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Committee advances insurance 'accreditation' bill to adopt NAIC group capital and liquidity stress-testing rules
Summary
House Bill 2,128, described as the department accreditation bill, was advanced out of the committee as amended. The bill would add NAIC model requirements—group capital calculation and liquidity stress testing—to the state's Insurance Holding Company Act and allow the commissioner to adopt related guidance published in the Kansas Register.
House Bill 2,128, the insurance "accreditation" bill, was reported favorably out of the Senate Financial Institutions and Insurance Committee on March 18 after the panel adopted two amendments.
Committee staff member Eileen told the committee the bill would add the group capital calculation and liquidity stress test requirements from the National Association of Insurance Commissioners (NAIC) Insurance Holding Company System Regulatory Model Act to the state's Insurance Holding Company Act. She said the bill "authorizes the commissioner to adopt certain documents, calculations and instructions ... and would cause that announcement ... to be published in the Kansas Register no later than December 1 for the upcoming year." The measure also would allow certain life insurers to follow health financial reporting and would adopt specified NAIC holding company provisions related to group capital and liquidity stress testing.
The committee adopted a department-requested amendment (referred to in committee as the "big balloon") that inserts two new sections exempting certain entities from regulation as health benefit plans; Senator Francisco moved that amendment and Senator Fagg seconded. The committee also adopted a second, technical amendment that replaces a reference to the "statute book" with "Kansas Register;" Senator Fagg moved that amendment and Senator Rose seconded. Both amendments passed by voice vote.
Senator Gossage moved that the bill, as amended, be reported favorably out of committee; Senator Rose seconded. The committee approved the motion by voice vote and the bill was advanced out of committee as amended.
The changes adopt NAIC model provisions into state statute and delegate annual publication and adoption of particular calculations and instructions to the commissioner; the committee did not record a roll-call vote in the transcript for the final action.
