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February 3, 2011

Designed for and delivered only to KAIA Members.

Important Dates for your calendar:

Monday, January 10:

First day of session.

 

Monday, January 31:

Last day for members to request bills.

 

Monday, February 7:

Last day for committees to request bills

 

Wednesday, February 9:

Last day for individual bill introduction.

 

Friday, February 11:

Last day for committee bill introduction.

 

Wednesday, February 23:

Kansas Agents Legislative Day - register now and contact your legislator

 

Friday, February 25:

TURNAROUND DAY: Last day to consider bills in their original house.

 

Wednesday, March 23:

Last day to consider bills not in their original house.

 

Saturday, April 2:

Only omnibus budget bills and vetoed legislation considered after this date.

 

Wednesday, April 27:

Veto session ends.

2011 Insurance Committees Finalized

There have been significant changes made to the House Insurance and Senate Financial Institutions and Insurance Committee rosters - reflective of the many changes made as a result of the 2010 elections, as well as the appointments made by Governor Brownback.

The Kansas House went from a 76-49 Republican majority to a 92-33, the largest advantage for the GOP in more than 50 years. It remains to be seen how the splits inside the Republican party will align on issues. The three parties inside the Republican party are labeled as: moderates, tea party conservatives (fiscally more than socially conservative) and "traditional" conservatives (socially and fiscally conservative).

Register Now: 2011 Kansas Agents Legislative Day

There's no better opportunity for you, as a business owner, to get involved and make YOUR voice heard at the State Capitol on industry issues that affect you and your clients. Kansas Agents Legislative Day provides a chance for members to both learn about current legislative issues, and also to speak one-on-one with your legislators. This is the essence of grassroots advocacy!

One fee of $55 will cover your entire agency (everyone can attend), provide steak dinners  and 3 CE credits (to be filed for 2 gen and 1 ethics). Have Some Fun, Do Some Good! Click here to sign up at KAIA's website.

Increasing CE Requirements to Meet National Standards

Thank you to all of you who responded to the member survey requesting your feedback on the proposal to increase the CE requirements to 24 hours, with 3 designated Ethics. (Any agents who are dual licensed would not be affected by total number of hours required.)  Your feedback is very important to the KAIA in forming its position on the bill.  The bill is now in print (SB 71) and can be viewed here.  

Because of the split in our membership on this issue, KAIA will remain neutral at this time. We will be monitoring it closely and working with the bill sponsor to be sure certain favorable changes are in the bill - such as carry-over hours and broadening the definition of Ethics. As we update you on the progress of the bill, please do not hesitate to continue to give us your feedback on the issue.  You can email Kerri Spielman at kerri@kaia.com.

Quick Links

Office

815 SW Topeka Blvd
Topeka, KS 66612
800-229-7048

www.kaia.com

New in House Insurance

Rick Billinger

Rep., Goodland

 

James Fawcett

Rep., Junction City

 

TerriLois Gregory

Rep., Baldwin City

 

Dr. Susan Mosier

Rep., Manhattan

 

Charlotte O'Hara

Rep., Overland Park

 

Returning to House Insurance

 

Clark Shultz

Rep., Lindsborg

Chair

 

Phil Hermanson

Rep., Wichita

Vice-Chair

 

Bob Grant

Dem., Cherokee

Ranking Minority Member

 

Tony Brown

Rep., Eudora

 

Tom Burroughs

Dem., Kansas City

 

Rick Proehl

Rep., Parsons

 

Senate Committee on Financial Institutions & Insurance

 

Ruth Teichman

Rep., Stafford

Chair

 

Ty Masterson

Rep., Andover

Vice-Chair

 

Tom Holland

Dem., Baldwin City

Ranking Minority Member

 

Jeff Longbine

Rep, Emporia

 

Mark Taddiken

Rep., Clifton

 

Chris Steineger

Rep., Kansas City

 

Ray Merrick

Rep, Stilwell

 

Robert Olson

Rep, Olathe

Kansas Insurance Department Introduces Four Bills in the Senate

The Kansas Insurance Department last Wednesday introduced four bills to the Senate Committee of Financial Institutions and Insurance. The committee agenda heavily emphasizes health reform.

 

Surplus Lines Agreement- The 2010 Dodd-Frank federal financial regulation will prohibit, as of 7-14-11, individual states from collecting premium tax on surplus lines. This can be recovered, congress has allowed, if an approved multi-state agreement is developed and ratified. NAIC endorsed NIMA (Nonadmitted Insurance Multi-State Agreement) on 12-16-10. If not approved, the state risks a loss of around $10 million. There is an alternate proposal as well - the National Council of Insurance Legislators (NCOIl) has a model (SLIMPACT) that will also be considered.

High Risk Pool- Required per 2010 ACA (Health Reform). The bill  increases lifetime limits from $2 million to $3 million; revises the law to accept individuals unable to find insurance coverage in the open market without requiring a denial or letter of refusal of coverage. Among other amendments, children under age 19, who are otherwise ineligible for the pool, will now be eligible if no such coverage is available in the county in which they live. (SB #14)

Risk-Based Capital (RBC)- This year's RBC reserves varied by more than the 2.5% trigger compared to last year's standard, so an update must be made to the statute (KSA 40-2c01). Projected results show that the majority of companies varied over the 2.5% trigger and we need to revise the date. (SB #15)

Internal & External Review- Revise the utilization review statute to be consistent with the model law. Amends 40-22a13 to modify the definition of "emergency medical condition" and 40-22a14 to increase the time allowed for a consumer to challenge an adverse decision from 90 to 120 days (4 months). (SB #65)

 

Workers Compensation

 

Plans for an Overhaul - A group of business and labor representatives have been working to craft a compromise bill to revise current workers compensation statutes. This bill was released today (HB #2134) and is available here.  The KAIA has a Work Comp Task Force in place to stay on top of the changes and protect agents' concerns.  The WCTF is made up of agents but plans to work with company partners as well.  While the focus of the business/labor group is primarily on the benefits, your KAIA WCTF is also reviewing potential modifications on the insurance side that KAIA will be supporting.  We will be working with the KID on a number of those insurance related issues and will have more detail for you in the next issue.

NCCI Filing to Institutionalize "Net Recording" Practice- The KID is expecting a filing from NCCI by June to have Kansas become a net recording state for workers compensation. Currently, Kansas reports as a net loss state and backs out the deductible after the claim is paid. With this filing, Kansas will be a net recording state and will back out the deductible before the reports are filed and that deductible will not be part of the experience rating. This is a large issue for medium and large employers-worth about $39 million per year and applicable to about 40% of WC accidents. This will not affect smaller companies. This issue was brought to the Department by your KAIA Consumer and Technical Affairs Committee.


 
On the National Front:

Health Care reform continues to dominate much of the Big I lobbying time.  While supportive of a complete repeal of the PPACA, the Big I staff is more focused on getting agents' commission exempted from the MLR.  In addition, they are working to get the business killing 1099 requirement repealed. It appears that will be a win as Democrat leaders (after the overwhelming Republican victories of the 2010 election) are now sponsoring the legislation.

Also on the agenda for the Big I, protecting the flood and crop insurance programs as the TEA party conservatives look to cut government in all areas; and keeping Option Federal Charter off the agenda for certain legislators. Watch for more detail in the next Capitol Notes.

 

This email was sent to rebecca@kaia.com by info@kaia.com |  
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