FISCAL NOTE
Date Requested: February 23, 2024
Time Requested: 10:53 AM |
| Agency: |
Risk and Insurance Management, Board of (BRIM) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3118 |
Introduced |
SB496 |
|
|---|
| CBD Subject: |
Human Rights |
|---|
|
FUND(S):
2360 – State Special Insurance Fund; 2363 - Public Entity Insurance Trust Fund
Sources of Revenue:
Special Fund Special Fund Both funds 2360 and 2363
Legislation creates:
Increases Revenue From Existing Sources, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The proposed legislation, upon passage, prohibits racial discrimination based on certain hair textures and hairstyles. The proposed legislation codifies racial discrimination and provides for a civil suit to be brought by plaintiffs.
The proposed changes expand coverage and would likely increase the number of claims, value of settlements, and increase the costs of defense. Also, as this is a human rights matter, plaintiff attorney fees may be collectible. An increase in premiums would be charged to all insureds to cover the actuarially projected additional estimated claims and claims related expenses associated with the expanded coverage.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
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):
Zeros in the above table do not represent an actual cost estimate. A true value is unascertainable because the number of claims is unknown. However, BRIM values the cost of each claim at approximately $100,000.
BRIM predicts an increase in the frequency of claims filed as a result of the coverage expansion and newly established grounds for discrimination. While estimating an exact number of claims is difficult, an increase in cost would likely result.
In addition, this change could not have been anticipated in calculating current agency premiums. This will likely result in a premium deficiency for prior fiscal years if the legislation is applied retroactively. Additional premiums would be charged to insureds to recover the additional estimated claims and claims-related expenses for prior fiscal years. BRIM assumes additional insurance costs would be incurred by all entities impacted by the proposed legislation.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Melody Duke
Email Address: melody.a.duke@wv.gov