Reinsurance Focus

Following are selected bills relevant to reinsurance in the Kansas and Mississippi Legislatures:

• HB 2500, as introduced, would amend a provision in the Kansas Municipal Group-Funded Pool Act to allow municipal insurance pool applicants to submit a confirmation that reinsurance approved by the Insurance Commission is in effect or will be effective at the time the pool assumes risk. Confirmation of reinsurance approval would be in addition to the current statutory requirement that a municipal bond holds excess insurance provided by an insurance company holding a Kansas certificate of authority. The Senate Committee on Financial Institutions and Insurance amended the bill to add reinsurance to a notification requirement in the current law. The House nonconcurred with the amendment by the Senate and requested a Conference Committee on March 11, 2010. The Senate acceded to the request to conference on the same day.
• Mississippi HB 173, signed by the Governor on March 9, 2010, amends Section 83-34-39 of the Mississippi Code to extend the date of the repealer on the requirement that a portion of the State insurance premium tax revenue be deposited into the Mississippi Windstorm Underwriting Association Reinsurance Assistance Fund for the purpose of reducing the premium rates charged for insuring property through the association. This section shall take effect on July 1, 2010 and shall stand repealed on July 1, 2013.
  This post written by Karen Benson.