Kansas 2023-2024 Regular Session

Kansas Senate Bill SB14

Introduced
1/10/23  
Refer
1/11/23  
Report Pass
2/2/23  
Engrossed
2/10/23  
Refer
2/10/23  
Report Pass
3/9/23  

Caption

Updating the version of risk-based capital instructions in effect.

Impact

The impact of SB14 on state law is significant as it enforces updated RBC requirements that insurers must adhere to. By implementing the latest NAIC guidelines, the bill seeks to improve risk management strategies among insurers, thereby strengthening regulatory oversight. This change is anticipated to reduce the likelihood of financial crises within the industry, ensuring that insurers maintain adequate capital levels to cover potential risks. It reflects an ongoing commitment by the state to safeguard the insurance market's integrity and promote responsible business practices among insurance providers.

Summary

Senate Bill 14, known as the Risk-Based Capital Update Act, aims to amend existing statutes regarding risk-based capital (RBC) requirements for insurance companies operating within the state of Kansas. Specifically, the bill updates the version of RBC instructions to ensure that the regulations remain in alignment with the most current practices outlined by the National Association of Insurance Commissioners (NAIC). This legislative effort highlights the importance of maintaining robust financial standards for insurers, ultimately intended to enhance the financial stability of these firms and protect policyholders.

Contention

During discussions surrounding SB14, notable points of contention involved concerns from various stakeholders about the readiness of smaller insurers to comply with the enhanced requirements. Critics expressed fears that stricter capital standards could potentially create barriers for smaller companies, impairing competition in the insurance market. Advocates for the bill, however, argued that every insurer should operate under a common set of regulations to level the playing field and avoid systemic risks associated with undercapitalization. The dialogue thus reflects broader implications for industry health and consumer protection.

Companion Bills

No companion bills found.

Previously Filed As

KS SB119

Updating certain statutory references contained in chapter 40 of the Kansas Statutes Annotated; specifying certain requirements of documents submitted by medicare provider organizations and health maintenance organizations to demonstrate fiscal soundness; removing the requirement of a documented written demand for premium as part of a prima facie case; adding certain legal entities to the definition of person for purposes of violations of insurance law; and updating the version of risk-based capital instructions in effect.

KS HB2128

Authorizing the commissioner of insurance to select and announce the version of certain instructions, calculations and documents in effect for the upcoming calendar year and cause such announcement to be published in the Kansas register, allowing certain life insurers to follow health financial reports and adopting certain provisions from the national association of insurance commissioners holding company system regulatory act relating to group capital calculations and liquidity stress testing.

KS SB121

Authorizing the commissioner of insurance to select and announce the version of certain instructions, calculations and documents in effect for the upcoming calendar year and cause such announcement to be published in the Kansas register, allowing certain life insurers to follow health financial reports and adopting certain provisions from the national association of insurance commissioners holding company system regulatory act relating to group capital calculations and liquidity stress testing.

KS HB2100

Enacting the Kansas public investments and contracts protection act concerning environmental, social and governance (ESG) criteria, prohibiting the state and political subdivisions from giving preferential treatment to or discriminating against companies based on such ESG criteria in procuring or letting contracts, requiring KPERS fiduciaries to act solely in the financial interest of the participants and beneficiaries of the system, indemnifying KPERS with respect to actions taken in compliance with such act, restricting state agencies from adopting ESG criteria or requiring any person or business to operate in accordance with such criteria and providing for enforcement of such act by the attorney general.

KS SB356

Updating certain terms, definitions and conditions relating to the requirements of certain insurance reports, examinations and transactions.

KS HB2531

Establishing the Kansas purple alert plan to provide public notice of missing persons 18 years of age or older who have been diagnosed with an intellectual disability and are in certain dangerous circumstances.

KS SB339

Prohibiting the state department of education from distributing or expending state foundation aid moneys in fiscal year 2025 to a school district that has no students enrolled in and attending school in such school district in school year 2024-2025.

KS HB2334

Enacting the Kansas protected cell captive insurance company act, providing for the redomestication of a foreign or alien captive insurance company and updating certain terms, requirements and conditions of the captive insurance act, reducing insurance company premium tax rates, creating parity between the insurance agent and public adjuster licensing requirements, authorizing insurers to file certain travel insurance policies under the accident and health line of insurance and authorizing the commissioner of insurance to select and announce the version of certain instructions, calculations and documents in effect for the upcoming calendar year and cause such announcement to be published in the Kansas register not later than December 1 of the current year.

KS HB2758

Updating the definition of armed forces and updating such definition to include the space force.

KS HB1057

Provides relative to risk-based capital for health organizations

Similar Bills

No similar bills found.