SRC- LBB C.S.S.B. 637 78(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 637
78R11443 PB-DBy: Nelson
State Affairs
5/9/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

Insurance companies operating in Texas are required to file financial
statements with the National Association of Insurance Commissioners
(NAIC).  NAIC charges a filing fee to cover the cost of maintaining the
information in a database.  Current law requires the Texas Department of
Insurance (TDI) to collect the fee from insurance companies for remittal
to NAIC. TDI is required to pay the difference between the amount
appropriated for this purpose and the actual cost of the database.
C.S.S.B. 637 requires insurance companies to pay the database fee directly
to NAIC. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 802.055, Insurance Code, as effective June 1,
2003, as follows: 

Sec.  802.055.  New Heading:  COSTS PAID BY INSURANCE COMPANY.  Requires
an insurance company to pay all costs of preparing and furnishing to the
National Association of Insurance Commissioners the information required
under Section 802.052, including any related filing fees.  Deletes
Subsection (b), which prohibited costs relating to providing the
information from being assessed against an insurance company. 

SECTION 2.  Effective date:  June 1, 2003, or September 1, 2003.