Individual State Agency Fiscal Note — 5053 SB, Insurance sublimits, Office of Insurance Commissioner
Summary
Individual State Agency Fiscal Note for 5053 SB, titled Insurance sublimits, for the Office of Insurance Commissioner (agency 160). Part I lists operating expenditures of $10,735 in FY 2024, $8,223 in FY 2025 and $18,958 for 2023-25 from the Insurance Commissioners Regulatory Account-State, with estimated cash receipts of NONE. The narrative says Section 1(5) requires residential insurance policies issued on or after January 1, 2024 that contain sub-limits to include on the declarations page a statement that the policy may limit the amount of coverage available for certain losses. It states that all insurers issuing residential property policies will be required to make a one-time filing of their amended declarations page.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Individual State Agency Fiscal Note — 5053 SB, Insurance sublimits, Office of Insurance Commissioner.”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-01-19-a30404-d248082-5053-sb-fn-final-01-13-23-d34a697360/
, SHA-256 d20f4e24b4b4e41ebe7704f168963a5ef3af0e117b48b0065ca6b53333a8245f.Full text
Individual State Agency Fiscal Note
Bill Number: 5053 SB Title: Insurance sublimits Agency: 160-Office of Insurance
Commissioner
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2024 FY 2025 2023-25 2025-27 2027-29
FTE Staff Years 0.1 0.1 0.1 0.1 0.1
Account
Insurance Commissioners Regulatory 10,735 8,223 18,958 16,446 16,446
Account-State 138-1
Total $ 10,735 8,223 18,958 16,446 16,446
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
X If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Kellee Gunn Phone: 786-7429 Date: 01/09/2023
Agency Preparation: Andrew Davis Phone: 360-725-7170 Date: 01/12/2023
Agency Approval: Michael Wood Phone: 360-725-7007 Date: 01/12/2023
OFM Review: Jason Brown Phone: (360) 742-7277 Date: 01/13/2023
Form FN (Rev 1/00) 177,619.00 Request # 23-05-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5053 SB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency by
section number.
Section 1(5) requires residential insurance policies, issued on or after January 1, 2024, that contain sub-limits to include on
the policy’s declarations page a statement that the policy may limit the amount of coverage available for certain losses, and
that the insured should review the policy carefully. The entire declarations page must be delivered to the insured at every
policy renewal.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate, the
detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived. Explanation
of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result in
the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the expenditure
impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing functions.
Section 1(5) requires residential insurance policies, issued on or after January 1, 2024, that contain sub-limits to include on
the policy’s declarations page a statement that the policy may limit the amount of coverage available for certain losses, and
that the insured should review the policy carefully. The entire declarations page must be delivered to the insured at every
policy renewal. All insurers issuing residential property policies will be required to make a one-time filing of their amended
declarations page. There are currently 168 insurers issuing approximately 151 residential policies each year. In FY2024,
one-time costs of 15 minutes of review time per declaration page filing, or a total of 38 hours (15 minutes x 151 filings), of a
Functional Program Analyst 3 will be required.
The provisions in Section 1(5) will also lead to an increase in enforcement actions. The OIC anticipates an average of an
additional 2 enforcement actions per year to address noncompliance of declaration page requirements. Enforcement
actions require the equivalent of approximately 40 hours per case requiring 80 hours (2 cases x 40 hours) of an Insurance
Enforcement Specialist beginning in FY2024.
Ongoing Costs:
Salary, benefits, and associated costs for .05 FTE Insurance Enforcement Specialist beginning in FY2024.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2024 FY 2025 2023-25 2025-27 2027-29
138-1 Insurance State 10,735 8,223 18,958 16,446 16,446
Commissioners
Regulatory Account
Total $ 10,735 8,223 18,958 16,446 16,446
Insurance sublimits 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 177,619.00 Request # 23-05-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5053 SB
III. B - Expenditures by Object Or Purpose
FY 2024 FY 2025 2023-25 2025-27 2027-29
FTE Staff Years 0.1 0.1 0.1 0.1 0.1
A-Salaries and Wages 6,441 4,976 11,417 9,952 9,952
B-Employee Benefits 2,147 1,602 3,749 3,204 3,204
C-Professional Service Contracts
E-Goods and Other Services 2,147 1,645 3,792 3,290 3,290
G-Travel
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-
Total $ 10,735 8,223 18,958 16,446 16,446
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
Job Classification Salary FY 2024 FY 2025 2023-25 2025-27 2027-29
Functional Program Analyst 3 73,260 0.0 0.0
Insurance Enforcement Specialist 99,516 0.1 0.1 0.1 0.1 0.1
Total FTEs 0.1 0.1 0.1 0.1 0.1
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE
IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.
NONE
Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.
Insurance sublimits 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 177,619.00 Request # 23-05-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5053 SB
File and source
- File
- 2023-01-19_a30404_d248082_5053-sb-fn-final-01-13-23.pdf
- Size
- 112,500 bytes
- SHA-256
- d20f4e24b4b4e41ebe7704f168963a5ef3af0e117b48b0065ca6b53333a8245f
- Original
- No public link identified.