|Date Requested:January 31, 2012
Time Requested:01:49 PM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| HB 4262 will have a minimal impact on the expenses of the Offices of the Insurance Commissioner. HB 4262 revises membership requirements of the Board of Insurance Producer Education and increases the responsibility of the board. Board members are not entitled to be compensated for their services, but they are entitled to reimbursement for reasonable and necessary expenses actually incurred in the course of attending meetings called by the Insurance Commissioner. It is anticipated that the board will meet more frequently than it has in the past. Accordingly, the OIC would be responsible for reimbursing the board members for more travel expenses than in prior years. We estimate the increased costs to be $3,550.00 each year.
This is a conservative estimate and reflects the maximum potential increase for all six board members.
This amount would be absorbed into the OIC's current level budget appropriation and does not require the generation of any new revenues to cover the slight increase in costs.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||3,550||3,550||3,550|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
The cost increase estimate is based on the following assumptions
used to calculate the potential increased travel reimbursement costs for the 6 board members:
Reimburseable costs include mileage for all board members and overnight lodging and meals for board members who must travel for meetings.
Maximum number of board meetings per year would increase to 5, current level of meetings is 1. Estimated maximum cost for each meeting is $869.
5 meetings per year - Mileage costs = $2218.
Lodging Costs = $1455.
Meals = $765.
Total costs $4,438
Less current costs ($888)
Estimated increase $3,550
|HB 4262 revises the role of the Board of Insurance Producer Education and provides for payments of certain expenses of board members. It also permits the Insurance Commissioner to propose a rule that would change certain fees associated with producer education. This fiscal note does not attempt to estimate any impact of potential changes in fees pursuant to a rule change that might occur in future periods.|