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. It allows for both incorporated and unincorporated protected cells, requiring a plan of operation approved by the commissioner, segregation of assets and liabilities, and distinct naming for each cell. The act also mandates that financial records be available for inspection and that participant contracts receive prior written approval. Additionally, the bill expands the types of insurance that captive insurance companies can offer, reduces premium tax rates, and exempts certain redomesticated foreign or alien captive insurance companies from premium tax for one year.

Moreover, the bill amends existing laws related to insurance regulations, including the licensing of public adjusters and insurance agents, and introduces new provisions for the operation of captive insurance companies. It clarifies the requirements for financial reporting, governance, and transactions between registered insurers and their affiliates, while enhancing the powers of the commissioner of insurance to oversee these entities. The bill also streamlines the tax obligations for captive insurance companies, specifying rates for direct and reinsurance premiums, and includes provisions for the confidentiality of documents and examination reports. Overall, the legislation aims to modernize the regulatory landscape for captive insurance in Kansas, ensuring operational flexibility while maintaining regulatory oversight.

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