28 TAC §5.4008
The Commissioner of Insurance adopts on an emergency basis
amendments to §5.4008, concerning building code specifications for windstorm
resistant construction in the plan of operation of the Texas Windstorm Insurance
Association (TWIA). The amendments are necessary to provide changes to the
new coastal Building Code for Windstorm Resistant Construction, as recommended
by the Building Code Advisory Committee, which will facilitate compliance
by coastal builders with the new coastal Building Code. The amendments are
necessary to incorporate additional prescriptive construction methods to be
used in the construction, repair and additions of buildings located in the
designated catastrophe areas to increase the building options available to
the building industry and consumers. Due to the presence of hurricanes in
the Atlantic Ocean and the threat of hurricanes on the Texas Gulf Coast which
present an imminent peril to the public health, safety, or welfare of residents
of the Texas Coast, it is necessary to adopt the amendments on an emergency
basis. The imminent peril to the public welfare requires adoption of the section
on an emergency basis to ensure that structures built, repaired or to which
additions are made are in compliance with the most effective building code
standards available to reduce the loss of life and property damage during
the 1998 hurricane season for Texas Gulf Coast residents. The new Building
Code for Windstorm Resistant Construction, along with these additional prescriptive
requirements, provides more stringent wind load and impact resistant requirements
for structures, which will result in a reduction in loss of life and injury
to the public as well as a reduction in claims for damage to structures in
the event of a hurricane. Adopting the amendments on an emergency basis will
avert considerable harm to the economic welfare of coastal homebuyers and
builders by eliminating uncertainty about how and when to build and averts
the possibility of a major shutdown of the construction industry due to the
inability of builders and contractors to adequately use the new building code
for reconstruction of hurricane damaged property which could be imminent in
the next three months. The purpose of the Texas Windstorm Insurance Association
(TWIA) is to provide windstorm and hail insurance coverage to residents in
designated catastrophe areas who are unable to obtain such coverage in the
voluntary market. The TWIA's plan of operation specifies in §5.4008 the
applicable building code standards to qualify for coverage from the TWIA as
required by Article 21.49, §6A(f) of the Insurance Code for structures
located in designated catastrophe areas which were constructed, repaired,
or to which additions are made on and after September 1, 1998, the effective
date of the Building Code for Windstorm Resistant Construction.
The amendments are adopted pursuant to the Insurance Code Articles
21.49 and 1.03A. Article 21.49, §6A specifies building code requirements
and approval or inspection procedures for windstorm and hail insurance through
the Association. Article 21.49, §6A(f), Insurance Code, requires the
Commissioner to appoint a Building Code Advisory Committee to advise and make
recommendations to the Commissioner on building specifications in the Association's
plan of operation for structures to be eligible for windstorm and hail insurance
through the Association. Article 21.49, §5(c) of the Insurance Code provides
that the Commissioner of Insurance by rule shall adopt the Association's plan
of operation with the advice of the Association's board of directors. Article
21.49, §6A(f) and §5(c), by their terms, delegate the foregoing
authority to the State Board of Insurance. However, under Article 1.02 of
the Insurance Code, a reference in the Insurance Code or another insurance
law to the State Board of Insurance means the Commissioner of Insurance or
the Texas Department of Insurance, as consistent with the respective powers
and duties of the Commissioner and the Department under Article 1.02. Article
1.03A authorizes the Commissioner of Insurance to adopt rules and regulations,
which must be for general and uniform application, for the conduct and execution
of the duties and function of the Texas Department of Insurance only as authorized
by statute.
§5.4008. Applicable Building Code Standards in Designated Catastrophe Areas for Structures Constructed, Repaired or to Which Additions Are Made On and After June 1, 1998.
(a)
Areas Seaward of the Intracoastal Canal. To be eligible
for catastrophe property insurance, structures located in designated catastrophe
areas which are seaward of the Intracoastal Canal and constructed, repaired,
or to which additions are made on and after September 1, 1998, shall comply
with the Building Code for Windstorm Resistant Construction. The Texas Department
of Insurance adopts by reference the Building Code for Windstorm Resistant
Construction, effective September 1, 1998. Emergency amendments to the Building
Code for Windstorm Resistant Construction are adopted by reference to be effective
September 3, 1998.
(b)
Areas Inland of the Intracoastal Canal and Within Approximately
25 Miles of the Texas Coastline and east of the Specified Boundary Line and
Certain Areas in Harris County.
(1)
To be eligible for catastrophe property insurance, structures
located in designated catastrophe areas specified in paragraphs (2)(A) and
(2)(B) of this subsection and constructed, repaired, or to which additions
are made on and after September 1, 1998, shall comply with the Building Code
for Windstorm Resistant Construction which is adopted by reference in subsection
(a) of this section and any applicable emergency amendments adopted by reference
to be effective September 3, 1998.
(2)
(No change.)
(c)-(d)
(No change.)
Filed with the Office of the Secretary of State,on
September 3, 1998.
TRD-9814029
Lynda H. Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: September 3, 1998
Expiration date: January 1, 1999
For further information, please call: (512) 463-6327