Authorizing the commissioner of insurance to set the amount of certain fees, specifying permissible uses of information obtained from background checks, fingerprinting and criminal history records checks; discontinuing annual registration fees for prepaid service plans and modifying reporting requirements related to such plans; and decreasing the premium tax rate imposed on surplus lines insurance.
Impact
The enactment of HB 2090 is expected to streamline the licensing process for insurance agents by clarifying the requirements and methods the commissioner will use to assess applicants. This could lead to a more efficient regulatory framework within the insurance sector. Additionally, the changes to the tax structure may help foster a more favorable environment for surplus lines insurance, potentially benefiting both insurers and consumers by promoting more competitive pricing structures. Repealing annual fees for prepaid service plans could also alleviate financial burdens on service providers, making offerings more accessible to consumers.
Summary
House Bill 2090 focuses on various aspects of the insurance industry, particularly concerning the regulation of insurance agents and the fees associated with their licensing. This bill authorizes the commissioner of insurance to set certain fees related to public adjuster licenses and mandates the use of background checks and fingerprinting for applicants. The key intent is to enhance the verification process for applicants, ensuring they meet necessary criteria before being licensed as insurance agents. The bill also discusses the discontinuation of annual registration fees for prepaid service plans and revision of the tax rates imposed on surplus lines insurance, reducing the rate from 6% to 3%.
Sentiment
The reception to HB 2090 appears to be largely positive among the legislative body, evident from its strong support during voting—122 votes in favor against only 1 opposition. This overwhelming majority suggests a shared belief in the necessity of regulating insurance practices to protect consumers and to improve the operational framework surrounding insurance agents. However, there may be some contention regarding the implementation of stringent background checks, with concerns about the implications for applicants who may face barriers due to past criminal records.
Contention
While HB 2090 aims to enhance regulatory oversight, it could raise discussions about privacy and the fairness of background check processes for potential public adjusters. Critics might argue that relying heavily on background checks may disproportionately affect individuals with minor or historic infractions, thus limiting opportunities within the profession. Additionally, there may be discussions on whether the financial adjustments made in the premium tax will balance the needs of the state with those of the insurance industry.
Modifying the requirement to report individuals who solicit memberships on behalf of prepaid service plans from semi-annually to annually and upon application for registration and discontinuing payment of annual registration fees for such plans.
Authorizing the commissioner of insurance to set the amount of certain fees and cause the publication of such fees in the Kansas register, authorizing the commissioner to reduce the number of board members on certain insurance-related boards, renaming the Kansas insurance department as the Kansas department of insurance, renaming the office of the securities commissioner as the department of insurance, securities division, renaming the securities commissioner as the department of insurance, assistant commissioner, securities division and eliminating the requirement of senate confirmation for appointees to such position, requiring the commissioner of insurance to maintain a list of eligible nonadmitted insurers and authorizing such nonadmitted insurers to transact business in Kansas with vehicle dealers and to provide excess coverage insurance on Kansas risks.
Authorizing the attorney general and the state gaming agency to receive certain additional criminal history records, updating criminal history record language related to the state bank commissioner, requiring the secretary of labor to conduct criminal history record checks on employees who have access to federal tax information and authorizing the secretary of commerce to conduct such checks on final applicants for and employees in certain sensitive positions.
Reducing insurance company premium tax rates and discontinuing remittance and crediting of a portion of the premium tax to the insurance department service regulation fund.
Enacting the Kansas protected cell captive insurance company act, providing for the redomestication of a foreign or alien captive insurance company and updating certain terms, requirements and conditions of the captive insurance act, reducing insurance company premium tax rates, creating parity between the insurance agent and public adjuster licensing requirements, authorizing insurers to file certain travel insurance policies under the accident and health line of insurance and authorizing the commissioner of insurance to select and announce the version of certain instructions, calculations and documents in effect for the upcoming calendar year and cause such announcement to be published in the Kansas register not later than December 1 of the current year.