Who determines whether a city or county is a Catastrophe Area?

Who determines whether a city or county is a Catastrophe Area?

• A. The Commissioner of Insurance
• B. The Governor
• C. The Legislative Budget Board
• D. The Texas Department of Insurance

Answer: (A)

Catastrophe Area designations are a regulatory tool used after a major disaster, and the authority to determine which cities or counties fall into that category rests with the Commissioner of Insurance. This official, who heads the Texas Department of Insurance, can designate an area as a catastrophe area to enable certain regulatory actions related to insurance practices following a catastrophe. The Governor doesn’t make this designation, the Legislative Budget Board isn’t responsible for it, and while the Department of Insurance administers related rules, the power to designate lies with the Commissioner.

Catastrophe Area designations are a regulatory tool used after a major disaster, and the authority to determine which cities or counties fall into that category rests with the Commissioner of Insurance. This official, who heads the Texas Department of Insurance, can designate an area as a catastrophe area to enable certain regulatory actions related to insurance practices following a catastrophe. The Governor doesn’t make this designation, the Legislative Budget Board isn’t responsible for it, and while the Department of Insurance administers related rules, the power to designate lies with the Commissioner.