FISCAL NOTE
Date Requested: January 14, 2026
Time Requested: 07:55 PM |
| Agency: |
Risk and Insurance Management, Board of (BRIM) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1957 |
Comm. Sub. |
SB196 |
|
|---|
| CBD Subject: |
Boards and Commissions; Education (K12); Insurance |
|---|
|
FUND(S):
Public Entity Insurance Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, 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.
For the period of Fiscal Year 2022 through Fiscal Year 2026, The West Virginia Board of
Risk and Insurance Management (BRIM) has incurred approximately four claims which
have incurred costs between $1 million and $1.25 million limits for an estimated total of $465,000 in total incurred losses. The proposed legislation if enacted could decrease the value of settlements and the legal expenses of defense. It could also provide for moderate premium cost reduction, however, without an actuary opinion BRIM is unable to quantify this.
Explanation of above estimates (including long-range effect)
1. The lower retained limit 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.
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 |
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.
Any effect of this legislation on premiums billed would be enacted during the fiscal year premium development process. Additionally, BRIM also cannot unilaterally change the terms of the policy were renewed on July 1, 2025, for the current fiscal year which ends on June
30, 2026.
If not already considered such changes within the proposed legislation should
also be changed within West Virginia Code ยง 29-12-5a(c).
Zeros in the above table do not represent an actual cost estimate. A true value is uncertain without a detailed actuary review. BRIM is currently unable to quantify this. BRIM does predict a decrease in the value of settlements and legal expenses of defense, in addition to a moderate premium cost reduction if legislation is enacted.
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.
Person submitting Fiscal Note: Emily S. Fleck
Email Address: emiliy.f.fleck@wv.gov