The bill amends Kansas insurance laws to adjust premium tax rates for insurance companies and eliminate the remittance and crediting of a portion of the premium tax to the insurance department service regulation fund. It modifies K.S.A. 40-112 and K.S.A. 40-252, repealing previous sections, and establishes a new tax rate of 2% for tax year 2025 and 1.98% for tax year 2026 and thereafter. Additionally, all fees collected by the commissioner of insurance will be directed to the state treasurer and deposited into the insurance department service regulation fund. The bill also sets an assessment cap for affiliated insurers at 15% of the previous year's budget, outlines penalties for overdue assessments, and provides exemptions for insurers with insufficient surplus.

Moreover, the bill clarifies the taxation of life insurers, particularly regarding funds related to annuity contracts, stating that such funds will not be considered taxable premiums for tax years starting on or after January 1, 1997. It establishes various fees for mutual life, accident, and health associations, as well as for mutual fire, casualty, and multiple line insurers, maintaining the new tax rates. Provisions for fraternal benefit societies and nonprofit service corporations are also included, along with requirements for annual statements from insurance companies detailing their financial activities. The bill is set to take effect on January 1, 2026, following its publication in the Kansas Register.

Statutes affected:
As introduced: 40-112, 40-252, 40-4301
As Amended by House Committee: 40-112, 40-252, 40-4301