T A IP A TEXAS AUTOMOBILE INSURANCE PLAN ASSOCIATION by ihm18500

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									   T A IP A                                      AUTOMOBILE
                                             TEXAS               PLAN
                                                         INSURANCE   ASSOCIATION
    MARGARET ALSOBROOK                               2028 E. BEN WHITE BLVD. .SUITE 400 .AUSTIN, TX 78741-7197
.,OPERA110NS MANAGER                                                     P.O. BOX 149144 .AUSTIN, TX 78714-9144
.,.                                                                                     TELEPHONE 512/444-5999
                                                                                               FAX 512/444-4562
           June 12, 1996

                                                                    TAIPA Bulletin No.38




           To:        Member Companies



                                              August 1, 1996 Rates


           The Commissioner of Insurance has adopted new private passengerand commercial
           rates for insurance written through the Texas Automobile Insurance Plan Association
           (T AlP A) which will become effective August 1, 1996.

           Enclosed with this bulletin is Commissioner's Bulletin No. B.0039-96 which includes
           the "machine letter" and rate pages.

           Attached to this TAIPA bulletin is an amendment to page 37 of the Commissioner's
           Bulletin BOO39-96and the Commissioner's revisions dated June 9, 1996.

           Sincerely,


           ~~!;ob
           Margaret     AIsobrook

           Operations     Manager


           MDA:dr
           enclosure
   THE NEW RETROSPECTIVE             RATING PLAN -TEXAS

                     TABLE B.
                      TEXAS
   TABLE OF AUTOMOBILE LIABILITY EXPENSE RATIOS
(EXCLUDING THE PROVISIONS FOR THE TAX MUL TIPLlER)

  Public (Excl. School Buses) and Zone Rated Automobiles



                      (1)               (2)
                  Subject            Expense
                 Premium              Ratio
                 ~                    0.240
                     10.000           0.239
                     10.274           0.238
                     10.564           0.237
                 ~                    0.236
                     11.195           0.235
                     11,539           0.234
                     11,905           0.233
                 ~                    0.232
                     12.712           0.231
                     13.158           0.230
                 ~                    0.229
                     14,151           0.228
                     14,706           0.227
                     15,307           0.226
                     15,958           0.226
                 ~                    0.225
                     17.442           0.224
                     18.293           0.223
                     19.231           0.222
                 ~                    0.221
                     21.429           0.220
                     22.728           0.219
                     24,194           0.218
                     25,863           0.217
                     27.778           0.216
                     30,000           0.215
                 ~                    0.214
                     31,319           0.213
                     32,023           0.212
                     32.759           0.211
                 ~                    0.210
                     34,338           0.209
                     35.186           0.208
                 ~                    0.207
                     37.013           0.206
                     38.000           0.205




                              .37.                         Effective 8/1/96
                    333 Guadalupe Street      P. 0. Box 149104     Austin, Texas 78714-9104
                    512/463-6169




..June 9, 1996



TO:         All Companies Writing     Private Passenger     Automobile    and Commercial      Automobile
            Insurance in Texas

f~E:        Revisions to the 1996 Commercial Auto Machine Letter and Rate Bulletin


J, revision to the machine letter and rate bulletin for commercial auto was needed after the final
drafts were sent to the press. Please make the following revisions to the 1996 Commercial Auto
~l1achine Letter and Rate Bulletin:

       Replace pages 32 ("Dealer's Collision Rates") and 33 ("Dealer's Drive-Away Collision") of the
       Commercial Auto Machine Letter with the attached pages 32 ("Dealer's Collision Rates") and
       33 ("Dealer's Drive-Away Collision").

~!. Replace pages 25 {"Physical Damage for Dealers") and 26 {"Dealer's Blanket Collision Rates
    per $100 of Insurance) of the Commercial Auto Rate Bulletin with the attached pages 25
    {"Physical Damage for Dealers") and 26 {"Dealer's Blanket Collision Rates per $100 of
    Insurance").

3. Add new pages 40 {"Trucks, Tractors and Trailers --Non-Fleet            Primary Classifications")   and
       41 {"Trucks, Tractors and Trailers --Fleet   Primary Classifications") to the back of the
       Commercial Auto Rate Bulletin.

VVe apologize    for any confusion   this may cause.




