Texas will be privatizing many functions in its workers compensation system if Insurance Commissioner Julia Rathgeber approves a staff petition to adopt the National Council on Compensation Insurance (NCCI) Basic Manual, with Texas exceptions, and the national and Texas-specific endorsements and forms in the NCCI Forms Manual.

Executive Summary

Texas may soon be an "NCCI state," adopting the NCCI manual for workers comp and allowing the council to assume functions traditionally administered by the Department of Insurance. Insurance companies support the decision but have requested a delay of the effective date so they can make necessary changes to their underwriting systems.

Rathgeber has previously indicated that Texas likely will become an “NCCI state.” But one question remains: When will the adoption go into effect?

Staff of the Texas Department of Insurance on Dec. 30, 2013 filed a petition to adopt the NCCI manual for workers comp and allow NCCI to assume certain functions that traditionally have been administered by TDI’s Division of Workers Compensation. The proposal anticipates an effective date of June 1, 2014 for the transition to the NCCI model, according to TDI.

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