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 and specifies the conditions under which these insurers can operate. Key amendments include the removal of the requirement for an insurance policy to be issued by an authorized insurer, allowing policies from eligible nonadmitted insurers instead. Additionally, the bill increases the minimum capital or surplus requirement for insurers to be listed from $4.5 million to $15 million and outlines the criteria for individual unincorporated insurers and insurance exchanges to qualify for inclusion on the list.

The bill also introduces new obligations for licensed excess lines agents, including the requirement to obtain written consent from prospective insureds before placing coverage with nonadmitted insurers. Agents must provide specific disclosures regarding the nature of the coverage and the lack of regulatory oversight for nonadmitted insurers. Furthermore, the bill repeals previous sections of law that are now outdated due to these amendments, ensuring that the new provisions are clearly established in the Kansas register. Overall, the legislation aims to modernize the insurance landscape in Kansas by facilitating the use of nonadmitted insurers while ensuring consumer protection through enhanced disclosure requirements.

Statutes affected:
As introduced: 8-2405, 40-246b, 40-246e
As Amended by Senate Committee: 8-2405, 40-246b, 40-246e