WeVote
Log In

Bill

Bill

HB 2128

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, allowing certain life insurers to follow health financial reports and adopting certain provisions from the national association of insurance commissioners holding company system regulatory act relating to group capital calculations and liquidity stress testing.

2025-2026 Regular Session

Kansas updates regulate insurance to adopt NAIC-based frameworks annually (RBC, group capital, liquidity stress) and requires annual notices, boosting coordination and compliance f

Died on Calendar
#insurance
0
WeVote Research Nonpartisan
Bill Summary · HB 2128

HB 2128 — Summary (Kansas, 2025 session)

Status: Motion to accede adopted; conferees appointed (Senators Dietrich, Fagg, Francisco). Introduced Jan. 27, 2025. Effective upon publication in the Kansas Register.

Purpose

HB 2128 updates Kansas insurance law to (1) authorize the Insurance Commissioner to adopt and publish each year the NAIC versions of certain regulatory instructions and calculations that will apply in Kansas for the coming calendar year; (2) clarify and expand risk-based capital (RBC) treatment for certain health-related insurers; (3) exempt some self-funded public and church health plans from state “health benefit plan” regulation; and (4) import NAIC holding-company-system provisions for annual group capital calculations and liquidity stress testing into the Kansas Insurance Holding Company Act to align Kansas with NAIC accreditation expectations.

Key provisions

  • Commissioner authority and annual notice

    • Commissioner may select which NAIC versions of insurance calculations/instructions (e.g., RBC instructions, managed care RBC instructions, group capital calculation instructions, financial analysis handbook, NAIC liquidity stress test framework) will govern the next calendar year.
    • Selection must be published in the Kansas Register no later than December 1 each year.
    • Bill effective upon publication in the Kansas Register.

  • Definitions added/clarified

    • Adds definitions including “financial analysis handbook,” “group capital calculation instructions,” “NAIC liquidity stress test framework,” and “scope criteria.”
    • Clarifies “health organization” and defines “RBC instructions” as the NAIC RBC instructions selected and noticed by the Commissioner.
    • Clarifies that a life-and-health insurer may be treated as a “health organization” for RBC if the Commissioner determines it reports predominantly health lines of business.

  • Exemptions for self-funded plans

    • Exempts self-funded health plans established/maintained for employees by the state, political subdivisions (including school districts, counties, cities, public authorities), and churches or conventions/associations of churches (IRC §501 exempt) from state regulation as “health benefit plans.”

  • Insurance Holding Company Act changes

    • Requires the ultimate controlling person of registered insurers to concurrently file an annual group capital calculation according to NAIC group capital calculation instructions and procedures in the financial analysis handbook; filing is to the lead state commissioner as determined under NAIC procedures.
    • Provides lead-state discretion to require, exempt, limit, or extend filings and allows exemptions for certain holding company systems where conditions are met.
    • Requires ultimate controlling persons of insurers scoped into the NAIC liquidity stress framework to file results of that year’s liquidity stress test, following NAIC instructions/reporting templates and lead-state determinations (in consultation with NAIC financial stability task force).
    • Requires the Commissioner to maintain confidentiality of reported information consistent with statute.
    • Authorizes the Commissioner, when an insurer is found to be in a hazardous financial condition, to require a deposit or bond (held by the Commissioner or otherwise) for the protection of the insurer during the period of the contract/condition; Commissioner has discretion on amount and related factors.

  • Technical and conforming amendments

    • Amends multiple K.S.A. sections governing RBC and holding company regulation (including K.S.A. 40-2c01, 40-2d01 and provisions in the Insurance Holding Company Act — e.g., K.S.A. 40-3302 et seq.), and repeals specified prior sections (including K.S.A. 40-249 and 40-2c29).

Who is affected

  • Kansas Insurance Department (Commissioner): new annual notice duty, implementation of NAIC-based frameworks, confidentiality duties.
  • Insurers and insurance holding company systems: new/expanded reporting obligations (group capital calculations; liquidity stress test filings) for systems and ultimate controlling persons; potential deposit/bond requirements if hazardous condition.
  • Life-and-health insurers: some may be treated under health RBC methodology if predominantly health business.
  • Public employers and certain church employers: exempted self-funded employee health plans.
  • Lead state insurance commissioners (multistate coordination): discretion and coordination role under NAIC frameworks.

Timeline and procedural notes

  • Commissioner must publish the selected NAIC versions in the Kansas Register by December 1 for the coming calendar year.
  • The bill takes effect upon publication in the Kansas Register.
  • Fiscal note: Kansas Division of the Budget and Kansas Insurance Department report no fiscal effect.

Practical impact

  • Aligns Kansas regulation more closely with NAIC model practices and accreditation standards, enabling timely adoption of NAIC technical updates (RBC, group capital, liquidity stress frameworks) through an annual notice rather than separate statutory change.
  • Increases multistate coordination and reporting by insurance holding companies and controlling persons; may raise compliance workload for affected insurers, while providing the Commissioner tools (e.g., deposit/bond) for addressing insurer financial distress.
  • Clarifies treatment of certain life insurers as health organizations for RBC and relieves some public and church self-funded plans from state health benefit plan regulation.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.