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.
Senate Bill 407 relates to licensure of managing general agents of insurers. SB 407 addresses MGAs that are licensed in WV and do not renew their license in a timely manner. If enacted, SB 407 would result in additional annual revenues of approximately $2,600.00 for Fund 7152.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2014 Increase/Decrease (use"-") |
2015 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
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 |
2,600 |
2,600 |
2,600 |
Explanation of above estimates (including long-range effect):
SB 407 addresses the issue of Managing General Agents (MGAs) licensed in WV that fail to renew their insurance licenses on a timely basis.
The current renewal fee is $200. Senate Bill 407 would increase the renewal fee for an expired license to $400.
During the most recent fiscal year, 13 MGAs were late in filing their renewal applications. If the Offices of the Insurance Commissioner had the ability to access any MGA that does not renew their license in a timely manner a $400 renewal fee as opposed to the standard $200 renewal fee, an additional $2,600.00 in revenues would have been generated. The OIC anticipates that the additional annual revenues would remain fairly constant during future years.
Memorandum
Senate Bill 407 will assist the OIC in regulating managing general agents (MGAs) by amending ยง33-37-2 of the Code of WV by increasing the renewal fees for MGAs who fail to renew their licenses in a timely manner.
SB 407 provides for the renewal of laspsed managing general agent licenses and sets specific application and renewal fees.
The renewal fee for an expired license would become $400. The standard renewal fee would remain at $200.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.Kiss@wvinsurance.gov