Sincerely   I
TEXAS AUTOMOBILE           RULES AND RATING           MANUAL                                   RATE SECTION VI, PAGE 194
                                                                                                               GARAGES




H. ,3. Physical damage -Premium         development
a., b. and c.

                                                PHYSICAL DAMAGE
                                                 DEALERS' RATES
                                        ALL RATES PER $100 OF INSURANCE


                                                          T erritorv


                                                                                10,22,32,34.
 Refer 10 Rule 94 for definition of Miscellaneous                               37,38,46,47 ,     07,11,13,20
                                                                01,05,14,23, 48,49,51,52.         21,24,27,28.
  Types.
                                                                39,40,41,57, 53,54,55,56,         31.42.43.44.   12,16.61
                                                                   59,60    I 58.63 64.66             45          62,65

                                                                       $0.17         $0.17            $0.17          $0.17
 Dealers' Fire Rate
 .Dealers'Theft    Rates
    Storage in Bldg. & Std. Open Lots                                     .96            .94             .94          1.05
    Storage in Non-Std. Open Lots                                       1.02             .97             .97          1.10
                                                                         0.21           0.21            0.21          0.21
    Miscellaneous Types

 .Dealers'       Specified Causes of Loss Rates
                                                                        1.91           1.84             1.84          2.03
        Buildings
        ~n     Lots and Mobilehome       Dealers
              Standard Open Lots                                        3.25           3.00             3.02          3.72
              Non-Standard Open Lots                                    3.52           3.25             3.26          4.03


        Miscellaneous     Types
                                                                        1.12           1.10             1.10          1.18
              Buildings
                                                                                       2.38             2.38          3.00
              Ooen Lots                                                 2.59




 ..Dealers'     Limited Specified Causes of Loss Rate
                                                                        1.85           1.79             1.79          1.97
        Buildings
        Open Lots and Mobilehome         Dealers
              Standard Open Lots                                        3.20           2.95             2.97          3.67



              Non-Standard Open Lots                                    3.47           3.20             3.23          3.98




        Miscellaneous     Types
                                                                        1.09           1.05             1.05          1.12
              Buildings
              Open Lots                                                 2.53           2.32             2.35          2.97


 .Comprehensive     Coverage
                                                                        2.27           2.21             2.21          2.41
      S1orage in Bldg.
      S1orage in Std. Open Lots                                         3.75           3.47             3.51          4.25

                                                                        3.81                            3.55          4.31
      S1orage in Non-Std. Open Lots                                                    3.53

                                                                        2.97           2.76             2.78          3.43
        Miscellaneous Types

       Rates shown are for $100 per car/$500          per occurrence    deductible applicable to Theft and M & V.
        Rates shown are for $100 per car/$500         per occurrence deductible applicable to Theft.


   IDptional deductibles are $2501$1,000        at 0.90 of the above rates and
                                  $5001$2,500   at 0.75 of the above rates.

                                                             -25-                                                Effective 8/1/96
TEXAS AUTOMOBILE        RULES AND RATING MANUAL                                  RATE SECTION VI, PAGE 195
                                                                                 GARAGES




        (c) DEALERS      BLANKET         COLLISION       RATES         PER $100 OF INSURANCE




                                                                  or




                      IFirst $50.000 an~ under                ~                     =
  $25 Deductible      IFrom    $50,001     to $10Q,000       ..:.~.;..~      !               ,...~,




                      IFirst   $50,000     and uIJder                  ~.~              ,~
  $250 Deductible
                      lover    $1 00.000


                                                                                                      0.40
                                                                                                       --

                                                                                                      0.20


                                                                                                      0.90
                                                                                                      0.35
                      ~Over $1 OO.QOO ...0              00             0000..000...0 0=...0.000




                                                                                                        Effective 8/1/96
        rgXAS    COMMERCIAL      AUTOMOBILE           PHYSICAL   DAMAGE         INSURANCE


                          DEALERS' COLLISION RATES
            (TEXAS AUTOMOBILE RULES AND RATING MANUAL PAGE 195)




METHOD OF CALCULATION
Multiply the Base Rate for the desired   Deductible    by the Value   Differential.
Round   to nearest   5 cents.



EXAMPLE
Total of Values Reported, $75,000;   $500 Deductible.
            $1.00 x 0.40 = $0.40




                                              -32-                                          Effective 811196
         IEXAS      COMMERCIAL      AUTOMOBILE          PHYSICAL    DAMAGE     INSURANCE


                           DEALERS' COLLISION RATES
             (TEXAS AUTOMOBILE RULES AND RATING MANUAL PAGE 195)



                      DEALERS'     "DRIVE-A WA r' COLLISION PREMIUMS




METHOD OF CALCULATION
(1) Multiply Price Differentia! by Mileage Differential by Deductible Differential by Coverage
    Differential. Round result to three decimals
(2) Multiply result in (1) by base premium. Round to nearest cent.




