SESSION OF 2021
SUPPLEMENTAL NOTE ON SENATE BILL NO. 29
As Amended by House Committee on Insurance
and Pensions

Brief*
SB 29, as amended, would amend the effective date
specified in the Insurance Code for the risk-based capital
(RBC) instructions promulgated by the National Association of
Insurance Commissioners (NAIC) for property and casualty
companies and for life insurance companies. The instructions
currently specified became effective on December 31, 2019.
The bill would update the effective date on the RBC
instructions to December 31, 2020.

Background
The bill was introduced by the Senate Committee on
Insurance at the request of the Kansas Insurance Department
(Department). [Note: A companion bill, HB 2072, has been
introduced in the House.]

Senate Committee on Insurance
In the Senate Committee hearing, a representative of
the Department provided proponent testimony, stating the
goal is to ensure each Kansas domestic company has the
required amount of capital needed to support its overall
business operations in consideration of its size and risk
profile. The bill updates the RBC instructions, which instruct
companies to calculate and report RBC, to the current
version. [Note: In 2009, a legislative oversight process for
____________________
*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
updating the annual RBC instructions was established. This
process allows the Department to update the requirements by
rules and regulations, unless one of two statutory triggers has
been met.]
No neutral or opponent testimony was provided.
The Senate Committee amended the bill to change its
effective date to upon publication in the Kansas Register.

House Committee on Insurance and Pensions
In the House Committee hearing, an overview of the bill
was provided, and a representative of the Department was
present to address Committee questions.
The House Committee amended the bill to change its
effective date to upon publication in the statute book (as in
the bill as introduced).

Fiscal Information
According to the fiscal note prepared by the Division of
Budget on the bill, as introduced, the Department states
enactment of the bill would have no fiscal effect.
Insurance; risk-based capital; NAIC; reporting


2- 29


Statutes affected:
As introduced: 40-2c01
As Amended by Senate Committee: 40-2c01
As Amended by House Committee: 40-2c01
{As Amended by House Committee of the Whole}: 40-2