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 separate accounting of assets and liabilities, and mandates prior written approval from the commissioner of insurance for participant contracts. Key provisions include the expansion of insurance types that captive companies can offer, a reduction in the frequency of financial examinations, and a one-year exemption from premium tax for redomesticated companies. The bill also modernizes licensing requirements for insurance agents and public adjusters, and incorporates standards from the National Association of Insurance Commissioners regarding group capital calculations and liquidity stress testing.

Additionally, the bill amends existing laws related to the financial reporting and governance of insurers, enhancing transparency and accountability within the insurance sector. It clarifies the classification of travel insurance, updates risk-based capital requirements, and establishes standards for transactions between insurers and their affiliates. Significant deletions include the removal of restrictions on pure captive insurance companies, allowing for greater flexibility in operations. The bill also introduces penalties for late payments and clarifies the conditions under which the commissioner may deny or revoke licenses for insurance professionals. Overall, the amendments aim to streamline regulations, improve financial stability, and protect policyholders in Kansas.

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