Session of 2024
SENATE BILL No. 423
By Committee on Financial Institutions and Insurance
1-30
AN ACT concerning insurance; reducing the number of board members
appointed by the commissioner on certain insurance-related governing
boards and the frequency of the meetings of the committee on surety
bonds and insurance; amending K.S.A. 40-2102, 40-2109, 40-3116, 40-
3413, 65-34,126 and 75-4101 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 40-2102 is hereby amended to read as follows: 40-
2102. (a) Every insurer undertaking to transact in the state of Kansas the
business of automobile and motor vehicle bodily injury and property
damage liability insurance and every rating organization which that files
rates for such insurance shall cooperate in the preparation and submission
preparing and submitting a plan to the commissioner of insurance of a
plan or plans for the equitable apportionment among insurers of applicants
for insurance who are in good faith, entitled to but who are unable to
procure through ordinary methods, such insurance. Such plan or plans
shall provide:
(a)(1) Reasonable rules governing the equitable distribution of risks
by direct insurance, reinsurance or otherwise and their assignment to
insurers, including provisions requiring, at the request of the applicant, an
immediate assumption of the risk by an insurer or insurers upon
completion of an application, payment of the specified premium and
deposit the application and the premium in the United States mail, postage
prepaid and addressed to the plan's office;
(b)(2) rates and rate modifications applicable to such risks which that
shall be reasonable, adequate and not unfairly discriminatory;
(c)(3) the limits of liability which that the insurer shall be required to
assume;
(d)(4) a method whereby by which applicants for insurance, insureds
and insurers may have a hearing on grievances and the right of appeal to
the commissioner; and
(e)(5) for every such plan or plans, there shall be a governing board
for every such plan or plans, to be appointed by the commissioner of
insurance, which shall meet at least annually to review and prescribe
operating rules, and which.
(A) Such board shall consist of the following members:
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(1) seven members who shall be appointed prior to December 31,
2024, as follows:
(i) Three of such members shall be representatives of foreign
insurance companies, two members shall be representatives of domestic
insurance companies, and two members shall be licensed independent
insurance agents. Such members shall be appointed for a term of three
years, except that the initial appointment shall include two members
appointed for a two-year term and two members appointed for a one-year
term as designated by the commissioner; and
(2)(ii) two members, representative of the general public interest,
with such members to be appointed for a term of two years.
(B) The terms of the members appointed and serving on the
governing board as of July 1, 2024, shall expire on December 31, 2024.
The commissioner shall appoint a governing board for the plan which
shall serve on and after January 1, 2025, and shall have the same powers,
duties and functions as its predecessor. On and after January 1, 2025, all
members of the governing board shall serve three-year terms, except that
such members shall be removable by the commissioner for inefficiency,
neglect of duty or malfeasance. Such board shall consist of five members
to be appointed as follows:
(i) Three members shall be representatives of insurers;
(ii) one member shall be a representative of independent insurance
agents; and
(iii) one member shall be a representative of the general public.
(C) In making appointments to the governing board, the
commissioner shall consider if foreign and domestic insurers are fairly
represented.
(b) (1) The commissioner shall review the plan as soon as reasonably
possible after filing in order to determine whether it meets the
requirements set forth in (a), (b), (c) and (d) above subsections (a)(1)
through (a)(4). As soon as reasonably possible after the plan has been
filed, the commissioner shall, in writing, approve or disapprove the same
such plan. Any plan shall be deemed approved unless disapproved within
45 days. Subsequent to the waiting period, the commissioner may
disapprove any plan on the ground grounds that it such plan does not meet
the requirements set forth in (a), (b), (c) and (d) above subsections (a)(1)
through (a)(4), but only after a hearing held upon not less than 10 days'
written notice to every insurer and rating organization affected specifying
the matter to be considered at such hearing, and only by an order
specifying in what respect the commissioner finds that such plan fails to
meet such requirements, and stating when, within a reasonable period
thereafter, such plan shall be deemed no longer effective. Such order shall
not affect any assignment made or policy issued or made prior to the
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expiration of the period set forth in such order. Amendments to such plan
or plans shall be prepared, and filed and reviewed in the same manner as
herein provided in this section with respect to the original plan or plans.
(2) If no plan meeting the standards set forth in (a), (b), (c) and (d)
subsections (a)(1) through (a)(4) is submitted to the commissioner within
the period stated in any order disapproving an existing plan, the
commissioner shall, if necessary to carry out the purpose of this section
after hearing, prepare and promulgate a plan meeting such requirements.
