FISCAL NOTE
Date Requested: February 13, 2026
Time Requested: 10:34 AM |
| Agency: |
Risk and Insurance Management, Board of (BRIM) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4076 |
Introduced |
HB5463 |
|
|---|
| CBD Subject: |
|
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FUND(S):
Public Entity Insurance Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The proposed legislation changes the minimum amount of insurance that County Boards of Education must maintain, reducing the amount from $1.25 million to $1 million and removing the $5 million excess coverage provision. The proposed legislation if enacted could decrease the value of settlements and the legal expenses of defense. It could also provide for premium cost reduction, however without an actuary opinion BRIM is unable to quantify this.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-5,025,031 |
-5,025,031 |
| 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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years
1. The lower limits could reduce claim payouts and associated expenses;
2. The lower limits could mean less year over year dollar variability in claim activity;
3. The lower limits could provide premium cost savings for this insured book of business;
4. The current total cost for the $5 million excess coverage is $5,025,031.61. This expense is spread out amongst County Boards of Education within their insurance premiums. Removing this would result in a premium savings and reduce BRIM’s expenses of procurement for such coverage thereby providing an expense savings to BRIM.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Any effect of this legislation on premiums billed would be enacted during the fiscal year 2028 premium development process. Additionally, BRIM also cannot unilaterally change the terms of the policy renewed on July 1, 2025 for the current fiscal year. Ultimately, taxpayers help fund County Boards of Education. This legislative bill would help to reduce liability insurance costs for County Boards of Education by reducing limits of liability coverage and associated premium costs. This would be a cost reduction for the County Boards of Education and in theory could reduce costs to the taxpayers of the state of West Virginia.
Person submitting Fiscal Note: Emily S Fleck
Email Address: emily.s.fleck@wv.gov