Bill would change insurer audit submissions, set $100,000 surety bond and remove small-county controlled-business exception

House Bill 2,042, the House companion to Senate Bill 22, would change multiple insurance-related requirements: audit reports would no longer be submitted annually to the Insurance Commissioner but instead be made available for inspection upon request; surety bond requirements for Title 8 insurance agents would be standardized at $100,000; and the bill would eliminate a controlled-business exception for real-estate transactions in counties with populations under 10,000.

At the Feb. 26 hearing of the Kansas Senate Committee on Financial Institutions and Insurance, committee staff said the House Committee on Insurance amended the bill to make the effective date Jan. 1, 2026. The House Committee of the Whole passed the bill on Feb. 7 by a 103-8 vote, according to committee staff.

Kyle Strauthman of the Kansas Department of Insurance testified in support and said the bill had been heard previously. A senator asked how the $100,000 bond amount was determined; Strauthman said the bond amount is set by statute and he could not explain the historical reason for that specific figure. Written proponent testimony from Ashley Garr, co-chair of the Kansas Land Title Association, was included in the committee materials. There was no opponent or neutral testimony recorded at the hearing, and the committee closed the hearing on House Bill 2,042 without taking a vote that day.

Questions from senators at the hearing focused on whether the $100,000 bond remains an appropriate level and on the statutory origin of that figure; committee witnesses suggested further review if the amount had not been updated since it was first set.

The hearing record identifies Eileen as the committee reviser presenting the bill and Kyle Strauthman as the Kansas Department of Insurance witness who stood for questions.