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

Effect of Proposal	Fiscal Year
Effect of Proposal	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

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

SB 593 would result in a negative fiscal impact to the OIC in the range of $23,875 to $33,875 in lost revenues.

Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.Kiss@wvinsurance.gov