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Bill would let insurance commissioner set annual fee ceilings and make agent appointments perpetual; department cites $6 million in annual renewals
Summary
House Bill 2050 would convert several fixed statutory fees into maximums the insurance commissioner may set by Dec. 1 each year, and would eliminate the annual appointment renewal fee so companies pay only once for agent appointment; the department estimated the renewal change reduces revenue about $6 million.
House Bill 2050 was presented to the House Insurance Committee. The bill would change several flat statutory fees into maximum amounts and give the insurance commissioner authority to set the annual fee by Dec. 1 for the coming year and publish it in the Kansas Register. The measure would also change the agent appointment process so companies pay the appointment fee only when initially appointing an agent rather than as an annual renewal fee.
Why it matters: The department said the change gives it flexibility to lower fees administratively (it used similar authority in 2023 to reduce agent licensure fees and estimated saving new entrants more than $1 million), and that eliminating the renewal portion of appointment fees would reduce annual department revenue tied to renewals by about $6 million. The department reported the insurance fee fund balance was about $71 million at the time of testimony.
Eric Turek told the committee the department used authority from a previous session to publish reduced fees on Dec. 1, 2023; the department said it had cut several fees in 2024 and that passage of HB 2050 would continue that approach. On appointments, Turek said the bill would make appointments a lifetime appointment (until terminated) and eliminate the $2 (domestic) or $5 (foreign) annual renewal fee companies currently pay per agent. He said the department believes appointment renewals generated roughly $6 million in the prior fiscal year and that removing renewals would reduce that revenue stream.
Committee members asked about the fee fund balance and whether the change would endanger fund solvency; the department said the fee fund balance was about $71 million and that the department intended to continue lowering fees while working down the fund balance. Members also asked for clarity in statutory language to ensure the lifetime appointment change is unambiguous; the department indicated it would work with the reviser on drafting and suggested an amendment could be appropriate.
Written proponent testimony from the Kansas Association of Insurance Agents was included in the committee packet; no in‑person opponents appeared. The committee closed the hearing on HB 2050; no committee vote was recorded at the hearing.
Ending: The bill would give the commissioner flexibility to set fees and change appointment renewal practice; the committee requested clearer drafting on the appointment language and noted potential revenue implications for the fee fund.