If, after a hearing conducted in accordance with the provisions of the
Kansas administrative procedure act, the commissioner finds that any
activity or practice of any insurer or rating organization in connection with
the operation of such plan or plans is unfair or unreasonable or otherwise
inconsistent with the provisions of this subsection, the commissioner may
issue a written order specifying in what respects such activity or practice is
unfair or unreasonable or otherwise inconsistent with the provisions of this
subsection and requiring discontinuance of such activity or practice.
Sec. 2. K.S.A. 40-2109 is hereby amended to read as follows: 40-
2109. (a) Every insurer undertaking to transact in this state the business of
either workers compensation or employer's liability insurance, or both, and
every rating organization which that files rates for such insurance shall
cooperate in the preparation and submission preparing and submitting a
plan to the commissioner of insurance of a plan or plans, for the equitable
apportionment among insurers of applicants for insurance who are in good
faith, entitled to but who are unable to procure through ordinary methods,
such insurance through ordinary methods. Such plan or plans shall
provide:
(a)(1) Reasonable rules governing the equitable distribution of risks
by direct insurance, reinsurance or otherwise and their assignment to
insurers;
(b)(2) rates and rate modifications applicable to such risks which that
shall be reasonable, adequate and not unfairly discriminatory;
(c)(3) a method whereby by which applicants for insurance, insured
and insurers may have a hearing on grievances and the right of appeal to
the commissioner; and
(d)(4) for every such plan or plans, there shall be a governing board,
for every such plan or plans, to be appointed by the commissioner of
insurance, which shall meet at least annually to review and prescribe
operating rules, and which.
(A) Such governing board shall consist of the following members:
(1) seven members who shall be appointed prior to December 31,
2024, as follows:
(i) Three of such members shall be representatives of foreign
insurance companies, and two members shall be representatives of
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domestic insurance companies, and two members shall be licensed
independent insurance agents. Such five members shall be appointed for a
term of three years, except that the initial appointment shall include two
members appointed for a two-year term and two members appointed for a
one-year term, as designated by the commissioner; and
(2)(ii) two members, representative of the general public interest,
with such members to be appointed for a term of two years.
(B) The terms of the members appointed and serving on the
governing board as of July 1, 2024, shall expire on December 31, 2024.
The commissioner shall appoint a governing board for the plan which
shall serve on and after January 1, 2025, and shall have the same powers,
duties, and functions as its predecessor. Members shall be appointed for
three-year terms except that such members shall be removable by the
commissioner for inefficiency, neglect of duty or malfeasance. Such board
shall consist of five members to be appointed as follows:
(i) Three members shall be representatives of insurance companies;
(ii) one member shall be a licensed independent insurance agent; and
(iii) one member shall be a representative of the general public
interest.
(C) In selecting the members who shall be representatives of insurers,
the commissioner shall consider whether foreign and domestic insurers
are fairly represented.
(b) (1) The commissioner shall review the plan as soon as reasonably
possible after filing in order to determine whether it meets the
requirements set forth in subsections (a)(1) and (c) above (a)(3). As soon
as reasonably possible after the plan has been filed, the commissioner
shall, in writing, approve or disapprove the same such plan, except that
any plan shall be deemed approved unless disapproved within 45 days.
Subsequent to the waiting period, the commissioner may disapprove any
plan on the ground grounds that it such plan does not meet the
requirements set forth in subsections (a), (b) and (c) above(1) through (a)
(3), but only after a hearing held upon not less than 10 days' written notice
to every insurer and rating organization affected specifying the matter to
be considered at such hearing, and only by an order specifying in what
respect the commissioner finds that such plan fails to meet such
requirements and stating when, within a reasonable period thereafter, such
plan shall be deemed no longer effective. Such order shall not affect any
assignment made or policy issued or made prior to the expiration of the
period set forth in such order. Amendments to such plan or plans shall be
prepared, and filed and reviewed in the same manner as herein provided in
this section with respect to the original plan or plans.
