Several legislative measures backed by the Kansas Insurance Department aimed at lowering operational costs for insurance companies and professionals have been signed into law.
Gov. Laura Kelly (pictured above) approved House Bill 2050, a new law which removes the producer appointment renewal fee and authorizes the insurance commissioner to reduce more than 100 additional statutory fees. The department stated that it would issue an annual list of updated fees by Dec. 1.
According to the insurance department, eliminating the renewal fee is projected to lower its revenues by $5.9 million.
Another measure signed into law on the same day, House Bill 2334, reduces the premium tax on insurance carriers. Starting with the 2025 tax year, the rate will decrease to 1.98% of total premiums written, down from 2%, as outlined in the bill.
The department estimated that the premium tax reduction will decrease its share of revenue by about $1.8 million.
In a report from Best Wire, Insurance Commissioner Vicki Schmidt said the legislation reflects a broader goal of adjusting the size and cost of state government.
Schmidt notes that that when compliance expenses become disproportionate, the resulting costs are passed on to consumers. The new laws are part of ongoing efforts to reduce those burdens.
The new bills are part of recent regulatory developments within the state aimed at improving the insurance landscape.
Earlier this year, Kansas introduced Senate Bill 32 to reform the assessment structure for insurers operating within the state. The bill aims to establish a more structured framework for funding the Kansas Insurance Department's regulatory programs.
Effective July 2024, Kansas also increased workers' compensation benefits for injured or deceased workers. The total death benefit rose from $300,000 to $500,000, and the cap for permanent total disability increased from $155,000 to $400,000. This legislation, the first update since 2011, aims to create a more equitable system.
Last year also saw the governor renewing efforts to expand Medicaid in Kansas, aiming to provide coverage to an additional 150,000 residents.
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