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





SPONSOR: Martinez DATE TYPED: 01/29/01 HB 118
SHORT TITLE: No Additional Fee For First-Time Insured SB
ANALYST: Wilson


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
NFI NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



Public Regulation Commission



SUMMARY



Synopsis of Bill



HB 118 prohibits an insurer from charging an additional fee for automobile insurance to a first-time purchaser or a purchaser reinstating coverage.



Significant Issues



HB 118 might conflict with safe driver and renewal credit discounts. For example, a safe driver who has been with a company for several years might get a special discount on his automobile insurance. This discount would not be available to a first-time purchaser.



The Public Regulation Commission indicates that there might be a possible reduction in insurance availability and growth in the assigned risk pool.



ADMINISTRATIVE IMPLICATIONS



HB 118 may require some automobile insurers to refile their rates for approval by the Division of Insurance.



DW/prr:ar