COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1045-01

Bill No.: SB 306

Subject: Insurance - General; Consumer Protection; Licenses - Professional; Insurance Department

Type: Original

Date: February 5, 2001



FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None
Total Estimated

Net Effect on All

State Funds

 $0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None
Total Estimated

Net Effect on All

Federal Funds

 $0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
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.



FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Insurance (INS) state this proposal would require the department to make changes in policy form reviews and examination practices. INS anticipates that current staff and appropriations would be sufficient to implement the provisions of this proposal.



FISCAL IMPACT - State Government FY 2002 FY 2003

(6 Mo.)

 FY 2004
$0 $0 $0



FISCAL IMPACT - Local Government FY 2002 FY 2003

(6 Mo.)

 FY 2004
$0 $0 $0



FISCAL IMPACT - Small Business



Small businesses (insurance companies) would expect to be fiscally impacted to the extent that they may incur additional administrative costs as a result of the requirements of this proposal.



DESCRIPTION



This proposal would require insurance licensees to provide notice to customers and consumers about their privacy policies with respect to how they handle financial and health information. This proposal describes the conditions under which a licensee may disclose nonpublic personal information about consumers and customers to nonaffiliated third parties. This proposal would provide a method for consumers and customers to prevent a licensee from disclosing their information unless the information qualifies as a routine business disclosure. This proposal is based upon the Financial Information Privacy Protection Model Act promulgated by the National Conference of Insurance Legislators (NCOIL).



The effective date of this proposal is January 1, 2003.



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



February 5, 2001