The Texas Department of Insurance published a bulletin informing insurers of a mandatory data call on disallowed expenses for 2024.

Insurers who wrote premiums in the state in 2024 for the following lines of insurance must respond to the data call: fire, allied lines, private crop, farm owners multiple peril, homeowners multiple peril, commercial multiple peril, inland marine, medical malpractice, general liability, products liability, private passenger automobile, commercial automobile, fidelity, and surety.

“Disallowed expenses”, defined in Texas Insurance Code Section 2251.002(1-a), include the following:

• Administrative expenses, other than acquisition, loss control, and engineering expenses, that exceed 110 percent of the industry median for those expenses
• Lobbying expenses
• Advertising expenses, other than for advertising directly related to the services or products provided by the insurer or designed and directed at loss prevention
• Amounts paid by an insurer as damages in an action brought against them for bad faith, fraud, or other matters other than payment under an insurance contract
• Contributions to social, religious, political, or fraternal organizations, or organizations engaged in legislative advocacy
• Fees and assessments paid to advisory organizations
• Amounts determined by the commissioner to be excess premiums charged
• Any unreasonably incurred expenses, determined by the commissioner after notice and hearing

The reporting period is from January 1, 2024, to December 31, 2024, and the form must be completed by September 26, 2025. The Excel reporting form can be found here.