the association determines is required for the issuance of marketable public securities in developing its rates;

(2) must include in a rate filing submitted to the department an analysis that demonstrates that the filed rates produce premium sufficient to provide for at least:

(A) the expected operating costs of the association, including expected nonhurricane wind and hail losses and loss adjustment expenses; and

(B) the expected payment of public security obligations payable under Insurance Code §§ 2210.612, 2210.613, or 2210.6131, and class 1 public securities issued before June 1, 2015, including any contractual coverage amount the association determines is required for the issuance of marketable public securities, during the period in which the rates will be in effect; and

(3) must include a cost component in the rates sufficient to at least provide for the expected payment of public security obligations for public securities payable under Insurance Code §§ 2210.612, 2210.613, or 2210.6131, and class 1 public securities issued before June 1, 2015, during the period in which the rates will be in effect.

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