[1] NOTE: As provided in LFC policy, this report is intended only 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 (in HTML & Adobe PDF formats) is available on the Legislative Website. The Adobe PDF version includes all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be obtained from the LFC’s office in Suite 101 of the State Capitol Building North.

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

SPONSOR:	Leavell		DATE TYPED:	01/30/02		HB
SHORT TITLE:		Insurance License Fees				SB	235
					ANALYST:		Valenzuela

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

$56.0

Recurring

Other State Funds

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Public Regulation Commission (PRC)

SUMMARY

Synopsis of Bill

Senate Bill 235 amends the New Mexico Insurance Code by increasing and creating new fees placed on the industry. The bill also expands allowable uses of a special computer system fund for the Insurance Division.

Significant Issues

SB 235 addresses several issues related to collection and use of certain fees collected by the Insurance Division (see attached spreadsheet):

(a) Motor club sales representative license fees are increased from $20 to $30, consistent with other agent licensing fees;

(b) Various fees for third party administrators currently being collected under authority of rules adopted by the Superintendent are added to the statutory list of fees;

(d) Agent appointment fees for agents whose license application has been refused are made non-refundable;

(e) Requirements for licensee notice of change of address are clarified and a $50 penalty for failure to notify the Superintendent is created;

(f) The definition of "adjuster" is clarified to specify that employees of a life or health insurer handling claims under that insurer's contracts to administer life or health claims for another entity are also not required to be licensed as adjusters;

(g) The restricted use of surcharges collected on agent appointment fees for the purpose of purchasing computer hardware and software for the Insurance Division is extended to include related costs of maintenance, operation, systems planning, deployment, and training.

FISCAL IMPLICATIONS

Senate Bill 235 does not carry an appropriation. However, the PRC estimates that enactment of the bill would increase its revenues by approximately $56.0.

ADMINISTRATIVE IMPLICATIONS

Enactment of the bill could have a minor administrative impact but one that could be absorbed with the current resources.

MFV/ar

Attachment