Kansas: NAMIC to Testify on Rate Modernization Bill

Senate Insurance Committee Chair Ruth Teichman has scheduled a hearing for this Thursday to hear testimony on SB 560, based on the National Conference of Insurance Legislators’ Flex-Rating Model Act. NAMIC has been asked to testify on the bill.

Last October, the Kansas Insurance Department Fee Modernization and Rating Laws Task Force issued a recommendation that the Legislature adopt the Act. The recommendation was part of a report submitted to the Legislature for consideration during the 2008 legislative session.

The NCOIL flex-rating model creates a 12 percent flex band for personal lines of insurance. Currently, eight states have flex-rating laws.

The task force was established to study personal lines regulatory modernization and other topics, including workers' compensation modernization. NAMIC was a member of the task force and made the motion to adopt the NCOIL flex-rating model. The motion was seconded by the Property Casualty Insurers Association of America, and approved unanimously. During the discussion, the American Insurance Association recommended consideration of the NCOIL Property/Casualty Insurance Modernization Act, which calls for a use-and-file system for personal lines. The task force ultimately chose to recommend the flex-rating model as it has a better chance of withstanding scrutiny from legislators and the insurance department.

Direct questions to NAMIC's Director – State Affairs Joe Thesing.

Posted: Tuesday, February 19, 2008 12:00:00 AM. Modified: Tuesday, February 19, 2008 1:17:57 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.