KANSAS
Kansas Eliminates Certain Producer Fees, Lowers Premium Taxes
TOPEKA, Kan. //BestWire// - Several bills that were supported by the insurance department and designed to reduce the cost of doing business for carriers and other insurance professionals in Kansas have been signed into law.
House Bill 2050, which was signed by Gov. Laura Kelly on April 8, eliminates producer appoint renewal fees and gives the insurance commissioner the ability to lower more than 100 other statutory fees. The insurance department said it would publish a list of new, lower fees each year by Dec. 1.
Eliminating the renewal fee is expected to reduce insurance department revenues by $5.9 million, the regulator said.
Also approved by Kelly on April 8, HB 2334 reduces the premium tax on insurance carriers to 1.98% of total premium written for tax year. This is down from a rate of 2% for the 2025 tax year, according to the bill’s text.
Cutting the rate will reduce the insurance department’s share of premium taxes by approximately $1.8 million, the regulator said.
“When compliance costs are out of line, consumers are forced to foot the bill,” Insurance Commissioner Vicki Schmidt said in a statement. “I have made it my mission to right-size government and these new laws keep that commitment.”
Attempts to gain comment from the Kansas Association of Property and Casualty Insurance Companies were unsuccessful.
In other Kansas regulatory news, Schmidt moved to place automobile insurnace carrier Key Insurance Co. into receivership in March (BestWire, March 24, 2025). In its year-end financial statements, Key reported liabilities of $65.3 million against admitted assets of $57.9 million and is expected to have a negative surplus of $7.4 million to $20.4 million for 2024, the regulator said.
(By Steve Hallo, senior associate editor, BestWire: Steve.Hallo@ambest.com)