NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Public Regulation Commission (PRC)

LFC files

SUMMARY

Synopsis of SPAC Amendment

The SPAC amendment is a technical correction which makes it clear that the rental car agent must maintain a list of its rental car endorsees rather than submit it to the superintendent of insurance.

Synopsis of Original Bill

SB 489 allows employees of rental car companies to act as insurance agents for the sale of certain types of insurance provided that the rental car company is licensed by the Superintendent of Insurance and meets other conditions.

Significant Issues

• •Car companies that sell insurance are currently not licensed nor regulated.

• •Insurance sold in conjunction with car rentals is often expensive and sometimes duplicates the renter's insurance. SB 489 requires sellers of insurance to make disclosures.

FISCAL IMPLICATIONS

There will be a small increase in revenues because of the car rental companies that will need to be licensed. The PRC is unable to quantify this amount.

ADMINISTRATIVE IMPLICATIONS

SB 489 will require that the PRC develop procedures for licensing rental car companies and monitoring compliance with SB 489.

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