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Minutes for HB2143 - Committee on Insurance
Short Title
Updating the version of risk-based capital instructions in effect.
Minutes Content for Mon, Feb 11, 2019
Chairperson Vickrey opened the hearing for HB 2143
Assistant Revisor Eileen Ma briefed the committee on the bill. She said it amended K.S.A. 40-2c01 to change the instructions' effective date. Insurers were required to annually file their risk-based capital report with the commissioner of insurance and the NAIC. The date changed to the last day of the preceding year. In this instance, from 2017 to 2018 ((Attachment 7) .
Lee Modesitt, Kansas Insurance Department provided written testimony in support of the bill. He said the bill amended K.S.A. 40-2c01 which concerned a standard regulatory tool referred to as risk-based capital (RBC). The goal of the RBC instructions was to ensure each Kansas domestic company had the required amount of capital needed to support its business operations (Attachment 8)
Questions were asked and answered as to the year used. Also, whether statutory language could be amended to automatically adjust the annual date. Conferee William Sneed added his firm also represented State Farm. What was incorporated by reference was a non-law into a statutory law, therefore, it would be an unlawful delegation to do so automatically. The RBC instructions provided domestic insurers the opportunity to annually review the NAIC changes to make sure they did not have unintended consequences for Kansas insured.
Chairperson Vickrey closed the hearing on HB 2143.
The meeting was adjourned at 4:00 p.m.
