ELIMINATE ANNUAL STATEMENT FILING FEE

FOR FOREIGN AND ALIEN INSURERS

House Bill 4224 as introduced

Sponsor:  Rep. Tom Barrett

Committee:  Insurance

Complete to 3-4-15

SUMMARY:

The bill would amend the Insurance Code to eliminate the $25 filing fee for the annual statement that foreign (out-of-state) and alien (out-of-country) insurance companies must file with the director of the Department of Insurance and Financial Services.

The bill also contains a number of technical, clean-up amendments; for example, replacing the term "commissioner" with the term "director" to recognize the creation of the new Department of Insurance and Financial Services, and changing the term "agent" to "producer."

MCL 500.240 & 438

FISCAL IMPACT:

House Bill 4224 would have a nominal negative fiscal impact on the Department of Insurance and Financial Services (DIFS) to the extent that HB 4224 would eliminate the $25 annual statement filing fee; however, it is unlikely that the loss of revenue generated by the fee eliminated by HB 4224 would significantly impact DIFS operations. Over the past three fiscal years, this fees generated an average of $31,595 in revenue, which is deposited into the Insurance Licensing and Regulation Fees Fund and expended to support the operation of DIFS. DIFS expended $7.2 million of the $8.4 million appropriated from the Fund in FY 2013-14; resulting in a carryforward balance of $4.1 million at the close of FY 2013-14.

                                                                                        Legislative Analyst:   Chris Couch

                                                                                                Fiscal Analyst:   Paul Holland

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.