Fiscal Note — Bill 5589 Insurance & Credit Study, Office of Insurance Commissioner (Washington)
Summary
Individual State Agency Fiscal Note for Bill Number 5589 SB, titled Insurance & credit study, for the Office of Insurance Commissioner. It estimates operating expenditures from the Insurance Commissioners Regulatory Account of $518,165 in FY 2026 and $10,380 in FY 2027, with estimated cash receipts listed as NONE. The narrative says the office will require 140 hours of a Senior Policy Analyst 4 in FY2026 and 80 hours in FY2027, an estimated $350,000 in FY2026 to contract with a vendor for actuarial analysis, and $150,000 in FY2026 for an academic consultant. It states that no rule making is required.
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Cite this document
“Fiscal Note — Bill 5589 Insurance & Credit Study, Office of Insurance Commissioner (Washington).”
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Individual State Agency Fiscal Note
Bill Number: 5589 SB Title: Insurance & credit study Agency: 160-Office of Insurance
Commissioner
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 0.1 0.1 0.1 0.0 0.0
Account
Insurance Commissioners Regulatory 518,165 10,380 528,545 0 0
Account-State 138-1
Total $ 518,165 10,380 528,545 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
X
form Parts I-V.
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: John Kim Phone: 360-786-7453 Date: 01/31/2025
Agency Preparation: Tyler Langford Phone: 360-725-7173 Date: 02/10/2025
Agency Approval: Joyce Brake Phone: 360-725-7041 Date: 02/10/2025
OFM Review: Jason Brown Phone: (360) 742-7277 Date: 02/11/2025
Form FN (Rev 1/00) 199,956.00 Request # 25-57-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5589 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.
Sec. 1(2) requires the Office of the Insurance Commissioner (OIC) to conduct a study of insurers’ use of credit history,
credit-based insurance scores, other rate factors that may have disparate impacts on Washington residents, and alternatives
to their use, in determining premiums, rates, or eligibility for coverage, and any associated impacts to costs or availability.
Sec. 1(3)(a) and (b) direct the OIC to collect information from entities transacting personal insurance and to investigate and
obtain any other relevant information to assist with the study.
Sec. 1(3)(c) directs the OIC to contract with actuaries and other consultants as needed to perform the study. The study will
include analysis of the current use of credit scores and credit-based insurance models, alternatives factors that could be
used instead, the likely impact to consumers, and policy options for the Legislature.
Sec. 1(4) directs the OIC to submit a preliminary report to the relevant policy committees of the Legislature by December
31, 2025 and a final report by September 15, 2026.
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.
NONE.
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.
Sec. 1(2) requires the Office of the Insurance Commissioner (OIC) to conduct a study of insurers’ use of credit history,
credit-based insurance scores, other rate factors that may have disparate impacts on Washington residents, and alternatives
to their use, in determining premiums, rates, or eligibility for coverage, and any associated impacts to costs or availability.
Sec. 1(3)(a) and (b) direct the OIC to collect information from entities transacting personal insurance and to investigate and
obtain any other relevant information to assist with the study.
Sec. 1(3)(c) directs the OIC to contract with actuaries and other consultants as needed to perform the study. The study will
include analysis of the current use of credit scores and credit-based insurance models, alternatives factors that could be
used instead, the likely impact to consumers, and policy options for the Legislature.
Sec. 1(4) directs the OIC to submit a preliminary report to the relevant policy committees of the Legislature by December
31, 2025 and a final report by September 15, 2026.
The OIC will require 140 hours of a Senior Policy Analyst 4 in FY2026 as well as 80 hours in FY2027 to conduct research
and analysis, collect data, procure and manage the contractors, and draft the report.
It is estimated that $350,000 will be required in FY2026 to contract with a vendor to conduct the actuarial analysis for the
study.
Additionally, the OIC anticipates $150,000 will be required in FY2026 to contract with an academic consultant to
Insurance & credit study 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 199,956.00 Request # 25-57-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5589 SB
supplement the actuarial analysis and better understand the disparate impacts on various groups.
No rule making required.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2026 FY 2027 2025-27 2027-29 2029-31
138-1 Insurance State 518,165 10,380 528,545 0 0
Commissioners
Regulatory Account
Total $ 518,165 10,380 528,545 0 0
III. B - Expenditures by Object Or Purpose
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 0.1 0.1 0.1
A-Salaries and Wages 11,349 6,485 17,834
B-Employee Benefits 3,183 1,819 5,002
C-Professional Service Contracts
E-Goods and Other Services 503,633 2,076 505,709
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 $ 518,165 10,380 528,545 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 2026 FY 2027 2025-27 2027-29 2029-31
Senior Policy Analyst 131,328 0.1 0.1 0.1
Total FTEs 0.1 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
Insurance & credit study 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 199,956.00 Request # 25-57-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5589 SB
IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.
NONE
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 & credit study 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 199,956.00 Request # 25-57-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 5589 SB
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