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Minutes for SB19 - Committee on Insurance
Short Title
Enacting the credit for reinsurance model law.
Minutes Content for Thu, Feb 16, 2017
Chairperson Vickrey opened the hearing for SB 19.
Jason Thompson, Senior Assistant Revisor of Statutes, briefed the members on the bill. He said the bill was detailed but basically enacted the credit for reinsurance model law. The amendment replaced the 4 subsections of the current law (K.S.A. 40-221a) with more comprehensive provisions in line with the NAIC Credit for Reinsurance Model Law (Attachment 3)
Clark Shultz, Deputy Commissioner, Kansas Insurance Department, testified in support of the bill. He said the bill was complicated but essential for consumer protection. He explained insurance companies were large with complex transactions. They share risk by selling a part of the risk to reinsurance companies. The bill made sure the reinsurance companies were qualified to do business in Kansas. States where a company operated wanted assurance from the state where domiciled that the company was: solvent, doing business properly and legally, and was doing business in compliance with state and federal laws. Mr. Shultz added the bill contained NAIC uniform language (Attachment 4)
Chairperson Vickrey asked if the members had questions.
Representative Parker asked if tweaks could be made to uniform laws to accommodate Kansas.
Mr. Shultz confirmed the uniform language could amended.
Representative Parker asked him to highlight what the differences were and what was changed.
Mr. Shultz said he couldn't recall specifics but this could be provided.
Representative Smith asked if there was any fiscal impact or additional staffing needs for the department.
Mr. Shultz replied they monitored staffing levels to insure they have the appropriate number of people. Also, they have the ability to hire outside accounting help. He added their new director was from New York State, a state that did extensive surveillance work.
Chairperson Vickrey asked if there were any other questions. There were none.
Arron Mays, Mays Group, provided written testimony that they were neutral on the bill (Attachment 5).
Chairperson Vickrey asked if there any proponents. There were none. He closed the hearing on SB 19.
