EMERGENCY RULES An agency may adopt a new or amended section or repeal an existing section on an emergency basis if it determines that such action is necessary for the public health, safety, or welfare of this state. The section may become effective immediately upon filing with the Texas Register, or on a stated date less than 20 days after filing and remaining in effect no more than 120 days. The emergency action is renewable once for no more than 60 additional days. Symbology in amended emergency sections. New language added to an existing section is indicated by the code. [Brackets] indicate deletion of existing material within a section. TITLE 28. INSURANCE PART I. Texas Department of Insurance CHAPTER 5.Property and Casulaty Insurance SUBCHAPTER E.Texas Windstorm Insurance Association Division 1. Plan of Operation 28 TAC sec.5.4008 The Commissioner of Insurance adopts on an emergency basis amendments to sec.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 sec.5.4008 the applicable building code standards to qualify for coverage from the TWIA as required by Article 21.49, sec.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, sec.6A specifies building code requirements and approval or inspection procedures for windstorm and hail insurance through the Association. Article 21.49, sec.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, sec.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, sec.6A(f) and sec.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. sec.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