COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 2497-02
Bill No.: SB 981
Subject: Insurance - General; Consumer Protection; Insurance Department
Type: Original
Date: February 18, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Insurance Dedicated | $0 to $33,900 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
$0 to $33,900 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Official from the Missouri Consolidated Health Care Plan, the Missouri Department of Conservation, the Department of Public Safety - Missouri State Highway Patrol, the Department of Transportation, and the Department of Social Services assume this proposal would not fiscally impact their agencies.
Officials from the Secretary of State (SOS) assume this proposal prohibits insurers from using lack of an established credit history in denying or refusing to renew insurance. SOS states the Department of Insurance could promulgate rules. The SOS assumes this proposal would result in the SOS publishing rules in the Missouri Register and the Code of State Regulations at a cost of $246 in fiscal year 2003.
Oversight assumes SOS could absorb the cost related to this proposal. If multiple proposals pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process.
Officials from the Department of Insurance (INS) assume property and casualty insurers would be required to re-file their policy forms to comply with this legislation. This would result in one-time maximum revenues to the Insurance Dedicated Fund as follows: 678 insurers ( personal auto, fire and homeowner insurers) x $50 per filing - $33,900. Projected revenues would be $0 to $33,900. It is anticipated that current appropriations and staff would be able to absorb the work for implementation of this single proposal. However if additional proposals are approved during the legislative session, the INS would require additional staff to handle the increase in workload.
This proposal would result in an increase in Total State Revenues.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| INSURANCE DEDICATED FUND | |||
| Income - Department of Insurance | |||
| Form filing fees | $0 - $33,900 | $0 | $0 |
| ESTIMATED NET EFFECT ON INSURANCE DEDICATED FUND |
$0 - $33,900 |
$0 |
$0 |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal prohibits insurance companies from using an individual's lack of an established credit history in denying or refusing to renew insurance coverage. An insurer cannot cancel, refuse to write, or refuse to renew a policy or base an adverse underwriting decision because a person does not have an established credit history. An insurance company which violates this section is guilty of an unfair trade practice. The provisions of this proposal will apply to insurance policies entered into on or after 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 Transportation
Department of Social Services
Missouri Consolidated Health Care Plan
Department of Insurance
Missouri Department of Conservation
Secretary of State
Department of Public Safety -
Missouri State Highway Patrol
Mickey Wilson, CPA
Acting Director
February 18, 2002