Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam C. Proffitt, Director Laura Kelly, Governor
Division of the Budget
January 30, 2024
The Honorable William Sutton, Chairperson
House Committee on Insurance
300 SW 10th Avenue, Room 218-N
Topeka, Kansas 66612
Dear Representative Sutton:
SUBJECT: Fiscal Note for HB 2533 by House Committee on Insurance
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2533 is
respectfully submitted to your committee.
Under current law, there are two tiers in which insurance companies pay for their financial
examinations that occur every four years which are based on gross premiums from the preceding
calendar year. The bill would increase the number of tiers from two to seven for the amount
insurance companies pay for their financial examinations. The bill would also place both the
outside consultants’ and the Insurance Department’s charged costs under the new tiered structure
and would ensure that all costs are reasonable. The bill would also make technical amendments.
According to the Department of Insurance, the bill would increase its expenditures by a
total of $305,000 from its Insurance Department Service Regulation Fee Fund over four years
because each insurance company is examined every four years. Therefore, the average increase
in expenditures per year would be $76,250. This is because the Department of Insurance would
pay any amount above the cap defined in the bill when an insurance company’s cost for the
examination is more than the cap based on gross premiums. The estimate is based on past exam
costs, including amounts paid by the companies to contractors, the amount the Insurance
Department paid on behalf of the companies, and the amount paid by the companies to contractors.
Any fiscal effect associated with HB 2533 is not reflected in The FY 2025 Governor’s Budget
Report.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Bobbi Mariani, Insurance Department