TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB2822 by Rose (Relating to the regulation of personal automobile insurance and residential property insurance in this state.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | ($410,000) |
2007 | $0 |
2008 | ($150,000) |
2009 | $0 |
2010 | ($150,000) |
Fiscal Year | Probable (Cost) from GENERAL REVENUE FUND 1 |
Probable (Cost) from INSURANCE MAINT TAX FEES 8042 |
---|---|---|
2006 | ($150,000) | ($260,000) |
2007 | $0 | $0 |
2008 | ($150,000) | $0 |
2009 | $0 | $0 |
2010 | ($150,000) | $0 |
The bill would amend the Insurance Code relating to the regulation of personal automobile insurance and residential property insurance in this state. This bill includes a provision requiring all insurers writing residential property or personal automobile insurance to file rates with the Texas Department of Department of Insurance within 20 days of the September 1, 2005, effective date. Filings must be reviewed by actuarial staff for completeness and any requests for additional information sent out within 10 days of receipt of the filing. No later than 30 days after receipt of each filing, each filing must be approved or disapproved. If a filing is disapproved, an order specifying the reasons for the disapproval must be issued and a hearing scheduled.
This bill would take effect September 1, 2005.
For fiscal year 2006, the Department of Insurance (TDI) estimates a one time consulting actuarial expense of $100,000 in additional professional fees will be needed for residential property filings and $160,000 would be needed for personal automobile rate filings. TDI anticipates receiving 60 percent more auto rate filings (800) and residential property filings (500). Based on the analysis of TDI, it is assumed that any additional workload/costs resulting from the passage of the bill could be reasonably absorbed within current resources.
Beginning in fiscal year 2006, the Office of Public Insurance Counsel estimates an additional $150,000 for expert witness fees each year in which a benchmark rate hearing is held for expert witness. The benchmark rate and flex bands would be in effect for a two-year period starting on September 1 of each odd-numbered year.
Source Agencies: | 359 Office of Public Insurance Counsel, 454 Department of Insurance
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LBB Staff: | JOB, JRO, MW, NV
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