SESSION OF 2020
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2479
As Amended by Senate Committee on Financial
Institutions and Insurance

Brief*
HB 2479, as amended, would amend provisions in the
Insurance Code governing requirements associated with the
corporate governance annual disclosure (CGAD) report.
Under continuing law, a CGAD is a confidential report filed by
the insurer or insurance group.

Definitions; Requirements on Kansas-domiciled Insurers
The bill would add a definition for “senior management,”
which would mean any corporate officer responsible for
reporting information to the board of directors at regular
intervals or providing this information to shareholders or
regulators, including, but not limited to, the chief executive
officer, chief financial officer, chief procurement officer, chief
legal officer, chief information officer, chief technology officer,
chief revenue officer, or any other “C” level executive.
Under continuing law, insurers domiciled in Kansas (or
the insurance group of which the insurer is a member) must
provide a copy of the CGAD to the Commissioner of
Insurance (Commissioner) on or before June 1. The bill would
require insurers, upon request, to provide a copy of the
CGAD to the chief regulatory official of any state in which the
insurance group has a domestic insurer. The bill would further
require, each year following the initial filing of the CGAD, the
insurer or insurance group file an amended version of the
previously filed document indicating where changes have
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
been made. The amended filing would be required to state if
no changes were made in the information provided or
activities reported.
The bill would also make technical changes.
Background
The bill was introduced by the House Committee on
Insurance at the request of the Kansas Insurance Department
(Department).
In the House Committee hearing, a representative for
the Department appeared as a proponent and addressed the
National Association of Insurance Commissioners (NAIC)
accreditation standards generally, stating the Department is
up for accreditation in 2021. One of the requirements for
accreditation is the adoption of corporate governance
regulation. Rather than adopt the regulation through the
regulatory process, the Department requested the bill to
adopt the corporate governance regulation into statute.
No neutral or opponent testimony was provided.
The House Committee recommended the bill be placed
on the Consent Calendar.
In the Senate Committee on Financial Institutions and
Insurance hearing, a representative for the Department
provided proponent testimony. No other testimony was
provided.
The Senate Committee amended the bill to remove
language relating to supporting documentation that insurers
and insurance groups subject to CGAD reporting would be
required to maintain and make available at the
Commissioner’s request. The Commissioner, under these
provisions, would have been required to consider such
documentation in order to gain an understanding of the
insurer or group’s corporate governance structure, policies,
and procedures. [Note: This amendment removes language
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that, in part, would have codified the NAIC Corporate
Governance Model Regulation into statute.]
According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, the Department states
the bill would have no fiscal effect.


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Statutes affected:
As introduced: 40-2
As Amended by Senate Committee: 40-2