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2008 Policy Book

#49 INSURANCE ASSESSMENTS AND FINES

State-mandated special assessments on insurance policies are being used to fund programs unrelated to the insurance being provided. This increases the cost of insurance and can make insurance unaffordable for some segments of society.

In addition, government is looking to these assessments and various regulatory fines on insurance policies as a means to fund regulatory agencies and departments that were previously, or are currently, funded through the State general fund. This further increases the cost of insurance and is a hidden means of taxation.

We oppose:

• Assessments on individual insurance policies for costs that are not directly related to the coverage being provided to the individual purchaser of that insurance.
• Governmental attempts to spread and/or shift funding of programs or other costs to individual insurance buyers through such assessments and/or fines.