Bill > HB2087

This bill modifies Kansas insurance regulations by updating the rules for nonadmitted insurers (insurance companies not traditionally authorized to do business in the state) and establishing clearer guidelines for their operations. The bill increases the minimum capital requirement for nonadmitted insurers from $4.5 million to $15 million and requires the insurance commissioner to maintain a comprehensive list of eligible nonadmitted insurers that meet specific financial and operational standards. For vehicle dealers, the bill now allows them to obtain insurance from either traditional authorized insurers or eligible nonadmitted insurers. Excess lines insurance agents (who specialize in placing coverage with nonadmitted insurers) must now obtain written consent from insureds before placing coverage with a nonadmitted insurer, provide detailed disclosures about the insurer's status, and maintain specific records. The bill also provides protection for excess lines agents by stating they are not liable if they have followed proper procedures when placing insurance with a nonadmitted insurer that subsequently becomes insolvent. Additionally, the bill aligns Kansas regulations with federal standards for nonadmitted insurers and removes potential liability for the insurance commissioner in maintaining the insurer list, provided it is done in good faith.

Business and Industry

Insurance (H)

https://kslegislature.gov/li/b2025_26/measures/hb2087/