LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 13, 2009 TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB4342 by Smithee (Relating to required use by insurers of certain standard insurance policy forms for residential property insurance.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Insurance Code to require certain insurers to use standard promulgated residential property forms, without endorsements or exclusions. The bill would allow insurers to also use alternative policy forms approved by the Texas Department of Insurance (TDI) or standard insurance policy forms adopted by TDI.Based on analysis provided by the TDI, it is anticipated that the bill would result in an increase in the number of residential property rates that TDI reviews. The agency indicates that there would be some cost to implementing the provisions of the bill, but these costs are expected to be absorbed within the agency's existing budget. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:454 Department of Insurance LBB Staff: JOB, KJG, CH
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 13, 2009
TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB4342 by Smithee (Relating to required use by insurers of certain standard insurance policy forms for residential property insurance.), As Introduced
TO: Honorable John T. Smithee, Chair, House Committee on Insurance
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB4342 by Smithee (Relating to required use by insurers of certain standard insurance policy forms for residential property insurance.), As Introduced
Honorable John T. Smithee, Chair, House Committee on Insurance
Honorable John T. Smithee, Chair, House Committee on Insurance
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB4342 by Smithee (Relating to required use by insurers of certain standard insurance policy forms for residential property insurance.), As Introduced
HB4342 by Smithee (Relating to required use by insurers of certain standard insurance policy forms for residential property insurance.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend the Insurance Code to require certain insurers to use standard promulgated residential property forms, without endorsements or exclusions. The bill would allow insurers to also use alternative policy forms approved by the Texas Department of Insurance (TDI) or standard insurance policy forms adopted by TDI.Based on analysis provided by the TDI, it is anticipated that the bill would result in an increase in the number of residential property rates that TDI reviews. The agency indicates that there would be some cost to implementing the provisions of the bill, but these costs are expected to be absorbed within the agency's existing budget.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 454 Department of Insurance
454 Department of Insurance
LBB Staff: JOB, KJG, CH
JOB, KJG, CH