Part 1.
TEXAS DEPARTMENT OF INSURANCE
Chapter 5.
PROPERTY AND CASUALTY INSURANCE
Subchapter E. TEXAS WINDSTORM INSURANCE ASSOCIATION
The Texas Department of Insurance proposes amendments to §§5.4009,
5.4603, and 5.4800, and new §5.4010 concerning building code specifications
in the plan of operation of the Texas Windstorm Insurance Association (Association
or TWIA), inspections and forms for windstorm and hail insurance coverage
through the Association, and a form for proposing changes in building requirements
or procedures in the TWIA plan of operation. Senate Bill (SB) 14, as enacted
by the 78th Legislature, amended certain provisions of Insurance Code Article
21.49 relating to windstorm insurance; accordingly, the purposes of the new
and amended sections are to implement the legislation and to conform the current
forms relating to windstorm inspections with the changes to Article 21.49.
Insurance Code Article 21.49, §§5 and 6A, as amended by SB 14, provide
that after January 1, 2004, the commissioner by rule shall adopt the 2003
International Residential Code for one- and two-family dwellings published
by the International Code Council and may adopt a subsequent edition of that
code and may adopt any supplements published by the International Code Council
and amendments to that code. New §5.4010 proposes the adoption of the
2003 editions of the International Residential Code (IRC) and the International
Building Code (IBC), as revised by the 2003 Texas Revisions to each document,
all of which are adopted by reference to be effective January 1, 2005. The
proposal to adopt the 2003 editions of the IRC and IBC, as each revised by
the 2003 Texas Revisions, has been recommended by the Windstorm Building Code
Advisory Committee on Specifications and Maintenance pursuant to Insurance
Code Article 21.49, §6C. Proposed amendments to §5.4603 conform
the windstorm inspection forms to the amended sections, update various forms,
and delete certain forms to streamline the inspections process. Proposed amendments
to §5.4009 conform the applicable time period of the 2000 IRC and IBC
resulting from the proposed adoption of the 2003 editions of the IRC and IBC
and update addresses and website references. Copies of these proposed forms
can be obtained from the Office of the Chief Clerk, Texas Department of Insurance,
333 Guadalupe Street, P.O. Box 149104, Mail Code 113-2A, Austin, Texas, 78714-9104.
To request copies, please contact Sylvia Gutierrez at 512/463-6327. These
forms are used by qualified inspectors appointed to perform windstorm inspections
to indicate compliance with adopted building code specifications and by the
department in determining to notify the TWIA that construction is eligible
for a policy of windstorm and hail insurance. SB 14 also amended §6C
of Article 21.49 concerning the procedures by which the Windstorm Building
Code Advisory Committee on Specifications and Maintenance makes recommendations
to the commissioner on building requirements. Proposed amendments to §5.4800
conform the wording of this section and its referenced form to the new language
required by SB 14.
The department will consider the adoption of proposed amended §§5.4009,
5.4603, and 5.4800 and new §5.4010 in a public hearing under Docket Number
2593, scheduled for 1:30 o'clock, p.m. on July 14, 2004, in Room 100 of the
William P. Hobby, Jr. State Office Building, 333 Guadalupe Street, Austin,
Texas.
Alexis Dick, deputy commissioner, Inspections Division, has determined
that for each year of the first five years the proposed sections will be in
effect, there will be no fiscal impact to state and local governments as a
result of the enforcement or administration of the rules. There will be no
measurable effect on local employment or the local economy as a result of
the proposal.
Ms. Dick has determined that for each year of the first five years the
amended and new sections are in effect, the public benefit anticipated as
a result of the proposal will be uniform and definite application in the inspection
process thus promoting efficiencies in compliance. The cost of compliance
results from the legislative enactment of SB 14, 78th Legislature, and not
as a result of the administration or enforcement of the rules. Government
Code §2006.001 defines "small business" and "micro-business" in pertinent
part as a legal entity, including a corporation, partnership, or sole proprietorship
that is formed for the purpose of making a profit. Since the Association was
not formed for the purpose of making a profit, it does not meet the definition,
and thus it is not necessary to include a small or micro-business analysis
for the Association in this proposal.
To be considered, written comments on the proposal must be submitted no
later than 5:00 p.m. on July 12, 2004, to Gene C. Jarmon, General Counsel
and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P.O. Box
149104, Austin, Texas 78714-9104. An additional copy of the comment must be
simultaneously submitted to Alexis Dick, Deputy Commissioner, Inspections
Division, MC 103-1A, Texas Department of Insurance, P.O. Box 149104, Austin,
Texas 78714-9104.
1.
PLAN OF OPERATION
28 TAC §5.4009, §5.4010
The new and amended sections are proposed under the Insurance
Code Article 21.49 and §36.001. Insurance Code Article 21.49, §§5
and 6A, as amended by SB 14, provide that after January 1, 2004, the commissioner
by rule shall adopt the 2003 International Residential Code for one- and two-family
dwellings published by the International Code Council and may adopt a subsequent
edition of that code and may adopt any supplements published by the International
Code Council and amendments to that code. Article 21.49, §6A provides
that all structures that are constructed or repaired or to which additions
are made on or after January 1, 1988, to be considered insurable property
for windstorm and hail insurance from the Association, must be inspected or
approved by the department for compliance with the plan of operation. SB 14
further amended §6C of Article 21.49 to change certain references regarding
the Windstorm Building Code Advisory Committee on Specifications and Maintenance.
Section 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 this state.
The following statute is affected by this proposal: Insurance Code Article
21.49
§5.4009.Applicable Building Code Standards in Designated Catastrophe Areas for Structures Constructed, Repaired or to Which Additions Are Made On and After February 1, 2003 and before January 1, 2005 .
(a)
To be eligible for catastrophe property insurance, structures
located in the designated catastrophe areas specified in §5.4008 of this
chapter (relating to Applicable Building Code Standards in Designated Catastrophe
Areas for Structures Constructed, Repaired or to Which Additions Are Made
On and After September 1, 1998, and before February 1, 2003) and which are
constructed, repaired, or to which additions are made on and after February
1, 2003,
and before January 1, 2005,
shall comply with the 2000
International Residential Code or the 2000 International Building Code, as
revised by the Texas Revisions to the International Residential Code and the
Texas Revisions to the International Building Code, and all of which are adopted
by reference to be effective February 1, 2003. The codes are published by
and available from the International Code Council,
Publications, 4051
West Flossmoor Road, Country Club Hills, Illinois, 60478-5795, (Telephone:
800-214-4321
[
(1) - (3)
(No change.)
(b)
(No change.)
§5.4010.Applicable Building Code Standards in Designated Catastrophe Areas for Structures Constructed, Repaired or to Which Additions Are Made On and After January 1, 2005.
(a)
To be eligible for catastrophe property insurance, structures
located in the designated catastrophe areas specified in §5.4008 of this
chapter (relating to Applicable Building Code Standards in Designated Catastrophe
Areas for Structures Constructed, Repaired or to Which Additions Are Made
On and After September 1, 1998, and before February 1, 2003) and which are
constructed, repaired, or to which additions are made on and after January
1, 2005, shall comply with the 2003 Editions of the International Residential
Code and the International Building Code, as each revised by the 2003 Texas
Revisions, and all of which are adopted by reference to be effective January
1, 2005. The codes are published by and available from the International Code
Council, Publications, 4051 West Flossmoor Road, Country Club Hills, Illinois,
60478-5795, (Telephone: 800-214-4321, and the 2003 Texas Revisions to the
2003 Edition of the International Residential Code and the 2003 Texas Revisions
to the 2003 Edition of the International Building Code are available from
the Windstorm Inspections Section of the Inspections Division, Texas Department
of Insurance, 333 Guadalupe, P.O. Box 149104, MC 103-3A, Austin, Texas, 78714-9104
and on the Texas Department of Insurance website at www.tdi.state.tx.us. The
following wind speed requirements shall apply:
(1)
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 or after January 1, 2005, shall be designed
and constructed to resist a 3-second gust of 130 miles per hour.
(2)
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. To be eligible for catastrophe property insurance,
structures located in designated catastrophe areas specified in subsections
(b)(2)(A) and (b)(2)(B) of §5.4008 of this chapter and constructed, repaired,
or to which additions are made on or after January 1, 2005, shall be designed
and constructed to resist a 3-second gust of 120 miles per hour.
(3)
Areas Inland and West of the Specified Boundary Line.
To be eligible for catastrophe property insurance, structures located in designated
catastrophe areas specified in subsection (c) of §5.4008 of this chapter
and constructed, repaired, or to which additions are made on or after January
1, 2005, shall be designed and constructed to resist a 3-second gust of 110
miles per hour.
(b)
Repairs, alterations and additions necessary for the preservation,
restoration, rehabilitation or continued use of a historic structure may be
made without conformance to the requirements of subsection (a) of this section.
