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Minutes for SB304 - Committee on Financial Institutions and Insurance
Short Title
Establishing a process by which a reciprocal may convert to into a mutual insurance company.
Minutes Content for Thu, Jan 30, 2020
Chairman Olson opened the hearing on bill and called upon Eileen Ma for a Revisor of Statutes review of the bill.
Chairman Olson called upon Jeffrey Waldon for proponent testimony from the perspective of a firm that consults several Kansas reciprocal companies.
Mr. Waldon explained that there is a legal avenue for a mutual insurance company to convert to a reciprocal, but in Kansas there is not currently one for reciprocal to convert to a mutual insurance company. He supported the bill because it would open a new avenue for potential capital acquisition.
Chairman Olson called upon Kurt Seelbach for proponent testimony from the perspective of a military insurance exchange.
Mr. Seelbach expressed support for the bill because his clients have developed strategies to accelerate growth that will require more access to capital. He indicated that he sometimes recommends such a conversion when long term plans require more access to capital. (Attachment 2)
A committee member pointed out that Mr. Seelbach's organization was primarily a military market and faces very high risks due to a high level of exposure to environmental elements of both east and west coasts.
Written Only Testimony:
Marlee Carpenter, Kansas Association of Property and Causualty Insurance Companies (Attachment 3)
Seeing no additional testimony, Chairman Olson closed the hearing on the bill.
