TITLE 28. INSURANCE
PART 1. TEXAS DEPARTMENT OF INSURANCE
CHAPTER 3. LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES
SUBCHAPTER
V.
The commissioner of insurance adopts new 28 TAC §3.3520, concerning Uniform Coordination of Benefits Questionnaire. The new section is adopted without changes to the proposed text published in the October 24, 2025 issue of the Texas Register (50 TexReg 6976). The section will not be republished.
REASONED JUSTIFICATION. New §3.3520 is necessary to implement House Bill 388, 89th Legislature, 2025. HB 388 requires the Texas Department of Insurance (TDI) to adopt a uniform coordination of benefits (COB) questionnaire. Thirty days after the effective date, health benefit plan issuers that include COB provisions in their forms are required to use the adopted uniform COB questionnaire and make the questionnaire available to health care providers, as appropriate.
New §3.3520 adopts by reference two versions of a uniform COB questionnaire. Health plans must use and accept the Patient Health Plan Coverage Form (LHL138) in connection with a requirement for a health care provider to maintain information on coordination of benefits. Health plans must use and accept the Enrollee's Other Health Plan Coverage Form (LHL139) when requiring an enrollee to provide information on other health coverage.
SUMMARY OF COMMENTS AND AGENCY RESPONSE. TDI provided an opportunity for public comment on the rule proposal for a period that ended on November 24, 2025, and at a public rule hearing held on November 18, 2025.
Commenters: TDI received comments from two commenters. No commenters spoke at the public hearing. A commenter in support of the proposal was Community Health Choice, and a commenter in support with changes was the Texas Health and Human Services Commission.
Comment on §3.3520
Comment. One commenter requests a minor change to Section 2 of both versions of the COB questionnaire form to clarify that the respondent should report any Medicaid or CHIP coverage when reporting other health plan information.
Agency Response. TDI agrees and has changed the form language as suggested.
Comment. One commenter asks whether plans are required to use both forms, or whether plans may choose the form that best fits their products and population. The commenter also asks whether plans have autonomy to determine when and how the forms are distributed to members and providers.
Agency Response. The rule specifies when each form should be used. If a plan requires a health care provider to maintain information on coordination of benefits, it must use LHL138. If a plan requires an enrollee to provide information on other health coverage, it must use LHL139. Plans do have autonomy to determine when and how the forms are distributed to members and providers, as those issues are not addressed by the rule.
STATUTORY AUTHORITY. The commissioner adopts new §3.3520 under Insurance Code §1203.152 and §36.001.
Insurance Code §1203.152 requires the adoption of rules establishing a uniform coordination of benefits questionnaire to be used by all health benefit plan issuers in this state.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of TDI under the Insurance Code and other laws of this state.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 12, 2025.
TRD-202504631
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: January 1, 2026
Proposal publication date: October 24, 2025
For further information, please call: (512) 676-6555
SUBCHAPTER
RR.
The commissioner of insurance adopts amendments to 28 TAC §3.9901, concerning the adoption of a valuation manual for reserving and related requirements. The amendments are adopted without changes to the proposed text published in the October 10, 2025, issue of the Texas Register (50 TexReg 6653). The section will not be republished.
REASONED JUSTIFICATION. The amended section is necessary to comply with Insurance Code §425.073, which requires the commissioner to adopt by rule a valuation manual that is substantially similar to the National Association of Insurance Commissioners (NAIC) Valuation Manual.
Under Insurance Code §425.073(c), when the NAIC adopts changes to its valuation manual, the commissioner must adopt substantially similar changes. This subsection also requires the commissioner to determine that NAIC's changes were approved by an affirmative vote representing at least three-fourths of the voting NAIC members but not less than a majority of the total membership. In addition, the NAIC members voting in favor of amending the valuation manual must represent jurisdictions totaling greater than 75% of the direct written premiums as reported in the most recently available life, accident, and health/fraternal annual statements and health annual statements.
