As Amended by House Committee
Session of 2023
SENATE BILL No. 27
By Committee on Financial Institutions and Insurance
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AN ACT concerning insurance; relating to the uniform insurance agents
licensure act; public adjusters licensing act; authorizing the
commissioner of insurance to set the amount of certain fees; requiring
information obtained from background checks, fingerprinting and
criminal history records checks be used solely for the purpose of
verifying the identification of an applicant and the fitness of an
applicant to be issued a license as an insurance agent; amending K.S.A.
40-4905, 40-4906 and 40-5505 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 40-4905 is hereby amended to read as follows: 40-
4905. (a) Subject to the provisions of K.S.A. 40-4904, and amendments
thereto, it shall be unlawful for any person to sell, solicit or negotiate any
insurance within this state unless such person has been issued a license as
an insurance agent in accordance with this act.
(b) Any person applying for a resident insurance agent license shall
make application on a form prescribed by the commissioner. The applicant
shall declare under penalty of perjury that the statements made in the
application are true, correct and complete to the best of the applicant's
knowledge and belief. Before approving the application, the commissioner
shall determine that the applicant:
(1) Is at least 18 years of age;
(2) has not committed any act that is grounds for denial pursuant to
this section or suspension or revocation pursuant to K.S.A. 40-4909, and
amendments thereto;
(3) has paid a nonrefundable fee in the amount of set by the
commissioner in an amount not to exceed $30; and
(4) has successfully passed the examination for each line of authority
for which the applicant has applied.
(c) If the applicant is a business entity, then, in addition to the
requirements of subsection (a), the commissioner shall also determine the
name and address of a licensed agent who shall be responsible for the
business entity's compliance with the insurance laws of this state and the
rules and regulations promulgated thereunder.
(d) The commissioner may require the applicant to furnish any
document or other material reasonably necessary to verify the information
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contained in an application.
(e) Each insurer that sells, solicits or negotiates any form of limited
line credit insurance shall provide a program of instruction that may be
approved by the commissioner to each individual employed by or acting
on behalf of such insurer to sell, solicit or negotiate limited line credit
insurance.
(f) (1) Each person or entity licensed in this state as an insurance
agent shall report the following to the commissioner within 30 calendar
days of occurrence:
(A) Each disciplinary action on the agent's license or licenses by the
insurance regulatory agency of any other state or territory of the United
States;
(B) each disciplinary action on an occupational license held by the
licensee, other than an insurance agent's license, by the appropriate
regulatory authority of this or any other jurisdiction;
(C) each judgment or injunction entered against the licensee on the
basis of a violation of any insurance law or conduct involving fraud, deceit
or misrepresentation;
(D) all details of any conviction of a misdemeanor or felony other
than minor traffic violations. The details shall include the name of the
arresting agency, the location and date of the arrest, the nature of the
charge or charges, the court in which the case was tried and the disposition
rendered by the court;
(E) each change of name. If the change of name is effected by court
order, a copy of the court order shall be furnished to the commissioner;
(F) each change in residence or mailing address, email address or
telephone number;
(G) each change in the name or address of the agency with which the
agent is associated; and
(H) each termination of a business relationship with an insurer if the
termination is for cause, including the reason for the termination of the
business relationship with such insurer.
(2) Each person or entity licensed in this state as an insurance agent
shall provide to the commissioner, upon request, a current listing of
company affiliations and affiliated insurance agents.
(3) Each business entity licensed in this state as an insurance agent
shall report each change in legal or mailing address, email address and
telephone number to the commissioner within 30 days of occurrence.
(4) Each business entity licensed in this state as an insurance agent
shall report each change in the name and address of the licensed agent who
shall be responsible for the business entity's compliance with the insurance
laws of this state to the commissioner within 30 days of occurrence.
(g) Any applicant whose application for a license is denied shall be
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given an opportunity for a hearing in accordance with the provisions of the
Kansas administrative procedure act.
(h) (1) The commissioner may require a person applying for a
resident insurance agent license to be fingerprinted and submit to a state
and national criminal history record check. The fingerprints shall be used
to identify the applicant and to determine whether the applicant has a
record of criminal arrests and convictions in this state or other
jurisdictions. The commissioner is authorized to submit the fingerprints to
the Kansas bureau of investigation and the federal bureau of investigation
for a state and national criminal history record check. Local and state law
enforcement officers and agencies shall assist the commissioner in the
taking and processing of fingerprints of applicants and shall release all
records of an applicant's arrests and convictions to the commissioner.
(2) The commissioner may conduct, or have a third party conduct, a
background check on a person applying for a resident insurance agent
license.
(3) Whenever the commissioner requires fingerprinting, a
background check, or both, any associated costs shall be paid by the
applicant.
(4) The commissioner may shall use the information obtained from a
background check, fingerprinting and the applicant's criminal history only
for purposes of verifying the identification of any applicant and in the
official determination of the fitness of the applicant to be issued a license
as an insurance agent in accordance with this act.
