TO: | Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Tom Craddick, Speaker of the House, House of Representatives |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | SB14 by Jackson (relating to certain insurance rates, forms, and practices; providing penalties. ), Conference Committee Report |
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) from DEPT INS OPERATING ACCT 36 |
Probable Savings/(Cost) from DEPT INS OPERATING ACCT 36 |
Change in Number of State Employees from FY 2003 |
---|---|---|---|
2004 | ($906,219) | $906,219 | 5.8 |
2005 | ($991,413) | $991,413 | 5.8 |
2006 | ($991,413) | $991,413 | 5.8 |
2007 | ($1,035,804) | $1,035,804 | 4.8 |
2008 | ($1,035,804) | $1,035,804 | 4.8 |
The bill would amend the existing benchmark system for all residential property and personal automobile insurance and would define insurers as all authorized entities including Lloyds, county mutuals, farm mutuals, etc. The bill would specify that the term insurer does not include Texas Windstorm Insurance Association, FAIR Plan Association or Texas Automobile Insurance Plan Association.
The bill would move the responsibility for the National Association of Insurance Commissioner (NAIC) database filing fee from the Department of Insurance to insurance companies.
The bill would take effect immediately if passed by at least a two-thirds majority on a record vote in both houses; otherwise, it would take effect on September 1, 2003.
In order to absorb increased workloads related to the bill, the Department of Insurance indicates it would require an additional $593,781 and 5.75 FTEs in 2004, $508,587 and 5.75 FTEs each year in 2005-06, and $464,196 and 4.75 FTEs each year thereafter.
By requiring insurance companies to pay the NAIC database filing fee, the Department of Insurance would no longer have to collect and expend $1,500,000 each year, from General Revenue Dedicated Fund 36, for this purpose from insurance companies.
Source Agencies: | 304 Comptroller of Public Accounts, 454 Department of Insurance
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LBB Staff: | JK, JRO, RT, RB, DLBe
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