FISCAL NOTE
Date Requested: February 04, 2015
Time Requested: 02:15 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2641 |
Introduced |
SB365 |
|
|---|
| CBD Subject: |
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 365 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 $19,150 to $29,150 in lost annual revenue if SB 365 is enacted.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2015
Increase/Decrease
(use"-") |
2016
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 |
-19,150 |
-19,150 |
-19,150 |
Explanation of above estimates (including long-range effect):
Current total licensed Travel producers in WV …. 536 ( 67 R/469 NR)
Application fees and Renewal fees on a biennial basis $50 $26,800
The total appointments for these 536 producers are
399 appointments at $25 per appt $9,975
There is an annual renewal appointment fee at $25 per appt $9,975
Estimated Annual Calculation
536 Active licenses - Fees/Renewals equal ( biennial #) $26,750/2 $13,375
Appointment renewals (based on appts) $399 $9,975
Estimated number of new producers each year (at $25 per year) = 115
$5,750/2 $2,875
*New Appointments estimated based on new producers
115 x $25 $2,875
Based on 1 appt per producer
29,150 Estimated Annual Revenue Received
(# of new producers based from last 5 years)
Travel producers Licensed in the last five years:
2010 = 66
2011 = 113
2012 = 79
2013 = 142
2014 = 174
Currently there are 535 actively licensed producers in the Title line of authority. 399 of those producers hold appointments.
Number of possible licensed business Entities 50
BE license fee for one year $200
(50 * 200) = $10,000
Net Lost Revenue Estimate 19,150
Memorandum
SB365 would result in a negative fiscal impact to the OIC in the range of $19,150 to $29,150 in lost annual revenues.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.Kiss@wvinsurance.gov