June 26, 2019
In January 2019, Texas Mutual filed a petition with the Texas Department of Insurance (TDI) requesting that the Department permit the continued use of Classification Code 0923, which allows carriers to rate domestic employee exposure for premium calculation purposes on a payroll basis. Based on a filing by the National Council on Compensation Insurance (NCCI), TDI had previously approved the discontinuation of Classification Code 0923 and approved the implementation of Classification Code 0913 in its place. Code 0913 rates exposure for premium calculation on a per capita basis. The change was to go into effect July 1, 2019.
Classification Code 0923 has been widely used by Texas Mutual to calculate premium for domestic employees (such as a caretaker or housekeeper). Texas Mutual’s extensive analysis found that a change to a per capita basis calculation could result in significant premium adjustments for employers with domestic employees.
On June 13, 2019, the Insurance Commissioner approved Texas Mutual’s petition. The Commissioner’s order gives Texas carriers the continued flexibility to use either a payroll basis or per capita basis for premium calculation for domestic workers.
As the state’s leading provider of workers’ compensation insurance, Texas Mutual takes its commitment to work in the best interests of its agents and policyholders seriously. We are pleased to see that the Insurance Commissioner has confirmed our position, allowing Texas Mutual to continue to provide competitive premium pricing for coverage of domestic workers.