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Minutes for HB2074 - Committee on Insurance and Pensions
Short Title
Updating producer licensing statutes pertaining to appointment, fees, licensing, renewal dates, continuing education, suspension, revocation and denial of licensure and reinstatement.
Minutes Content for Wed, Jan 20, 2021
The Chairperson opened the hearing on HB2074 and asked Staff to provide an overview of the bill. (Attachment 4)
The Chairperson referred Committee members to the Fiscal Note.
Lee Modesitt, Director of Government Affairs and Communication for the Kansas Insurance Department, testified in support of the bill as it makes four changes that benefit the industry and bring Kansas more in-line with other states. He stated that he first change will give companies greater flexibility on the number of agents they appoint; which will save companies approximately $4 million annually,and will reduce Department revenue by a corresponding amount. Secondly, he stated that the bill will streamline the agent renewal process by moving to a standard license renewal date with continuing education units(CEUs) totaling 18 hours. The Director said that any Kansas agent conducting business in any other state, the change will allow the agent to utilize the same licensing system (NIPR) they already use in those other states. He said this same platform will also allow the Department to streamline a number of their own internal processes. And finally, he said that the bill includes the addition of a bi-annual renewal fee for resident agents and agencies, which will ensure the Department has as up-to-date records as possible. He stressed that the goal of HB2074 is to streamline the processes for agents, companies and the Department by utilizing the same tools much of the industry is already using, and thus make it easier to do business in Kansas. Mr. Modesitt responded to questions from Committee members. (Attachment 5)
Zac Anshutz, Chief Compliance Officer and Regulatory Counsel for Advisors Excel, LLC, testified in support of the bill, stating that Advisors Excel supports a well-regulated industry, as it levels the field. He stated that they do business in all fifty states and having consistency amongst all the states is beneficial to all. Mr. Anschutz also stated that the 15 CEU compromise seems to be consistent with other states. Mr. Anshutz responded to questions from the Committee members. (Attachment 6)
SueAnn Schultz, Chief Administrative Officer, Corporate Counsel & Secretary for IMA Financial Group, testified in support of the bill as it is reasonable legislation that increases the professionalism of the industry and provides efficiencies for agents domiciled in Kansas and/or doing business in Kansas. (Attachment 7)
Elizabeth Smoller, an attorney with Kansas Association of Insurance Agents (KAIA), testified in support of the bill as her organization worked with KID staff to get this legislation moved forward. The proposed changes will minimize the financial burdens o agents while also bringing some efficiencies that will benefit many agencies. (Attachment 8)
Written testimony in support of the bill was submitted by:
Eric Stafford, Vice President of Government Affairs with the Kansas Chamber of Commerce (Attachment 9)
Bob Shields, Chair of the Legislative Committee for the Kansas Association of Professional Insurance Agents (PIA) (Attachment 10)
Tyler Laughlin, Regional Vice President of State Affairs with the American Council of Life Insurers (ACLI) (Attachment 11)
Scott Colby, Governmental Affairs Chair National Association of Financial Advisors of Kansas (NAIFA) (Attachment 12)
William Sneed, Legislative Counsel for State Farm Insurance, testified in support of the bills (Attachment 13)
After asking if there were any other conferees and seeing none, Chairperson Johnson closed the hearing on HB2074.
