Session of 2023
HOUSE BILL No. 2285
By Committee on Insurance
2-2
AN ACT concerning insurance; relating to insurance law; updating certain
statutory references contained therein; amending K.S.A. 40-201, 40-
216, 40-241 and 40-955 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 40-201 is hereby amended to read as follows: 40-
201. For the purposes of this article the term "insurance company" shall,
unless otherwise provided, apply to all corporations, companies,
associations, societies, persons or partnerships writing contracts of
insurance, indemnity or suretyship upon any type of risk or loss: Provided,
however, That this definition shall not be held to . "Insurance company"
does not include fraternal benefit societies as defined in section 40-701 of
this code K.S.A. 40-738, and amendments thereto, or hospitals or hospital
associations which that have been in operation ten years or more for not
less than 10 years.
Sec. 2. K.S.A. 40-216 is hereby amended to read as follows: 40-216.
(a) (1) No insurance company shall hereafter transact business in this state
until certified copies of its charter and amendments thereto shall have been
filed with and approved by the commissioner of insurance. A copy of the
bylaws and amendments thereto of insurance companies organized under
the laws of this state shall also be filed with and approved by the
commissioner of insurance. The commissioner may also require the filing
of such other documents and papers as are necessary to determine
compliance with the laws of this state.
(2) (A) Except as provided in subparagraph (B), each contract of
insurance or indemnity issued or delivered in this state shall be effective
on filing, or any subsequent date selected by the insurer, unless the
commissioner disapproves such contract of insurance or indemnity within
30 days after filing because the contract of insurance or indemnity does
not comply with Kansas law.
(B) The following contracts of insurance or indemnity shall not be
subject to the provisions of subsection (A):
(i) Contracts pertaining to large risks as defined in subsection (i) of
K.S.A. 40-955, and amendments thereto, which are exempt from the filing
requirements of this section;
(ii) personal lines contracts filed in accordance with paragraph (3) of
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36 HB 2285 2
this section;
(iii) any form filing for the basic coverage required by K.S.A. 40-
3401 et seq., and amendments thereto; and
(iv) form filing for workers compensation.
No form filing listed in clauses (iii) and (iv) of this subparagraph shall
be used in this state by any insurer until such form filing has been
approved by the commissioner.
(3) Each personal lines contract of insurance or indemnity issued or
delivered in this state shall be on file for a period of 30 days before
becoming effective unless the commissioner disapproves such personal
lines contract of insurance or indemnity within 30 days after filing because
the contract of insurance or indemnity does not comply with Kansas law.
For the purposes of this paragraph, the term "personal lines" shall mean
means insurance for noncommercial automobile, homeowners, dwelling,
fire and renters insurance policies as defined by the commissioner by rules
and regulations.
(4) Under such rules and regulations as the commissioner of
insurance shall adopt, the commissioner may, by written order, suspend or
modify the requirement of filing forms of contracts of insurance or
indemnity, which cannot practicably be filed before they are used. Such
orders, rules and regulations shall be made known to insurers and rating
organizations affected thereby. The commissioner may make an
examination to ascertain whether any forms affected by such order meet
the standards of this code.
(5) The failure of any insurance company to comply with this section
shall not constitute a defense to any action brought on its contracts. An
insurer may satisfy its obligation to file its contracts of insurance or
indemnity either individually or by authorizing the commissioner to accept
on its behalf the filings made by a licensed rating organization or another
insurer.
(b) The commissioner of insurance shall allow any insurance
company authorized to transact business in this state to deliver to any
person in this state any contract of insurance or indemnity, including any
explanatory materials, written in any language other than the English
language under the following conditions:
(1) The insured or applicant for insurance who is given a copy of the
same contract of insurance or indemnity or explanatory materials written
in the English language;
(2) the English language version of the contract for insurance or
indemnity or explanatory materials delivered shall be the controlling
version; and
(3) any contract of insurance or indemnity or explanatory materials
written in any language other than English shall contain a disclosure
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2285 3
statement printed in both the English language and the other language
used, stating the English version of the contract of insurance or indemnity
is the official or controlling version and that the version is written in any
language other than English is furnished for informational purposes only.
(c) All contracts of insurance or indemnity that are required to be
filed with the commissioner of insurance shall be accompanied by any
version of such contract of insurance or indemnity written in any language
other than the English language.
(d) Any insurance company or insurer, including any agent or
employee thereof, who knowingly misrepresents the content of a contract
of insurance or indemnity or explanatory materials written in a language
other than the English language shall be deemed to have violated the
unfair trade practice law.
(e) For the purposes of this section, the term "contract of insurance or
indemnity" shall include includes any rider, endorsement or application
pertaining to such contract of insurance or indemnity.
(f) (1) If at any time after a filing becomes effective, the
commissioner finds that such filing does not comply with this act, after the
commissioner shall send written notice to every insurer and rating
organization making such filing that a hearing concerning such filing will
be held in not less than 10 days.
(2) After the hearing, the commissioner shall issue an order stating:
(A) The reasons why such filing failed to comply with the act; and
(B) the date, within a reasonable time after the date the order is
issued, upon which such filing shall no longer be effective.
(3) A copy of the commissioner's order shall be sent to every insurer
and rating organization that made such filing.
(4) No order issued pursuant to this subsection shall affect any
contract or policy made or issued under such filing prior to the date
specified upon which such filing shall no longer be effective.
Sec. 3. K.S.A. 40-241 is hereby amended to read as follows: 40-241.
Any applicant or prospective applicant for an agent's license, if an
individual, shall be given an examination by the commissioner or the
commissioner's designee to determine whether such applicant possesses
the competence and knowledge of the kinds of insurance and transactions
under the license applied for, or to be applied for, of the duties and
responsibilities of such a license and of the pertinent provisions of the laws
of this state. The applicant shall be tested on each class or subclassification
of insurance that may be written. An examination fee prescribed in rules
and regulations adopted by the commissioner shall be paid by the applicant
and shall be required for each class of insurance for each attempt to pass
the examination. Such examination fee shall be in addition to the
certification fee required under K.S.A. 40-252, and amendments thereto.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2285 4
There shall be four classes of insurance for the purposes of this act:
(1) Life;
(2) accident and health;
(3) casualty and allied lines; and
(4) property and allied lines.
An insurance license may be issued as a subclassification of casualty
and allied lines to any auto rental agency. An auto rental agency may offer
or sell insurance only in connection with and incidental to the rental of
motor vehicles, whether at the rental office, at the point of delivery of a
vehicle, or by preselection of coverage in a master, corporate or group
rental agreement, in any of the following general categories:
(1) Personal accident insurance covering risks of travel;
(2) motor vehicle liability insurance;
(3) personal effects insurance providing coverage to renters and other
occupants of the motor vehicle;
(4) roadside assistance and emergency sickness protection programs;
and
(5) any other travel or auto-related coverage an auto rental company
may offer in connection with and incidental to rental of motor vehicles. No
insurance may be issued by an auto rental agency unless the rental period
of the rental agreement does not exceed 90 consecutive days and brochures
and other written material clearly and correctly explaining insurance
coverages offered by the agency are available for prospective renters and
clear and complete disclosures are provided to prospective renters that
such coverage may be duplicative of other insurance owned by the renter,
that purchase of insurance coverage is not a condition for renting a motor
vehicle and describing the process for filing a claim.
Auto rental agencies employing representatives shall conduct a training
program for each representative, providing instruction on the kinds of
insurance coverage offered by the agency.
No auto rental agency shall offer or solicit any insurance other than the
coverages described in this section without an insurance license. No auto
rental employee or auto rental agency shall advertise or otherwise hold
themselves out as licensed insurers, insurance agents or insurance brokers.
The commissioner of insurance shall adopt rules and regulations with
respect to the scope, subclassification, type and conduct of such
examination. Examinations shall be given to applicants at least twice a
month in Topeka, Kansas, and at least quarterly in other convenient
locations in the state of Kansas. The commissioner shall publish or arrange
for the publication of information and material which applicants can use to
prepare for such examination. One or more rating organizations, advisory
organizations or other associations may be designated by the
commissioner to assist in, or assume responsibility for, distribution of the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2285 5
study manuals to applicants and other interested parties. Persons
purchasing the study manual shall be charged a reasonable fee established
or approved by the commissioner. In the event the publication and
distribution of the study material or the development and conduct of
examinations is delegated to private firms, organizations or associations
and the state incurs no expense or obligation, the provisions of K.S.A. 75-
3738 through 75-3744, and amendments thereto, shall not apply. If the
commissioner of insurance finds that the individual applicant is
trustworthy, competent and has satisfactorily completed the examination,
the commissioner shall forthwith issue to the applicant a license as an
insurance agent but the issuance of such license shall confer no authority
to transact business in this state until the agent has been certified by a
company pursuant to K.S.A. 40-241i 40-4912, and amendments thereto. If
such applicant fails to satisfactorily complete the examination, the
examination may be retaken following a waiting period of not less than
seven days from the date of the last attempt. If the applicant again fails to
satisfactorily complete the examination, it may be retaken following
another waiting period of not less than seven days from the date of the
most recent attempt.
