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Texas Department of Insurance
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Commissioner’s Bulletin # B-0044-01

October 4, 2001


Re:   Geographic changes in fire protection including annexation of property by cities and towns in Texas.

This bulletin provides information regarding geographic changes that may have occurred within your municipality having an effect on the Public Protection Classification (PPC). Typically, annexation of property by cities and towns result in a change to city/fire district boundaries, existing requirements for automatic aid, and fire station location which may affect the newly annexed areas' PPC rating.

Property insurance rating is based in part on the location of the property. The insurance premium for property located within five road miles of the responding fire station and within the city limits of a city or town is often less than that for property located outside the city limits. The insurance industry uses a Geographical Underwriting System (GUS) tool to identify the location of a specific property for application of the appropriate PPC. The PPC is one of the factors used to determine the applicable premium to be charged.

Providing updates for the changes noted above, including annexation, will ensure that specific property affected by the changes is properly identified on the GUS. This will prevent premiums from being issued at an incorrect rate. A geographical underwriting system is an acceptable means of identifying the exact location of property; however, accuracy of information retained in the mapping system depends on the immediate updating of recent changes and boundaries after annexation.

The State Fire Marshal encourages the submission of information regarding any recent changes, including annexations, to the Insurance Services Office, or to the Texas Department of Insurance, as quickly as possible after a change or annexation occurs. The supplemental changes and annexation information will then be entered into the mapping system.

If the premium for a renewal policy for a specific property indicates that a substantial increase has occurred, policyholders should contact their agent or insurer to determine if the appropriate PPC has been applied. In instances where an inappropriate PPC has been applied, insurers should correct the policy premium from the inception date of the policy to reflect the correct PPC and return any difference in premiums to the insured.

Information for recent changes, including annexations, should be submitted to one of the following:

Community Mitigation Services MC 112 FM
Insurance Services Office Jesse James Williams
P.O. Box 3540 Texas Department of Insurance
Austin, Texas 78764-3540 P.O. Box 149221
1 800 444-4554 Austin Texas 78714-9221
512 305-7941

Questions regarding this bulletin may be directed to Jesse Williams, PPC Oversight, 512-305-7941, State Fire Marshal's Office, Mail Code 108-FM, P.O. Box 149221, Austin, Texas 78714-9221.


G. Mike Davis
State Fire Marshal