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 31, 2025
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 2087 by House Committee on Insurance
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2087 is
respectfully submitted to your committee.
Under current law, a vehicle dealer is required to have an approved insurance policy by an
insurance carrier authorized to do business in Kansas. HB 2087 would allow a vehicle dealer to
have an insurance policy from either an approved insurer or an eligible nonadmitted insurer
authorized to write excess coverage on Kansas risks. The bill would require the Insurance
Commissioner to maintain a list of eligible nonadmitted insurers authorized to write excess
coverage on Kansas risks. To remain eligible on this list, the bill would increase the amount of an
insurer’s capital or surplus requirements from an amount equal or greater than $4.5 million to an
amount equal or greater than $15.0 million. The bill would also eliminate the $200 filling fee for
annual statements submitted to the Commissioner by nonadmitted insurers. The bill changes all
references of ‘insurers not authorized to do business in Kansas’ to ‘eligible nonadmitted insurer.’
The bill also includes clarifying language.
The Kansas Department of Insurance states because the bill would eliminate the $200 filing
fee filing, its revenues into the Insurance Department Service Regulation Fund would decrease
annually by $45,000 starting in FY 2026. Any fiscal effect associated with HB 2087 is not
reflected in The FY 2026 Governor’s Budget Report.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Kyle Strathman, Insurance Department