Sec. 4. K.S.A. 40-955 is hereby amended to read as follows: 40-955.
(a) Every insurer shall file with the commissioner, except as to inland
marine risks where general custom of the industry is not to use manual
rates or rating plans, every manual of classifications, rules and rates, every
rating plan, policy form and every modification of any of the foregoing
which it proposes to use. Every such filing shall indicate the proposed
effective date and the character and extent of the coverage contemplated
and shall be accompanied by the information upon which the insurer
supports the filings. A filing and any supporting information shall be open
to public inspection after it is filed with the commissioner, except that
disclosure shall not be required for any information contained in a filing or
in any supporting documentation for the filing when such information is
either a trade secret or copyrighted. For the purposes of this section, the
term "trade secret" shall have the meaning ascribed to it means the same
as defined in K.S.A. 60-3320, and amendments thereto. An insurer may
satisfy its obligations to make such filings by authorizing the
commissioner to accept on its behalf the filings made by a licensed rating
organization or another insurer. Nothing contained in this act shall be
construed to require any insurer to become a member or subscriber of any
rating organization.
(b) Certificate of insurance forms must be filed with the
commissioner of insurance and approved prior to use. Notwithstanding the
"large risk" filing exemption in subsection (j) (i), a certificate of insurance
cannot be used to modify, alter or amend the insurance policy it describes.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2285 6
The certificate of insurance shall contain the following or similar
language: The certificate of insurance neither affirmatively nor negatively
amends, extends or alters the coverage afforded by the policies listed
thereon. An industry standard setting organization may be authorized by
the commissioner of insurance to file certificate of insurance forms on
behalf of authorized insurers.
(c) Any rate filing for the basic coverage required by K.S.A. 40-3401
et seq., and amendments thereto, loss costs filings for workers
compensation, and rates for assigned risk plans established by article 21 of
chapter 40 of the Kansas Statutes Annotated or rules and regulations
established by the commissioner shall require approval by the
commissioner before its use by the insurer in this state. As soon as
reasonably possible after such filing has been made, the commissioner
shall in writing approve or disapprove the same, except that any filing
shall be deemed approved unless disapproved within 30 days of receipt of
the filing.
(d) Any other rate filing, except personal lines filings, shall become
effective on filing or any prospective date selected by the insurer, subject
to the commissioner disapproving the same if the rates are determined to
be inadequate, excessive, unfairly discriminatory or otherwise fails to meet
the requirements of this act. Personal lines rate filings shall be on file for a
waiting period of 30 days before becoming effective, subject to the
commissioner disapproving the same if the rates are determined to be
inadequate, excessive, unfairly discriminatory or otherwise fail to meet
requirements of this act. The term "personal lines" shall mean insurance
for noncommercial automobile, homeowners, dwelling fire-and-renters
insurance policies, as defined by the commissioner by rules and
regulations. A filing complies with this act unless it is disapproved by the
commissioner within the waiting period or pursuant to subsection (f).
(e) In reviewing any rate filing the commissioner may require the
insurer or rating organization to provide, at the insurer's or rating
organization's expense, all information necessary to evaluate the
reasonableness of the filing, to include payment of the cost of an actuary
selected by the commissioner to review any rate filing, if the department of
insurance does not have a staff actuary in its employ.
(f) (1) (A) If a filing is not accompanied by the information required
by this act, the commissioner shall promptly inform the company or
organization making the filing. The filing shall be deemed to be complete
when the required information is received by the commissioner or the
company or organization certifies to the commissioner the information
requested is not maintained by the company or organization and cannot be
obtained.
(B) If the commissioner finds a filing does not meet the requirements
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2285 7
of this act, the commissioner shall send to the insurer or rating
organization that made the filing, written notice of disapproval of the
filing, specifying in what respects the filing fails to comply and stating the
filing shall not become effective.
(C) If at any time after a filing becomes effective, the commissioner
finds a filing does not comply with this act, the commissioner shall after a
hearing held on not less than 10 days' written notice to every insurer and
rating organization that made the filing issue an order specifying in what
respects the filing failed to comply with the act, and stating when, within a
reasonable period thereafter, the filing shall be no longer effective. Copies
of the order shall be sent to such insurer or rating organization. The order
shall not affect any contract or policy made or issued prior to the
expiration of the period set forth in the order.
