COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 2354-02
BILL NO.: SB 833
SUBJECT: Motor Vehicles; Insurance - Property; Insurance Department; Military Affairs
TYPE: Original
DATE: January 25, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| None | |||
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Department of Insurance (INS) assume minimal impact to the department. INS states that Market Regulation would incorporate review for compliance with this proposal into future examinations.
| FISCAL IMPACT - State Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Small businesses would be expected to be fiscally impacted to the extent of additional administrative requirements as a result of this proposal.
DESCRIPTION
This proposal would prohibit auto insurers from placing an applicant in a high-risk category simply because the applicant has not had prior automobile insurance coverage due to military service. An insurer, however, may place the applicant in a high-risk category if the applicant's driving record indicates he or she is a high risk. Any insurer violating this proposal would be guilty of an unfair trade practice.
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
January 25, 2000