This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0262 - Revises laws regarding underinsured motor vehicle owners and operators
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 0645-01
BILL NO. SB 262
SUBJECT: Insurance
TYPE: Original
DATE: February 2, 1999
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 2000
FY 2001
FY 2002 Insurance Dedicated
Fund
$0 to $33,350
Total Estimated
$0 to $33,350
$0
$0
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
The Department of Revenue assumes this proposal would not fiscally impact their agency.
The Department of Insurance (INS) states there are currently 320 private passenger insurers and 347 commercial auto insurers in Missouri. Some of these companies may be writing both types of auto insurance and therefore, may be counted twice. INS estimates new revenue from $0 to $33,350 depending on need for filing new policy forms. INS assumes that current appropriations and staff can absorb the work responsibilities for this single proposal; however, if additional proposals are approved, INS may need to request increased appropriations due to the combined effect of multiple proposals.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| INSURANCE DEDICATED FUND | |||
| Revenue - Department of Insurance | |||
| Filings fees | $0 to | ||
| to $33,350 | $0 | $0 | |
|
ESTIMATED NET EFFECT ON |
$0 to | ||
| INSURANCE DEDICATED FUND | to $33,350 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Small Business | |||
| No direct fiscal impact to small businesses is expected as a result of this | |||
DESCRIPTION
This proposal requires that any insurance policy which provides underinsured coverage to pay damages for bodily injury that the insured is legally entitled to recover from the underinsured operator or owner, up to the policy's limits. The limits shall not be reduced by any set-off. Consent of the insurer is not required to settle claims against the underinsured operator or owner, and the insurer has no right of subrogation.
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
February 2, 1999