The bill proposes significant changes to the Kansas insurance regulatory framework, including the renaming of the Kansas insurance department to the Kansas department of insurance and the office of the securities commissioner to the department of insurance, securities division. It grants the commissioner of insurance the authority to set and publish certain fees in the Kansas register, reduces the number of board members appointed by the commissioner on specific insurance-related boards, and modifies vehicle dealer license requirements to allow insurance policies from eligible nonadmitted insurers. Additionally, the bill eliminates the need for Senate confirmation of the assistant commissioner of the department of insurance, securities division appointee. Key amendments include the establishment of a list of eligible nonadmitted insurers, increasing their minimum capital or surplus requirement from $4.5 million to $15 million, and stipulating that individual unincorporated insurers must have at least $50 million in assets held in trust for American policyholders.

Further amendments focus on enhancing regulatory oversight and accountability within the insurance sector. The bill introduces stricter regulations for insurers utilizing managing general agents (MGAs), requiring independent financial examinations and annual actuary opinions on loss reserves. It also outlines the conditions under which the commissioner can remove an insurer from the list of eligible nonadmitted insurers and revises the fee structure for various types of insurance companies. Additionally, the bill establishes new provisions for utilization review organizations, licensing requirements for pharmacy benefits managers, and modifies the requirements for risk retention groups and purchasing groups. Overall, the amendments aim to streamline the inclusion of insurers on the state list, enhance regulatory oversight, and ensure fair practices within the insurance industry in Kansas.

Statutes affected:
As introduced: 40-205a, 40-218, 40-252, 40-2, 40-504, 40-956, 40-22a04, 40-2604, 40-2702, 40-3213, 40-3304, 40-3812, 40-3813, 40-3814, 40-3823, 45-229, 40-3824, 40-4103, 40-4116, 40-4209, 40-4302, 40-4323, 40-4334, 40-4503, 40-4903, 40-5003, 40-5509
As Amended by House Committee: 40-205a, 40-218, 40-252, 40-2, 40-504, 40-956, 40-22a04, 40-2604, 40-2702, 40-3213, 40-3304, 40-3812, 40-3813, 40-3814, 40-3823, 45-229, 40-3824, 40-4103, 40-4116, 40-4209, 40-4302, 40-4323, 40-4334, 40-4503, 40-4903, 40-5003, 40-5509
As Amended by Senate Committee: 40-205a, 40-218, 40-252, 40-2, 40-504, 40-956, 40-22a04, 40-2604, 40-2702, 40-3213, 40-3304, 40-3812, 40-3813, 40-3814, 40-3823, 45-229, 40-3824, 40-4103, 40-4116, 40-4209, 40-4302, 40-4323, 40-4334, 40-4503, 40-4903, 40-5003, 40-5509
Enrolled: 8-2405, 40-102, 40-205a, 40-218, 40-246b, 40-246e, 40-252, 40-2, 40-504, 40-956, 40-2102, 40-2109, 40-22a04, 40-2604, 40-2702, 40-3116, 40-3213, 40-3304, 40-3413, 40-3812, 40-3813, 40-3814, 40-3823, 45-229, 40-3824, 40-4103, 40-4116, 40-4209, 40-4302, 40-4323, 40-4334, 40-4503, 40-4903, 40-5003, 40-5509, 75-4101, 75-6301