COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3997-01
Bill No.: HB 1557
Subject: Credit and Bankruptcy; Insurance - General
Type: Original
Date: January 23, 2008
Bill Summary: Changes the laws regarding the use of credit information when underwriting insurance contracts.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
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|
|
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|
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Total Estimated Net Effect on General Revenue Fund |
$0 |
$0 |
$0 |
ESTIMATED NET EFFECT ON OTHER STATE FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Insurance Dedicated |
Up to $32,450 |
$0 |
$0 |
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|
|
|
Total Estimated Net Effect on Other State Funds |
Up to $32,450 |
$0 |
$0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
ESTIMATED NET EFFECT ON FEDERAL FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
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Total Estimated Net Effect on All Federal Funds |
$0 |
$0 |
$0 |
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE) |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
|
|
|
|
|
|
|
|
Total Estimated Net Effect on FTE |
0 |
0 |
0 |
☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).
☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).
ESTIMATED NET EFFECT ON LOCAL FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Local Government |
$0 |
$0 |
$0 |
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Insurance, Financial Institutions and Professional Registration (DIFP) state insurance companies who use credit information to underwrite or rate would be required to re-file their credit scoring models. There are currently approximately 649 insurance companies that may be required to re-file their credit scoring models. Filings would be accompanies by a $50 filing fee. The DIFP estimates up to $32,450 (649 insurers X $50) in one-time revenues would be deposited in the Insurance Dedicated Fund.
This proposal would result in an increase in total state revenue.
FISCAL IMPACT - State Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
INSURANCE DEDICATED FUND |
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Income - DIFP |
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|
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Form filing fees |
Up to $32,450 |
$0 |
$0 |
|
|
|
|
ESTIMATED NET EFFECT ON THE INSURANCE DEDICATED FUND |
Up to $32,450 |
$0 |
$0 |
FISCAL IMPACT - Local Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
|
|
|
|
|
$0 |
$0 |
$0 |
FISCAL IMPACT - Small Business
This proposal may impact small businesses affected by current credit scoring practices.
FISCAL DESCRIPTION
This proposal changes the laws regarding the use of credit information when underwriting insurance contracts.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Insurance, Financial Institutions and Professional Registration
Mickey Wilson, CPA
Director
January 23, 2008