|Date Requested:March 15, 2005
Time Requested:12:21 PM
| FUND(S) |
7151 and 7152
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| Passage of SB 418 would increase the costs of state government by approximately $420,000 per year. By making the Insurance Commission the sole venue for third party claims against insurers, additional staffing and resources will be required to fulfill the mission.
Total Revenues have not been forecasted due to the number of unknowns. However, it is reasonable to anticipate an increase in state revenues as a result of increases in the dollar amount of penalty assessments allowable and an increase in the frequency of administrative hearings being held at the state level.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||130,000||420,000||420,000|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
The above cost estimates are reflective of the additional staffing required to administer and investigate third party claims against insurers filed with the Commission.
It is anticipated that 5 additional FTEs will be needed. An Attorney III, Investigator I, Paralegal I and 2 Insurance Complaint Specialists. Total Personal Services above includes corresponding employee benefits expenses. Current expenses include operating expenses necessary to support additional staffing and functions (workstations, PCs, contracts (admin hearing examiners, etc.).
FY 2005 costs are estimated at 1/4 of Personal Services expenses and anticipated current expenses for start-up operations.
Total Revenues have not been forecasted due to the number of unknowns surrounding the complaints frequency, coupled with the severity of findings and when applicable penalty assessments. However, it is reasonable to consider an anticipated increase in revenue due to an increase in the number of administrative hearings being held at the state level.
|Biannual filing requirements for private passenger automobile insurers providing five percent or more of insurance coverage in WV is anticipated to have a nominal impact on the revenues and costs of state government and would be absorb by the Insurance Commission.|