LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 25, 1995
TO: Honorable David Sibley, Chair IN RE: Senate BillNo. 1637
Committee on Economic Development By: Sibley
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
1637 (relating to the approval and use of certain life, health,
and accident insurance policy forms) this office has determined
the following:
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
The bill would amend the Insurance Code to reduce the approval
period for certain life, health and accident insurance policy
forms and to change conditions for approval of such forms by the
Department of Insurance. The bill would also reduce the maximum
filing fees from $200 to $100 for policy forms, amendments,
endorsements and riders filed for review and reduce the fee from
$100 to $50 for forms filed as exempt from review.
Implementation of the provisions of the bill would result in
additional agency workload, mainly for approval and disapproval
of policy forms. According to the Department, significant
additional resources would be needed to provide detailed
information about deficiencies to insurers within a reduced
approval period and to perform an additional review of
disapproved form filings within 30 days. Inquiries relating to
the provisions of the bill would also contribute to the need for
additional staff in order to maintain the current level of
productivity.
Potential revenue implications resulting from the bill cannot be
determined. While the bill would limit filing fees to levels
consistent with the Department's current fees, the amounts of
such fees have not changed for five years.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Cost Out Change in
Year of Department of Number of State
Insurance Employees from
Operating FY 1995
Fund 036
GR Consolidated
1996 $482,442 10.0
1997 430,699 10.0
1998 430,699 10.0
1999 430,699 10.0
2000 430,699 10.0
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
No fiscal implication to units of local government is
anticipated.
Source: Department of Insurance
LBB Staff: JK, RM, RR