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 certain financial thresholds. The bill also specifies that vehicle dealers must have insurance policies from either authorized insurers or eligible nonadmitted insurers, with the policies providing public liability and property damage coverage.

Key amendments include the removal of the term "approved" in relation to insurance policies for dealer licenses, and the increase of the minimum capital or surplus requirement for insurers from $4.5 million to $15 million. Additionally, the bill clarifies that excess lines agents can place insurance with eligible nonadmitted insurers and outlines the necessary disclosures and consent requirements for insured parties. The act will take effect upon publication in the Kansas register, and it repeals previous sections of law that are now superseded by these changes.

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