EXAMPLE
Price new $25.001    -$40,000;   Mileage   1,001 -1,500;   $500 Deductible;   Blanket   Coverage

(1) 0.572 x 0.800 x 0.813 x 0.500 = 0.186
(2) 0.186 x $27.84 = $5.18




                                                 -33-                                              Effective 8/1/96
                  <AS AUTO~~OBILe                 RULeS       AND RATING           MANUAL                                                                        RATE SECTION III, PAGE 127
                                                                                                                                                          TRUCKS, TRACTORS AND TRAILERS


    157. TRUCKS,                 TRACTORS              AND TRAI~S                CLASSIFICATIONS


              B. Primary Classifications

                    5.a.     NO~I-FLEET            PRIMARY        CLASSIFICATIONS             -RATING        FACTORS             AND     STATISTICAL             CODES


                                            Business                                                                          Radius     Class


    I SiZe                                      Use                                       Local                             Intermediate                                       Long Uistance
      Class                                   Class                                  Up to 50 Miles                        51 to 200 Miles                                     Over 200 Miles
                                                                                 Li~jlity   Coil. & OTC          liability       Coil.     OTC                        Liabili       Coil.        OTC
                                             Service           Factor             1.00           1.00               1.10         1.90      1.35                         1.47        3.00         1.85
                                                                Code              011.           011.               012...             012                              013...            013...
                                                                                 ~.             ~
                                              Retail           t-actor            1.43                              2.08                   1.55                         1.89        3.20         2.05
                                                               Code               021.                               022...                                             023.                   023
                                       I Commerciall           Factor             1.31                                                                                                  3.15           2.05
                                                                Code              031.

     Medium I rucks                          Service      I    ~~~~
                                                                 Il;91~..actor    0.93           0.90        I       1.23
                                                                                                                                   I
    I (10,001 -20,000                                           Code              211...         2jj...      ,       212...        I             212...
      Ibs. G. V.W)                                             Factor             1.19           1.07                1.58         I    1.87               1.38

                                                              ~Code               221.c          221.                222.
                                       I Commercial            Factor                          ill                   1.67              ne                 1.47
                                                               Code                              231..               232.

    I HeavY         Tru~s                                      Factor                                                                  1:47               1.07         1.00


    (2°,0°1 -45,000
    1                                                          Code               -'~    ~o                                                      312                   313.
                                                                                                                                                                       ~
      Ibs. G.V.W)                             R et             FaC'iOr            1.59                                                 1.69               1.29         1.00

                                                               Code               321.                                                                                 323.

                                                               FaCtor                                                                  1.73               1.33         1.00


                                                               Code                                                                              332                   333.




    IE~a-Heavy                 TruCk-S---                      Factor             1.72           1.03             2.50                 1.63               1.26         1.10          1.10
    ,(Over          45,000      Ibso-G.V.W                     Code               401.          401.              402.                           402,                  403.          403.


                                             Service           Factor                            0.82                             I    1.47               1.07    I    ;~~o     i    .~~~o

                                                               Code                            - 341.                                            342              I    3~...    I    343...     -

                                                                                                1.04                                                      1.29         1.00-         1.00

                                                                                                351.                              I              352...                353.          353.
                                                                                                                                                                      ~,
                                       I Commercial                               1.43                                            I    1.73               1.33         1.00         TOO

                                                                                  361.                                                           362.                  363.          363.



    IExtra-Heavy               Truck    Tractors               Factor             2.00          1.03-             2.76                 1.63               1.~o         1.10          1.10

     lOver 45,000 Ibs. G.C.W.)                                  Code              501.          501.              502.                           502                   503.          503.

     TRAILER                TYPES
                                                               ...actor                         1.03             0.25                  1.44                            0.15          1.00
                                                                Code                            671.              672.                 672.                            673.          673.

    I ("railers                                                F-actOr                          1]3              ~                     1.44                                         ~

                                                                Code                            681.              682.                 682.                                          683.

      ..)-ervice Utility I railer
               or                                              Factor                           1.03              [0'0                                                 0.00         ~

    I lO -2.000lQ§~~a~ cacacitv)                                Code                            691.              692.-                                                693.          693..




