Kansas insurance commissioner reports $202.7 million recovered since 2019, pitches insurance savings accounts and anti-fraud tools

Insurance Commissioner Vicki Schmidt told the Senate Financial Institutions and Insurance Committee on the department’s annual briefing that the Kansas Department of Insurance has recovered $202,700,000 for Kansans since 2019 and recorded $56,700,000 in recoveries in 2025 alone.

Schmidt said those recoveries came through the department’s consumer assistance work and the life-insurance policy locator, and she introduced Lauren Hermas, who leads the consumer assistance staff responsible for the 2025 results. “That’s money back into the hands of Kansas families,” Schmidt said, adding the team’s casework continues to add to 2025 totals as pending matters settle.

The commissioner reviewed a package of operational and legislative priorities the department is advancing. She described multiple revenue reductions implemented since 2019—changes to producer licensing and a two-year moratorium on securities fees—and said the department will seek statutory authority to smooth fee changes for securities registrants so fee levels are more predictable. Schmidt told the committee those fee and tax changes have reduced regulatory burden and collectively account for about $96,500,000 in reduced costs to businesses.

On consumer protection, Schmidt said the 2024 law to protect vulnerable adults from financial exploitation has already produced results: the department reported stopping $4,970,000 from being collected by fraudsters since the law took effect. Schmidt said the office works closely with adult protective services on those cases and has referred several large investigations to prosecutors; she declined to comment on pending prosecutions.

Eric Turk, the department’s director of government affairs, outlined bills and proposals the agency has placed in its packet. Turk said the department has introduced legislation to create tax-advantaged insurance savings accounts (listed in materials as House Bill 24 30) to allow Kansans to save for premiums and deductibles; he said the design is modeled on Kansas’s first-time homebuyer and adoption savings accounts and would include a corporate contribution component. Turk also described an anti-fraud bill the department prefers to give regulators additional tools to pursue misdemeanor-level insurance fraud and a resolution urging Congress to allow state insurance regulators a larger role reviewing Medicare Advantage complaints.

Turk and Schmidt said the department selected a vendor for a real-time insurance verification system and is working with the Department of Revenue to meet a July 1 implementation deadline. Schmidt described the verification system as one tool to reduce costs tied to uninsured motorists—she estimated uninsured motorists cost Kansans about $51,000,000 over two years—and said she is hopeful the system will lower those costs.

Turk noted a recent statutory change (Senate Bill 42) shortened the required insurer response time to commissioner inquiries from 15 business days to 14 calendar days, and he flagged a small technical agent-licensing fix in the package. The department also announced fee reductions published Dec. 1 that Turk said are expected to yield approximately $1,100,000 in fee savings for the calendar year.

Committee members asked about outreach and implementation details. Senator Fagg asked how the life-insurance policy locator is publicized; Schmidt said the agency works with funeral homes and agents and described how the master death file and a two-year window affect unclaimed life-insurance funds. Senator Sandra Haley asked about county-by-county recovery disparities; Lauren Hermas said recovery totals are tracked by the county listed in the consumer’s complaint, and Turk noted that large life-insurance recoveries or disaster responses (for example tornadoes) can create spikes in particular counties. Senators also praised the department’s constituent service and responsiveness.

Schmidt introduced other senior staff present at the briefing—Dan Kloukas (assistant commissioner, securities division), Clay Johnson (assistant commissioner), Mandy Rowe (chief of staff) and Steve Carr (general counsel)—and said the department launched a revamped website to make information easier for Kansans to find. She said staff will provide palm cards and graphics senators can use in constituent newsletters.

The committee did not take any formal votes during the briefing. The chair thanked Commissioner Schmidt for her service; Schmidt noted this was her last presentation to the committee in her current role. The committee adjourned and will not meet Monday; it reconvenes Tuesday at 9:30 a.m.