All Roll Calls
Yes: 632 • No: 22
KansasHB 23342025–2026 Regular SessionHouse
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.
Sponsored By: Committee on Insurance
Signed by Governor
senate committee on financial institutions and insurancehouse committee on insurance
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Bill Overview
Analyzed Economic Effects
25 provisions identified: 10 benefits, 7 costs, 8 mixed.
Adjuster license reviews must consider rehabilitation
For conviction-based adjuster license decisions, the commissioner must consider the conduct's seriousness and recency, rehabilitation, and the applicant's honesty. Reviews for reinstatement or licensing after revocation must consider present fitness, rehabilitation, later conduct, and competence. These factors do not guarantee a license.
Limits on misleading insurer financial claims
The law bars potentially misleading claims about insurer groups' capital calculations, capital ratios, liquidity stress tests, and supporting disclosures. This information cannot be used to rank insurers or insurance groups. An insurer can issue a written announcement solely to rebut a materially false or inappropriate statement. It must first give the insurance commissioner substantial proof that the statement was false or inappropriate.
Captive insurers can convert or relocate
With commissioner approval, protected cells can become authorized captive insurers, and captive insurers can become protected-cell companies. Conversions retain the prior formation or certificate date specified by the act and require updated company documents where specified. Captive insurers from another state or country can move their legal home to Kansas while retaining their original formation date. They must meet Kansas organization and licensing requirements, file required documents, and obtain the secretary of state's acknowledgement. Their current jurisdiction must allow the move, its regulator must consent, and the insurer must stop being a domestic entity there.
Captive insurers can offer more coverage
Kansas captive insurers can provide workers' compensation, similar insurance, and reinsurance for those policies. They can also provide excess or stop-loss accident and health insurance. Applicable federal and state laws can still prohibit these products. The law does not guarantee coverage or lower premiums for any employer or household.
Captive insurers gain temporary licensing route
The commissioner can grant a captive insurer temporary operating authority when it serves the public interest. Applicants must submit a complete application and required fees. The commissioner must first find the controlling manager's expertise, experience, and character acceptable. The commissioner can limit or revoke temporary authority. It ends if the applicant does not complete the regular application.
Captive insurers get less frequent exams
Regular financial examinations of captive insurers are required at least once every five years, instead of every three years. The commissioner can still order more frequent examinations when needed.
Insurance cells can pool their investments
Protected-cell insurers can combine assets from two or more cells for investment. The cells remain separate for accounting and other purposes. The commissioner can also approve other reliable methods for valuation and rating.
Lower fees and fewer captive insurer costs
Captive insurers not in existence on January 1, 2018, pay a nonrefundable application fee capped at $2,500, down from $10,000. Their annual renewal fee falls from $10,000 to $2,500. Captives already in existence on that date pay $110 annually until January 1, 2028, then the newer fee schedule applies. Kansas and local governments cannot collect taxes from captives beyond the captive insurance premium tax. Captives also do not have to join rating or policy form organizations.
Travel insurers gain more filing options
Insurers can file qualifying travel policies under either accident and health or inland marine insurance. Policies can cover sickness, accidents, disability, or death during travel. That coverage can stand alone or include emergency evacuation or return of remains. The law does not specify changes to travelers' coverage or premiums.
Insurers pay lower premium tax rates
Covered Kansas and out-of-state insurers and nonprofit service corporations pay a 2% premium tax for tax year 2025. The rate falls to 1.98% for tax year 2026 and later. Covered nonprofit health service corporations are taxed on the preceding year's Kansas premiums, subscription charges, and other health-service charges. Returned premiums, subscription charges, and dividends may be deducted from that tax base. The law does not require insurers or health plans to pass savings to customers.
Adjusters must pay covered hearing costs
In covered proceedings resulting in a penalty or license denial, suspension, revocation, or nonrenewal, hearing costs must be assessed. The person involved or the business they represent must pay. Costs include witness fees, mileage, copying documents, and preparing the hearing record. The law does not set a dollar amount.
Agents and adjusters face licensing restrictions
Certain out-of-jurisdiction actions against public adjuster licenses, securities registrations, or equivalent credentials can trigger Kansas agent or adjuster license restrictions. Public adjusters also face discipline for not answering the commissioner within 15 business days. Insurers cannot employ suspended or revoked public adjusters to sell, negotiate, or transact insurance business during that period. After an application denial following a hearing, an adjuster applicant must wait one year after the order to reapply. After license revocation, the waiting period is two years.
