The bill amends Kansas insurance laws to lower premium tax rates for insurance companies and eliminate the remittance 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 the previous sections. Starting January 1, 2026, all fees collected by the commissioner of insurance will be sent to the state treasurer, and assessments on affiliated insurers will be adjusted to meet the funding requirements set by the legislature for the insurance regulation program. The annual premium tax rate will be set at 2% for the tax year 2025 and 1.98% for 2026 and beyond, with provisions for penalties on late payments and exemptions for certain insurers based on financial status.

Additionally, the bill addresses the taxation of life insurers and other insurance entities, specifically regarding funds related to annuity contracts, stating that such funds will not be considered taxable premiums for tax years beginning on or after January 1, 1997. It outlines various fees for mutual life, accident, health associations, and other insurance companies, maintaining the same tax rates as mentioned earlier. The bill also requires insurance companies to file annual statements detailing premiums, assessments, and charges, mandates semi-annual estimated tax payments based on the previous year's amounts, and specifies that it will take effect on January 1, 2026, after 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