This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0009 - Prohibits insurance company from using credit history to determine whether to provide, renew or cancel policy
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 0200-01
BILL NO. SB 9
SUBJECT: Consumer Protection
TYPE: Original
DATE: January 8, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | |||
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
The Department of Corrections, Department of Conservation, Department of Transportation, Missouri Consolidated Health Care Plan, and Department of Public Safety, Missouri State Highway Patrol assume this proposal would not fiscally impact their agency.
The Department of Social Services states that the fiscal impact of this proposal, if any, to the Medicaid program is extremely indirect. This proposal may help certain individuals obtain or retain private insurance coverage. However, it is not anticipated that this provision alone would cause a large number of individuals who could not previously obtain coverage because of credit history discrimination to move from Medicaid to private insurers.
The Department of Insurance (INS) estimates that 50 calls per month are received in the Consumer Affairs Section related to credit history and INS does not currently process complaints on this issue. As a result of this proposal, INS estimates that 30 calls resulting in actual complaints being filed would be received. INS assumes that current appropriations and staff would be able to absorb this additional workload. However, if additional proposals are approved, the Department may request an increase in appropriations due to the combined effect of multiple proposals.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Small Business | |||
| No direct fiscal impact to small businesses would be expected as a result of this proposal. | |||
DESCRIPTION
This proposal would prohibit insurers from canceling or refusing to write or renew an insurance policy based solely upon an individual's credit history, unless as described in the proposal.
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 Social Services
Department of Insurance
Missouri Consolidated Health Care Plan
Department of Transportation
Department of Corrections
Department of Conservation
Department of Public Safety
Missouri State Highway Patrol
Jeanne Jarrett, CPA
Director
January 8, 1999