THE ATNBRNE:Y GENERAL 

OF?!hCXAS 

The Honorable A. R. Schwartz 

Chairman 

Opinion No. R-824 

Senate Committee on Jurisprudence Re: Whether mobile homes 

State Capitol 

Austin, Texas 78701 

may be insured under the 

Texas Catastrophe 

Property Insurance Pool 

Act. 

Dear Senator Schwartz: . 

You have requested our opinion regarding whether mobile 

homes may be insured under the provisions of article 21.49 

of the Texas Insurance Code, 

Insurance Pool Act. 

the TexaB Catastrophe Property 

Specifically, you ask: 

1. Whether the State Board of Insurance 

may require members of the Texas Cataatrophe Property Insurance Association to 

provide insurance for mobile homes in a' 

seacoast area; 

2. whether a mobile home is 'immovable 

property' for purposes of article 21.49; 

and 

3. whether, if the State Board of 

Insurance may require members of the 

Association to provide coverage, it may 

be provided at a special rate. 

Article 21.49 created the Texas Catastrophe Property 

Insurance Association, composed of "all property insurers 

authorized to transact property insurance in this State, 

except those companies that are prevented by law from writing 

coverages available through the pool on a Statewide basis." 

Sec. 4(a). The temporary board of directors, made up of 

p. 3477 
The Honorable A. R. Schwartz - page 2, (H-834) 

seven members, was directed to submit to the Board of Insurance "for review and approval a proposed plan of operation." 

Sec. 5(d). If the Association did not submit a plan satisfactory to the Board prior to a certain date, the Board was 

to write its own plan. Id. On May 10, 1973, the Board of 

Insurance approved the Azciation's "Revised Plan of Operation." Article I, section 2 of Part Four of the Revised 

Plan provides that "'insurable property' shall not include 

any structure consisting, in whole or in part, of a 

Aohie home." Thus, at present there is no question that 

mobile homes are excluded from coverage under the Act. 

Article 21.49 empowers the "Directors of the Association . . . subject to the approval of the Board [to] amend 

the plan of oheration at any time." Sec. 5(d). In addition, 

the Association is required, "in the absence of an appeal," 

to "adopt amendments to the plan proposed by the Board 

within 30 days." Id. Thus, it appears that the Board may, 

on its own initiatm, amend the Plan of Operation and that 

any such amendment is effective 30 days from its adoption 

unless the Association employs the appeal procedure of 

section 9. We believe, therefore, that the Board may amend 

the Plan of Operation specifically to include mobile homes 

within the definition of "insurable property,* unless some 

portion of the statute prevents such action. 

"Insurable property" is defined by article 21.49 as 

immovable property at fixed locations 

in a catastrophe area or corporeal 

movable property located therein (as 

may be designated in the plan of 

operation) which property is determined 

by the Association, pursuant to the 

criteria specified in the plan of 

operation to be in an insurable condition 

against windstorm, hail and/or fire and 

explosion as appropriate, as determined 

by normal underwriting standards . . . . 

Sec. 3(f). 

Thus, unless a mobile home may be classified as "immovable 

property," the Board of Insurance is without authority to amend 

the Plan of Operation to include it within the definition of 

"insurable property." In our opinion, however, there are 

instances in which a mobile home might be deemed "immovable 

p. 3478 
The Honorable A. R. Schwartz - page 3 (H-824) 

property" for purposes of article 21.49. In' Capitol A 

-- Inc. v. Walker, 448 S.W.2d 830 (Tex. Civ. App. -- Auat -F==' n, 

1969 writ ref'd n.r.e.1, the court considered whether a 

mobile home could serve as the basis for a homestead exemption. The evidence indicated that 

the method used in placing [the] trailer 

on concrete blocks was the same as used 

by house movers who move and relocate 

entire houses. 448 S.W.2d at 832. 

Rejecting the argument that the definition of "house trailer" 

in the Penal Code had any bearing on the question of a house 

trailer's eligibility for a homestead exemption, the court 

concluded that the mobile home "ia aa physically attached 

to the land as frame houses built on concrete blocks or cedar 

posts." - Id. at 833, 035. 

Other states have adopted a similar view. In Ballard's 

Inc. v. Evans, 241 So.Zd 557 ,(La. Ct. App. 1970], a Louisiana 

courtTeldat a truck body without wheels resting on concrete blocks that was not capable of being lifted by two 

men and was intended to become a permanent part,of the 

premises was an "immovable." 241 So.2d at 562. Likewise, 

in Lafleur v. Foret, 213 So.2d 141 (La. Ct. App. 19681, the 

court held sat a chicken brooder shed whose dimensions were 

5 feet by 4 feet by 10 feet and which,could not be moved by 

two men was an "immovable." 213 So.Zd at 150. 

The purpose of the Catastrophe Property Insurance Pool 

Act is to 'provide a method whereby adequate windstorm, hail 

and fire insurance may be obtained in certain designated 

portions of the State of Texas," since "an adequate market 

for [such] insurance ia necessary to the economic welfare of 

the State of Texas." Sec. 1. On the basis of this declared 

purpose, and the above cited decisions, we believe that the 

Board is authorized to adopt a definition of "immovable 

property" that would in certain instances permit the inclusion 

of mobile homes within that definition. Although by virtue 

of its expertise in this area the Board is best qualified to 

p. 3479 
The Honorable A. R. Schwartz - page 4 (H-824) 

fashion its own definition, we believe that it should coneider such factors aa the size of the mobile home, its 

degree of attachment to the land on which it is situated, 

the presence or absence of wheels, and in particular, the 

mobile home's degree of compliance with the "tie-down" 

standards of the Mobile Homes Standards Act, article 5221f, 

V.T.C.S. 

Your final question is whether, if the Board may require 

members of the Association to provide coverage for mobile 

homes, such coverage should be subject to a special rate 

and whether the Association could create standards ~governing 

eligibility for coverage under the rate established for 

mobile homes. Article I, section 4, of Part Four of the 

Plan of Operation provides that "the rates, rating plans and 

rate rules applicable shall be those established pursuant to 

Section 8 of the Act." Article 21.49, section 8(a), requires 

the Association to 

file with the Board every manual of 

classifications, rules, rates . . 

every rating plan, and every modif%- 

tion of the foregoing which it proposes 

to use. 

Section 8(c) authorizes the Board to "approve, modify, 

or disapprove" such manuals of rates and classification. 

Furthermore, under section 5A(a), the Board may 

[alfter notice and hearing . . . issue 

any orders which it considers necessary 

to carry out the purposes of this Act 

including, but not limited to, maximum 

rates, competitive rates, and policy forms. 

Accordingly, we believe a separate rate structure may be 

provided for mobile homes. 

p. 3480 
The Honorable A. R. Schwartz - page 

SUMMARY 

5 (H-824) 

The State Board of Insurance may 

require members of the Texas Cataatrophe Property Insurance Association to 

provide insurance for mobile homes in a 

catastrophe area, provided a mobile home 

is properly classified as "immovable 

property." The Board may adopt a 

definition of "immovable property" 

that would in certain instances permit the 

inclusion of mobile homes within such 

definition. If the Board requires the 

inclusion of mobile homes within the 

Catastrophe Pool, it may further require 

that rates be established and classifications 

created in accordance with article 21.49, 

section 8, Texas Insurance Code. 

- Very truly yours, 

Attorney General of Texas 

APPROVED: w 

Opinion Committee 

jwb 

p. 3481