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Minutes for HB2510 - Committee on Insurance and Pensions
Short Title
Updating certain investment limitation requirements to provide increased options for Kansas domiciled life insurance companies investing in equity interests and preferred stock.
Minutes Content for Wed, Jan 26, 2022
The Chairperson opened the hearing on HB2510.
Eileen Ma, Office of Revisor of Statutes, gave an overview of the legislation. The bill amends two current statutes related to limitations on permissible investments made by life insurance companies domiciled in Kansas who are investing in equity interests and preferred stock. Ms. Ma provided the detail of the investment limitations in current law for preferred stock. The bill would remove all requirements placed upon investments in preferred stock.
Ms. Ma reviewed the limitations pertaining to investments in equity interests. The bill would raise the admitted asset investment limit from 15% to 20% and remove other requirements and exemptions in current law.
The bill corrects language in the current bill regarding two unlawful delegations of legislative authority to other entities. (Attachment 1)
Ms. Ma responded to questions.
Chris Swickard, Security Benefit Life, stated the bill would modernize the Kansas statutes that govern the investments by Kansas life insurance companies. Mr. Swickard provided comparison charts of current Kansas law with competitor states and those state's governing statutes. The charts detailed the limitations in current Kansas law.
Mr. Swickard noted the continued responsibility of the Kansas Insurance Department to supervise Kansas domiciled insurers and his company discussed the legislation with the department. (Attachment 2)
The conferee stood for questions.
Lee Modesitt, Kansas Insurance Department (KID), provided the committee comment that the bill would establish a new ceiling but does not change anything the KID would do including analysis of a company's solvency for state based regulation.
The Chairperson closed the hearing on HB2510.
The Chairperson adjourned the committee at 4:45 pm.
The next committee meeting is Monday, January 31.
