Volume 42 - Issue 25 - June 22, 2023
State of Kansas
Insurance Department
Notice of Hearing on Proposed Administrative Regulations
The Kansas Insurance Department will conduct a public hearing at 8:30 a.m. Thursday, September 7, 2023, at the Kansas Insurance Department, 1300 SW Arrowhead Rd., Topeka, Kansas, to consider the proposed revocations of K.A.R. 40-2-14a and 40-3-12; and the proposed amendment of K.A.R. 40-3-13. Anyone desiring to participate via teleconference or virtual format should visit the Insurance Department’s website at https://insurance.kansas.gov/legal-issues for information on registering.
This 60-day notice of the public hearing shall constitute a public comment period for the purpose of receiving written public comments on the proposed rules and regulations. All interested parties may submit written comments prior to the hearing to the Kansas Insurance Department, 1300 SW Arrowhead Rd., Topeka, KS 66604 or by email to KID.publiccomment@ks.gov. All interested parties will be given a reasonable opportunity to present their views orally regarding the proposed revocations and the proposed amended regulation during the public hearing. In order to provide all parties an opportunity to present their views, it may be necessary to request that each participant limit any oral presentation to five (5) minutes.
Any individual with a disability may request an accommodation in order to participate in the public hearing and may request the proposed regulation, proposed revocations, and economic impact statements in an accessible format. Requests for accommodation to participate in the hearing should be made at least five working days in advance of the hearing by contacting Bobbi Mariani at 785-296-7802 or bobbi.mariani@ks.gov or the Kansas Relay Center at 1-800-766-3777. The west entrance to the Insurance Department is accessible. Handicapped parking is located on the west side of the Insurance Department.
Copies of the proposed amended regulation, proposed revocations, and the Economic Impact Statements can be viewed at https://insurance.kansas.gov/legal-issues.
Summaries of the proposed amendment and proposed revocations and their economic impact follow. (Note: Statements indicating that a regulation or revocation is “not anticipated to have any economic impact” are intended to indicate that no economic impact on the Insurance Department, other state agencies, state employees, or the general public has been identified.)
K.A.R. 40-2-14a – Life insurance and annuities; recommendation standards. The proposed revocation of K.A.R. 40-2-14a corresponds with the adoption of K.A.R. 40-1-53 by the Insurance Department. K.A.R. 40-1-53 adopts the Department’s “Policy and Procedure Regarding Suitability in Annuity Transactions,” dated January 10, 2023. The policy and procedure is an adaptation of the National Association of Insurance Commissioners model regulation #275 pertaining to suitability in annuity transactions and replaces the 2012 Department policy and procedure adopted in K.A.R. 40-2-14a. The implementation of K.A.R. 40-1-53 makes the revocation of this regulation necessary. The Insurance Department does not anticipate any significant economic impact to this agency, other governmental agencies, or to the public as a result of the revocation of this regulation.
K.A.R. 40-3-12 – Fire and casualty insurance companies; rating plans; requirements. The proposed revocation of K.A.R. 40-3-12 removes an inconsistency in the application of allowable risk modification rates between K.S.A. 40-954 and K.S.A. 40-955b caused by the existing regulation, which mandated a credit/debit limit of 25% not otherwise found in statute and did not address the provisions of K.S.A. 40-955b. The Insurance Department does not anticipate any significant economic impact to this agency, other governmental agencies, or to the public as a result of the revocation of this regulation.
K.A.R. 40-3-13 – Fire and casualty insurance companies; rating plans; duplication prohibited. The proposed amendment removes a reference to proposed revoked K.A.R. 40-3-12. K.S.A. 40-954 and K.S.A. 40-955b are also added to the implementing section in the regulation’s history. The Insurance Department does not anticipate any significant economic impact to this agency, other governmental agencies, or to the public as a result of the amendment of this regulation.
Vicki Schmidt
Insurance Commissioner
Doc. No. 051247