(2) If no plan meeting the standards set forth in subsections (a)(1), (b)
and (c) through (a)(3) is submitted to the commissioner within the period
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stated in any order, disapproving an existing plan, the commissioner shall,
if necessary to carry out the purpose of this section after hearing, prepare
and promulgate a plan meeting such requirements. When such plan or
plans or amendments thereto have been approved or promulgated, no
insurer shall thereafter issue a policy of workers compensation or
employer's liability insurance or undertake to transact such business in this
state unless such insurer shall participate in such an approved or
promulgated plan. If, after a hearing conducted in accordance with the
provisions of the Kansas administrative procedure act, the commissioner
finds that any activity or practice of any insurer or rating organization in
connection with the operation of such plan or plans is unfair or
unreasonable or otherwise inconsistent with the provisions of this section,
the commissioner may issue a written order specifying in what respects
such activity or practice is unfair or unreasonable or otherwise inconsistent
with the provisions of this section and requiring discontinuance of such
activity or practice.
(e)(c) The commissioner shall approve rates and rate modifications
for each plan that provides workers compensation insurance. This
provision shall not prohibit the application of surcharges, experience
modifications or other rating variables.
Sec. 3. K.S.A. 40-3116 is hereby amended to read as follows: 40-
3116. (a) Insurers and self-insurers are hereby directed to organize and
maintain an assigned claims plan to provide that any person, who suffers
injury in this state may obtain personal injury protection benefits through
such plan if:
(1) Personal injury protection benefits are not available to the injured
person, except that personal injury protection benefits shall not be deemed
unavailable to any person suffering injury while such person was the
operator of a motorcycle or motor-driven cycle, for which the owner
thereof has rejected personal injury protection benefits pursuant to
subsection (f) of K.S.A. 40-3107, and amendments thereto;
(2) motor vehicle liability insurance or self-insurance applicable to
the injury cannot be identified;
(3) personal injury protection benefits applicable to the injury are
inadequate to provide the contracted-for benefits because of financial
inability of an insurer or self-insurer to fulfill its obligation; however,
except that benefits available through the assigned claims plan shall be
excess over any benefits paid or payable through the Kansas insurance
guaranty association. If the personal injury protection benefits are not paid
by the Kansas insurance guaranty association within the limitation of time
specified in this act, such benefits shall be paid by the assigned claims
plan. Payments made by the assigned claims plan pursuant to this section
shall constitute covered claims under K.S.A. 40-2901 et seq., and
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amendments thereto.
(b) If a claim qualifies for assignment under this section, the assigned
claims plan or any insurer or self-insurer to whom the claim is assigned
shall be subrogated to all of the rights of the claimant against any insurer
or self-insurer, its successor in interest or substitute, legally obligated to
provide personal injury protection benefits to the claimant, for any of such
benefits provided by the assignment.
(c) A person shall not be entitled to personal injury protection
benefits through the assigned claims plan with respect to injury which that
such person has sustained if, at the time of such injury, such person was
the owner of a motor vehicle for which a policy of motor vehicle liability
insurance is required under this act and such person failed to have such
policy in effect.
(d) The assigned claims plan shall be governed by such rules and
regulations as are necessary for its operation and for the assessment of
costs, which shall be approved by the commissioner. Any claim brought
through said plan shall be assigned to an insurer or self-insurer, in
accordance with the approved regulations of operation, and such insurer or
self-insurer, after the assignment, shall have the same rights and
obligations as it would have if, prior to such assignment, it had issued a
motor vehicle liability insurance policy providing personal injury
protection benefits applicable to the loss or expenses incurred or was a
self-insurer providing such benefits. Any party accepting benefits
hereunder under this section shall have such rights and obligations as such
person would have if a motor vehicle liability insurance policy providing
personal injury protection benefits were issued to such person.
(e) No insurer shall write any motor vehicle liability insurance policy
in this state unless the insurer participates in the assigned claims plan
organized pursuant to this section, nor shall any person qualify as a self-
insurer pursuant to subsection (f) of K.S.A. 40-3104, and amendments
thereto, unless such person agrees to participate in such assigned claims
plan. Any insurer or self-insurer required to participate in the assigned
claims plan who violates this subsection shall be assessed a civil penalty of
not more than $5,000 for each policy issued or self-insurance certificate
obtained in violation thereof.
(f) (1) On and after January 1, 2025, the governing committee of the
assigned claims plan shall consist of five members, who shall be
removable by the commissioner for inefficiency, neglect of duty or
malfeasance. Members shall be appointed as follows:
(A) Three members shall be representatives of insurers;
(B) one member shall be a representative of independent insurance
agents; and
(C) one member shall be a representative of the general public.
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(2) In selecting the members who shall be representatives of insurers,
the commissioner shall consider whether foreign and domestic insurers
are fairly represented.