Captive insurers join regulation funding assessments
Captive insurers authorized in Kansas are included in the rules for insurance department assessments. Beginning January 1, 2026, commissioner fees go to the Insurance Department Service Regulation Fund. The fund no longer receives the previously specified 1% share of premium taxes. Annual assessments account for fund receipts and cover the approved insurance regulation funding amount. These are insurer funding obligations, not direct household charges.
Insurers follow selected financial safety instructions
The commissioner selects which national insurance calculations, instructions, and required documents apply for the coming calendar year. Selections include risk-based capital and group capital instructions. The announcement must appear in the Kansas Register by December 1 of the current year. Certain article 4 life and health insurers fall under health-organization capital rules when the commissioner finds their reported business is mainly health. That classification does not apply when they already face life or property and casualty risk-based capital requirements.
Out-of-state insurance groups pay specified fees
Out-of-state fraternal benefit societies and nonprofit hospital, medical, dental, optometric, and pharmacy service corporations pay Kansas admission and annual fees. Charter and document examination costs $500, and filing an annual statement costs $100. A certificate of authority costs $10, and annual continuation costs another $10. These organizations, not households, pay the fees.
Pure captive insurers face tighter limits
A pure captive insurer can insure only its parent and affiliated companies. The law removes the former allowance for controlled unaffiliated business totaling up to 5% of direct written premiums. That former allowance required prior commissioner approval.
Insurers face updated estimated tax payments
Covered insurers, corporations, and associations must make estimated tax payments by June 15 and December 15. Each payment equals 50% of their reported prior-year taxes. That calculation includes specified insurance taxes and fees, plus taxes supporting the Kansas State Fire Marshal. This changes company payment calculations, not household taxes.
Businesses gain separate insurance cell options
Approved sponsors can form insurers with separate protected cells for participating businesses and other entities. Company forms include stock, mutual, nonprofit, and limited liability companies. Sponsors can participate, and participants need not own shares; participants generally insure only their own risks unless the commissioner approves otherwise. Sponsors must provide required capital, and protected-cell insurers must maintain at least $100,000 in capital and surplus. The commissioner must approve each cell's operating plan, and its insurance risks must be backed by another insurer, reinsurance, or approved security.
Insurance cells gain safeguards and oversight
Protected-cell insurers must keep each cell's assets, debts, and records separate, allocate expenses fairly, and report yearly cell results. They must notify the commissioner within 10 business days when a cell is insolvent or cannot meet claims or expenses. Cell creation, participant contracts, withdrawals, and cell closures require prior written approval where the act specifies. One cell's assets generally cannot pay another cell's claims; lawsuits must identify the cell or reach only the general account. During company insolvency, the commissioner can separate solvent cells and allow them to become another captive insurer.
Insurance groups face filings and exemptions
Insurance groups can qualify for capital-filing exemptions based on their structure, business, supervisor, and available regulatory reports. A Federal Reserve exemption fails if the required calculation cannot be shared; losing any exemption generally requires filing by the next annual deadline. The lead-state commissioner can grant a reasonable-ground extension or require a non-U.S. group's calculation after necessary consultation. Controlling persons must file liquidity stress-test results for registered insurers included in that year's national testing framework. The Kansas commissioner can examine registered insurers and affiliates, including financial risks across their corporate groups.
Insurer reports receive stronger privacy protections
The commissioner must keep specified group capital reports, ratios, liquidity stress-test results, and related supervisory information confidential. Written national insurance association agreements must exclude reports under the holding-company registration statute and bar permanent database retention after analysis ends. Agreements involving outside consultants must provide for telling affected insurers the consultant's identity. One information section is exempt from K.S.A. 45-229, but the supplied text does not explain that exemption's disclosure effects.
Insurers gain asset safeguards and limits
The commissioner can require a troubled insurer to secure an affiliate agreement; the insurer chooses a deposit or bond. Security cannot exceed one year's agreement value and can last for the agreement or the financial trouble. Affiliate-held insurer records remain insurer-controlled and must be separable at no added cost; requested receiver access includes systems and lien waivers. Affiliate-held premiums and funds remain insurer property, with receivership offsets governed by Kansas law. Extraordinary distributions combine the prior 12 months' payments and exceed the greater of 10% of prior December 31 surplus or the specified income measure, triggering applicable notice or approval rules.
Kansas repeals listed insurance law provisions
The law repeals 19 listed Kansas insurance statutes. The repeal list does not explain the prior rules or identify separate effects on insurers or consumers. No household cost or benefit can be determined from the list alone.
Some employee health plans leave oversight
Specified self-funded employee health plans are excluded from the Kansas insurance code. The exclusion covers plans maintained for employees by state and local governments, schools, public authorities, and their agencies. It also covers employee plans of churches and church groups exempt from tax under Internal Revenue Code section 501. This removes insurance-code requirements and oversight for those plans. The provision does not specify changes to employee benefits or premiums.
Tax breaks for captives moving to Kansas
Captive insurers moving from another state or country pay Kansas premium tax only on premiums paid after the move. Those moving after July 1 owe half the minimum premium tax. They can skip premium-tax payment in their first or second Kansas year, but not both. Surrendering their Kansas license or moving elsewhere within five years triggers repayment of the skipped tax. Repayment includes an extra 10% per year from the date of the skipped premium.
Sponsors & Cosponsors
Sponsor
Committee on Insurance
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/23/2026
Yea: 40 Nay: 0
Yes: 40 • No: 0
House vote • 4/23/2026
Yea: 123 Nay: 1
Yes: 123 • No: 1
House vote • 4/23/2026
Yea: 40 Nay: 0
Yes: 40 • No: 0
House vote • 4/23/2026
Yea: 113 Nay: 10
Yes: 113 • No: 10
House vote • 3/27/2025
Conference Committee Report was adopted
Yes: 123 • No: 1
Senate vote • 3/27/2025
Conference Committee Report was adopted
Yes: 40 • No: 0
Senate vote • 3/20/2025
Emergency Final Action - Passed as amended
Yes: 40 • No: 0
House vote • 2/20/2025
Final Action - Passed as amended
Yes: 113 • No: 10
Actions Timeline
Reengrossed on Tuesday, April 1, 2025
4/10/2025HouseEnrolled and presented to Governor on Friday, April 4, 2025
4/10/2025HouseApproved by Governor on Tuesday, April 8, 2025
4/8/2025HouseConference committee report now available
3/27/2025SenateConference Committee Report was adopted; Yea 40, Nay 0
3/27/2025SenateConference Committee Report was adopted; Yea 123, Nay 1, Absent 1
3/27/2025HouseNonconcurred with amendments; Conference Committee requested; appointed Rep. Bill Sutton, Rep. Brian Bergkamp and Rep. Cindy Neighbor
3/24/2025HouseMotion to accede adopted; Sen. Brenda Dietrich, Sen. Michael Fagg and Sen. Marci Francisco appointed as conferees
3/24/2025SenateCommittee of the Whole - Committee Report be adopted
3/20/2025SenateCommittee of the Whole - Motion to Amend - Offered by Sen. Marci Francisco
3/20/2025SenateCommittee of the Whole - Amendment by Sen. Marci Francisco was adopted
3/20/2025SenateCommittee of the Whole - Be passed as further amended
3/20/2025SenateEmergency Final Action - Passed as amended; Yea 40, Nay 0
3/20/2025SenateCommittee Report recommending bill be passed as amended by Senate Committee on Financial Institutions and Insurance
3/18/2025SenateHearing continuation: Wednesday, March 12, 2025, 9:30 AM — Room 546-S
3/12/2025SenateHearing: Wednesday, March 5, 2025, 9:30 AM — Room 546-S
3/5/2025SenateReferred to Senate Committee on Financial Institutions and Insurance
2/26/2025SenateEngrossed on Thursday, February 20, 2025
2/26/2025HouseReceived and Introduced
2/25/2025SenateFinal Action - Passed as amended; Yea 113, Nay 10, Absent 2
2/20/2025HouseCommittee of the Whole - Committee Report be adopted
2/19/2025HouseCommittee of the Whole - Be passed as amended
2/19/2025HouseCommittee Report recommending bill be passed as amended by House Committee on Insurance
2/18/2025HouseHearing: Friday, February 14, 2025, 3:30 PM — Room 218-N
2/14/2025HouseHearing: Wednesday, February 12, 2025, 3:30 PM — Room 218-N — CANCELED
2/12/2025House
Bill Text
As Amended by House Committee
As Amended by Senate Committee
As Introduced
Enrolled
{As Amended by Senate Committee of the Whole}
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