Fiscal Note — 5720 SB, Risk Mitigation (Office of Insurance Commissioner)
Summary
Individual State Agency Fiscal Note for bill number 5720 SB, titled Risk mitigation, from agency 160, the Office of Insurance Commissioner. Part I lists 24,613 for the Insurance Commissioners Regulatory Account-State and checks the box that the fiscal impact is less than $50,000 per fiscal year, so only Part I is completed. The narrative states that Section 1(1) removes the prohibition of commercial property policies from including goods and/or services intended to reduce the probability of loss, or the extent of loss, from a covered event. Part V states that simple rulemaking in FY2024 will be required to allow commercial property insurers to provide risk mitigation goods and services.
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“Fiscal Note — 5720 SB, Risk Mitigation (Office of Insurance Commissioner).”
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, SHA-256 e0d1e09334a035f714700e89b043b1dcae50fb83cb55505a8739ded558dc9062.Full text
Individual State Agency Fiscal Note
Bill Number: 5720 SB Title: Risk mitigation 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 0.2 0.0 0.1 0.0 0.0
Account
Insurance Commissioners Regulatory 24,613 0 24,613 0 0
Account-State 138-1
Total $ 24,613 0 24,613 0 0
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.
X Requires new rule making, complete Part V.
Legislative Contact: Kellee Gunn Phone: 786-7429 Date: 02/08/2023
Agency Preparation: David Forte Phone: 360-725-7042 Date: 02/09/2023
Agency Approval: Michael Wood Phone: 360-725-7007 Date: 02/09/2023
OFM Review: Jason Brown Phone: (360) 742-7277 Date: 02/09/2023
Form FN (Rev 1/00) 182,540.00 Request # 23-71-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5720 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(1) removes the prohibition of commercial property policies from including goods and/or services intended to
reduce the probability of loss, or the extent of loss, from a covered event as part of the policy of property insurance.
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(1) removes the prohibition of commercial property policies from including goods and/or services intended to
reduce the probability of loss, or the extent of loss, from a covered event as part of the policy of property insurance.
Policies of property insurance that include goods and/or services intended to reduce the probability or extent of loss are
required to demonstrate, in the property insurers’ rate filing, that its rates account for the expected costs of the goods and/or
services and the reduction in expected claims costs resulting from the goods and/or services. As a result of removing the
prohibition on commercial property policies from including loss prevention and/or mitigation goods and/or services, the OIC
assumes it will receive one additional rate filing each year beginning in FY2024 and that 6 hours of an Actuarial Analyst 3
will be required to review the commercial property rate filing.
Current rules in WAC 284-33 do not allow commercial property insurance to offer risk mitigation goods and services.
‘Simple’ rulemaking, in FY2024, will be required to allow commercial property insurers the ability to provide risk mitigation
goods and services to their insured.
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 24,613 0 24,613 0 0
Commissioners
Regulatory Account
Total $ 24,613 0 24,613 0 0
Risk mitigation 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 182,540.00 Request # 23-71-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5720 SB
III. B - Expenditures by Object Or Purpose
FY 2024 FY 2025 2023-25 2025-27 2027-29
FTE Staff Years 0.2 0.1
A-Salaries and Wages 14,891 14,891
B-Employee Benefits 4,799 4,799
C-Professional Service Contracts
E-Goods and Other Services 4,923 4,923
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 $ 24,613 0 24,613 0 0
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 4 80,952 0.1 0.0
Senior Policy Analyst 108,432 0.1 0.1
Total FTEs 0.2 0.1 0.0
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.
Current rules in WAC 284-33 do not allow commercial property insurance to offer risk mitigation goods and services. ‘Simple’
rulemaking, in FY2024, will be required to allow commercial property insurers the ability to provide risk mitigation goods and
services to their insured.
Risk mitigation 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 182,540.00 Request # 23-71-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5720 SB
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