FISCAL NOTE
Date Requested: January 18, 2023 Time Requested: 10:37 PM |
Agency: |
Insurance Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2537 |
Introduced |
HB2540 |
|
CBD Subject: |
Insurance |
---|
|
FUND(S):
7152, 0480, 1331
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
House Bill 2540, if enacted, would establish the Travel Insurance Model Act and set forth the requirements for policies, allow rulemaking and enforcement by the Insurance Commissioner in the regulation of travel insurance.
HB2540 will have no direct significant fiscal impact on the Offices of the Insurance Commissioner. However, HB2540 would potentially increase premium tax revenues and producer and rate filing fees. Please see the memorandum section of this fiscal note.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2023 Increase/Decrease (use"-") |
2024 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):
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.
Memorandum
House Bill 2540, if enacted, would establish the Travel Insurance Model Act and set forth the requirements for policies, and allow rulemaking and enforcement by the Insurance Commissioner in the regulation of travel insurance.
HB2540 will have no direct significant fiscal impact on the Offices of the Insurance Commissioner. However, HB2540 would potentially increase premium tax revenues and producer and rate filing fees.
The premium tax would be applicable under ยง33-31-14, and the amount of tax due would depend on whether the company issuing the policy is a Domestic or a Foreign entity. If the company is a Domestic, they are subject to .5% Premium Tax of all premiums written. If the company is Foreign, then it is subject to 3% premium tax, additional 1% Tax, and the .55% Fire and Casualty surcharge. There would also be increased fees generated from producer and rate & form filing fees. It is unknown at this time if the increase would be significant.
The amount of revenue generated cannot be determined without knowing the amount of premiums to be written, the type of company writing the travel insurance, the number of new producers involved and the number of new rate and form filings that would result with the enactment of HB2540.
The OIC does not estimate any measurable increase in expense, as the regulatory duties fall within the current scope of the OIC's operations.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov