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July 18, 2003
Dear TLTA Member:
The TLTA Board of Directors met last week, and I want to update
you on action that was taken on the proposed P-24 revisions as
well as on proposed P-53 that deals with rebates and discounts.
As you know, we have been working for more than a year on both of
these issues and have made every effort to seek as much industry
input as possible and to develop proposals that have the support
of the majority of our members. Both are difficult and
multi-faceted issues and I applaud the task forces and the Board
of Directors for their hard work in seeking solutions.
Regarding P-24, as we
previously reported, the TLTA Board approved and submitted to the
Commissioner of Insurance, a proposed revision to the rule in
January of 2003. Subsequently, a group of industry members
submitted an alternate proposal to the Texas Department of
Insurance. This proposal was provided to the TLTA membership for
review and comment and a Town Hall Board meeting was held on June
11th to provide members with an opportunity to comment
publicly on this alternate proposal. After hearing input from the
membership, and much discussion and consideration at our meeting
last week, the TLTA Board voted to oppose the alternate proposal.
Additionally, regarding the January Board approved proposal, the
Board voted to make an amendment to section 2.A. of the rule
dealing with the issue of affiliated parties for purposes of this
rule. Click here to view the
Board approved revisions.
The Board also took action on
proposed rule P-53 dealing with rebates and discounts. The Board
voted to amend paragraph 6 of the proposed rule to change the
standard used from cost to market value when
determining what to charge for goods and services provided.
To view a copy of the
Board approved revision, click here. To recap the progress of
this rule, last year a special TLTA Market Incentives Task Force
developed a proposed rule that was recommended to and approved by
the TLTA Board of Directors. The proposal was submitted to the
Texas Department of Insurance, and after making some minor
changes, TDI published the rule for comment. The rule was later
withdrawn from consideration, but we believe it will be considered
in conjunction with the upcoming 2002 rule hearing.
The Board approved amendments
to the rule proposals will be submitted to the Commissioner for
his consideration. Any changes would have to be adopted by the
Commissioner before they can become effective.
We sincerely appreciate your
continued interest in these two very important issues and we
particularly appreciate all of you who have provided us with your
comments and input both in writing and at membership meetings.
Your feedback has been invaluable to your Board of Directors as
they have considered these issues.
We welcome your comments and
questions regarding these latest actions. Please feel free to
contact me or Leslie Midgley at the TLTA office. Again, thanks so
much for your continued support of TLTA.
Best regards,
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