SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 14
As Amended by House Committee on Insurance

Brief*
SB 14, as amended, would amend the effective date
specified in the Insurance Code for the risk-based capital
(RBC) instructions promulgated by the National Association of
Insurance Commissioners (NAIC) for property and casualty
companies and for life insurance companies. The instructions
currently specified became effective on December 31, 2021.
The bill would update the effective date of the RBC
instructions to December 31, 2022.
The bill would be in effect upon publication in the
Kansas Register.

Background
The bill was introduced by the Senate Committee on
Financial Institutions and Insurance at the request of the
Kansas Insurance Department (Department). [Note: A
companion bill, HB 2100, has been introduced in the House.]

Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, a representative of
the Department provided proponent testimony, stating the
goal of the RBC law is to ensure each Kansas domestic
insurance company has the required amount of capital
needed to support its overall business operations in
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
consideration of its size and risk profile. The representative
also noted amendments to the effective date of the
instructions have been made each year since 2009.
[Note: In 2009, a legislative oversight process for
updating the annual RBC instructions was established. This
process allows the Department to update the requirements by
rules and regulations, unless one of the two statutory triggers
has been met.]
No other testimony was provided.

House Committee on Insurance
In the House Committee hearing, an overview of the bill
was provided and proponent testimony submitted by the
Department was made available.
The House Committee amended the bill to change its
effective date to upon publication in the Kansas Register.

Fiscal Information
According to the fiscal note prepared by the Division of the
Budget on the bill, as introduced, the Department indicated
enactment of the bill would have no fiscal effect.
Insurance; risk-based capital; NAIC; reporting


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Statutes affected:
As introduced: 40-2c01
As Amended by House Committee: 40-2c01