Fiscal Note — 1060 HB, Mutual Insurer Reorg. (Office of Insurance Commissioner)
Summary
Individual State Agency Fiscal Note for 1060 HB, titled Mutual insurer reorg., prepared for the Office of Insurance Commissioner. The note estimates operating expenditures of 13,773 for 2023-25, charged to the Insurance Commissioners Regulatory Account-State. It describes Section 3(3) as requiring the Office of Insurance Commissioner to approve or disapprove the reorganization plan within 60 days after receiving a completed filing, and Section 5(5) as allowing the Office to hold a hearing for the purpose of receiving comments on whether a plan should be approved.
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“Fiscal Note — 1060 HB, Mutual Insurer Reorg. (Office of Insurance Commissioner).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-03-09-a30915-d256332-1060-hb-fn-final-01-12-23-d26a60d8f7/
, SHA-256 11dc7705df2bceadd03c948b57c6d742bcce1f3da65597309468fd2833e8fb79.Full text
Individual State Agency Fiscal Note
Bill Number: 1060 HB Title: Mutual insurer reorg. 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 0.0 0.0 0.0 0.0
Account
Insurance Commissioners Regulatory 13,773 0 13,773 0 0
Account-State 138-1
Total $ 13,773 0 13,773 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.
Requires new rule making, complete Part V.
Legislative Contact: Megan Mulvihill Phone: 360-786-7304 Date: 01/09/2023
Agency Preparation: David Forte Phone: 360-725-7042 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: 01/12/2023
Form FN (Rev 1/00) 177,579.00 Request # 23-04-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1060 HB
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 3(1) allows a domestic mutual insurer to engage in a conversion as part of a reorganization as a mutual holding
company only if the board passes a resolution that the reorganization is fair and equitable to the policyholders and adopts a
plan that meets the requirements of RCW 48.09.
Section 3(3) requires the Office of Insurance Commissioner (OIC) to approve or disapprove the reorganization plan within
60 days after receiving a completed filing of the plan and all information requested or within 60 days after the completion of
a hearing on the plan, whichever date is later.
Section 5(5) allows the OIC to hold a hearing for the purposes of receiving comments on whether a plan should be
approved and on any other matter relating to the reorganization. The hearing, if held, must be held within 60 days after the
OIC receives a complete filing and all information requested.
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 3(1) allows a domestic mutual insurer to engage in a conversion as part of a reorganization as a mutual holding
company only if the board passes a resolution that the reorganization is fair and equitable to the policyholders and adopts a
plan that meets the requirements of RCW 48.09.
Section 3(3) requires the Office of Insurance Commissioner (OIC) to approve or disapprove the reorganization plan within
60 days after receiving a completed filing of the plan and all information requested or within 60 days after the completion of
a hearing on the plan, whichever date is later.
Section 5(5) allows the OIC to hold a hearing for the purposes of receiving comments on whether a plan should be
approved and on any other matter relating to the reorganization. The hearing, if held, must be held within 60 days after the
OIC receives a complete filing and all information requested.
The OIC assumes one domestic mutual insurer will reorganize as a mutual holding company requiring one-time costs of 45
hours of a Financial Examiner 3 and 20 hours of the Holding Company Manager, in FY2024, to review the proposed
reorganization plan filing. It is further assumed that a hearing to receive comments on whether the plan should be approved
will be held requiring one-time costs of 30 hours of an Insurance Enforcement Specialist and 24 hours of the Holding
Company Manager to brief the assigned attorney, draft and post public notices, prepare declarations, and provide testimony.
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 13,773 0 13,773 0 0
Commissioners
Regulatory Account
Total $ 13,773 0 13,773 0 0
Mutual insurer reorg. 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 177,579.00 Request # 23-04-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1060 HB
III. B - Expenditures by Object Or Purpose
FY 2024 FY 2025 2023-25 2025-27 2027-29
FTE Staff Years 0.1 0.0
A-Salaries and Wages 8,379 8,379
B-Employee Benefits 2,639 2,639
C-Professional Service Contracts
E-Goods and Other Services 2,755 2,755
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 $ 13,773 0 13,773 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
Financial Examiner 3 96,156 0.0 0.0
Holding Company Manager 116,784 0.0 0.0
Insurance Enforcement Specialist 99,516 0.0 0.0
Total FTEs 0.1 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.
Mutual insurer reorg. 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 177,579.00 Request # 23-04-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1060 HB
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