LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 25, 2013 TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1125 by Carona (Relating to first-party indemnity coverage purchased by insurance purchasing groups.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Insurance Code relating to first-party indemnity coverage purchased by insurance purchasing groups. The bill would allow a purchasing group to purchase first-party indemnity coverage in addition to liability coverage as long as the aggregate coverage limit per group member does not exceed 3 percent of the per member coverage limit for liability coverage. The bill would require the purchasing group to notify the commissioner of insurance of the group's intent to purchase coverage no later than the 60th day before the date the policy is issued. Based on information provided by the Texas Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. The bill has no direct fiscal implications for the Foundation School Program (FSP) or the operations of the Texas Education Agency (TEA). Local Government Impact No significant fiscal implication to units of local government is anticipated. School districts that had purchased first-party indemnity coverage for their members by January 1, 2013, and had not allowed the policy to lapse would be exempt from reporting requirements. Other school districts would be required to report to the commissioner of insurance any purchase of first-party indemnity coverage within 60 days of a policy being issued. The commissioner could issue orders related to the coverage after notice and a hearing. Source Agencies:454 Department of Insurance, 701 Central Education Agency LBB Staff: UP, RB, ER, JBi
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
March 25, 2013
TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1125 by Carona (Relating to first-party indemnity coverage purchased by insurance purchasing groups.), As Introduced
TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1125 by Carona (Relating to first-party indemnity coverage purchased by insurance purchasing groups.), As Introduced
Honorable John Carona, Chair, Senate Committee on Business & Commerce
Honorable John Carona, Chair, Senate Committee on Business & Commerce
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1125 by Carona (Relating to first-party indemnity coverage purchased by insurance purchasing groups.), As Introduced
SB1125 by Carona (Relating to first-party indemnity coverage purchased by insurance purchasing groups.), 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 first-party indemnity coverage purchased by insurance purchasing groups. The bill would allow a purchasing group to purchase first-party indemnity coverage in addition to liability coverage as long as the aggregate coverage limit per group member does not exceed 3 percent of the per member coverage limit for liability coverage. The bill would require the purchasing group to notify the commissioner of insurance of the group's intent to purchase coverage no later than the 60th day before the date the policy is issued. Based on information provided by the Texas Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. The bill has no direct fiscal implications for the Foundation School Program (FSP) or the operations of the Texas Education Agency (TEA).
The bill would amend the Insurance Code relating to first-party indemnity coverage purchased by insurance purchasing groups. The bill would allow a purchasing group to purchase first-party indemnity coverage in addition to liability coverage as long as the aggregate coverage limit per group member does not exceed 3 percent of the per member coverage limit for liability coverage. The bill would require the purchasing group to notify the commissioner of insurance of the group's intent to purchase coverage no later than the 60th day before the date the policy is issued.
Based on information provided by the Texas Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated. School districts that had purchased first-party indemnity coverage for their members by January 1, 2013, and had not allowed the policy to lapse would be exempt from reporting requirements. Other school districts would be required to report to the commissioner of insurance any purchase of first-party indemnity coverage within 60 days of a policy being issued. The commissioner could issue orders related to the coverage after notice and a hearing.
Source Agencies: 454 Department of Insurance, 701 Central Education Agency
454 Department of Insurance, 701 Central Education Agency
LBB Staff: UP, RB, ER, JBi
UP, RB, ER, JBi