Texas Register, Volume 36, Number 34, Pages 5247-5552, August 26, 2011 Page: 5,264
5247-5552 p. ; 28 cm.View a full description of this periodical.
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pliance Transition Program to renew their coverage and persons
to obtain initial Association residential insurance coverage prior
to September 28, 2011, if needed. When the Insurance Code
2210.260(d) transition program becomes effective on Septem-
ber 28, 2011, it should be self-operating under the statute without
the need for implementing rules. Coverage under the 5.4907
Certificate of Compliance Transition Program would qualify un-
der the provisions of the Insurance Code 2210.260(d) for con-
tinuing coverage pending an alternative certificate or the expi-
ration of that program. The 5.4907 Certificate of Compliance
Transition Program will thus terminate on September 28, 2011.
Undue delay in adopting amended 5.4907 may result in the
possible inability of persons living and working in the designated
catastrophe area to obtain Association insurance coverage,
placing those persons in imminent financial peril and may affect
the orderly development and the economic welfare of the state.
Additionally, because 5.4907 establishes Association insur-
ance coverage eligibility, these rules are essential for persons
in the designated catastrophe area when making decisions con-
cerning their insurance requirements and their ability to obtain
insurance coverage as of September 1, 2011 and in the future.
Failure to adjust 5.4907 to fit the legislative intent may cause
persons to make decisions that they otherwise would not have
made. The possibility that these decisions could limit the ability
of such persons to obtain insurance coverage places them in
imminent financial peril and may affect the orderly development
and the economic welfare of the state.
Therefore, it is necessary to adopt amended 5.4907 on an
emergency basis with immediate effect. Formal rule proposals
subject to notice, public comment, and an opportunity for public
hearing, concerning the alternative eligibility program described
in the Insurance Code 2210.260 will follow this emergency
adoption.
STATUTORY AUTHORITY. Section 5.4907 is amended under
the Government Code 2001.034 and the Insurance Code
2210.008, 2210.251, and 36.001. The Insurance Code
2210.008(b) authorizes the Commissioner to adopt reasonable
and necessary rules in the manner prescribed in Subchapter A,
Chapter 36, Insurance Code. The Insurance Code 2210.251(a)
authorizes the plan of operation to include an approval program
for determining whether a structure is eligible for Associa-
tion insurance coverage. The Insurance Code 2210.251(f)
establishes that structures insured by the Association as of
September 1, 2009, may continue to be considered insurable
property notwithstanding the requirements of 2210.251. The
Insurance Code 36.001 provides that the Commissioner of
Insurance may adopt any rules necessary and appropriate to
implement the powers and duties of the Texas Department of
Insurance under the Insurance Code and other laws of the state.
The Government Code 2001.034 authorizes a state agency to
adopt administrative rules on an emergency basis without prior
notice and hearing under certain statutorily specified circum-
stances, including a finding that there is imminent peril to the
public health, safety, or welfare.
#5.4907. Certificate of Compliance Transition Program.
(a) Except as provided in 5.4906 of this division (relating to
Certificate of Compliance Approval Program) after 12:01 a.m. Septem-
ber 1, 2009, and until expiration of this section, an applicant may obtain
insurance through the Association for a residential structure without a
certificate of compliance if[](4) within the 1-2-month perd prior to the- date of appli-
ation feor Association coverage the structure has been insured on an
annual basis under a property policy that included windstorm and hailft2 theinisurerthatun
de rwrote M
poeiyonthe structure:]
A) discontinues providing windstorm and hai insr-
anecundethe-peli 4or
I theinsurerthat ndawrote theyon thestre-
tare disentinues providing reside tiatl prpey isurnee in the pr-
tion of the catastrophe area where the structure i s loated, and}
[(3)] the applicant complies with:
(1) [(A] the mandatory building code requirement speci-
fied in the Insurance Code 2210.258, effective June 19, 2009;
(2) [(B] the declination requirement specified in the Insur-
ance Code 2210.202 and 5.4902 and 5.4903 of this division (relat-
ing to Additional Requirements and Declination of Coverage, respec-
tively);
(3) [(-] if applicable, the flood insurance requirement
specified in the Insurance Code 2210.203 and 5.4902 and 5.4904
of this division (relating to Additional Requirements and Flood
Insurance, respectively); and
(4) [(-)] all other Association underwriting requirements,
including maintaining the structure in an insurable condition and pay-
ment of premium.
(b) Coverage issued under this section that expires before the
expiration of this section may be renewed [one time] during the du-
ration of the certificate of compliance transition program provided the
policyholder complies with all statutory requirements and Association
underwriting requirements as provided in subsection a [(a)(t3)] of this
section.
(c) This section expires on September 28 [August 34], 2011.
No person may obtain insurance coverage through the Association un-
der the certificate of compliance transition program described in this
section after September 27 [August 44 3], 2011.
(d) On and after September 28, 2011, persons without a cer-
tificate of compliance may obtain Association Insurance coverage as
prescribed in the Insurance Code 2210.260(d), and, when established,
the alternative eligibility program described in the Insurance Code
2210.260. [Under an a-tern ative certification being developed by the
department- policyholders will be able to continue beverage on the
structure through the Assiation aft he transition program expires]
This agency hereby certifies that the emergency adoption has
been reviewed by legal counsel and found to be within the
agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 15, 2011.
TRD-201103196
Gene C. Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Effective Date: August 15, 2011
Expiration Date: December 12, 2011
For further information, please call: (512) 463-632736 TexReg 5264 August 26, 2011
Texas Register
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Texas. Secretary of State. Texas Register, Volume 36, Number 34, Pages 5247-5552, August 26, 2011, periodical, August 26, 2011; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth190845/m1/15/: accessed April 24, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.