121st Maine Legislature
		Office of Fiscal and Program Review
		LD 1793
		An Act To Amend the Law Relating to Insurance Contracts
		LR 2536(01)
		Fiscal Note for Original Bill
		Sponsor: Rep. O'Neil of Saco
		Committee: Insurance and Financial Services
		Fiscal Note Required: Yes
Fiscal Note
Potential current biennium cost increase - General Fund
Fiscal Detail and Notes
	The current property insurance policy covering state buildings includes fire insurance coverage following an act of terrorism.  This bill will allow fire insurance policies to exclude fire insurance coverage as a noncovered peril under the state's standard fire insurance policy laws.  Given this proposed change, the state will need to determine whether it would be cost effective to obtain additional insurance coverage as defined by the Terrorism Risk Insurance Act.  The cost of the so called TRIA coverage offered by the current insurer is estimated to be approximately $115,000 annually and would be passed on to departments and agencies throughout state government through increased premiums charged by Risk Management in the Department of Administrative and Financial Services.  The General Fund share of these projected increased costs is estimated to be approximately 35% of the total, or $40,250.