SESSION OF 2025
SUPPLEMENTAL NOTE ON SENATE BILL NO. 20
As Amended by House Committee on Insurance
Brief*
SB 20, as amended, would grant the Commissioner of
Insurance (Commissioner) the ability to decrease the number
of appointed board members on certain boards that fall under
the Commissioner’s appointing authority. The bill would
remove the requirements for the Committee on Surety Bonds
and Insurance to meet at least once per month and that the
meetings be held in the office of the Commissioner.
The bill would also make technical changes.
The bill would be in effect upon publication in the
Kansas Register.
Board Membership
The bill would provide for a reduction in membership for
four governing boards under the jurisdiction of the
Commissioner, including:
●The governing board for the Kansas Automobile
and Motor Vehicle Bodily Injury and Property
Damage Liability Insurance Plan;
●The Kansas Workers Compensation and
Employer’s Liability Insurance Plan Governing
Board;
____________________
*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/ ●The governing board for the Kansas Automobile
Assigned Claims Plan for personal injury protection
benefits; and
●The Health Care Provider Insurance Availability
Plan Board of Directors.
For each governing board, with the exception of the
Kansas Automobile Assigned Claims Plan, the bill would
provide for the terms of members appointed and serving on
the governing board as of July 1, 2025, to expire on
December 31, 2025.
Kansas Automobile and Motor Vehicle Bodily Injury and
Property Damage Liability Insurance Plan
The bill would provide for a reduction in membership for
the governing board of the Kansas Automobile and Motor
Vehicle Bodily Injury and Property Damage Liability Insurance
Plan from nine members to five members.
The Commissioner would appoint a governing board for
the plan, which would serve on and after January 1, 2026,
and would have the same duties and functions as its
predecessor. On and after January 1, 2026, the members of
the governing board would serve three-year terms, except
that members would be removable by the Commissioner for
inefficiency, neglect of duty, or malfeasance. The governing
board would consist of five members to be appointed as
follows:
●Three members would be representatives of
insurers;
●One member would be a representative of
independent insurance agents; and
●One member would be a representative of the
general public.
2- 20 In making appointments to the governing board, the
Commissioner would consider if foreign and domestic
insurers are fairly represented. [Note: A domestic insurer is
an insurance company formed under the laws of the State of
Kansas. A foreign insurer is an insurance company formed
under the laws of a state other than Kansas.]
Kansas Workers Compensation and Employer’s Liability
Insurance Plan Governing Board
The bill would provide for a reduction in membership for
the Kansas Workers Compensation and Employer’s Liability
Insurance Plan Governing Board from nine members to
seven members.
The Commissioner would appoint a governing board
that would serve on and after January 1, 2026, and would
have the same duties and functions as its predecessor. On
and after January 1, 2026, the members of the Kansas
Workers Compensation and Employer’s Liability Insurance
Plan Governing Board would serve three-year terms, except
that members would be removable by the Commissioner for
inefficiency, neglect of duty, or malfeasance. The governing
board would consist of seven members to be appointed as
follows:
●Four members would be representatives of
insurance companies;
●Two members would be representatives of licensed
insurance agents; and
●One member would be a representative of the
general public.
In making appointments to the governing board, the
Commissioner would consider if foreign and domestic
insurers are fairly represented.
3- 20 Kansas Automobile Assigned Claims Plan
The bill would state that on and after January 1, 2026,
the governing committee for the Kansas Automobile Assigned
Claims Plan for personal injury protection benefits would
consist of five members, who would be removable by the
Commissioner for inefficiency, neglect of duty, or
malfeasance. [Note: KAR 40-3-35 provides for the
appointment of nine members.] Members would be appointed
as follows:
●Three members would be representatives of
insurers;
●One member would be a representative of
independent insurance agents; and
●One member would be a representative of the
general public.
The Commissioner would be required to consider
whether foreign and domestic insurers are fairly represented
in selecting the members.
[Note: Effective January 1, 2024, the Kansas Automobile
Assigned Claims Plan is now managed by AIPSO, a national,
not-for-profit corporation formed by the insurance industry to
provide services to automobile insurance residual markets
throughout the country.]
Health Care Provider Insurance Availability Plan Board of
Directors
The bill would provide for a reduction in membership for
the Health Care Provider Insurance Availability Plan Board of
Directors from nine members to five members.
The Commissioner would appoint a governing board
that would serve on and after January 1, 2026, and would
have the same duties and functions as its predecessor. On
4- 20 and after January 1, 2026, the members of the Health Care
Provider Insurance Availability Plan Governing Board would
serve four-year terms, except that members would be
removable by the Commissioner for inefficiency, neglect of
duty, or malfeasance. The governing board would consist of
five members to be appointed as follows:
●One member would be a representative of foreign
insurers;
●One member would be a representative of
domestic insurers;
●One member would be a health care provider;
●One member would be a licensed insurance agent
engaged in the solicitation of casualty insurance;
and
●One member would be the chairperson of the
Governing Board or the chairperson’s designee.
Board Meetings
The bill would remove the requirements for the
Committee on Surety Bonds and Insurance to meet at least
once per month and that the meetings be held in the office of
the Commissioner. Meetings would remain at the call of the
Chair.
Background
The bill was introduced by the Senate Committee on
Financial Institutions and Insurance at the request of a
representative of the Kansas Insurance Department
(Department).
[Note: A similar bill, HB 2045, has been introduced in the
House.]
5- 20 Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, a representative of
the Department provided proponent testimony, stating
reductions in board membership under the Commissioner’s
jurisdiction would result in efficiencies and cost savings by
bringing the boards in line with what is necessary to conduct
their business. The conferee also stated allowing the
Commissioner to remove appointed board members for
inefficiency, neglect of duty, or malfeasance would bring the
statutes to industry standard and protect the boards and the
Department from behavior that deviates from their mission.
No other testimony was provided.
House Committee on Insurance
In the House Committee hearing, no testimony was
provided.
The House Committee amended the bill to change the
effective date to be 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 Department states
that enactment of the bill would not have a fiscal effect.
Insurance; board membership; meetings; Commissioner of Insurance
6- 20