(2) (A) In the event an insurer or organization has no legally effective
rate because of an order disapproving rates, the commissioner shall specify
an interim rate at the time the order is issued. The interim rate may be
modified by the commissioner on the commissioner's own motion or upon
motion of an insurer or organization.
(B) The interim rate or any modification thereof shall take effect
prospectively in contracts of insurance written or renewed 15 days after
the commissioner's decision setting interim rates.
(C) When the rates are finally determined, the commissioner shall
order any overcharge in the interim rates to be distributed appropriately,
except refunds to policyholders the commissioner determines are de
minimis may not be required.
(3) (A) Any person or organization aggrieved with respect to any
filing that is in effect may make written application to the commissioner
for a hearing thereon, except that the insurer or rating organization that
made the filing may not proceed under this subsection. The application
shall specify the grounds to be relied on by the applicant.
(B) If the commissioner finds the application is made in good faith,
that the applicant would be so aggrieved if the applicant's grounds are
established, and that such grounds otherwise justify holding such a
hearing, the commissioner shall, within 30 days after receipt of the
application, hold a hearing on not less than 10 days' written notice to the
applicant and every insurer and rating organization that made such filing.
(C) Every rating organization receiving a notice of hearing or copy of
an order under this section, shall promptly notify all its members or
subscribers affected by the hearing or order. Notice to a rating organization
of a hearing or order shall be deemed notice to its members or subscribers.
(g) No insurer shall make or issue a contract or policy except in
accordance with filings which have been filed or approved for such insurer
as provided in this act.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2285 8
(1) On an application for personal motor vehicle insurance where the
applicant has applied for collision or comprehensive coverage, the
applicant shall be allowed to identify a lienholder listed on the certificate
of title for the motor vehicle described in the application.
(2) On an application for property insurance on real property, the
applicant shall be allowed to identify a mortgagee listed on a mortgage for
the real property described in the application.
(h) The commissioner may adopt rules and regulations to allow
suspension or modification of the requirement of filing and approval of
rates as to any kind of insurance, subdivision or combination thereof, or as
to classes of risks, the rates for which cannot practicably be filed before
they are used.
(i) Except for workers compensation and employer's liability line, the
following categories of commercial lines risks are considered special risks
which are exempt from the filing requirements in this section: (1) Risks
that are written on an excess or umbrella basis; (2) commercial risks, or
portions thereof, that are not rated according to manuals, rating plans, or
schedules including "a" rates; (3) large risks; and (4) special risks
designated by the commissioner, including but not limited to risks insured
under highly protected risks rating plans, commercial aviation, credit
insurance, boiler and machinery, inland marine, fidelity, surety and
guarantee bond insurance risks.
(j) For the purposes of this subsection, "large risk" means: (1) An
insured that has total insured property values of $5,000,000 or more; (2) an
insured that has total annual gross revenues of $10,000,000 or more; or (3)
an insured that has in the preceding calendar year a total paid premium of
$50,000 or more for property insurance, $50,000 or more for general
liability insurance, or $100,000 or more for multiple lines policies.
(k) The exemption for any large risk contained in subsection (h) (i)
shall not apply to workers compensation and employer's liability
insurance, insurance purchasing groups, and the basic coverage required
by K.S.A. 40-3401 et seq., and amendments thereto.
(l) Underwriting files, premium, loss and expense statistics, financial
and other records pertaining to special risks written by any insurer shall be
maintained by the insurer and shall be subject to examination by the
commissioner.
(m) (1) Any entity that purchases a workers compensation policy for
the covered employees of more than one employer pursuant to a shared
employment relationship with each employer must purchase the workers
compensation policy on a separate multiple coordinate policy basis. Such
workers compensation policies must be issued pursuant to K.S.A. 44-501
et seq., and amendments thereto, from an insurer holding a certificate of
authority to do business in this state and providing workers compensation
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2285 9
coverage.
(2) The commissioner of insurance may allow an insurer to issue
coverage through a master policy if the commissioner is satisfied that the
insurer is able to track and report individual client experience to the
advisory organization in an acceptable fashion. All such master policies
must be filed with the commissioner for prior approval.
(3) The commissioner of insurance shall be authorized to adopt such
rules and regulations as are reasonable and necessary to carry out the
purpose and the provisions of this subsection.
Sec. 5. K.S.A. 40-201, 40-216, 40-241 and 40-955 are hereby
repealed.
Sec. 6. This act shall take effect and be in force from and after its
publication in the statute book.
1
2
3
4
5
6
7
8
9
10
11
12
13