LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 15, 2013 TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3373 by Bonnen, Greg (Relating to the payment of insured losses of the Texas Windstorm Insurance Association and funding of the catastrophe reserve trust fund.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Insurance Code relating to the payment of insured losses of the Texas Windstorm Insurance Association (TWIA) and funding of the catastrophe reserve trust fund. The bill would require TWIA to make payments each year to the catastrophe reserve trust fund in amounts not less than $200 million. The bill would also stipulate that the amounts in the catastrophe reserve trust fund could only be used to pay for insured losses incurred on or after the earlier of the effective date of the bill or June 1, 2013. Based on information provided by the Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished using existing resources. In addition, this analysis does not consider fiscal impacts to TWIA and the catastrophe reserve trust fund since those entities are located outside the Treasury. 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, LXH, RB
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 15, 2013
TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3373 by Bonnen, Greg (Relating to the payment of insured losses of the Texas Windstorm Insurance Association and funding of the catastrophe reserve trust fund.), As Introduced
TO: Honorable John T. Smithee, Chair, House Committee on Insurance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB3373 by Bonnen, Greg (Relating to the payment of insured losses of the Texas Windstorm Insurance Association and funding of the catastrophe reserve trust fund.), 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
HB3373 by Bonnen, Greg (Relating to the payment of insured losses of the Texas Windstorm Insurance Association and funding of the catastrophe reserve trust fund.), As Introduced
HB3373 by Bonnen, Greg (Relating to the payment of insured losses of the Texas Windstorm Insurance Association and funding of the catastrophe reserve trust fund.), 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 the payment of insured losses of the Texas Windstorm Insurance Association (TWIA) and funding of the catastrophe reserve trust fund. The bill would require TWIA to make payments each year to the catastrophe reserve trust fund in amounts not less than $200 million. The bill would also stipulate that the amounts in the catastrophe reserve trust fund could only be used to pay for insured losses incurred on or after the earlier of the effective date of the bill or June 1, 2013. Based on information provided by the Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished using existing resources. In addition, this analysis does not consider fiscal impacts to TWIA and the catastrophe reserve trust fund since those entities are located outside the Treasury.
The bill would amend the Insurance Code relating to the payment of insured losses of the Texas Windstorm Insurance Association (TWIA) and funding of the catastrophe reserve trust fund. The bill would require TWIA to make payments each year to the catastrophe reserve trust fund in amounts not less than $200 million. The bill would also stipulate that the amounts in the catastrophe reserve trust fund could only be used to pay for insured losses incurred on or after the earlier of the effective date of the bill or June 1, 2013.
Based on information provided by the Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished using existing resources. In addition, this analysis does not consider fiscal impacts to TWIA and the catastrophe reserve trust fund since those entities are located outside the Treasury.
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, LXH, RB
UP, AG, MW, ER, LXH, RB