Kansas House Bill HB2087

Kansas 2025-2026 Regular Session

• Introduced: 1/23/25
• Refer: 1/23/25
• Report Pass: 2/6/25
• Engrossed: 2/25/25
• Refer: 2/26/25
• Report Pass: 3/12/25

Caption

Authorizing certain nonadmitted insurers to transact certain business in Kansas and requiring the commissioner of insurance to maintain a list of eligible nonadmitted insurers.

Summary

HB 2087 revises Kansas insurance law to create a clearer framework for the use of certain nonadmitted, or surplus lines, insurers. The bill requires the commissioner of insurance to maintain a public list of eligible nonadmitted insurers and sets financial and filing requirements for insurers to be included on that list. It also updates the rules for excess lines agents who place coverage with those insurers, including notice, consent, recordkeeping, and disclosure requirements for insureds. The bill also expands where eligible nonadmitted insurers may be used. It allows certain nonadmitted insurers to provide coverage for Kansas vehicle dealers and to write excess coverage on Kansas risks, so long as the statutory conditions are met. In addition, it raises the minimum capital or surplus threshold for listed insurers from $4.5 million to $15 million, while preserving special eligibility rules for certain unincorporated insurers and insurance exchanges. The bill amends and repeals the existing versions of K.S.A. 8-2405, 40-246b, and 40-246e to incorporate these changes.

Impact

HB 2087 would change the standards governing surplus lines and nonadmitted insurance in Kansas by replacing the existing eligibility list process with a more detailed statutory framework and higher financial qualification threshold. It affects vehicle dealer licensing insurance requirements, excess lines placement practices, and the commissioner of insurance’s administrative duties, while also limiting placement to insurers that appear on the commissioner’s list or otherwise meet the bill’s eligibility criteria. The bill also provides liability protection for the commissioner and the state regarding the list, and it updates the disclosure obligations imposed on agents and the rights of insureds who use nonadmitted coverage.

Sentiment

The bill appears to have been broadly supported. It passed the House unanimously, 121-0, and later passed the Senate 38-2 after amendment, indicating strong overall approval with only limited opposition. The available record does not include committee testimony, but the vote totals suggest the measure was viewed as a technical or market-structure insurance bill rather than a highly controversial policy change.

Contention

The main points of potential contention are the use of nonadmitted insurers and the higher financial threshold for eligibility. Critics could be concerned that allowing more business to be placed with insurers outside Kansas regulation reduces consumer protections, especially because policy forms, rates, and financial condition are not subject to the commissioner’s review and guaranty fund protection does not apply. Others may have focused on whether the increased capital or surplus requirement, from $4.5 million to $15 million, is necessary or could limit market access. The bill’s supporters, including the Kansas Association of Insurance Agents, likely favored the added flexibility for hard-to-place risks and the clearer eligibility list.