FISCAL NOTE
Date Requested: January 09, 2019
Time Requested: 05:20 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1568 |
Introduced |
SB129 |
|
|---|
| CBD Subject: |
Counties, Insurance, Municipalities |
|---|
|
FUND(S):
1331
Sources of Revenue:
Special Fund
Legislation creates:
Increases Revenue From Existing Sources, Creates New Fund: Political Subdivisions Fire Cleanup Relief Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
If enacted, Senate Bill 129 would impose an additional surcharge on all policyholders of fire insurance policies and casualty insurance policies equal to one tenth of one percent of the taxable premium of each policy.
The surcharge would be collected by the Insurance Commissioner and deposited to the newly created Political Subdivisions Fire Cleanup Relief Fund which is to be administered by the State Treasurer.
It is estimated that SB129, if enacted, would impose additional surcharges on the policyholders of approximately $2,594,000.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
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 |
650,000 |
2,593,770 |
2,593,770 |
Explanation of above estimates (including long-range effect):
TOTAL PROPOSED REVENUE FOR NEW FIRE CLEANUP SURCHARGE
Total Surplus Lines Premiums
Surplus Lines Premiums $129,226,122.98
Cancelations $(5,596,745.26)
fees $2,372,959.32
Total Surplus Lines Premiums $126,002,337.04
Proposed surcharge 0.100%
SURPLUS REVENUE $126,002.34
Total Company Premiums 2,467,767,132
Proposed surcharge 0.100%
INSURANCE CO REVENUE $2,467,767.13
TOTAL PROPOSED REVENUE $2,593,769.47
FY2019 estimate reflects that the additional surcharge would be in place for approximately 3 months of the fiscal year.
Memorandum
If enacted, Senate Bill 129 would impose an additional surcharge on all policyholders of fire insurance policies and casualty insurance policies equal to one tenth of one percent of the taxable premium of each policy.
The surcharge would be collected by the Insurance Commissioner and deposited to the newly created Political Subdivisions Fire Cleanup Relief Fund which is to be administered by the State Treasurer.
The State Treasurer may incur additional expenses to administer and to develop legislative rules to govern the newly created Fund and should be consulting regarding any estimated costs of administration.
It is estimated that SB129, if enacted, would impose additional surcharges on all WV insurance fire and casualty policyholders of approximately $2,594,000 per year upon full implementation.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov