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Minutes for SB356 - Committee on Financial Institutions and Insurance
Short Title
Requiring that per diem amounts, expenses and funding for examinations be reasonable and establishing a tiered fee structure for examinations of insurance companies and societies based on gross premiums.
Minutes Content for Wed, Jan 31, 2024
The Vice-Chairperson opened the hearing on SB356 and asked Eileen Ma, Assistant Revisor, Office of Revisor of Statutes (ROS), to present the Revisor's Memorandum brief on the bill. (Attachment 1) Ms. Ma answered a question from Senator Pittman.
Eric Turek, Director, Government and Public Relations, Kansas Insurance Department, gave oral proponent testimony on this bill, requested by the Insurance Department. He explained that the bill establishes a new, tiered financial examination fee schedule that was developed in collaboration with members of the industry to provide regulatory certainty to insurers and creates a cap for both KID expenses as well as contractual services. The new fee structure is included in Mr. Turek's testimony. He said that the main purpose of the bill is to lower charges and establish a guardrail (reasonableness). (Attachment 2) Mr. Turek answered questions from Senators Pittman, Gossage, Dietrich, Warren, and Vice-Chairperson Fagg.
Marlee Carpenter, on behalf of the Kansas Association of Property and Casualty Insurance Companies (KAPCIC), also gave oral proponent testimony supporting SB356. She expressed appreciation for the opportunity to work with KID on this bill. Ms. Carpenter said that Kansas insurance companies rely on KID to conduct quality exams in Kansas, as do other states where these companies conduct business. The cost of financial exams has increased substantially over the last few years for both KID and Kansas domiciled insurance companies. (Attachment 3) Ms. Carpenter answered questions and received comments from Senators Kloos, Warren, Pittman, and Olson.
There being no other proponent, opponent, or neutral testimony submitted, Vice-Chairperson Fagg closed the hearing on SB356.
The Vice-Chairperson reminded members of the upcoming deadlines regarding new bills in non-exempt committees. The meeting adjourned at 10:15 am. The next scheduled meeting is Tuesday, February 6, 2024, in Room 346-South of the Capitol.
