Kansas 2023-2024 Regular Session

Kansas House Bill HB2533 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	Session of 2024
2	2	HOUSE BILL No. 2533
3	3	By Committee on Insurance
4	4	Requested by Eric Turek on behalf of the Kansas Insurance Department
5	5	1-18
6	6	AN ACT concerning insurance; relating to examinations; requiring that
7	7	insurance examiner per diem amounts and expenses, outside consulting
8	8	and data processing fees and pro rata funding for examination
9	9	equipment and software be reasonable; establishing a tiered fee
10	10	structure for examinations of insurance companies and societies based
11	11	on gross premiums; amending K.S.A. 40-223 and repealing the existing
12	12	section.
13	13	Be it enacted by the Legislature of the State of Kansas:
14	14	Section 1. K.S.A. 40-223 is hereby amended to read as follows: 40-
15	15	223. (a) (1) Except as provided in K.S.A. 40-110 and 40-253, and
16	16	amendments thereto, any person who makes any examination under the
17	17	provisions of this act may receive, as full compensation for such person's
18	18	services, on a per diem basis an a reasonable amount fixed by the
19	19	commissioner, which that shall not exceed the amount recommended by
20	20	the national association of insurance commissioners, for such time
21	21	necessarily and actually occupied in going to and returning from the place
22	22	of such examination and for such time the examiner is necessarily and
23	23	actually engaged in making such examination including any day within the
24	24	regular workweek when the examiner would have been so engaged had the
25	25	company or society been open for business, together with such reasonably
26	26	necessary and actual expenses for traveling and subsistence as the
27	27	examiner shall incur because of the performance of such services.
28	28	(2) For the purposes of this act, "necessary and actual expenses" shall
29	29	be limited, whether for travel within the state or travel outside the state, to
30	30	those limitations expressed in K.S.A. 75-3207, and amendments thereto,
31	31	which that pertain to official travel outside the state. The daily charge shall
32	32	be calculated by dividing the amount the examiner is authorized by the
33	33	commissioner of insurance to charge per week by the number of days in
34	34	the regular workweek of the company or society being examined.
35	35	(b) (1) All of such compensation, expenses, the employer's share of
36	36	the federal insurance contributions act taxes, the employer's contribution to
37	37	the Kansas public employees retirement system as provided in K.S.A. 74-
38	38	4920, and amendments thereto, the self-insurance assessment for the
39	39	workers compensation act as provided in K.S.A. 44-576, and amendments
40	40	1
41	41	2
42	42	3
43	43	4
44	44	5
45	45	6
46	46	7
47	47	8
48	48	9
49	49	10
50	50	11
51	51	12
52	52	13
53	53	14
54	54	15
55	55	16
56	56	17
57	57	18
58	58	19
59	59	20
60	60	21
61	61	22
62	62	23
63	63	24
64	64	25
65	65	26
66	66	27
67	67	28
68	68	29
69	69	30
70	70	31
71	71	32
72	72	33
73	73	34
74	74	35 HB 2533 2
75	75	thereto, the employer's cost of the state health care benefits program under
76	76	K.S.A. 75-6507, and amendments thereto, a pro rata amount determined
77	77	by the commissioner to provide vacation and sick leave for the examiner
78	78	not to exceed the number of days allowed state officers and employees in
79	79	the classified service pursuant to regulations promulgated in accordance
80	80	with the Kansas civil service act, all reasonable outside consulting and
81	81	data processing fees necessary to perform any examination, and a
82	82	reasonable pro rata amount determined by the commissioner not to exceed
83	83	an annual aggregate of $18,000 to fund the purchase, maintenance and
84	84	enhancement of examination equipment and computer software shall be
85	85	paid to the commissioner of insurance by the insurance company or
86	86	society so examined, on demand of the commissioner.
87	87	(2) The amount paid for all costs pursuant to paragraph (1), outside
88	88	consulting and data processing fees necessary to perform any financial
89	89	examination at any one company or society, including examination of such
90	90	company's or society's subsidiaries or any combination thereof, and the pro
91	91	rata amount to fund the purchase of examination equipment and computer
92	92	software shall not collectively total more than:
93	93	(A) $50,000 for any insurance company or society which that has less
94	94	than $200,000,000 $5,000,000 in gross premiums, both direct and
95	95	assumed, in the preceding calendar year; or
96	96	(B) $500,000 for any insurance company or society which has
97	97	$200,000,000 or more in gross premiums, both direct and assumed, in the
98	98	preceding calendar year$75,000 for any insurance company or society that
99	99	has at least $5,000,000 but less than $25,000,000 in gross premiums, both
100	100	direct and assumed, in the preceding calendar year;
101	101	(C) $100,000 for any insurance company or society that has at least
102	102	$25,000,000 but less than $50,000,000 in gross premiums, both direct and
103	103	assumed, in the preceding calendar year;
104	104	(D) $125,000 for any insurance company or society that has at least
105	105	$50,000,000 but less than $100,000,000 in gross premiums, both direct
106	106	and assumed, in the preceding calendar year;
107	107	(E) $175,000 for any insurance company or society that has at least
108	108	$100,000,000 but less than $250,000,000 in gross premiums, both direct
109	109	and assumed, in the preceding calendar year;
110	110	(F) $250,000 for any insurance company or society that has at least
111	111	$250,000,000 but less than $500,000,000 in gross premiums, both direct
112	112	and assumed, in the preceding calendar year; or
113	113	(G) the actual total costs paid in connection with the examination for
114	114	any insurance company or society that has at least $500,000,000 in gross
115	115	premiums, both direct and assumed, in the preceding calendar year.
116	116	(3) The amount paid for all outside consulting and data processing
117	117	fees necessary to perform any market regulation examination at any one
118	118	1
119	119	2
120	120	3
121	121	4
122	122	5
123	123	6
124	124	7
125	125	8
126	126	9
127	127	10
128	128	11
129	129	12
130	130	13
131	131	14
132	132	15
133	133	16
134	134	17
135	135	18
136	136	19
137	137	20
138	138	21
139	139	22
140	140	23
141	141	24
142	142	25
143	143	26
144	144	27
145	145	28
146	146	29
147	147	30
148	148	31
149	149	32
150	150	33
151	151	34
152	152	35
153	153	36
154	154	37
155	155	38
156	156	39
157	157	40
158	158	41
159	159	42
160	160	43 HB 2533 3
161	161	company or society, including examination of such company's or society's
162	162	subsidiaries, or any combination thereof, and the pro rata amount to fund
163	163	the purchase of examination equipment and computer software shall be
164	164	reasonable and not collectively total more than $25,000.
165	165	(c) Such demand shall be accompanied by the sworn statement of the
166	166	person making such examination, setting forth in separate items the
167	167	number of days necessarily and actually occupied in going to and returning
168	168	from the place of such examination, the number of days the examiners
169	169	were necessarily and actually engaged in making such examination
170	170	including those days within the regular workweek while the examination
171	171	was in progress and the company or society had closed for business, and
172	172	the necessary and actual expenses for traveling and subsistence, incurred
173	173	in and on account of such services.
174	174	(d) A duplicate of every such sworn statement shall be kept on file in
175	175	the office of the commissioner of insurance. All moneys so paid to the
176	176	commissioner of insurance shall be remitted to the state treasurer in
177	177	accordance with the provisions of K.S.A. 75-4215, and amendments
178	178	thereto. Upon receipt of each such remittance, the state treasurer shall
179	179	deposit the entire amount in the state treasury to the credit of the insurance
180	180	company examination fund. The state treasurer shall issue duplicate
181	181	receipts therefor, one to be delivered to the commissioner of insurance and
182	182	the other to be filed with the director of accounts and reports.
183	183	Sec. 2. K.S.A. 40-223 is hereby repealed.
184	184	Sec. 3. This act shall take effect and be in force from and after its
185	185	publication in the statute book.
186	186	1
187	187	2
188	188	3
189	189	4
190	190	5
191	191	6
192	192	7
193	193	8
194	194	9
195	195	10
196	196	11
197	197	12
198	198	13
199	199	14
200	200	15
201	201	16
202	202	17
203	203	18
204	204	19
205	205	20
206	206	21
207	207	22
208	208	23
209	209	24
210	210	25