SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2531
As Recommended by House Committee on
Insurance
Brief*
HB 2531 would amend the effective date specified in the
Insurance Code for the risk-based capital (RBC) instructions
promulgated by the National Association of Insurance
Commissioners (NAIC) for property and casualty companies
and for life insurance companies. The instructions currently
specified became effective on December 31, 2022. The bill
would update the effective date of the RBC instructions to
December 31, 2023.
Background
The bill was introduced by the House Committee on
Insurance at the request of the Kansas Insurance Department
(Department).
[Note: A companion bill, SB 339, has been introduced in
the Senate.]
House Committee on Insurance
In the House Committee hearing, a representative of the
Department provided proponent testimony, stating the goal
of the RBC law is to ensure each Kansas domestic insurance
company has the required amount of capital needed to
support its overall business operations in consideration of its
size and risk profile. The representative also noted
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org amendments to the effective date have been made each year
since 2009.
[Note: In 2009, a legislative oversight process for
updating the annual RBC instructions was established. This
process allows the Department to update the requirements by
rules and regulations, unless one of the two statutory triggers
has been met.]
No other testimony was provided.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the Department indicated enactment of
the bill would have no fiscal effect.
Insurance; risk-based capital; NAIC; reporting
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