TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB998 by Eiland (Relating to insurance market conduct surveillance; imposing sanctions.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | $132,487 |
2007 | $123,815 |
2008 | $123,815 |
2009 | $123,815 |
2010 | $123,815 |
Fiscal Year | Probable (Cost) from INSURANCE MAINT TAX FEES 8042 |
---|---|
2006 | $132,487 |
2007 | $123,815 |
2008 | $123,815 |
2009 | $123,815 |
2010 | $123,815 |
Fiscal Year | Change in Number of State Employees from FY 2005 |
---|---|
2006 | 2.0 |
2007 | 2.0 |
2008 | 2.0 |
2009 | 2.0 |
2010 | 2.0 |
The Department of Insurance estimates that the Financial Analysis Market Conduct Examinations Division will require two entry-level Financial Examiner III’s (Pay Group B11) to conduct the additional market conduct analysis work required by enactment of this bill. The cost for implementing the provisions of this bill is estimated to be $132,487 in FY 2006. Financial Examiner III = $74,664 (2 FTEs at $37,332), travel = $19,662, rent = $3,304, equipment = $8,672, telephone = $3,356, supplies = $624, and employee benefits for 2.0 FTEs = $22,205 for a total of $132,487 for fiscal year 2006. In FY 2007-2010 there would be a cost of $123,815 which includes the following costs: Financial Examiner III = $74,664 (2FTEs), travel = $19,662, rent = $3,304, telephone = $3,356, supplies = $624, and employee benefits for 2.0 FTEs = $22,205 for a total of $123,815 for fiscal years 2007-2010.
Each new Financial Examiner III would review and complete market conduct analyses on approximately 50 insurers per year, and complete approximately 10 desk examinations which are more targeted and limited in scope and oriented towards those companies which generally have more substantial regulatory concerns based on the market conduct analyses.
Source Agencies: | 454 Department of Insurance
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LBB Staff: | JOB, JRO, MW, NV
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