FISCAL NOTE
FUND(S):
7152
Sources of Revenue:
Special Fund
Legislation creates:
A New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Senate Bill 575 is estimated to result in a net cost, increased revenues less increased expenditures, of ($14,750) the first year and a net cost of ($22,500) for subsequent years.
Initial license application fees are higher than subsequent renewal fees offsetting a larger percentage of state expenditures during the first year. The proposal provides for civil money penalties for noncompliance, no noncompliance estimates were included in the figures of this fiscal note.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2008 Increase/Decrease (use"-") |
2009 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
35,000 |
33,750 |
33,750 |
Personal Services |
33,750 |
33,750 |
33,750 |
Current Expenses |
1,250 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
20,250 |
11,250 |
11,250 |
Explanation of above estimates (including long-range effect):
It is projected that 30 Discounts Plans will apply for licensure.
Initial Application and Filing fees will average $675 per Plan. $675 X 30 = $20,250
Renewal Filing fees will average $375 per Plan, includes an annual rate filing. $375 X 30 = $11,250
In order to regulate the plans, the following individuals within the Offices of the Insurance Commissioner will be directly involved.
Rates & Forms Analyst, $30,000 Salary + Benefits = $40,500
Financial Conditions Auditor, $30,000 Salary + Benefits = $40,500
Market Conduct Examiner, $40,000 Salary + Benefits = $54,000
It is estimated that the additional regulation will require 25% of each individual’s time.
($40,500 + $40,500 + $54,000) X 0.25 = $33,750 in annual personal services expenditures.
$1,250 in current expenses has been included for the first year’s development of forms, etc.
Initial Cost = Revenue – Expenditures $20,250 - $35,000 = ($14,750)
Subsequent Years = Revenue – Expenditures $11,250 - $33,750 = ($22,500)
Memorandum
Person submitting Fiscal Note: Michael D. Riley
Email Address: Michael.Riley@wvinsurance.gov