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