LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                        February 27, 1995



 TO:     Honorable David Sibley, Chair          IN RE:  Senate Bill No. 597
         Committee on Economic Development              By: Ratliff
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
597 (relating to mandatory reinstatement of certain life or
accident and sickness insurance policies in case of mental
incapacity of an insured) this office has determined the
following:

The bill would require life, accident, or sickness insurers to
reinstate policies that lapse when the person responsible for the
premium unintentionally fails to make a payment for reasons of
mental incapacitation.


No significant fiscal implication to the State or units of local
government is anticipated.


Source:   Department of Insurance
          LBB Staff: JK, RM, RR