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
February 5, 2025
The Honorable Brenda Dietrich, Chairperson
Senate Committee on Financial Institutions and Insurance
300 SW 10th Avenue, Room 546-S
Topeka, Kansas 66612
Dear Senator Dietrich:
SUBJECT: Fiscal Note for SB 121 by Senate Committee on Financial Institutions and
Insurance
In accordance with KSA 75-3715a, the following fiscal note concerning SB 121 is
respectfully submitted to your committee.
SB 121 would authorize the Insurance Commissioner to select and to announce the version
of the National Association of Insurance Commissioners (NAIC) for risk-based capital instructions
that would become effective for the upcoming calendar year. The announcement would be
required to be published no later than December 1 each year in the Kansas Register. The bill
would also clarify that health organization risk-based capital includes an organization licensed as
a life and health insurer that the Commissioner has determined to report mainly health lines of
business. The bill would also update the Insurance Holding Company Act to adopt provisions for
group capital calculations and liquidity stress testing requirements, and would align the Act with
NAIC accreditation standards.
The Kansas Insurance Department states that the bill would not have a fiscal effect.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Kyle Strathman, Insurance Department