Galloway issues audit of funds under Department of Commerce and Insurance

Posted on 16 October 2019 at 7:48pm
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JEFFERSON CITY - State Auditor Nicole Galloway released an audit Wednesday of the Insurance Dedicated Fund and the Insurance Examiners' Fund.

The report highlighted concerns in two areas.

The first area found that $1.5 million from the Insurance Dedicated Fund was used to pay costs incurred by the Department of Health and Senior Services (DHSS) for maintaining and operating a poison control hotline.

State law requires appropriations from the fund to be used solely to pay expenditures incurred by the Department of Commerce and Insurance.

The second finding concerned the tax credit that insurance companies are allowed to receive for examination costs.

Missouri is one of only five states to provide such a credit, and insurance companies received approximately $14.8 million in examination fee tax credits in the three fiscal years covered by the report.

A similar issue was noted in both in prior reports.

The audit found the Department of Commerce and Insurance makes no attempt to determine the cost-benefit of the tax credit in an annual analysis provided to the General Assembly.

Measuring the cost-effectiveness of the program would better help legislators determine if continuation of the tax credit program is justified.