SB 0824 - Fiscal Note

Fiscal Note - SB 0824 - Payment Limits For Insurance Guarantee Association

L.R. NO.  2893-01
BILL NO.  SB 824
SUBJECT:  Insurance, Insurance-Property
TYPE:     Original
DATE:     February 6, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
General Revenue          (Unknown)           (Unknown)         (Unknown)

Total Estimated
Net Effect on All
State Funds             *(UNKNOWN)          *(UNKNOWN)        *(UNKNOWN)

* expected to exceed ($100,000) per fiscal year.


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
Local Government        *(Unknown)          *(Unknown)        *(Unknown)

* expected to exceed ($100,000) per fiscal year.

                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Insurance (INS) stated that this proposed
legislation would allow the Property and Casualty Guaranty Association (PCGA)
to pay claims up to the policy limits including non-economic damages such as
pain and suffering and punitive damages. The PCGA currently pays only for
medical expenses and lost wages. Payments made to fund the PCGA are deducted
from the insurers premium tax payments. Increased payments from the PCGA
would increase deductions and reduce premium tax revenue.

FISCAL IMPACT - State Government           FY 1997     FY 1998     FY 1999
                                          (10 Mo.)

Reduced premium tax payments             (Unknown)   (Unknown)   (Unknown)

Estimated Net Effect on General Revenue *(UNKNOWN)  *(UNKNOWN)  *(UNKNOWN)

            * expected to exceed ($100,000) per fiscal year.

FISCAL IMPACT - Local Government           FY 1997     FY 1998     FY 1999
                                          (10 Mo.)

Loss - School Districts
  Reduced premium tax payment           (*Unknown)  (*Unknown)  (*Unknown)

            * expected to exceed ($100,000) per fiscal year.

DESCRIPTION

This act pertains to the obligation of the Missouri Property and Casualty
Insurance Guarantee Association to pay claims arising from bodily injury or
sickness.  It removes the  limit of reasonable medical expenses and uses
instead the face  amount or limit of the policy.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.

SOURCES OF INFORMATION

Department of Insurance