Sec. 4. K.S.A. 40-3413 is hereby amended to read as follows: 40-
3413. (a) Every insurer and every rating organization shall cooperate in the
preparation of a plan or plans for the equitable apportionment among such
insurers of applicants for professional liability insurance and such other
liability insurance as may be included in or added to the plan, who are, in
good faith, entitled to such insurance but are unable to procure the same
insurance through ordinary methods. Such plan or plans shall be prepared
and filed with the commissioner and the board of governors within a
reasonable time but not exceeding 60 calendar days from the effective date
of this act July 1, 1976. Such plan or plans shall provide:
(1) Reasonable rules governing the equitable distribution of risks by
direct insurance, reinsurance or otherwise including the authority to make
assessments against the insurers participating in the plan or plans;
(2) rates and rate modifications applicable to such risks which that
shall be reasonable, adequate and not unfairly discriminatory;
(3) a method whereby periodically the plan shall compare the
premiums earned to the losses and expenses sustained by the plan. If there
is any surplus of premiums over losses and expenses received for that year
such surplus shall be transferred to the fund. If there is any excess of losses
and expenses over premiums earned, such losses shall be transferred from
the fund, however except that such transfers shall not occur more often
than once each three months;
(4) the limits of liability which that the plan shall be required to
provide, but in no event shall except that such limits shall not be less than
those limits provided for in subsection (a) of K.S.A. 40-3402, and
amendments thereto;
(5) a method whereby by which applicants for insurance, insureds and
insurers may have a hearing on grievances and the right of appeal to the
commissioner.
(b) (1) For every such plan or plans, there shall be a governing board
which that shall meet at least annually to review and prescribe operating
rules. Prior to December 31, 2024, such board of directors shall consist of
nine members to be appointed, for terms of four years, by the
commissioner as follows:
(1)(A) Two members who shall be representatives of foreign insurers;
(2)(B) two members who shall be representatives of domestic
insurers;
(3)(C) two members who shall be health care healthcare providers;
(4)(D) one member who shall be a licensed insurance agent actively
engaged in the solicitation of casualty insurance;
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(5)(E) one member who shall be the chairperson of the board of
governors or the chairperson's designee; and
(6)(F) one member who shall be a representative of the general
public.
(2) The members of the governing board appointed on or before July
1, 2024, shall serve their current terms which shall expire on December
31, 2024. On and after January 1, 2025, the board of directors shall
consist of five members, who shall be appointed for a term of four years
except that such members shall be removable by the commissioner for
inefficiency, neglect of duty or malfeasance as follows:
(A) One member who shall be a representative of foreign insurers;
(B) one member who shall be a representative of domestic insurers;
(C) one member who shall be a healthcare provider;
(D) one member who shall be a licensed insurance agent engaged in
the solicitation of casualty insurance; and
(E) one member who shall be the chairperson of the board of
directors or the chairperson's designee.
(c) The commissioner and board of directors shall review the plan as
soon as reasonably possible after filing in order to determine whether it
such plan meets the requirements set forth in subsection (a). As soon as
reasonably possible after the plan has been filed, the commissioner,
consistent with the recommendations of the board of directors, shall, in
writing, approve or disapprove the plan. Any plan shall be deemed
approved unless disapproved within 30 days. Subsequent to the waiting
period the commissioner may disapprove any plan on the ground grounds
that it such plan does not meet the requirements set forth in subsection (a),
but only after a hearing held upon not less than 10 days' written notice to
every insurer and rating organization affected specifying in what respect
the commissioner finds that such plan fails to meet such requirements, and
stating when, within a reasonable period thereafter, such plan shall be
deemed no longer effective. Such order shall not affect any assignment
made or policy issued or made prior to the expiration of the period set
forth in the order. Amendments to such plan or plans shall be prepared, and
filed and reviewed in the same manner as herein provided in this section
with respect to the original plan or plans.
(d) If no plan meeting the standards set forth in subsection (a) is
submitted to the commissioner and board of directors within 60 calendar
days from the effective date of this act July 1, 1982, or within the period
stated in any order disapproving an existing plan, the commissioner with
the assistance of the board of directors shall after a hearing, if necessary to
carry out the purpose of this act, prepare and promulgate a plan meeting
such requirements.
(e) If, after a hearing conducted in accordance with the provisions of
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the Kansas administrative procedure act, the commissioner and board of
directors find that any activity or practice of any insurer or rating
organization in connection with the operation of such plan or plans is
unfair or unreasonable or otherwise inconsistent with the provisions of this
act, the commissioner and board of directors may issue a written order
specifying in what respects such activity or practice is unfair or
unreasonable or otherwise inconsistent with the provisions of this act and
requiring discontinuance of such activity or practice.
(f) An insurer participating in the plan approved by the commissioner
may pay a commission with respect to insurance written under the plan to
an insurance agent licensed for any other insurer participating in the plan
or to any insurer participating in the plan. Such commission shall be
reasonably equivalent to the usual customary commission paid on similar
types of policies issued in the voluntary market.
(g) Notwithstanding the provisions of K.S.A. 40-3402, and
amendments thereto, the plan shall make available policies of professional
liability insurance covering prior acts. Such professional liability insurance
policies shall have limits of coverage not exceeding $1,000,000 per claim,
subject to not more than $3,000,000 annual aggregate liability for all
claims made as a result of personal injury or death arising out of the
rendering of or the failure to render professional services within this state
on or before December 31, 2014. Such professional liability insurance
policies shall be made available only to physician assistants licensed by
the state board of healing arts, licensed advanced practice registered nurses
authorized by the state board of nursing to practice as an advanced practice
registered nurse in the classification of a nurse-midwife, nursing facilities
licensed by the state of Kansas, assisted living facilities licensed by the
state of Kansas and residential health care facilities licensed by the state of
Kansas that will be in compliance with K.S.A. 40-3402, and amendments
thereto, on January 1, 2015. The premiums for such professional liability
insurance policies shall be based upon reasonably prudent actuarial
principles. The provisions of this subsection shall expire on January 1,
2016.
Sec. 5. K.S.A. 65-34,126 is hereby amended to read as follows: 65-
34,126. (a) The commissioner of insurance shall adopt and implement a
plan for applicants for insurance who are in good faith entitled to
insurance necessary to achieve compliance with the financial
responsibility requirements for third-party liability imposed by 40 C.F.R.
part 280, subpart H, and part 281 adopted by the federal environmental
protection agency. Insurers undertaking to transact the kinds of insurance
specified in subsection (b) or (c) of K.S.A. 40-1102, and amendments
thereto, and rating organizations which that file rates for such insurance
shall cooperate in the preparation and submission to the commissioner of
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insurance of a plan or plans for the insurance specified in this section.
Such plan shall provide:
(1) Insurance necessary to achieve compliance with the financial
responsibility requirements for third-party liability imposed by 40 C.F.R.
part 280, subpart H, and part 281;
(2) for the appointment by the plan of a servicing carrier which that
shall be:
(A) An insurance company authorized to transact business in this
state;
(B) an insurance company which that is listed with the commissioner
pursuant to K.S.A. 40-246e, and amendments thereto; or
(C) a risk retention group, as defined by K.S.A. 40-4101, and
amendments thereto, which that meets the requirements established under
the federal liability risk retention act of 1986 (, 15 U.S.C. 3901 et seq.),
and has registered with the commissioner pursuant to K.S.A. 40-4103, and
amendments thereto;
(3) reasonable rules governing the plan, including provisions
requiring, at the request of the applicant, an immediate assumption of the
risk by an insurer or insurers upon completion of an application, payment
of the specified premium and deposit of the application and the premium
in the United States mail, postage prepaid and addressed to the plan's
office;
(4) rates and rate modifications applicable to such risks, which rates
shall be established as provided by subsection (b);
(5) the limits of liability which that the insurer shall be required to
assume;
(6) coverage for only underground storage tanks located within this
state;
(7) coverage for at least 12 months from the date of the original
application with respect to any underground storage tank which that has
been installed for less than 10 years, and may provide such coverage with
respect to any such tank which that has been installed 10 or more years,
without requiring tank integrity tests, soil tests or other tests for
insurability if, within six months immediately preceding application for
insurance, the tank has been made to comply with all provisions of federal
and state law, and all applicable rules and regulations adopted pursuant
thereto, but the plan may provide for renewal or continuation of such
coverage to be contingent upon satisfactory evidence that the tank or tanks
to be insured continue to be in compliance with such laws and rules and
regulations;
(8) exclusion from coverage of any damages for noneconomic loss
and any damages resulting from intentional acts of the insured or agents of
the insured;
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43 SB 423 11
(9) to the extent allowed by law, subrogation of the insurer to all
rights of recovery from other sources for damages covered by the plan or
plans;
(10) an optional deductible of the first $2,500, $5,000 or $10,000 of
liability per occurrence at any one location for compensation of third
parties for bodily injury and property damage caused by either gradual or
sudden and accidental releases from underground petroleum storage tanks,
but no such deductible shall apply to reasonable and necessary attorney
