SB 0664 - Fiscal Note

Fiscal Note - SB 0664 - Exempts motor vehicle rental policies having insurance aspects from insurance regulation

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3094-01

BILL NO. SB 664

SUBJECT: Insurance - General: Automobile Insurance

TYPE: Original

DATE: January 23, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Insurance Dedicated	($10,000 to $20,000)	($10,000 to $20,000)	($10,000 to $20,000)
Total Estimated Net Effect on All State Funds	($10,000 to $20,000)	($10,000 to $20,0000	($10,000 to $20,000)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Revenue assume this proposal would not fiscally impact their agencies.

Department of Insurance (INS) officials state that INS currently licenses 6,789 insurance agents. INS states this includes entities that would be exempted by this proposal. INS states they are unable to determine the number of entities that would be affected by this proposal. INS assumes that approximately one and one-half to three percent of the current licensed agency population would be affected or approximately 100 to 200 rental agencies statewide. INS estimates a range of revenue loss to the Insurance Dedicated Fund from $10,000 to $20,000 annually.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
INSURANCE DEDICATED FUND
Loss - Department of Insurance
Loss of filing fees	($10,000 to	($10,000 to	($10,000 to
	$20,000)	$20,000)	$20,000)
ESTIMATED NET EFFECT ON
INSURANCE DEDICATED FUND	($10,000 to	($10,000 to	($10,000 to
	$20,000)	$20,000)	$20,000)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Small Business

Small businesses would be expected to be fiscally impacted to the extent that they would realize savings due to less filing requirements as a result of this proposal.

DESCRIPTION

This proposal would exempt from insurance regulation accident and health-related insurance DESCRIPTION (continued)

coverage which would be issued by rental motor vehicle companies as an incident to the rental of a vehicle.

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

Department of Revenue

Jeanne Jarrett, CPA

Director

January 23, 1998