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