FISCAL NOTE
Date Requested: February 12, 2026
Time Requested: 04:48 PM |
| Agency: |
Risk and Insurance Management, Board of (BRIM) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4075 |
Introduced |
HB5462 |
|
|---|
| CBD Subject: |
Insurance |
|---|
|
FUND(S):
Mine Subsidence 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 amends the article of code governing mine subsidence insurance by clarifying that if a policyholder has other insurance or other sources of remuneration for a loss covered by the mine subsidence insurance, the mine subsidence fund administered by BRIM is only liable for the portion of the loss which the source of remuneration will not cover. The bill also provides that recovery by the policyholder from any other source for a covered loss up to the statutory limit will be deemed for damages to the structure and will be deducted from mine subsidence insurance proceeds. The proposed legislation if enacted could correct current language that creates confusion and ambiguity related to duplicate payment of mine subsidence claims, thus reduces BRIM’s claim costs related to these types of claims.
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 |
-750,000 |
-1,500,000 |
| 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.
BRIM has received some claims for loss due to mine subsidence in which the policyholder settled with and released the mining company before the loss was incurred. Some of these settlements were entered into before mining commenced and the policyholder released the mining company from liability for any form of damages. If the settlement and release occur after the loss, BRIM takes the position that its rights to recovery have been prejudiced and has the ability to deny the mine subsidence claim pursuant to the policy terms. However, if the settlement and release occur before the loss is incurred, as has happened in some claims, BRIM cannot deny the claim without clear authority.
This legislation addresses these pre-loss settlement and release situations and enables BRIM to deny these specific claims, thus preventing a policyholder from recovering twice for the same loss, thus reducing BRIM’s claim costs related to these types of claims.
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.
The proposed legislation reduces and identified inefficiency by not processing and incurring expenses for mine subsidence claim investigations that have already been paid in full by a mining company. This would prevent duplicate payment for the same loss. Additionally, this would correct language that creates confusion and ambiguity related to duplicate payment of mine subsidence claims.
Person submitting Fiscal Note: Emily Fleck
Email Address: emily.s.fleck@wv.gov