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Minutes for SB304 - Committee on Insurance
Short Title
Establishing a process by which a reciprocal may convert to into a mutual insurance company.
Minutes Content for Mon, Mar 16, 2020
Chairperson Vickrey opened the hearing on SB 304. Assistant Revisor of Statutes, Eileen Ma, briefed the members on the bill (Attachment 14) .
Marlee Carpenter, JD, testified on behalf of Jeffrey Waldron. Because of the COVID-19 virus situation he was not able to attend in person. Mr Waldron provided testimony in support of the bill. Ms. Carpenter said the bill gave options to the 3 Kansas reciprocal insurance companies and leveled the playing field between Kansas mutual and stock and Kansas reciprocal exchange companies. That provided an efficient way for an insurance company to raise capital (Attachment 15).
Marlee Carpenter, JD, testified on behalf of Kurt Seelbach who could not attend because of COVID-19 travel recommendations. He provided testimony in support of the bill. Ms. Carpenter said currently a stock and mutual company could become a reciprocal exchange but a reciprocal exchange could not change to any other form of insurance company. The bill leveled the playing field for Kansas insurance entities and benefited policyholders (Attachment 16).
The committee members questioned Ms. Carpenter including: how many reciprocal companies were in Kansas and the reasons to change a company's form.
There being no other questions or conferees, the Chairperson closed the hearing on SB 304.
Chairperson Vickrey said it was possible the committee's last 2020 meeting on Wednesday would be cancelled. Representative Neighbors said SB 289, SB 290 and SB 292 were not controversial and moved that they be passed out favorably. Representative Cox seconded.
Representative Cox made a motion to amend the bills to change the dates making them available for conference. Representative Neighbor seconded. After a brief discussion, the members voted to amend the bills, motion passed.
Back on the bills, Representative Neighbor moved to pass out favorably SB 289, SB 290 and SB 292 as amended. Representative Dierks seconded, motion passed.
The chairperson opened the discussion on SB 304. Representative Neighbor moved to pass out the bill favorably, Representative Cox seconded. After a brief discussion, the motion passed.
The meeting was adjourned at 5:30 p.m.