(5) A person applying for a resident insurance agent license who has
been fingerprinted and has submitted to a state and national criminal
history record check within the past 12 months in connection with the
successful issuance or renewal of any other state-issued license may
submit proof of such good standing to the commissioner in lieu of
submitting to the fingerprinting and criminal history record checks
described in subsections (h)(1) and (h)(2).
(i) Not later than December 1 of each year, the commissioner shall
set and publish in the Kansas register the application fee required
pursuant to subsection (b) for the next calendar year.
Sec. 2. K.S.A. 40-4906 is hereby amended to read as follows: 40-
4906. (a) Unless denied licensure pursuant to K.S.A. 40-4909, and
amendments thereto, a nonresident person shall receive a nonresident
agent license if:
(1) Such person is currently licensed as a resident and in good
standing in such person's home state;
(2) such person has submitted the proper request for licensure and has
paid to the commissioner a nonrefundable application fee of not to exceed
$30 and a biennial fee of not to exceed $50;
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(3) such person has submitted or transmitted to the commissioner of
insurance a copy of the application for licensure that such person
submitted to such person's home state, or in lieu of the same, a completed
application on a form prescribed by the commissioner; and
(4) such person's home state awards a nonresident agent license to
residents of this state on the same basis.
(b) The commissioner may verify the insurance agent's licensing
status through the producer database maintained by the NAIC, its affiliates
or subsidiaries.
(c) (1) Any nonresident agent who is licensed in this state and who
moves from one state to another state or a resident agent who moves from
this state to another state shall file with the commissioner within 30 days a
change of address and provide certification from the new resident state.
(2) Any insurance agent who resides in this state and who moves
from this state to another state shall file with the commissioner within 30
days a change of address and provide certification from the new resident
state.
(3) No fee or license application shall be required for any filing
required by this subsection.
(d) Subject to the provisions of subsection (a), any person licensed as
a surplus lines agent in such person's home state shall receive a
nonresident surplus lines agent license. Except as provided in subsection
(a), nothing in this section shall be construed to amend or supersede any
provision of K.S.A. 40-246b, and amendments thereto.
(e) Subject to the provisions of subsection (a), any person licensed as
a limited line credit insurance or other type of limited lines agent in such
person's home state shall receive a nonresident limited lines agent license
in this state granting the same scope of authority as granted under the
license issued by the such insurance agent's home state.
(f) Not later than December 1 of each year, the commissioner shall
set and publish in the Kansas register the application fee required
pursuant to subsection (a) for the next calendar year.
Sec. 3. K.S.A. 40-5505 is hereby amended to read as follows: 40-
5505. (a) Before issuing a public adjuster license to an applicant under the
public adjusters licensing act, the commissioner shall find that the
applicant:
(1) Is eligible to designate this state as the applicant's home state or is
a nonresident who is not eligible for a license under K.S.A. 40-5508, and
amendments thereto;
(2) has not committed any act that is a ground for denial, suspension
or revocation of a license as set forth in K.S.A. 40-5510, and amendments
thereto;
(3) is trustworthy, reliable and of good reputation, evidence of which
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may be determined by the commissioner;
(4) is financially responsible to exercise the rights and privileges
under the license and has provided proof of financial responsibility as
required in K.S.A. 40-5511, and amendments thereto;
(5) has paid an application fee of not to exceed $100; and
(6) maintains an office in the home state with public access during
regular business hours or by reasonable appointment.
(b) In addition to satisfying the requirements of subsection (a), an
applicant shall:
(1) Be at least 18 years of age; and
(2) have successfully passed the public adjuster examination.
(c) The commissioner may require any documents reasonably
necessary to verify the information contained in the application.
(d) (1) The commissioner may require a person applying for a public
adjuster license to be fingerprinted and submit to a state and national
criminal history record check or to submit to a background check, or both.
(A) The fingerprints shall be used to identify the applicant and to
determine whether the applicant has a record of criminal history in this
state or another jurisdiction. The commissioner shall submit the
fingerprints to the Kansas bureau of investigation and the federal bureau of
investigation for a state and national criminal history record check. Local
and state law enforcement officers and agencies shall assist the
commissioner in the taking and processing of fingerprints of applicants
and shall release all records of an applicant's arrests and convictions to the
commissioner.
(B) The commissioner may conduct or have a third party conduct a
background check on a person applying for a public adjuster license.
(2) Whenever the commissioner requires fingerprinting or a
background check, or both, any associated costs shall be paid by the
applicant.
(3) The commissioner may use the information obtained from a
background check, fingerprinting and the applicant's criminal history only
for purposes of verifying the identity of the applicant and in the official
determination of the fitness of the applicant to be issued a license as a
public adjuster in accordance with the public adjusters licensing act.
(e) Not later than December 1 of each year, the commissioner shall
set and publish in the Kansas register the application fees required
pursuant to subsection (a) for the next calendar year.
Sec. 4. K.S.A. 40-4905, 40-4906 and 40-5505 are hereby repealed.
Sec. 5. This act shall take effect and be in force from and after its
publication in the statute book Kansas register.
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