TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB392 by Seaman (relating to the licensing of public insurance adjusters; providing administrative and criminal penalties. ), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $0 |
2005 | $0 |
2006 | $0 |
2007 | $0 |
2008 | $0 |
Fiscal Year | Probable Revenue Gain/(Loss) fromDEPT INS OPERATING ACCT 36 |
---|---|
2004 | $62,500 |
2005 | $62,500 |
2006 | $62,500 |
2007 | $62,500 |
2008 | $62,500 |
The bill would generate revenue from the initial licensing of public adjusters and biennial renewals of public adjuster licenses. The Texas Department of Insurance anticipates 1,250 public adjusters would be licensed each year. The projected annual revenue from licensing and renewing public adjusters would be $62,500 for the $50 two-year license. The bill directs fees from the licenses be deposited to the Texas Department of Insurance Operating Fund.
The agency contracts with an external vendor to administer all agent and adjuster licensing examinations. The contract provides for the vendor to administer any new license exams required by legislation during the life of the contract. The agency would add the public adjuster license examination to the existing contract. The agency indicates it can absorb the workload of criminal history reviews and other manual application and renewal tasks for the public adjuster licenses within existing resources.
Source Agencies: | 454 Department Of Insurance
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LBB Staff: | JK, JRO, RT, RB
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