SESSION OF 2025
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2087
As Amended by Senate Committee on Financial
Institutions and Insurance
Brief*
HB 2087, as amended, would amend law related to
nonadmitted insurers authorized to do business in Kansas.
The bill would also make technical amendments.
The bill would be in effect upon publication in the
Kansas Register.
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
non-refundable annual statement filing fee of $200.
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*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/ Capital Requirement
The bill would increase the capital or surplus
requirement for inclusion on the Commissioner’s eligible
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, proponent testimony
was provided by a representative of the American Property
Casualty Insurance Association, KAIA, and Wholesale &
Specialty Insurance Association. The proponent 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 Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, proponent testimony
was provided by a representative of the American Property
Casualty Insurance Association, KAIA, and Wholesale &
Specialty Insurance Association. The proponent stated
“eligible nonadmitted” is the language used by the National
Association of Insurance Commissioners, and the bill would
modernize statute regarding nonadmitted insurers who have
the flexibility to cover hard-to-place risks.
Written-only proponent testimony was provided by a
representative of Chris-Leef General Agency, Inc.
No other testimony was provided.
The Senate Committee amended the bill to be effective
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 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