COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4821-01
Bill No.: SB 1215
Subject: Insurance - General; Insurance Department; Business and Commerce
Type: Original
Date: March 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
Officials from the Department of Insurance (INS) assume that some property and casualty insurers may need to re-file their policy forms to comply with 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 for FY 03. Projected Revenues will be a range of $0-$33,900. INS anticipates that current appropriations and staff will 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 affect Total State Revenues.
FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
INSURANCE DEDICATED | |||
Income - Department of Insurance | |||
Form filing fees | $0 to $33,900 | $0 | $0 |
ESTIMATED NET EFFECT ON INSURANCE DEDICATED |
$0 to $33,900 |
$0 |
$0 |
FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
$0 | $0 | $0 |
FISCAL IMPACT - Small Business
Small businesses which are insurance companies could be affected by this proposal.
DESCRIPTION
This proposal make several restrictions in how insurers may use an applicant's credit information in their underwriting practices.
The proposal prohibits insurers from using credit information as the sole underwriting factor, and from using credit information contained in a credit report that the insurer knows to be in dispute.
The proposal requires the insurer to inform the applicant, at the time of application, if credit information may be used as an underwriting factor. Also, the proposal requires that when a credit report adversely affects an applicant, the insurer must inform the applicant about his or her rights regarding the credit information.
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
Mickey Wilson, CPA
Acting Director
March 18, 2002