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Two bills filed in the Texas Legislature this week would establish a workers compensation assigned risk program as the state seeks to privatize Texas Mutual Insurance Co., the state’s workers comp insurer of last resort.
S.B. 850 and H.B. 1833 were filed Tuesday, according to the Texas Legislature website. The matching bills would create a workers comp program for residual market employers by Jan. 1, 2015.
Austin, Texas-based Texas Mutual said in November that it would seek to cut ties with the Texas state government during the 2013 legislative session. The mutual insurer, which has 54,000 policyholders, is led by a nine-member board of directors, five of whom are appointed by the Texas governor. However, the company does not accept state funding, according to its website.
Texas Mutual wrote $749 million in premiums for 2011, or about 34% of the Texas workers comp market.