LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

March 11, 2013

TO:	Honorable John Carona, Chair, Senate Committee On Business & Commerce
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	SB600 by Davis (Relating to premium refunds for insurance rates found to be excessive or unfairly discriminatory; providing an administrative penalty.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend the Insurance Code relating to premium refunds for insurance rates found to be excessive or unfairly discriminatory; providing an administrative penalty. The bill would allow the insurance commissioner to order an insurer who has been found to have charged a rate for personal automobile insurance or residential property insurance that is excessive or unfairly discriminatory to pay an administrative penalty of $100 for each policy delivered, issued for delivery, or renewed at the excessive or unfairly discriminatory rate.

Based on information provided by the Texas Department of Insurance, it is assumed that any costs associated with the implementation of this bill would be absorbed within existing staff and resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 454 Department of Insurance

LBB Staff:

UP, RB, MW, ER, LXH