SB 0491 - Fiscal Note

Fiscal Note - SB 0491 - Allows motor vehicle liability policies to exclude coverage for certain types of damages

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 2052-01

BILL NO.: SB 491

SUBJECT: Insurance

TYPE: Original

DATE: March 17, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Insurance Dedicated Fund	$0 to $33,350	$0	$0
Total Estimated Net Effect on All State Funds	$0 to $33,350	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None	$0	$0	$0
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 Insurance (INS) states there are currently 320 private passenger insurers and 347 commercial auto insurers in Missouri. Some of these companies may be writing both types of auto insurance and, therefore, may be counted more than once. INS estimates new revenue of $0 to $33,350 depending on the need for filing new policy forms, which is $50 per filing. INS assumes that current appropriations and staff can absorb the work responsibilities for this single proposal; however, if additional proposals are approved, INS may need to request increased appropriations due to the combined effect of multiple proposals.

Officials of the Department of Revenue assume the proposal would have no fiscal impact on their agency.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
INSURANCE DEDICATED FUND
Revenue - Department of Insurance
Filings fees	$0 to
	to $33,350	$0	$0
ESTIMATED NET EFFECT ON	$0 to
INSURANCE DEDICATED FUND	to $33,350	$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 makes changes to what a motor vehicle liability policy may contain. Under this proposal, an insurance policy may exclude liability coverage for bodily injury or property damage to the insured or a relative residing in the insured's household. The policy may also exclude coverage for damages arising from the use of a motor vehicle by a driver specifically excluded in the policy. The policy may exclude coverage for damages arising out actions by the named insured while occupying another vehicle as a passenger and not in physical control of the operation of the vehicle.

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

Department of Revenue

Jeanne Jarrett, CPA

Director

March 17, 1999