COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0444-01
Bill No.: SB 160
Subject: Housing; Insurance - Property; Insurance Department
Type: Original
Date: December 27, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Insurance Dedicated | $0 to $23,250 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
$0 TO $23,250 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| 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) state that their market conduct staff would include a proposal in review of company files during examinations. INS states the implementation of this proposal would be absorbed by existing staff. INS estimates maximum one-time revenues to the Insurance Dedicated Fund from form filings of $0 to $23,250.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| INSURANCE DEDICATED FUND | |||
| Revenue - Department of Insurance | |||
| Form filing fees | $0 to $23,250 | $0 | $0 |
| ESTIMATED NET EFFECT ON INSURANCE DEDICATED FUND |
$0 TO $23,250 |
$0 |
$0 |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Small businesses would be expected to be fiscally impacted to the extent that they would incur additional administrative costs due to the requirements of this proposal.
DESCRIPTION
Under this proposal, an insurer may not refuse to insure an eligible person's interest in residential property. The proposal would require insurance agents to provide prospective insureds accurate premium quotations for their property and obligates the agent to submit the insured's application for insurance to the insurer. The insurer would explain to each prospective insured why it is canceling or refusing to renew a policy. An insurer would not penalize an individual agent because of the geographic location of the business written by the agent.
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
December 27, 2000