The bill amends existing Kansas insurance laws to establish a framework for nonadmitted insurers, allowing them to conduct business with vehicle dealers and provide excess coverage insurance on Kansas risks. It requires the commissioner of insurance to maintain a list of eligible nonadmitted insurers, which must meet specific criteria, including filing annual statements and maintaining a minimum capital surplus. The bill also outlines the conditions under which vehicle dealer licenses can be issued or renewed, emphasizing that insurance policies must be issued by either authorized insurers or eligible nonadmitted insurers.

Key amendments include the removal of the term "approved" in relation to insurance policies for dealer licenses, and the increase of the minimum capital surplus requirement for insurers from $4.5 million to $15 million. Additionally, the bill specifies that excess lines agents must obtain written consent from prospective insureds before placing coverage with eligible nonadmitted insurers and provides guidelines for the information that must be disclosed to insureds regarding the nature of the coverage. The act will take effect upon publication in the Kansas register.

Statutes affected:
As Introduced: 8-2405, 40-246b, 40-246e
As Amended by Senate Committee on Financial Institutions and Insurance: 8-2405, 40-246b, 40-246e
As introduced: 8-2405, 40-246b, 40-246e
As Amended by Senate Committee: 8-2405, 40-246b, 40-246e