Adjusted     Executive
                             Appropriation       Request               Percent
                                   2001-02       2002-03        Change  Change


AGENCY SUMMARY
  Special Rev.-Other           115,470,000   125,419,000    9,949,000    8.62%
  Total for AGENCY SUMMARY:    115,470,000   125,419,000    9,949,000    8.62%

STATE OPERATIONS
  Special Rev.-Other           115,470,000   125,419,000    9,949,000    8.62%
  Total for STATE OPERATIONS:  115,470,000   125,419,000    9,949,000    8.62%

Administration
  Special Rev.-Other            11,240,700    15,461,000    4,220,300   37.54%
  Total for Program:            11,240,700    15,461,000    4,220,300   37.54%

Regulation of Insurance Organizations
  Special Rev.-Other            93,611,900    98,935,000    5,323,100    5.69%
  Total for Program:            93,611,900    98,935,000    5,323,100    5.69%

Comsumer Services
  Special Rev.-Other            10,617,400    11,023,000      405,600    3.82%
  Total for Program:            10,617,400    11,023,000      405,600    3.82%

                                                                    
                                                                    
      

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                    
                                                                    
      
                                   Current     Requested
Program                            2001-02       2002-03   Change
                                                                    
                                                                    
      
Administration                         134           134        0
Regulation of Insurance   
  Organizations                        622           622        0
Comsumer Services                      168           168        0
Total All Other Funds :                924           924        0

TOTAL:                                 924           924        0
                                                                    
                                                                    
       

                          BUDGET HIGHLIGHTS
                   (Executive Budget: pp. 333-335)

The Insurance Department is charged with regulating the insurance
industry and ensuring that the interests of insurance consumers,
companies and producers are all considered in rate setting and
regulation.  The Insurance Department receives all of its operating
revenue from assessments levied on the insurance industry.  

The agency is included in the Public Protection and General Government
Budget Bill.

State Operations

The Governor proposes a State Operations Special Revenue Other
appropriation of $125,419,000, a net increase of $9,949,000 or 8.6
percent from State Fiscal Year (SFY) 2001-02.  This includes:

--     a request for $4,000,000 to relocate the Insurance Department
       from Agency Building One in the Empire State Plaza to One
       Commerce Plaza;

--     a suballocation of $397,000 to the Banking Department's
       Holocaust Claims Processing Office.  These monies will be used
       to continue efforts to provide restitution of insurance
       policies to Holocaust victim survivors.  This represents an
       increase of $23,000 from SFY 2001-02;

--     a suballocation of $1,070,000 to other State agencies for
       services and expenses to develop and promulgate fire safety
       standards for cigarettes.  This represents a decrease of $4.5
       million from SFY 2001-02; and

--     a suballocation of $4,659,000 to the Department of Law for
       services and expenses associated with the implementation of
       Executive Order 109 appointing the Attorney General as special
       prosecutor for no-fault auto insurance fraud.  In addition, the
       Executive recommends a deficiency appropriation of $3,000,000,
       for support of the suballocation to the Department of Law for
       costs associated with appointing the Attorney General as a
       Special Prosecutor for auto insurance fraud.

The Governor proposes a total suballocation of $16,507,000 to the
Department of State for the following initiatives:

--     $5,949,000 for expenses incurred in the enforcement,
       development and maintenance of the State Building Code.  This
       represents an increase of $1,010,000 from SFY 2001-02;

--     $250,000 for expenses related to the Urban Search and Rescue
       Program;

--     $8,535,000 for services and expenses related to the Fire
       Prevention and Control Program and the State Fire Reporting
       system.  This represents an increase of $380,000 from SFY 2001-
       02;

--     $736,000 for Aid to Localities payments related to
       municipalities fighting fires on State property, expenses
       incurred under the State's mobilization and mutual aid plan,
       and for payment of training costs of certain first-line
       supervisors of paid fire departments at the New York City Fire
       Training Academy;

--     a new suballocation in the amount of $523,000 for services and
       expenses related to the repair and rehabilitation of the State
       Fire Training Academy; and

--     a new suballocation in the amount of $514,000 for expenses
       related to fire inspections and fire safety training programs
       at privately operated colleges and universities in New York
       State. 

There are $1,079,000 in suballocations to the Department of Health and
the Office of Inspector General pursuant to the following:

--     $271,000 to the Department of Health for expenses incurred in
       the development of inpatient hospital rates for insurance
       payments;

--     $300,000 to the Department of Health for expenses in the
       certification of managed care programs;

--     $300,000 to the Department of Health for expenses incurred in
       the approval of managed care implementation plans; and

--     $208,000 to the Office of the Inspector General for services
       and expenses.