The bill amends existing Kansas insurance laws to establish a framework for nonadmitted insurers, which are insurers not authorized to conduct business in the state. It requires the commissioner of insurance to maintain a list of eligible nonadmitted insurers and allows these insurers to transact business with vehicle dealers and provide excess coverage insurance on Kansas risks. The bill specifies the conditions under which nonadmitted insurers can operate, including the requirement for vehicle dealers to have an insurance policy from either an authorized insurer or an eligible nonadmitted insurer. Additionally, it outlines the responsibilities of licensed excess lines agents when placing insurance with nonadmitted insurers, including obtaining written consent from the insured and providing necessary disclosures.

Key amendments include the removal of the term "approved" in relation to insurance policies for dealer licenses, the increase of the minimum capital or surplus requirement for insurers from $4,500,000 to $15,000,000, and the establishment of new eligibility criteria for nonadmitted insurers. The bill also repeals previous sections of law that are now outdated due to these changes. 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: 8-2405, 40-246b, 40-246e