In order for a historic structure to be exempted, at least one of the following
conditions shall apply to the structure:
(1)
The structure is listed or is eligible for listing on
the National Register of Historic places.
(2)
The structure is a Recorded Texas Historic Landmark (RTHL).
(3)
The structure has been specifically designated by official
action of a legally constituted municipal or county authority as having special
historical or architectural significance, is at least 50 years old and is
subject to the municipal or county requirements relative to construction,
alteration, or repair of the structure, in order to maintain its historical
designation.
This agency hereby certifies that the proposal 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 May 25, 2004.
TRD-200403558
Gene C. Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: July 11, 2004
For further information, please call: (512) 463-6327
28 TAC §5.4603
The new and amended sections are proposed under the Insurance
Code Article 21.49 and §36.001. Insurance Code Article 21.49, §§5
and 6A, as amended by SB 14, provide that after January 1, 2004, the commissioner
by rule shall adopt the 2003 International Residential Code for one- and two-family
dwellings published by the International Code Council and may adopt a subsequent
edition of that code and may adopt any supplements published by the International
Code Council and amendments to that code. Article 21.49, §6A provides
that all structures that are constructed or repaired or to which additions
are made on or after January 1, 1988, to be considered insurable property
for windstorm and hail insurance from the Association, must be inspected or
approved by the department for compliance with the plan of operation. SB 14
further amended §6C of Article 21.49 to change certain references regarding
the Windstorm Building Code Advisory Committee on Specifications and Maintenance.
Section 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 this state.
The following statute is affected by this proposal: Insurance Code Article
21.49
§5.4603.Forms for Windstorm Inspections.
(a)
The Texas Department of Insurance adopts by reference the
following forms for use in windstorm inspection:
(1)
Application for Certificate of Compliance, Form WPI-1,
effective January 1, 2005
[
(2)
Inspection Verification, Form WPI-2-BC-1, effective
January 1, 2005
[
(3)
Inspection Verification, Form WPI-2-BC-2, effective
January 1, 2005
[
(4)
Inspection Verification, Form WPI-2-BC-3, effective
January 1, 2005
[
(5)
Inspection Verification, Form WPI-2-BC-4,
effective January 1, 2005;
(6)
Design Certification, Form WPI-2D, effective
January 1, 2005;
(7)
Field Form, Form WPI-7, effective January
1, 2005;
(8)
[
[
[
[
[
(b)
These forms are published by and available from the Texas
Department of Insurance. Copies of these forms may be obtained from the Windstorm
Inspections Section of the Inspections Division, Texas Department of Insurance,
333 Guadalupe, P.O. Box 149104,
MC 103-3A,
Austin, Texas 78714-9104
and on the Texas Department of Insurance website at www.tdi.state.tx.us
This agency hereby certifies that the proposal 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 May 25, 2004.
TRD-200403559
Gene C. Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: July 11, 2004
For further information, please call: (512) 463-6327
5203 Leesburg Pike, Suite 600, Falls Church, Virginia,
22041
], and the Texas Revisions to the International Residential Code
and the Texas Revisions to the International Building Code are available from
the Windstorm Inspections Section of the Inspections Division, Texas Department
of Insurance, 333 Guadalupe, P.O. Box 149104,
MC 103-3A,
Austin,
Texas, 78714-9104
and on the Texas Department of Insurance website at
www.tdi.state.tx.us
. The following wind speed requirements shall apply:
7.
INSPECTIONS FOR WINDSTORM AND HAIL INSURANCE
Application for Windstorm Building Inspection,
Form WPI-1, as amended October 1, 1998
];
Building Inspection, Form WPI-2, effective February
1, 2003
];
Building Design, Form WPI-2D, as amended February
1, 2003
];
Field Form, Form WPI-7, as amended October 1,
1998
];
(5)
] Certificate of Compliance,
Form WPI-8, as amended October 1, 1998;
(6)
Texas Department of Insurance Application
Acknowledgment--No Fee Required, Form WPI-9, as amended October 1, 1998;
]
(7)
Texas Department of Insurance Application
Acknowledgment for Engineered Structure--No Fee Required, Form WPI-9E, effective
October 1, 1998;
]
(8)
Texas Department of Insurance Application
Acknowledgment--Fee Required, Form WPI-9F, effective October 1, 1998.
]
(9)
Building Construction Compliance, Form
WPI-2A, effective February 1, 2003.
]
9.
WINDSTORM BUILDING CODE ADVISORY COMMITTEE ON SPECIFICATIONS AND MAINTENANCE