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F I S C A L I M P A C T R E P O R T

SPONSOR:	Luna		DATE TYPED:	01/26/02		HB	277
SHORT TITLE:		Limited Insurance Licenses				SB
					ANALYST:		Valenzuela

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

See Narrative

$0.1

Recurring

General Fund

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

$25.0

Recurring

General Fund

SOURCES OF INFORMATION

Public Regulation Commission (PRC)

SUMMARY

Synopsis of Bill

House Bill 277 allows the superintendent of insurance to issue a limited insurance agent’s license to persons selling insurance to cover loss or damage to communications equipment in connection with the sale of such equipment.

Significant Issues

The PRC states that unless HB 277 is passed the vendors of communications equipment will probably continue to sell insurance for damage or loss of equipment utilizing unlicensed individuals.

FISCAL IMPLICATIONS

The PRC indicates that the Insurance Division will need an additional FTE to issue limited licenses, however the impending automation will make additional staff unnecessary.

The PRC estimates that the new class of limited licenses will bring approximately $25.0 of revenues into the general fund.

ADMINISTRATIVE IMPLICATIONS

The PRC will be able to add issuing of these limited licenses as part of their on-going automation process.

MV/ar