FISCAL NOTE
Date Requested: March 14, 2025
Time Requested: 04:14 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3738 |
Introduced |
HB3381 |
|
|---|
| CBD Subject: |
Insurance |
|---|
|
FUND(S):
7152 Insurance Commission Fund
Sources of Revenue:
Special Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of House Bill 3381 is to amend W. Va. Code §§33-27-2, 33-27-4, 33-27-5, 33-27-6a, 33-27-7, and 33-27-8 so that the West Virginia Offices of the Insurance Commissioner (WVOIC) will remain accredited by the National Association of Insurance Commissioners (NAIC).
HB3381, if enacted, would have no fiscal impact on the Offices of the Insurance Commissioner.
Please see memorandum section of this fiscal note for additional information.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
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 |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Memorandum
The purpose of House Bill 3381 is to implement, with respect to an insurance company that is a member of an insurance holding company system, a group capital calculation and a liquidity stress test for the purpose of enhanced supervision by the Insurance Commissioner. HB3381 also requires efficient coordination between an insurance company and its affiliate and requires the continuation of essential services by an insurer’s affiliate in the event of insolvency.
HB3381, as proposed, includes financial solvency laws and allows regulatory authority of insurance holding groups by the WVOIC. The amended provisions proposed in HB3381 are needed for the WVOIC to meet the model law criteria for accreditation required by the National Association of Insurance Commissioners (NAIC). Meeting these standards demonstrates the WVOIC can effectively regulate multi-state insurers.
HB3381, if enacted, would have no fiscal impact on the WVOIC.
Person submitting Fiscal Note: JUANITA WIMMER
Email Address: Juanita.D.Wimmer@wv.gov