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Minutes for HB2043 - Committee on Financial Institutions and Insurance
Short Title
Amending certain financial examination requirements.
Minutes Content for Wed, Mar 15, 2017
Chairperson Longbine opened the hearing on HB2043. Eileen Ma presented an overview of the bill which would eliminate the KID five-year examination of group-funded workers compensation pools.
Clark Shultz testified in support of the bill. He briefly explained the modifications his office is seeking to three parts of the prevailing statutes changing the financial examination period to "as necessary by the Commissioner," instead of the mandatory provision of at least every five years. (Attachment 1) Mr. Shultz answered questions from Senators Welborn, Olson, Pyle, and Billinger.
Kevin McFarland presented proponent testimony. He said that KID's five-year examinations provide no regulatory value and cost small businesses, local units and the state of Kansas tens of thousands of dollars and many hours of time. Mr. McFarland explained that KID already has the statutory authority to examine any self-insured pool whenever the Commissioner deems it necessary, and KID already requires quarterly reports. HB2043 would merely eliminate the mandated five year report, without eliminating any of the other regulatory oversight. (Attachment 2)
Tucker Stewart also appeared to support HB2043. In agreement with the other supporters, Mr. Stewart also noted that the annual audits required by law are more widely used by the industry in publications. (Attachment 3)
Taylor Schettler also appeared in support of the bill. She told the committee that passage of HB2043 would eliminate time and financial burdens to businesses and the state; it would also allow KID to perform its oversight in a much more efficient and cost-effective manner. (Attachment 4)
There being no additional questions or discussion, and no other conferees or written-only testimony submitted, the Chairperson closed the hearing on HB2043.
