FISCAL NOTE
Date Requested: January 10, 2020
Time Requested: 03:52 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1161 |
Introduced |
SB115 |
|
|---|
| CBD Subject: |
Insurance |
|---|
|
FUND(S):
7158 fire Protection fund
Sources of Revenue:
Special Fund
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
If enacted, Senate Bill 115 would increase the policyholder surcharge on fire and casualty insurance policies from the current level of .55% to one percent (1%) effective January 1, 2020 for the purpose of providing additional funding to volunteer fire departments.
The Offices of the Insurance Commissioner estimates that the fiscal impact of SB 115 would be an increase in revenues collected from insurance policyholders of approximately $13,990,505 per year. This would increase the total amount of funding for volunteer fire departments to a total of $31,090,233 annually.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
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 |
13,990,605 |
13,990,605 |
13,990,605 |
Explanation of above estimates (including long-range effect):
Proposed Additional Surcharge Revenue generated with the .45% increase in Fire & Casualty Surcharge 33-3-33c
Surplus Lines
Total Premiums $128,045,348.17
Cancelations $(5,521,084.62)
fees $2,196,151.53
$124,720,415.08
Current Surcharge rate 0.550%
Current Surcharge Collections $685,962.28
Proposed Additional Surcharge 0.45%
Proposed Additional Surcharge Revenue $561,241.87
Combined surcharge collections (current plus proposed) $1,247,204.15
Fire & Casualty Insurance Companies
Total Company Premiums $2,984,302,857.00
Current Surcharge rate 0.550%
Current Surcharge collections $16,413,665.71
Proposed Additional Surcharge 0.45%
Proposed Additional Surcharge Revenue $13,429,362.86
Combined surcharge collections (current plus proposed) $29,843,028.57
Combined total surcharges imposed at 1% would be $31,090,232.71
TOTAL Proposed Additional Surcharge Revenue (.45%) $13,990,604.72
Memorandum
If enacted, Senate Bill 115 would increase the surcharge paid by policyholders of fire and casualty insurance policies from the current level of .55% to 1%.
The purpose for the increase in the surcharges imposed is to provide additional funding for voluntary fire departments.
The estimated fiscal impact is an increase in the surcharge revenues collected from the current level of approximately $17,099,628 per year to an estimated $31,090,233 per year, which is an increase of $13,990,605 per year.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov