| FROM THE COMMISSIONER |
Legislative Recap
And Welcome to David Hulcher, KAIA Executive Director
KEN SELZER Kansas Insurance Commissioner
T he 2016 Kansas legislative session produced insured-related bills concerning risk-based capital requirements, personal liability limits for property and casualty insurance, and exclusive provider organizations for business health insurance. Those three pieces of legislation garnered Kansas Insurance Department( KID) interest at the Capitol and in department meetings throughout the session.
The following is a short synopsis of each bill as it was passed.
House Bill 2485— Risk-based capital--Championed by Ken Abitz, the KID director of financial surveillance, the bill amended the Kansas Statutes to update how to calculate and report risk-based capital requirements, which is a standard regulatory tool. The tool ensures that each Kansas domestic insurance company has the minimum amount of capital needed to support its overall business operations in consideration of the companies’ size and risk profile.
The updates provided the department with the proper national accreditation standard.
House Bill 2446— Motor vehicle liability insurance minimum coverage— Under the previous liability law, a policy needed to have a $ 10,000 minimum coverage of loss for harm or destruction of property in any once accident. That standard placed Kansas in the middle range for required coverage. The law as passed will raise the minimum coverage of loss to $ 25,000.
House Bill 2454— Exclusive Provider Organizations— The EPO bill, as it was referred to, allows restricted insurance company provider networks for employees of businesses who offer them. Likened to Health Maintenance Organizations, the EPO plans were described as costing less than HMOs because they wouldn’ t be taxed in Kansas in the same way HMOs are.
During testimony on the legislation, Clark Shultz, KID deputy commissioner and director of governmental affairs, cautioned the Senate Financial Institutions and Insurance Committee that appropriate safeguards needed to be considered to protect Kansas consumers, especially in knowing what the policies cover.
For those KAIA agents and organizational staff who provided input on insurance matters throughout the session, we thank you. Even if we didn’ t always agree on bills, we gave ourselves the opportunity to weigh in and contemplate ideas.
I want to take some space to congratulate David Hulcher on his appointment as KAIA Executive Director. His work in the industry and for the Big I provides a solid base for KAIA leadership. I look forward to working with him on agent and company issues. Welcome, David, to you and your family.
| JULY- AUGUST 2016 | KANSAS INSURANCE AGENT & BROKER
7