TITLE 28. INSURANCE
PART 1. TEXAS DEPARTMENT OF INSURANCE
CHAPTER 3. LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES
SUBCHAPTER
RR.
The Texas Department of Insurance (TDI) proposes to amend 28 TAC §3.9901, concerning the adoption of a valuation manual for reserving and related requirements. The amendment to §3.9901 implements Insurance Code §425.073.
EXPLANATION.
An amendment to §3.9901 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 Texas insurance 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.
A description of the section's proposed amendment follows.
Section 3.9901. The amendment to §3.9901 replaces the date the NAIC adopted its previous valuation manual with the date the NAIC adopted its current valuation manual, adopting by reference the new valuation manual dated August 13, 2025.
FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Jamie Walker, deputy commissioner of the Financial Regulation Division, has determined that during each year of the first five years the proposed amendment is in effect, there will be no measurable fiscal impact on state and local governments as a result of enforcing or administering the amendment, other than that imposed by the statute. Ms. Walker made this determination because the proposed amendment does not add to or decrease state revenues or expenditures, and because local governments are not involved in enforcing or complying with the proposed amendment.
Ms. Walker does not anticipate any measurable effect on local employment or the local economy as a result of this proposal.
PUBLIC BENEFIT AND COST NOTE.
For each year of the first five years the proposed amendment is in effect, Ms. Walker expects that administering the proposed amendment will have the public benefit of ensuring that TDI's rules conform to Insurance Code §425.073.
Ms. Walker expects that the proposed amendment will not increase the cost of compliance with Insurance Code §425.073 because it does not impose requirements beyond those in statute. Insurance Code §425.073 requires that changes to the valuation manual be adopted by rule and be substantially similar to changes adopted by the NAIC. As a result, the cost associated with adopting the changes to the valuation manual is a direct result of Insurance Code §425.073 and not a result of the enforcement or administration of the proposed amendment.
ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS. TDI has determined that the proposed amendment will not have an adverse economic effect on small or micro businesses, or on rural communities. This is because the amendment does not impose any requirements beyond those required by statute. As a result, and in accordance with Government Code §2006.002(c), TDI is not required to prepare a regulatory flexibility analysis.
EXAMINATION OF COSTS UNDER GOVERNMENT CODE §2001.0045.
TDI has determined that this proposal does not impose a possible cost on regulated persons. In addition, no additional rule amendments are required under Government Code §2001.0045 because the proposed amendment is necessary to implement legislation. The proposed rule implements Insurance Code §425.073, added by Senate Bill 1654, 84th Legislature, 2015.
GOVERNMENT GROWTH IMPACT STATEMENT.
TDI has determined that for each year of the first five years that the proposed amendments are in effect, the proposed rule:
- will not create or eliminate a government program;
- will not require the creation of new employee positions or the elimination of existing employee positions;
- will not require an increase or decrease in future legislative appropriations to the agency;
- will not require an increase or decrease in fees paid to the agency;
- will not create a new regulation;
- will not expand, limit, or repeal an existing regulation;
- will not increase or decrease the number of individuals subject to the rule's applicability; and
- will not positively or adversely affect the Texas economy.
TAKINGS IMPACT ASSESSMENT. TDI has determined that no private real property interests are affected by this proposal and that this proposal does not restrict or limit an owner's right to property that would otherwise exist in the absence of government action. As a result, this proposal does not constitute a taking or require a takings impact assessment under Government Code §2007.043.
REQUEST FOR PUBLIC COMMENT.
TDI will consider any written comments on the proposal that are received by TDI no later than 5:00 p.m., central time, on November 10, 2025. Consistent with Government Code §2001.024(a)(8), TDI requests public comments on the proposal, including information related to the cost, benefit, or effect of the proposal and any applicable data, research, and analysis. Send your comments to ChiefClerk@tdi.texas.gov or to the Office of the Chief Clerk, MC: GC-CCO, Texas Department of Insurance, P.O. Box 12030, Austin, Texas 78711-2030.
To request a public hearing on the proposal, submit a request before the end of the comment period to ChiefClerk@tdi.texas.gov or to the Office of the Chief Clerk, MC: GC-CCO, Texas Department of Insurance, P.O. Box 12030, Austin, Texas 78711-2030. The request for public hearing must be separate from any comments and received by the TDI no later than 5:00 p.m., central time, on November 10, 2025. If a public hearing is held, TDI will consider written and oral comments presented at the hearing.
STATUTORY AUTHORITY. TDI proposes the amendment to §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. Section 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.
CROSS-REFERENCE TO STATUTE.
Section 3.9901 implements Insurance Code §425.073.
§3.9901.
(a)
The commissioner adopts by reference the National Association of Insurance Commissioners (NAIC) Valuation Manual, including subsequent changes that were adopted by the NAIC through August 13, 2025 [15, 2024], as required by Insurance Code §425.073.
(b) The operative date of the NAIC Valuation Manual in Texas is January 1, 2017.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 26, 2025.
TRD-202503462
Jessica Barta
General Counsel
Texas Department of Insurance
Earliest possible date of adoption: November 9, 2025
For further information, please call: (512) 676-6655
PART 2. TEXAS DEPARTMENT OF INSURANCE, DIVISION OF WORKERS' COMPENSATION
CHAPTER 133. GENERAL MEDICAL PROVISIONS
INTRODUCTION. The Texas Department of Insurance, Division of Workers' Compensation (DWC) proposes to repeal 28 TAC §133.4 and §133.5, concerning informal and voluntary networks, and §133.309, concerning medical disputes for workers' compensation claims. Section 133.4 implements Labor Code §413.011, §133.5 implements Labor Code §413.0115, and §133.309 implements Labor Code §413.031. Sections 133.4, 133.5, and 133.309 were identified for repeal in an earlier rule review.
EXPLANATION. Repealing §§133.4 and 133.5 is necessary because they expired on January 1, 2011, when Labor Code §413.011(d-1) - (d-3) and (d-6) expired. Repealing §133.309 is necessary because the Third Court of Appeals, Austin, Texas, declared it invalid in 2008. Texas Dept. of Ins. v. Insurance Council of Texas, No. 03-05-00189-CV, 2008 WL 744681(Tex. App.- Austin March 21, 2008, no pet.). Repealing these rules is necessary to ensure that the rules in the subchapters are relevant, which reduces clutter and confusion.
FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Deputy Commissioner for Health and Safety Mary Landrum has determined that during each year of the first five years the proposed repeals are in effect, there will be no measurable fiscal impact on state and local governments as a result of enforcing or administering the sections, other than that imposed by the statute. This determination was made because the proposed repeals do not add to or decrease state revenues or expenditures, and because local and state government entities are only involved in enforcing or complying with the proposed repeals when acting in the capacity of a workers' compensation insurance carrier. Those entities will be impacted in the same way as an insurance carrier and will realize the same benefits from the proposed repeals.
Deputy Commissioner Landrum does not anticipate any measurable effect on local employment or the local economy as a result of this proposal.
PUBLIC BENEFIT AND COST NOTE. For each year of the first five years the proposed repeals are in effect, Deputy Commissioner Landrum expects that enforcing and administering the proposed repeals will have the public benefits of ensuring that DWC's rules conform to the Labor Code and case law and are current and accurate, which promotes transparent and efficient regulation.
Deputy Commissioner Landrum expects that the proposed repeals will not increase the cost to comply with the Labor Code and case law because they do not impose requirements beyond those in the statute. Labor Code §413.011(d-1) - (d-3) and (d-6), along with 28 TAC §§133.4 and 133.5, expired on January 1, 2011, and §133.309 was declared invalid in 2008 by the Third Court of Appeals, Austin, Texas. As a result, any cost associated with the repeals does not result from the enforcement or administration of the proposed repeals.
ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS. DWC has determined that the proposed repeals will not have an adverse economic effect or a disproportionate economic impact on small or micro businesses, or on rural communities because the proposed repeals remove obsolete references to expired and overruled law only. The proposed repeals do not change the people the rule affects or impose additional costs. As a result, and in accordance with Government Code §2006.002(c), DWC is not required to prepare a regulatory flexibility analysis.
EXAMINATION OF COSTS UNDER GOVERNMENT CODE §2001.0045. DWC has determined that this proposal does not impose a possible cost on regulated persons. As a result, no additional rule amendments are required under Government Code §2001.0045.
GOVERNMENT GROWTH IMPACT STATEMENT. DWC has determined that for each year of the first five years that the proposed repeals are in effect, the proposed repeals:
- will not create or eliminate a government program;
- will not require the creation of new employee positions or the elimination of existing employee positions;
- will not require an increase or decrease in future legislative appropriations to the agency;
- will not require an increase or decrease in fees paid to the agency;
- will not create a new regulation;
- will expand, limit, or repeal an existing regulation;
- will not increase or decrease the number of individuals subject to the rule's applicability; and
- will not positively or adversely affect the Texas economy.
DWC made these determinations because the proposal is a simple repeal. It does not change the people the rule affects or impose additional costs.
TAKINGS IMPACT ASSESSMENT. DWC has determined that no private real property interests are affected by this proposal, and this proposal does not restrict or limit an owner's right to property that would otherwise exist in the absence of government action. As a result, this proposal does not constitute a taking or require a takings impact assessment under Government Code §2007.043.
REQUEST FOR PUBLIC COMMENT. DWC will consider any written comments on the proposal that DWC receives no later than 5:00 p.m., Central time, on November 10, 2025. Send your comments to RuleComments@tdi.texas.gov; or to Texas Department of Insurance, Division of Workers' Compensation, Legal Services, MC-LS, P.O. Box 12050, Austin, Texas 78711-2050.
To request a public hearing on the proposal, submit a request before the end of the comment period to RuleComments@tdi.texas.gov; or to Texas Department of Insurance, Division of Workers' Compensation, Legal Services, MC-LS, P.O. Box 12050, Austin, Texas 78711-2050. The request for public hearing must be separate from any comments. If DWC holds a public hearing, it will consider written and oral comments presented at the hearing.
SUBCHAPTER
A.
STATUTORY AUTHORITY. DWC proposes repealing §§133.4 and 133.5 under Labor Code §§402.00111, 402.00116, 402.061, 413.011, and 413.0115.
Labor Code §402.00111 provides that the commissioner of workers' compensation shall exercise all executive authority, including rulemaking authority under Title 5 of the Labor Code.
Labor Code §402.00116 provides that the commissioner of workers' compensation shall administer and enforce this title, other workers' compensation laws of this state, and other laws granting jurisdiction to or applicable to DWC or the commissioner.
Labor Code §402.061 provides that the commissioner of workers' compensation shall adopt rules as necessary to implement and enforce the Texas Workers' Compensation Act.
Labor Code §413.011 provides health care reimbursement policies and guidelines.
Labor Code §413.0115 provides requirements for certain voluntary or informal networks.
CROSS-REFERENCE TO STATUTE. Section 133.4 implements Labor Code §413.011 enacted by House Bill (HB) 752, 73rd Legislature, Regular Session (1993) and amended by HB 473, 80th Legislature, Regular Session (2007). Section 133.5 implements Labor Code §413.0115 enacted by HB 473, 80th Legislature, Regular Session (2007).
§133.4.
§133.5.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 26, 2025.
TRD-202503449
Kara Mace
General Counsel
Texas Department of Insurance, Division of Workers' Compensation
Earliest possible date of adoption: November 9, 2025
For further information, please call: (512) 804-4703
SUBCHAPTER
D.
STATUTORY AUTHORITY. DWC proposes repealing §133.309 under Labor Code §§402.00111, 402.00116, 402.061, and 413.031.
Labor Code §402.00111 provides that the commissioner of workers' compensation shall exercise all executive authority, including rulemaking authority under Title 5 of the Labor Code.
Labor Code §402.00116 provides that the commissioner of workers' compensation shall administer and enforce this title, other workers' compensation laws of this state, and other laws granting jurisdiction to or applicable to DWC or the commissioner.
Labor Code §402.061 provides that the commissioner of workers' compensation shall adopt rules as necessary to implement and enforce the Texas Workers' Compensation Act.
Labor Code §413.031 outlines medical dispute resolution.
CROSS-REFERENCE TO STATUTE. Section 133.309 implements Labor Code §413.031, enacted by HB 752, 73rd Legislature, Regular Session (1993) and amended by Senate Bill 1742, 86th Legislature, Regular Session (2019).
§133.309.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 26, 2025.
TRD-202503450
Kara Mace
General Counsel
Texas Department of Insurance, Division of Workers' Compensation
Earliest possible date of adoption: November 9, 2025
For further information, please call: (512) 804-4703