LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                        February 27, 1995



 TO:     Honorable David Sibley, Chair          IN RE:  Senate Bill No. 598
         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.
598 (Relating to the settlement of claims on certain life
insurance policies or annuity contracts and to payment of
interest on those claims.) this office has determined the
following:

The bill would decrease the amount of time in which the insurer
must pay a death claim benefit under a life insurance policy from
two months to five days.  The bill would also require insurers to
pay 18 percent interest to the beneficiary from the date proof of
death is received to the date the claim is paid in full.

Any additional workload resulting from the bill's provisions for
the Department of Insurance relating to life insurance policy
reviews could be accomplished within existing functions without
additional cost.


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


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