| 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