TDI originally adopted the valuation manual in §3.9901 on December 29, 2016, in compliance with Insurance Code §425.073. On August 13, 2025, the NAIC voted to adopt changes to the valuation manual. Forty-nine jurisdictions, representing jurisdictions totaling 94.67% of the relevant direct written premiums, voted in favor of adopting the amendments to the valuation manual. The votes adopting changes to the NAIC Valuation Manual meet the requirements of Insurance Code §425.073(c).
This proposal includes provisions related to NAIC rules, regulations, directives, or standards. Under Insurance Code §36.004, TDI must consider whether authority exists to enforce or adopt the NAIC's changes. In addition, under Insurance Code §36.007, the commissioner cannot adopt or enforce a rule implementing an interstate, national, or international agreement that infringes on the authority of this state to regulate the business of insurance in this state, unless the agreement is approved by the Texas Legislature. TDI has determined that neither §36.004 nor §36.007 prohibit this proposal because Insurance Code §425.073 requires the commissioner to adopt a valuation manual that is substantially similar to the valuation manual approved by the NAIC, and §425.073(c) expressly requires the commissioner to adopt changes to the valuation manual that are substantially similar to changes adopted by the NAIC.
In addition to clarifying existing provisions, the 2026 NAIC Valuation Manual includes changes that:
- update the Valuation Manual economic scenario generator references for the adoption of the Conning-maintained prescribed economic scenario generator; and
- introduce a new principle-based reserving framework for non-variable annuities, located in Section VM-22 of the Valuation Manual.
The NAIC's adopted changes to the valuation manual can be viewed at https://content.naic.org/sites/default/files/pbr_data_valuation_manual_future_edition_redline.pdf.
SUMMARY OF COMMENTS. TDI provided an opportunity for public comment on the rule proposal for a period that ended on November 10, 2025. TDI did not receive any comments on the proposed amendments.
STATUTORY AUTHORITY. The commissioner adopts amendments to 28 TAC §3.9901 under Insurance Code §425.073 and §36.001.
Insurance Code §425.073 requires the commissioner to adopt by rule changes to the valuation manual previously adopted by the commissioner that are substantially similar to any changes adopted by NAIC to its valuation manual. Insurance Code §425.073 also requires that after a valuation manual has been adopted by rule, any changes to the valuation manual must also be adopted by rule.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of TDI under the Insurance Code and other laws of this state.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 10, 2025.
TRD-202504505
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: December 30, 2025
Proposal publication date: October 10, 2025
For further information, please call: (512) 676-6555
CHAPTER 9. TITLE INSURANCE
SUBCHAPTER
C.
The commissioner of insurance adopts new 28 TAC §9.402, concerning annual submission of title insurance statistical reports. Section 9.402 implements Insurance Code §2703.153. The new section is adopted with changes to the proposed text published in the August 15, 2025 issue of the Texas Register (50 TexReg 5308). Section 9.402 was revised in response to public comments. The section will be republished.
REASONED JUSTIFICATION. TDI is required by Insurance Code §2703.153 to promulgate title insurance rates based on data submitted annually from title insurance agents and companies. Insurance Code §2703.153 also requires title insurance agents and companies to report that data to TDI annually. TDI then publishes a compilation report about the data following its collection and review.
The new section is necessary to increase the efficiency of data collection by creating fixed annual reporting due dates for the industry with corresponding due dates for the Texas Department of Insurance (TDI) to publish instructions for the data collection and to publish compilation reports. This will make the annual data collection consistent and efficient without issuing a data call bulletin, aiding both TDI and the industry.
In response to stakeholder comments, TDI changed the data reporting requirements to a later time in the year and added an additional month for TDI to compile the data received from the industry. Additionally, TDI added "reporting forms" to subparagraph (a) of the rule in response to a comment.
SUMMARY OF COMMENTS AND AGENCY RESPONSE. TDI provided an opportunity for public comment on the rule proposal for a period that ended on September 15, 2025. A commenter requested a hearing, and TDI extended the comment period to the close of business on October 7, 2025, following the conclusion of the hearing.
Commenters: TDI received written comments from 13 commenters and heard from six commenters at a public hearing held on October 7, 2025. Commenters in support of the proposal were the Office of Public Insurance Counsel and Texans for Free Enterprise. Commenters in support of the proposal with changes were Fidelity National Financial, First American Title Insurance Co., Stewart Title, WFG National Title Insurance, Texas Land Title Association, First National Title Insurance, Aaron Day in his official capacity for TLTA, and four individual commenters.
