Insurance commissioner highlights consumer recoveries and seeks fee‑setting authority; committee reviews real‑time verification costs
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Summary
The Department of Insurance described a fee‑funded FY26 revised estimate of roughly $47.8M, outlined real‑time motor‑vehicle‑insurance verification costs (SB 42) and credentialing increases, and said it returned more than $56.7M to Kansans in 2025; representatives asked about vacant positions and firefighter relief distributions.
The Kansas Department of Insurance told the Committee on General Government Budget the agency’s operations are fully fee‑funded with a FY2026 revised estimate of about $47.8 million and 135 funded FTEs in the FY2026 approved budget. Agency presenters described higher contractual and software costs driven in part by the implementation and ongoing operations of the real‑time motor vehicle insurance verification system established by Senate Bill 42.
Comptroller Charlotte Dawbert said the department has funded nine vacant positions and plans to fill them, primarily in the financial surveillance division, which examines insurance company solvency. Commissioner Vicky Schmidt emphasized consumer protections and enforcement, saying the department returned about $56.7 million to Kansas families in 2025 and roughly $202.7 million since 2019 through consumer assistance work and policy enforcement.
The department also outlined recent fee reductions enacted with legislative support and asked the committee for continued authority to manage fee levels within statutory caps. Committee members requested additional detail about the firefighter relief fund distributions (a 2% tax on certain insurance premiums passed through to local firefighter relief associations) and asked the agency to provide complaint‑handling materials for legislators to share with constituents who report insurance claims delays.
On the new verification system, the department said startup and verification testing costs and ongoing contractual support account for the majority of recent contract/service increases. Commissioner Schmidt said the vendor is performing to schedule and the department expects to meet the July 1 implementation deadline.
The committee took no immediate action on insurance funding during the hearing but obtained commitments to receive additional documentation on vacant positions, complaint guidance, and the department’s estimates for ongoing contractual commitments.