SESSION OF 2025
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2087
As Recommended by House Committee on
Insurance
Brief*
HB 2087 would amend law related to nonadmitted
insurers authorized to do business in Kansas. The bill would
also make technical amendments.
Eligible Nonadmitted Insurers
Current law requires the Commissioner of Insurance
(Commissioner) to maintain a list of insurers not authorized to
do business in the state. The bill would replace the phrase
“insurer not authorized to do business in this state” with
“eligible nonadmitted insurer” throughout the bill and require
the Commissioner to maintain a list of such eligible
nonadmitted insurers.
The bill would state that a nonadmitted insurer not
included on the Commissioner’s eligible nonadmitted insurer
list could transact business in the state if the insurer meets
the eligibility requirements outlined in federal law regarding
uniform standards for surplus lines eligibility.
The bill would also remove the nonadmitted insurer’s
nonrefundable annual statement filing fee of $200.
Capital Requirement
The bill would increase the capital or surplus
requirement for inclusion on the Commissioner’s eligible
____________________
*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
https://klrd.gov/ nonadmitted insurer list from $4.5 million to an amount equal
to or greater than $15.0 million.
Motor Vehicle Dealer Licensure Insurance Requirements
The bill would allow motor vehicle dealers to hold
insurance issued by an eligible nonadmitted insurer, and such
insurance would allow the dealer to meet the criteria for
license issuance or renewal.
Background
The bill was introduced by the House Committee on
Insurance at the request of a representative of the Kansas
Association of Insurance Agents (KAIA).
House Committee on Insurance
In the House Committee hearing on the bill, proponent
testimony was provided by a representative of the American
Property Casualty Insurance Association, KAIA, and the
Wholesale and Specialty Insurance Association. The
conferee indicated the bill would modernize the eligibility
criteria for nonadmitted insurers writing business in Kansas.
He also stated the bill would standardize legal references to
nonadmitted insurers and would make the eligibility criteria for
nonadmitted insurers in Kansas compatible with the federal
Nonadmitted and Reinsurance Reform Act.
Written-only proponent testimony was provided by a
representative of the Chris-Leef General Agency, Inc.
No other testimony was provided.
2- 2087 Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the Kansas Insurance Department
states because the bill would eliminate the $200 filing fee, its
revenues into the Insurance Department Service Regulation
Fund would decrease annually by $45,000 starting in FY
2026. Any fiscal effect associated with the bill is not reflected
in The FY 2026 Governor’s Budget Report.
Insurance; nonadmitted insurers; Commissioner of Insurance; eligibility; vehicle
dealer insurance; excess coverage
3- 2087