LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 17, 1995



 TO:     Honorable John Smithee, Chair          IN RE: Committee Substitute
         Committee on Insurance                               forHouse Bill
         House of Representatives               No. 1987
         Austin, Texas









FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1987 (relating to surplus lines insurance) this office has
determined the following:

The bill would amend the Insurance Code to eliminate requirements
for agents to file reasonable search affidavits for procurement
of insurance from licensed insurers.  The bill would also amend
provisions relation to the Surplus Lines Stamping Office of Texas
and would establish financial requirement for eligibility of
insurance exchange created by the laws of another state to servae
as suprlus lines insurer. 

The Department of Insurance would no longer receive agent
affidavits of reasonable search through an admitted carrier.

No significant implications to the State and no fiscal
implications to units of local government are anticipated.


    

        





 Source:  LBB Staff: JK, CT, RR