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 0458 - Subjects mutual insurance companies to various insurance laws
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 1849-02
BILL NO.: SB 458
SUBJECT: Insurance
TYPE: Original
DATE: March 8, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | |||
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| 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 Insurance (INS) anticipates that current appropriations and staff will absorb the work responsibilities associated with examinations of Chapter 380 companies to verify compliance with these new statutes. There are approximately 129 companies that will require this increased review. This increased review may increase the cost of examinations (additional staff time) which is assessed to the insurance companies. INS also anticipates the department will handle approximately 500 additional consumer complaints. 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.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Small Business | |||
| Small insurance companies may experience an increase in examination costs due to the additional requirements of this proposal. | |||
DESCRIPTION
This proposal subjects mutual insurance companies to the vexatious refusal to pay laws and other insurance laws regarding fire loss. The proposal also creates immunity for mutual insurance
companies and their agents from any cause of action, including defamation, for statements made in connection with the written denial of claim. In addition, it subjects lawsuits on an assessable
policy to the statute of limitations as provided for in chapter 516.
DESCRIPTION (continued)
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
Jeanne Jarrett, CPA
Director
March 8, 1999