Date Requested:February 15, 2013
Time Requested:12:27 PM
Agency: Risk and Insurance Management, Board of
CBD Number: Version: Bill Number: Resolution Number:
2013R1165 Introduced HB2055
CBD Subject: MINE SUBSIDENCE INSURANCE INCREASE
FUND(S)
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.

    Since inception of the mine subsidence program, the average cost per claim is approximately $6000. Only approximately two claims per year actually exceed the $75,000 maximum valuation. Should the coverage be increased to $125,000 per claim, using the same rationale, the two previous claims that exceeded the $75,000 limit might be paid out at $125,000 instead of $75,000 creating a potential shortfall of $100,000. Premiums would need to be adjusted upward to recover the $100,000 loss.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 800,000 900,000 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 2,000,000 2,000,000 0
3. Explanation of above estimates (including long-range effect):
    See summary above.


Memorandum
Person submitting Fiscal Note:
Chuck Jones
Email Address:
charles.e.jones@wv.gov