                                                                                                          -40-                                                                 Effective      8/1/96



~
                                                                                                                                        TEXAS AUTOMOBILE                    RULES AND RATING                MANl"
                  PAGE 128
RATE SECTIOr-J 111,
TRUCKS, TRA<:TORS AND TRAILERS


            5.b.    FLEE~T        PRIMARY          CLASSIFICATIONS                    -RATING              FACTORS              AND     STATISTICAL           CODES



                                     Business
                                                                                                                                   Radius Class
                                        Use                                          Local                                           Intermediate
Size
                                                                  i             Up to 50 Miles                           !         51 to 200 Miles                      !                Over 200 Miles
Class                                  Class
                                                                          L ir~~
                                                                            "iabiJi        Coil.
                                                                                         I ,,0"~~I.'     &      OTC        Liabili1y      CoIl.               OTC            Liability         Coil.             O:!:C
                                                                             1.00                  1.00                  Ii   1.10                            "[35             1.47            3.00              1.85
"Light      I rucks                    Service         Factor

                                                        Code                014...                 014...                                            015.                      016...               016...
(0 -10,000                                                                                                                ~

                                                                            1.43                   1.20                   ~   025...
                                                                                                                              2.08           2.10             1.55             1.89            3.20       2.05
IDS. G.V.W)                              Retail        Factor
                                                        Code                024...                 024.                                              025...                    026.                 026..
                                                                            1:31                   1.15                       1.35           2.05             1.50             2.07            3.15       2.05
                                   Commercial          Factor
                                                                            034...                 034.                       035...                 035...                    036...           036...
                                                        Code
                                                                                                                                                                                     ZONE RATED
                                                                                                                              1.23           1.69             1.21            0.95       0.95
                                                                                                                              215.                   215...                   216...     216...
                                                                                                                              1.58           1.87             1 .38           0.95       0.95
                                                                                                                              225..                  225..,-                  226...     226...
                                                                                                                              W              -1.96            1.47            M5         0.95
                                                                                                                              235..                  23~                      236...     236...

                                                                             0.83        I             0.82                   1.40           1.47                             1.00             1.00
 Heavy 1 rucks                          Service        Factor
                                                        Code                 314...      I             314...                 315...                 315...                   316...           316...

 (20,001 -45,000                                                                                                                                                              1:00-            1.bo
 Ibs. G.V oW)                             RetaIl       Fact;;r               1.59                      1.04              I    m-             1.69             1.29

                                                                             324..        l            324...          -1     325...                 325...                   326...           326.,
                                                        Code
                                                                             1-:34        I            1.08              I    ~              1.73             1.33            1:00-            1.00
                                  I Commercial         Fact;;r
                                                        Code                 334..                     334...                 335...                 335..                    336...           336.




I
                                                        Factor               1.72                      1.03                   2.50           1.63             1.26             1.10            1.10
    Extra-Heavy          Trucks
    (Over      45,000     It IS. G.V.W.)-               Code                 404..                     404...                 405.                   405.                      406...          406...




                                        Service         Factor               1.45                      0.82                   1.87           1.47             1.07                             1.00
    Heavy       Truck-
                                                                             344...                    344...                 345...                 345...                    346...          346...
    Tractors                                            Code                                                                                                       --
                                                                                                                              2.83       I   1.69              1.29            1.00            1]"0
    (0 -45,000                            Retail        FaC1Q;:              ~
                                                                             2.01                        .O4
                                                                                                       354...

                                                                             354...                                           355...                 355.                      356...          356...
    Ibs. G.C.W)                                         Code
                                                                             1.43                      1.08                   2.12           1.73              1.;..,          1.00            1]"0
                                    Commercial          FaC1Q;:

                                                        Code                 3~...                     364..:
                                                                                                                              365...                 365                       366...          366...


    EX1ra-Heavy TrucK I ractors                      -Factor                 2.00                      1.03                   2.76           1.63              1.26            1.10            1.10
    (Over 45,000 It)5. G.C.W.)                          Code          I      504...                    504...                 505...                 505..,                    506..           506.

!'TRAILER           TYplES                                                                                                                                                                     1.00
                                                                                                                                             1.44                              0.15
    Semi-trailers                                       Factor               0.14                       1.03                  0.25

                                                                                                                                             675..                             676.            676...
                                                         Code                674..                     674...                  675..


                                                                                                                               0.22          1.44                              0.15            TOO
    T railers                                           FaCto-r              0.14                      ~
                                                                                                                                             685..                             686...          686...
                                                         Code                684..                     684...                  685...
                                                                                                                                             1.44                              0.00            1.00
    Service or-Utility Trailer                          FaCto-r              0.00                      ~                       0.00

                                                                                                                               695...        695..                             696...          696...
    (9 -2,000 Ibs. 'Qad capacity)                        Code                 694..                    694...




                                                                                                                      -41-
                                                                                                                                                                                          Effective     8/1/96

								
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