LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 4, 1995 TO: Honorable John Smithee, Chair IN RE: House Bill No. 1987 Committee on Insurance By: Duncan House of Representatives 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 relating to the Surplus Lines Stamping Office of Texas and would establish financial requirements for eligibility of an insurance exchange created by the laws of another state to serve as a surplus lines insurer. The Department of Insurance would no longer receive agent affidavits of reasonable search through an admitted carrier. No other agency activities or processes would be affected by the bill. No significant fiscal implication to the State is anticipated. No fiscal implication to units of local government is anticipated. Source: Department of Insurance LBB Staff: JK, RM, RR