The bill establishes the Kansas Protected Cell Captive Insurance Company Act, which provides a regulatory framework for the formation and operation of protected cell captive insurance companies in Kansas. It allows for both incorporated and unincorporated protected cells, requiring a plan of operation approved by the commissioner of insurance and separate accounting for each cell's assets and liabilities. The bill also expands the types of insurance that captive insurance companies can offer and includes provisions for the redomestication of foreign or alien captive insurance companies. Key provisions include a one-year exemption from premium tax for redomesticated companies, a reduction in premium tax rates, and updates to licensing requirements for insurance agents and public adjusters.

Additionally, the bill modifies existing laws related to the financial reporting and governance of registered insurers, clarifying the requirements for reinsurance agreements and enhancing the confidentiality of documents obtained during regulatory examinations. It specifies that significant transactions must be reported to the commissioner and prohibits domestic insurers from engaging in transactions that circumvent regulatory thresholds. The bill also introduces new definitions and modifies capital and surplus requirements for captive insurance companies, streamlining the application process and extending the timeline for financial examinations. Overall, the amendments aim to modernize the regulatory landscape for captive insurance companies in Kansas, ensuring greater transparency, accountability, and efficiency.

Statutes affected:
As introduced: 40-4302, 40-4304, 40-4308, 45-215, 40-4312, 40-4314
As Amended by House Committee: 40-4302, 40-4304, 40-4308, 45-215, 40-4312, 40-4314
As Amended by Senate Committee: 40-4302, 40-4304, 40-4308, 45-215, 40-4312, 40-4314
{As Amended by Senate Committee of the Whole}: 40-4302, 40-4304, 40-4308, 45-215, 40-4312, 40-4314
Enrolled: 40-2d01, 40-3302, 40-112, 40-4301, 40-202, 40-252, 40-2, 40-2c01, 40-3305, 40-3306, 40-3307, 40-3308, 45-229, 40-4302, 40-4304, 40-4308, 45-215, 40-4312, 40-4314, 40-4602, 40-4909, 40-5510