Panel approves Kansas protected‑cell captive insurance act and related captive law changes

House Bill 2,334, which would enact the Kansas Protected Cell Captive Insurance Company Act and amend existing captive insurance law, was advanced out of the Senate Financial Institutions and Insurance Committee on March 18 after the panel adopted two amendments.

Eileen, the committee staff member, briefed members that sections 1 through 10 of the bill "would enact the Kansas protected cell captive insurance company act," modeled on Tennessee statutes that themselves track NAIC model protected cell captive law. The rest of the bill updates Kansas’ current captive insurance statute.

The committee adopted an amendment requested by the department that unstruck the words "accident and health" on page 10 to preserve a specific treatment of accident and health coverage written on a direct basis. Senator Gossage moved that amendment and Senator Klooz seconded; the committee approved it by voice vote. The committee also adopted a technical amendment changing a reference to the "statute book" to the "Kansas Register," moved by Senator Fagg and seconded by Senator Rose; that amendment passed with two recorded no votes noted in the transcript.

During discussion, Senator Gossage said she had considered a floor amendment to provide a one‑year fee/premium tax grace to attract Kansas companies domiciled out of state but did not file such an amendment in committee. Senator Gossage moved that the bill, as amended, be reported favorably and Senator Francisco seconded; the committee approved the motion by voice vote and advanced the bill.

The committee did not record a roll call for the final passage in the transcript; committee members discussed but did not adopt the fee‑tax grace proposal in committee.