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Summary: There is nothing in the current Insurance Code that serves to effectively regulate the relationship between insurance companies and bail bondsmen. There is a common practice but the lack of specifics in the law leads to confusion and can allow the government to overtax the insurance companies. HB 1047 codifies the common practice of insurance companies being taxed on the direct premium that they have with the bondsman. For example, if an arrested individual has a $1000 bond and calls the bail bond company, the individual pays the company $100 (typically 10%). Bail bond companies often take out an insurance policy for the bond. To do so, they pay the insurance company $10 (typically 1%), regardless of whether they end up needing the insurance. HB 1047 would ensure that the insurance company is taxed for the 1% of the bond that represents actual money going to the insurance company. The state would not be able to tax the "unearned" premium of $100 or $1000.
Analysis: HB 1047 does not require private companies to do anything they are not already doing. It merely clarifies the code to make it easier to comply with. Also, it represents a protection from over taxation from the government. For these reasons, TPPA supports HB 1047.