• Increase Text Icon
  • Decrease Text Icon
  • Email Icon
  • Print this page
You are here: Home . rules . 2002 . zipcode
Archived File – for Reference Use.
Links and contact information may be outdated.

Subchapter A. Automobile Insurance Division 3. Miscellaneous Interpretations §5.206

Subchapter D. Fire and Allied Lines Insurance Division 8. Underserved Areas for Residential Property Insurance §5.3700

The Texas Department of Insurance proposes the amendment of §5.206 concerning the designation of underserved ZIP codes for private passenger automobile insurance and §5.3700 concerning the designation of underserved areas for residential property insurance. The department proposes to amend §5.206 by deleting subsection (h) and §5.3700 by deleting subsection (g) because both of these subsections have been declared invalid by final court judgments. Section 5.206(h) was declared invalid and of no force or effect on June 29, 2001 in the case styled and numbered, National Association of Independent Insurers, et al. v. John Cornyn, Attorney General of Texas, et al., cause no. 97-09206, in the 98th Judicial District of Travis County, Texas. Section 5.3700 (g) was declared invalid and of no force or effect on July 24, 2001 in the case styled and numbered, National Association of Independent Insurers, et al. v. John Cornyn, Attorney General of Texas, et al., cause no. GN 00-1769, in the 201st Judicial District of Travis County, Texas. It is necessary for the department to delete these subsections to comply with the Government Code §2002.058 which requires state agencies to repeal its rules that have been declared invalid by a final court judgment.

C. H. Mah, Senior Associate Commissioner, Property and Casualty Division, has determined that during the first five years that the proposed amendments are in effect, there will be no fiscal impact on state or local government as a result of enforcing or administering the sections. There will be no measurable effect on local employment or the local economy as a result of the proposal.

C. H. Mah has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administration and enforcement of the proposed sections will be the elimination of possible confusion resulting from rules which have been declared invalid by a final court judgment. There is no anticipated economic cost to persons who are required to comply with the proposal. There is no anticipated difference in cost of compliance between small and large businesses.

To be considered, written comments on the proposal must be submitted no later than 5:00 p.m. on April 15, 2002 to Lynda H. Nesenholtz, General Counsel and Chief Clerk, Mail Code 113-1C, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. An additional copy of the comment must be simultaneously submitted to C. H. Mah, Senior Associate Commissioner, Property and Casualty Division, Mail Code 105-5G, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. A request for a public hearing must be submitted separately to the Office of Chief Clerk.

The amendments of §5.206 and §5.3700 are authorized by the Texas Government Code §2002.058 and the Texas Insurance Code §36.001. The Texas Government Code §2002.058 requires that state agencies repeal any of their rules that have been declared invalid by a final court judgment. The Texas Insurance Code §36.001 provides that the Commissioner of Insurance may adopt rules to execute the duties and functions of the Texas Department of Insurance only as authorized by statute.

The proposed amendments affect regulation pursuant to the following statutes:

Texas Insurance Code, Articles 5.35-3 and 21.49-12 21.81

Subchapter A. Automobile Insurance

Division 3. Miscellaneous Interpretations

§5.206.

Designation of Underserved ZIP Codes.

(a) - (g) (No change.)

[ (h) Upon request, the Department shall publish a listing of the number of average vehicles on policies in force by company by ZIP Code in this state. This information will enable the Texas Automobile Insurance Plan Association, insurers and the public to make the necessary credit calculations and allow all interested parties to monitor which ZIP Codes may be underserved in the future.]

Subchapter d. Fire and Allied Lines Insurance

Division 8. Underserved Areas for Residential Property Insurance

§5.3700.

Designation of Underserved Areas for Residential Property Insurance for Purposes of the Insurance Code, Articles 5.35-3 and 21.49-12.

(a) - (f) (No change.)

[ (g) Quarterly report. The Department shall, upon request, provide a quarterly listing of the number of residential property insurance policies in force by type of policy by company by ZIP code or the number of residential property insurance policies written by type of policy by company by ZIP code. The availability of this information will enable insurers and the public to monitor the effectiveness of the Property Protection Program and the Market Assistance Program in improving the availability of residential property insurance.]



For more information, contact:

Contact Information and Other Helpful Links