Authorizing certain nonadmitted insurers to transact certain business in Kansas and requiring the commissioner of insurance to maintain a list of eligible nonadmitted insurers.

HB 2087 allows insurers not authorized to operate in Kansas (nonadmitted insurers) to provide specific insurance coverages to vehicle dealers and for excess coverage on Kansas risks. It requires the Kansas Insurance Commissioner to maintain a list of eligible nonadmitted insurers and modifies licensing rules for agents placing such coverage. Vehicle dealers must now have insurance from either a licensed Kansas insurer or an eligible nonadmitted insurer to obtain or renew their licenses. Agents placing coverage with nonadmitted insurers must obtain written consent from clients and provide disclosures about the insurer’s lack of state regulatory oversight and guaranty association protections.