Legislation eagerly received by House budget committee members Monday adjusts state law to allow six major public universities in Kansas to buy property insurance from companies not approved to do business in the state.
Officials at Kansas Board of Regents universities proposed the bill repealing a law forbidding Kansas State University, the University of Kansas and four other universities in the system from contracting with property insurance companies that had not been vetted by the Kansas Department of Insurance.
Existing Kansas law stipulates property insurance for these universities, which have $8.6 billion in insurable value, can only be acquired from firms admitted to operate in the state.
"Most large entities in Kansas, both public and private, have the option of purchasing insurance from 'nonadmitted' as well as 'admitted' companies," said Ray Hauke, vice president for administration and fiscal affairs at Emporia State University. "There's a good business case for seeking more bids."