Fiscal Note - SB 0280 - Insurers Are Prohibited From Discriminating On the Basis of Geographic Location
L.R. NO. 0233-02
BILL NO. SB 280
SUBJECT: Insurance - Automobile, Insurance - Property, Insurance - General
TYPE: Original
DATE: January 31, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Insurance (INS) state the proposal does not
have a significant fiscal impact up INS. INS anticipates that existing staff
and resources would absorb any additional complaints and investigations
resulting from this proposal. INS further states that the passage of more
than one similar proposal could require the INS to request increased
appropriations to cover cumulative administrative costs.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
This proposal would expand two parts of Missouri's anti-discrimination law in
the insurance area: Sections 375.001, 375.003 and 375.004 would be revised
to include motor vehicle insurance policies. These sections would require
detailed explanations of the reason for any cancellation or non-renewal in a
fire insurance policy. Also, cancellations would be made under specific
conditions. Sections 375.936 and 375.938 would be revised to include motor
vehicle policies. No insurer may terminate a broker because of the location
of the risk. Insurers would be required to offer coverage in the entire area
of any city or county in which they do business (motor vehicle and
property/casualty risks only). The "business purpose" exception for unfair
trade practices would be revised to require sound underwriting and actuarial
principles which would be related to loss experience. The proposal would
also provide a means for individuals to make complaints to the Department of
Insurance.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Insurance
This Fiscal Note is not an official copy and should not be quoted or cited.