Date Requested:February 18, 2014
Time Requested:02:14 PM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
2014R2187 Introduced SB593
CBD Subject: TRAVEL INSURANCE
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 593 would have a negative fiscal impact on the revenues of the Offices of the Insurance Commissioner (OIC). The OIC estimates a negative impact of approximately $33,875 to $23,875 in lost annual revenue if SB 593 is enacted.

Fiscal Note Detail
Over-all effect
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 -23,875 -23,875 -23,875
3. Explanation of above estimates (including long-range effect):
     Current total licensed Travel producers in WV ….471 (64 Resident/407 Non-Resident) Application fees and Renewal fees on a biennial basis $23,550.00
     The total appointments for these 471 producers are 714 appointments
    at $25 per appt $17,850.00
    There is an annual renewal appointment fee at $25 per appt $17,850.00
    
     Estimated Annual Calculation
     471 Active licenses - Fees/Renewals equal ( biennial #) $23,550 /2 $11,775.00
     Appointment renewals (based on appts) 714 $17,850.00
     Estimated number of new producers each year (at $25 per year) = 85 4,250/2 $2,125.00
    
     *New Appointments estimated based on new producers 85 x $25 $2,125.00
     Based on 1 appt per producer (85 per yr) /Currently more than half the licensed travel producers hold more than one appointment $33,875 Estimated Annual Revenue Received that would be eliminated under SB 593
    
    
    Number of possible licensed business entities 50
    BE license fee for one year $200
    (50 * $200) = $10,000
    
    Net lost revenue estimate $23,875


Memorandum
Person submitting Fiscal Note:
Melinda Kiss
Email Address:
Melinda.Kiss@wvinsurance.gov
    SB 593 would result in a negative fiscal impact to the OIC in the range of $23,875 to $33,875 in lost revenues.