LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 23, 2013 TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2671 by Sheets (Relating to security deposit requirements for certain insurance companies.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Insurance Code relating to security deposit requirements for certain insurance companies. The bill would require insurers to deposit securities as specified if the insurers are required to make a deposit with the Comptroller of Public Accounts for the protection of policyholders of the company prior to engaging in business in another location. The bill would remove the requirement that the company deposit be in the amount of $50,000. The bill also would remove the restriction on requiring a foreign casualty insurance company to make or maintain the deposit required of a domestic casualty insurance company if a deposit has been made in any other domestic state. Based on information provided by the Texas Department of Insurance and the Comptroller of Public Acounts, it is assumed that any costs associated with the implementation of this bill could be absorbed within existing staff and resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:454 Department of Insurance, 304 Comptroller of Public Accounts LBB Staff: UP, AG, MW, ER, RB, LXH
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 23, 2013
TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2671 by Sheets (Relating to security deposit requirements for certain insurance companies.), As Introduced
TO: Honorable John T. Smithee, Chair, House Committee on Insurance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2671 by Sheets (Relating to security deposit requirements for certain insurance companies.), As Introduced
Honorable John T. Smithee, Chair, House Committee on Insurance
Honorable John T. Smithee, Chair, House Committee on Insurance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB2671 by Sheets (Relating to security deposit requirements for certain insurance companies.), As Introduced
HB2671 by Sheets (Relating to security deposit requirements for certain insurance companies.), 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 relating to security deposit requirements for certain insurance companies. The bill would require insurers to deposit securities as specified if the insurers are required to make a deposit with the Comptroller of Public Accounts for the protection of policyholders of the company prior to engaging in business in another location. The bill would remove the requirement that the company deposit be in the amount of $50,000. The bill also would remove the restriction on requiring a foreign casualty insurance company to make or maintain the deposit required of a domestic casualty insurance company if a deposit has been made in any other domestic state. Based on information provided by the Texas Department of Insurance and the Comptroller of Public Acounts, it is assumed that any costs associated with the implementation of this bill could be absorbed within existing staff and resources.
The bill would amend the Insurance Code relating to security deposit requirements for certain insurance companies. The bill would require insurers to deposit securities as specified if the insurers are required to make a deposit with the Comptroller of Public Accounts for the protection of policyholders of the company prior to engaging in business in another location. The bill would remove the requirement that the company deposit be in the amount of $50,000. The bill also would remove the restriction on requiring a foreign casualty insurance company to make or maintain the deposit required of a domestic casualty insurance company if a deposit has been made in any other domestic state.
Based on information provided by the Texas Department of Insurance and the Comptroller of Public Acounts, it is assumed that any costs associated with the implementation of this bill could be absorbed within existing staff and resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 454 Department of Insurance, 304 Comptroller of Public Accounts
454 Department of Insurance, 304 Comptroller of Public Accounts
LBB Staff: UP, AG, MW, ER, RB, LXH
UP, AG, MW, ER, RB, LXH