Comments on §9.402
Comment. Most commenters support the rule but suggest that the proposed deadlines for industry data reporting are too early in the year and would be unduly burdensome. The deadlines would align with several other competing deadlines for audits, tax filings, financial reporting, and other regulatory filings that occur at or near the same time as TDI's proposed dates. The commenters assert that having the statistical plan data reporting coincide with these other reporting obligations would overwhelm title agents' and companies' accounting resources--the volume required at the same time would be too much.
Most of these commenters request that TDI change the reporting dates for title insurance agents from March 1 to May 1, and for title companies from April 1 to June 1. Others suggested the compliance dates be changed to May 15 and June 15. And two commenters suggested that TDI adopt the rule without changes to the dates.
Agency Response. TDI appreciates the commenters' input and agrees to change the deadlines dates to May 1 for title agents and June 1 for title companies.
Comment. One of the commenters suggests that TDI amend subsection (a) to add "and fillable report forms" in addition to the sentence stating that TDI will make available instructions for submitting reports. The commenter also suggests that TDI make a single date of "on or before February 1" for both the agent and company instructions instead of staggering the instructions and forms on February 1 for agents and March 1 for companies.
Agency Response. TDI agrees to add "and reporting forms" for additional clarity of the industry's expectation of what instructions and resources TDI will provide for data reporting. Instead of using "fillable report forms," TDI will call them "reporting forms." This will allow the department to not be limited if a superior format becomes available. TDI declines to combine issuing instructions and reporting forms for agents and companies on the same date to be consistent with how the data calls were issued in the past. Since the rule text allows for instructions and forms for agents and companies to be available at the same time, when possible, TDI declines to change that portion of the rule.
Comment. One of the commenters suggests that TDI amend subsection (d) to have both compilation reports published on the same day instead of staggering them a month apart.
Agency Response. TDI disagrees with having the agent and company compilation reports published on the same day, since the data received for both of those reports are staggered. TDI will change the dates of the compilation report deadlines to harmonize with the deadline changes for subsections (b) and (c).
Comment. One of the commenters suggests that TDI amend subsections (b) and (c) to move the reporting deadlines to June 15 for title agents and July 15 for title companies.
Agency Response. TDI disagrees with those deadlines because it is counter to the goal of having more current data available for ratemaking. Changing those reporting deadlines would push the compilation reports past the end of the same year. In response to other comments, TDI has changed the reporting dates to May 1 and June 1.
STATUTORY AUTHORITY. The commissioner adopts new §9.402 under Insurance Code §§2551.003(a)(3), 2703.153(a) and (b), and 36.001.
Insurance Code §2551.003(a)(3) authorizes the commissioner to adopt rules the commissioner finds necessary to implement the purpose of Insurance Code Title 11.
Insurance Code §2703.153(a) requires that each title insurance company and title insurance agent engaged in the business of title insurance in this state annually report data to TDI for the purpose of assisting with the promulgation of premium rates. Insurance Code §2703.153(b) authorizes TDI to establish the form in which title insurance data is submitted to TDI.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of TDI under the Insurance Code and other laws of this state.
§9.402.
(a) Each title insurance company and title insurance agent must submit its statistical report required by Insurance Code §2703.153, concerning Collection of Data for Fixing Premium Rates; Annual Statistical Report, in the form and manner TDI prescribes. Instructions for submission and reporting forms will be available on TDI's website by:
(1) March 1 for title agents, and
(2) April 1 for title companies.
(b) Title agents must submit their statistical report by May 1 of each year.
(c) Title companies must submit their statistical report by June 1 of each year.
(d) TDI will publish on its website compilation reports summarizing the submitted statistical reports by:
(1) October 1 of each year for title agents; and
(2) November 1 of each year for title companies.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 11, 2025.
TRD-202504570
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: December 31, 2025
Proposal publication date: August 15, 2025
For further information, please call: (512) 676-6555