House Status:
Senate Status:
Senate Status:
Minutes for SB66 - Committee on Insurance
Short Title
Exempting certain domestic insurers from filing enterprise risk reports.
Minutes Content for Mon, Mar 11, 2019
Chairperson Vickrey opened the hearing on SB 66
Revisor Eileen Ma briefed the members on the bill. She said current law exempted the ultimate controlling person of an insurer that had total direct and assumed premiums of less than $300M from filing an enterprise risk report. The bill would exempt the person that was authorized, admitted or eligible to engage in the business of insurance solely in Kansas unless the ultimate controlling person of the domestic insurer also controlled others insurers that did not meet those requirements (Attachment 3)
Lee Modesitt, Insurance Department, testified in support of the bill. He said the purpose of the bill was to repeal the small group exemption currently in the statute. He added that Kansas was now the only state in the union that maintained an exemption for "small groups" which applied in situations, whereby, the ultimate controlling person of an insurer had less than $300 million in total direct and assumed annual premiums. He added absent the repeal, the Insurance Department would be out of compliance with the National Association of Insurance Commissioners which was the organization responsible for accreditation of Insurance Departments. Their concern was that if Kansas lost accreditation through the NAIC, all the other states in which Kansas domestic insurers were licensed might choose to treat the companies as their own domestics, therefore, Kansas would cede authority over these companies to other state's insurance commissioners (Attachment 4)
The chairperson asked if there were any questions. Representative asked for the names of the companies impacted by repeal of the statute. Mr. Modesitt answered they were: Armed Forces Insurance Exchange, Delta Dental of Kansas, Inc., Farmers Alliance Mutual Insurance Company, Farmers Mutual Insurance Company, Federated Rural Electric Insurance Exchange, Kansas Medical Mutual Insurance Company, Kansas Superior Select, Inc., Midwest Builders' Casualty Mutual Company, MutualAid Exchange, Physicians Standards Insurance Company and US Alliance Life and Security Company.
There being no other questions, the chairperson closed the hearing on SB 66.
Chairperson Vickrey asked for approval of the of the meeting minutes for February 13, 18 and 20. The drafts were sent earlier to the members for review. Representative Bishop had corrections for the February 13 minutes. Corrections would be made for later approval.
The Chairperson adjourned the meeting at 3:40 p.m.
