Honorable John Carona, Chair, Senate Committee on Business & Commerce
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB1672 by Taylor (Relating to the business of travel insurance; authorizing penalties.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would amend the Insurance Code relating to the business of travel insurance; authorizing penalties. The bill would eliminate the travel insurance specialty license, and would allow a travel insurance supervising entity to be designated by an insurer authorized to engage in the business of travel insurance.
The bill applies only to a travel insurance policy that is delivered, issued for delivery, or renewed on or after January 1, 2014.
Based on information provided by the Texas Department of Insurance (TDI), it is assumed that any costs associated with the implementation of this bill would be absorbed within existing staff and resources. Also, based on information provided by TDI, this analysis assumes that implementation of the bill would result in an decrease in revenue of approximately $96,800 over the biennium ($48,400 in fiscal year 2014, $48,400 in fiscal year 2015) in General Revenue-Dedicated Texas Department of Insurance Fund 36 from application fees. Since General Revenue-Dedicated Texas Department of Insurance Fund 36 is a self-leveling account, this analysis also assumes that any lost revenue resulting from the implementation of the bill would result in the department adjusting the assessment of the maintenance tax or other fees accordingly in the following year.
Local Government Impact
No fiscal implication to units of local government is anticipated.