SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2531
As Amended by Senate Committee on Financial
Institutions and Insurance
Brief*
HB 2531, as amended, 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.
The bill would be in effect upon publication in the
Kansas Register.
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
____________________
*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 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
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.
Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, a representative of
the Department provided proponent testimony, stating the
bill would make the annual update to the RBC instructions
that companies are required to utilize as they calculate and
report RBC.
No other testimony was provided.
The Senate Committee amended the bill to change the
enactment of the bill to upon publication in the Kansas
Register.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department
indicated enactment of the bill would have no fiscal effect.
Insurance; risk-based capital; NAIC; reporting
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