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You are here: Home . bulletins . 2005 . b-0053-05
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COMMISSIONER'S BULLETIN # B-0053-05

September 21, 2005


To: ALL INSURANCE COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS, OR OTHER INSURERS WRITING PROPERTY AND CASUALTY INSURANCE IN THE STATE OF TEXAS AND TO AGENTS AND REPRESENTATIVES AND THE PUBLIC GENERALLY


Re: Hurricane Rita - An Extraordinary Event; Rating or Underwriting Actions for Property and Casualty Coverages of Hurricane Victims or Evacuees.

On September 20, 2005, Governor Rick Perry issued a proclamation declaring a disaster due to the effects of Hurricane Rita, certifying that Hurricane Rita poses a threat of imminent disaster along the Texas Coast beginning September 20, 2005, and directing that all necessary measures both public and private as authorized under Section 418.015 of the Texas Government Code be implemented to meet that threat. The proclamation also states that, as provided in Section 418.016 of the Texas Government Code, all rules and regulations that may inhibit or prevent prompt response to this threat are suspended for the duration of the incident.

With the potential for devastation resulting from Hurricane Rita and the possible relocation of hurricane victims and other personal hardships sustained by residents of the Gulf Coast, it is the opinion of the Texas Department of Insurance that it is inappropriate for insurers to re-rate, cancel, nonrenew, or refuse to provide coverage due solely to an individual's status as a victim or evacuee of Hurricane Rita. Further, it is not reasonable to change policyholders' rating classifications or increase their insurance rates solely because they are a victim or evacuee of Hurricane Rita.

Insurance Code articles 1.02(b) and 5.13-2 require that rates used under the code be just, fair, and reasonable.

Questions regarding this bulletin may be directed to the Property and Casualty Program, at (512) 322-3587.



Last updated: 09/07/2014

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