Regulatory Roundup: Texas Floods, South Dakota SBS, Kansas Fees

State-by-state variations of laws, compliance protocols, industry transparency, and general regulatory culture can lend one the impression that keeping up with industry changes is a little bit like herding cats. So, what better way to wrangle some of the more localized insurance news than in a Regulatory Roundup?

On an ongoing basis, in no particular order or rank, we’re wrestling the various regulatory changes, compliance actions, and commissioner decisions into our roundup. As a disclaimer: There’s a lot going on at any given time in these here United States, so this isn’t a comprehensive picture of state-level action by any means. Think of it, instead, as a sampler platter of regulation. 

Also important to note: If we’re recapping interpretations of legal decisions, this is some armchair insurance speculation and not at all legal advice. If you need legal advice, get a lawyer. 

Texas reeling from tragic floods with billions in uninsured damages

With more than 80 dead and dozens still missing, the Central Texas floods of this summer have been devastating to people and economies across the state.

Insurers estimate more than $1 billion in insured losses from the 1-in-1,000-year flood event. Yet, the actual economic toll is far, far higher; some estimates put it at more than $20 billion. Because most of the damage came from flooding, the losses are largely uninsured.

The Texas Department of Insurance issued a bulletin to remind carriers and consumers how to proceed in this instance as far as filing claims, renewing policies, and deploying emergency adjusters. For those who question the necessity or value of a robust insurance market, seeing recovery from a largely uninsured disaster will undoubtedly provide perspective.

South Dakota switches to SBS

South Dakota is the 36th state to deploy State-Based Systems (SBS), a technology solution that integrates data from the state government to the National Insurance Producer Registry (NIPR).

The state went live on SBS July 16, 2025, and the deployment means businesses in the state have new numbers, and there will likely be a transition period for those who primarily do business in the state to adjust to new processes. 

AgentSync bonus: Generally, for AgentSync customers, a state’s adoption of SBS makes your AgentSync instance even more valuable. Because South Dakota now uses NIPR’s norms, processes, and general “language” of data, AgentSync’s translation of that data and the context we provide in our products is even stronger. And, if you use AgentSync, you don’t have to do any additional work for your tech stack to reflect South Dakota’s adoption of SBS. #winning

Kansas slashes millions in state fees for producers and insurance businesses

Kansas Insurance Commissioner Vicki Schmidt included a roundup of key insurance legislation from this year’s session, including the state’s provision that gives the commissioner the power to lower fees below statutory levels.

Schmidt announced, beginning July 1, 2025, her office is waiving fees for securities registrants. This includes registration fees for individuals as well as broker-dealer firms and investment adviser firms. In this year alone, the dismissed securities fees represent $9 million in savings for the industry.

Schmidt’s office also advocated to end requirements for insurance carriers to renew their producer appointments (as well as the $2-$5 renewal fee). Now, state law requires carriers to submit initial appointments and terminations as they end their relationships with producers, but appointments will be perpetual. Schmidt estimates that this will save the industry $6 million in fees this year.

Other changes include:

• Insurance carriers in the auto insurance space will report personal auto coverage to the state, which will integrate the data with policing organizations to allow police to validate insurance (or lack thereof) in real-time during traffic stops.
• Kansas has reduced the time insurers have to respond to consumer complaints from 15 business days to 14 calendar days. The state has also reduced the friction of complaint reporting, as Schmidt’s administration has piloted a portal with SBS to allow the state to more easily interface and engage with carriers.
• Starting Jan. 1, 2026, all title agents must have a $100,000 bond on file with the state, no exceptions. Title agents no longer have to file an annual audit with the state, but will need to conduct an audit and be able to produce it on request to state officials.

Other state regulatory changes

Alabama issued a notice that, based on recent court cases, the state has rescinded a bulletin from two years ago. The previous bulletin regarded how to properly notify consumers when a policy is limited duration or is a limited indemnity hospital policy. 

Colorado has joined the states doing the math on what a federal reduction in health care subsidies means for consumers: For Coloradans, it means an average premium hike of 28 percent, and nearly 100,000 people will likely lose coverage.

Connecticut helped beneficiaries locate more than $20 million in life insurance benefits with the National Association of Insurance Commissioners (NAIC) Life Insurance Policy Locator tool.

Delaware decreased the late renewal fee by $25 for most licensees who renew late via the National Insurance Producer Registry. For insurance producers, the late fee is now $100, for surplus lines brokers, it’s now $200.

Hawaii issued a memorandum to notify third-party administrators that sell, underwrite, or adjust claims for travel insurance that they must have a licensed employee with a property and casualty line of authority as a designated responsible producer.

Louisiana has raised fees for a number of regulated insurance processes, such as adding a new line to a license, which will now cost producers $75. The rates come from the last legislative session and will take effect January 2026. 

Michigan has revoked a producer’s license after he submitted policies with faked documentation to a carrier, and another producer lost her license after submitting false information on several policies. The state also revoked a business entity’s license for failing to designate a responsible licensed producer. Not one but two other people faced action from the department in June for selling insurance without a license.

Nevada Division of Insurance officials announced Ned Gaines’ appointment as Acting Commissioner while the state conducts a broader recruitment for a permanent replacement for Commissioner Scott Kipper. Gaines has been with the department as Chief Deputy Commissioner since April 2025, and before that served in various roles for more than a decade with the Washington state Office of the Insurance Commissioner. 

North Carolina surplus lines licenses for individuals and businesses for both residents and nonresidents are open for renewal from late July to Aug. 31, 2025 (and every year, really).

Tennessee state officials announced Bryant Cummings would take the position of Director of Examinations recently vacated with the retirement of Joy Little. Cummings has previously served in Examinations for 23 years.

Vermont State Treasurer Mike Pieciak in a newsletter trumpeted his office’s work to reduce the costs for medical access in the state. The state has stopped credit reports from using medical bill data to inform credit ratings, and Pieciak said more similar bold action is needed to address the costs of health care premiums.

Virginia state officials notified carriers in the state that the passage of HB1778 doesn’t change the process for appointments and terminations, but does repeal the $50 per day fine for late payment of fees.

Washington Office of the Insurance Commissioner officials announced that, over the last two years, having fielded more than 200,000 inquiries, the state estimates having recovered more than $100 million for consumers.

Stay on top of regulatory changes with AgentSync

While these points of interest aren’t comprehensive, our knowledge of insurance producer and variable lines broker license and compliance maintenance is. See how AgentSync can help make you look smarter today; head over to the Compliance Library and wrastle up some state-by-state regulation and more jurisdictional updates. If you’re looking for a solution that builds regulations like these into your distribution channel management workflows automatically, AgentSync can help. See us in action or talk to one of our experts today.