The bill empowers the Kansas commissioner of insurance to select and announce the version of insurance calculations and instructions from the National Association of Insurance Commissioners (NAIC) that will be effective for the upcoming calendar year, with a requirement to publish this announcement in the Kansas register by December 1. It also amends K.S.A. 40-202 to exempt certain fraternal benefit societies and organizations from specific insurance code provisions, provided they meet certain criteria, and updates definitions related to risk-based capital (RBC) reports to align with NAIC standards. The bill enhances regulatory oversight of insurers within insurance holding company systems by requiring detailed registration statements that include financial condition, ownership, and management information, along with a summary of changes from previous statements.

Additionally, the bill introduces provisions for the ultimate controlling person of each insurer to file an annual enterprise risk report and group capital calculation, ensuring fair transactions between registered insurers and their affiliates. It mandates prior notification to the commissioner for specific transactions and requires insurers to notify the commissioner 30 days before extraordinary dividends or distributions. The bill also enhances the confidentiality of documents obtained during examinations and clarifies the sharing of confidential information by the NAIC, ensuring that such disclosures do not waive confidentiality. Overall, these amendments aim to strengthen regulatory oversight, protect policyholders, and ensure transparency within the insurance industry.

Statutes affected:
As introduced: 40-2d01, 40-3302, 40-2c01, 40-3305, 40-3306, 40-3307, 40-3308, 45-229, 40-249, 40-2c29
As Amended by House Committee: 40-2d01, 40-3302, 40-2c01, 40-3305, 40-3306, 40-3307, 40-3308, 45-229, 40-249, 40-2c29
As Amended by Senate Committee: 40-2d01, 40-3302, 40-202, 40-2c01, 40-3305, 40-3306, 40-3307, 40-3308, 45-229, 40-4602, 40-249, 40-2c29