S.B. 412 would amend the definition of "RBC instructions" as that term is used in risk based capital insurance statutes. The bill would require life, health, and property and casualty insurers preparing risk capital reports to use instructions promulgated by the National Association of Insurance Commissioners (NAIC) in effect on December 31, 1997.
Risk based statutes are used by insurance regulators to monitor the solvency of insurance companies and are standardized among the states. As those laws are modified by the NAIC, states change their statutes accordingly. S.B. 412, recommended by the Insurance Commissioner, updates Kansas law to require using the latest instructions promulgated by the NAIC.
A representative of the Kansas Association of Property and Casualty Insurance Companies and the Kansas Life Insurance Association, having had an opportunity to review the proposed changes in the instructions, expressed support for the bill.
According to the Division of the Budget, passage of the bill would have no fiscal effect.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext-bill.html.