Date Requested: February 09, 2015
Time Requested: 12:21 PM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
2263 Introduced HB2659
CBD Subject: Workers Comp.


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.


    HB2659, if enacted, would not significantly impact the regulatory operations, revenues or expenses of the Offices of the Insurance Commissioner.
    
    HB2659, if enacted, could negatively impact paid county or municipal fire departments and duly incorporated volunteer fire departments. HB2659 could also negatively impact the worker's compensation insurance market in WV. (See memorandum entry to this fiscal note).



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 0 0 0


Explanation of above estimates (including long-range effect):


    



Memorandum


    HB2679, if enacted, will not significantly impact the regulatory operations, expenses or revenues of the Offices of the Insurance Commissioner. The Insurance Commissioner has appointed NCCI to serve as the statistical agent for the State of WV. Accordingly, NCCI would have the responsibility of determining the premiums for firefighters as required under HB2679.
    
    However, if enacted HB2679 would require a "state exception" to the NCCI governing classification methodology and place WV as the sole state requiring that exception/ deviation from NCCI methodology. If that occurs, it could be perceived as a negative market condition by worker's compensation carriers and negatively impact the insurance market as a whole.
    
    The current governing classification code for VFD members (7711) already contemplates that not all hours worked by firefighters is spent in active fire fighting activities. Accordingly, the loss costs are not calculated based on an assumption that all hours are spent actively fighting fires. If HB2659 is enacted, the total cost of worker's compensation to cover firefighters will not be reduced because the premium charged for the insurance must cover all incurred losses regardless of how they are classified. It should also be noted that VFDs already can have other class codes on their policy as long as hours/ payroll are maintained separately.



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