Part 1.
TEXAS DEPARTMENT OF INSURANCE
Chapter 5.
PROPERTY AND CASUALTY INSURANCE
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 judgement. 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.
Subchapter A. AUTOMOBILE INSURANCE
3.
MISCELLANEOUS INTERPRETATIONS
28 TAC §5.206
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, 21.49-12 and 21.81.
§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.]
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 February 26, 2002.
TRD-200201189
Lynda Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: April 14, 2002
For further information, please call: (512) 463-6327
Subchapter D. FIRE AND ALLIED LINES INSURANCE