Section 2053.054 - Use of Incurred Claims Experience in Future Ratings Required(a) Regardless of a change in a policyholder's ownership, control, management, or operations, incurred claims experience must be used in future ratings to ensure that an employer does not evade an unfavorable or high-cost experience.(b) On application by an affected party, the department may modify a rating under Subsection (a) on proof that a change in a policyholder's management or operations is clearly designed to result in a probable reduction of the insured's loss experience.(c) The commissioner shall adopt rules necessary to implement this section.Tex. Ins. Code § 2053.054
Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. 4/1/2007.