| TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB1561 by Eiland (Relating to nonforfeiture amounts of certain annuities.), As Introduced |
The bill would change the minimum interest rate requirement for the standard non-forfeiture law calculation and would provide that the Department of Insurance (TDI) may adopt rules to implement the bill. A company would be allowed to choose the method of calculation of the interest rate under the current requirements or under the proposed new requirements until
Annuity insurers are required to submit a filing fee of $100.00 per filing, subject to approval by TDI. The agency estimates the bill would cause an additional 2,081 filings raising $208,100 over the 2004-05 biennium.
It is anticipated that any increase in fee revenue would be offset by a decrease in the insurance maintenance tax.
TDI could absorb any costs associated with the bill within current resources.
The bill would take effect immediately if it receives two-thirds vote, otherwise, it would take effect
| Source Agencies: | 454 Department of Insurance
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| LBB Staff: | JK, JRO, RT, RB
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