FISCAL NOTE
FUND(S):
7152
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The bill if enacted as proposed is estimated to cost $90,000 annually.
The proposal requires the Insurance Commissioner to appoint a guardian ad litem to represent the interest of the claimant when a settlement agreement is being negotiated for a permanent total disability award and the claimant is not represented by a lawyer.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2009
Increase/Decrease
(use"-") |
2010
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
90,000 |
90,000 |
| Personal Services |
0 |
40,000 |
40,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
50,000 |
50,000 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The proposal requires the Insurance Commissioner to pay for the services.
It is projected that 25 claimants per year will use this service at an average cost of $2,000.
25 X $2,000 = $50,000.
The Offices of the Insurance Commissioner will need the services of a paralegal to administer the program. Estimated cost of salary benefits and additional administrative overhead at $40,000.
Total annual costs projected at $50,000 + $40,000.
Memorandum
Actual results could vary greatly as the proposal requires the Insurance Commissioner to provide the service for all claimants not just Old Fund liabilities.
Person submitting Fiscal Note: Michael D. Riley
Email Address: Michael.Riley@wvinsurance.gov