fees and other reasonable and necessary expenses incurred in defending a
claim for such compensation;
(11) coverage only of claims for occurrences that commenced during
the term of the policy and that are discovered and reported to the insurer
during the policy period or within six months after the effective date of the
cancellation or termination of the policy;
(12) a method whereby applicants for insurance, insureds and
insurers may have a hearing on grievances and the right of appeal to the
commissioner;
(13) a method whereby adequate reserves are established for open
claims and claims incurred but not reported based on advice from an
independent actuary retained by the plan at least annually, the cost of
which shall be borne by the plan;
(14) a method whereby the plan shall compare the premiums earned
to the losses and expenses sustained by the plan for the preceding fiscal
year and if, for that year:
(A) There is any excess of losses and expenses over premiums
earned, plus amounts transferred pursuant to subsection (a)(15), an amount
equal to such excess losses and expenses shall be transferred from the
underground fund established by K.S.A. 65-34,114, and amendments
thereto, to the plan; or
(B) there is any surplus of premiums earned, plus amounts transferred
pursuant to subsection (a)(15), over losses, including loss reserves, and
expenses sustained, 1/2
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/2 of such surplus shall be transferred to such fund
from the plan and the remaining 1/2
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/2 of such surplus shall be refunded
from the plan to the insureds in proportion to the amount each paid into the
plan during the preceding fiscal year; and
(15) a method whereby by which, during any fiscal year, whenever
the losses and expenses sustained by the plan exceed premiums earned, an
amount equal to the excess of losses and expenses shall be transferred
from the underground fund established by K.S.A. 65-34,114, and
amendments thereto, to the plan upon receipt by the secretary of health and
environment of evidence, satisfactory to the secretary, of the amount of the
excess losses and expenses.
(b) The commissioner of insurance shall establish rates, effective
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January 1 of each year, for coverage provided under the plan adopted
pursuant to this section. Such rates shall be reasonable, adequate and not
unfairly discriminatory. Such rates shall be based on loss and expense
experience developed by risks insured by the plan and shall be in an
amount deemed sufficient by the commissioner to fund anticipated claims
based upon reasonably prudent actuarial principles, except that:
(1) Due consideration shall be given to the loss and expense
experience developed by similar plans operating or trust funds offering
third party liability coverage in other states and the voluntary market; and
(2) before January 1, 1992, the annual rate shall be not more than
$500 for each tank for which coverage is provided under the plan with
selection of a $10,000 deductible.
In establishing rates pursuant to this subsection, the commissioner shall
establish, as appropriate, lower rates for tanks complying with all federal
standards, including design, construction, installation, operation and
release detection standards, with which such tanks are or will be required
to comply by 40 C.F.R. part 280 as in effect on the effective date of this act
May 17, 1990.
(c) (1) The commissioner of insurance shall appoint a governing
board for the plan. Members shall be appointed for terms of three years,
except that the initial appointment shall include two members appointed
for two-year terms and one member appointed for a one-year term, as
designated by the commissioner. The governing board shall meet at least
annually to review and prescribe operating rules of the plan. Prior to
December 31, 2024, such board shall consist of five members to be
appointed as follows:
(A) One representing domestic or foreign insurance companies,;
(B) one representing independent insurance agents,;
(C) one representing underground storage tank owners and operators;
and
(D) two representing the general public. No member representing the
general public shall be, or be affiliated with, an insurance company,
independent insurance agent or underground storage tank operator.
(2) Members shall be appointed for terms of three years, except that
the initial appointment shall include two members appointed for two-year
terms and one member appointed for a one-year term, as designated by the
commissionerThe terms of the members of the governing board serving as
of July 1, 2024, shall expire on December 31, 2024.
(3) The commissioner shall appoint a governing board for the plan,
to serve on and after January 1, 2025. Members shall be appointed for
terms of three years except that such members shall be removable by the
commissioner for inefficiency, neglect of duty or malfeasance. The
governing board shall meet at least annually to review and prescribe
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operating rules of the plan. Such board shall consist of three members to
be appointed as follows:
(A) One member representing domestic or foreign insurance
companies;
(B) one representing independent insurance agents; and
(C) one representing underground storage tank owners and
operators.
(d) Before adoption of a plan pursuant to this section, the
commissioner of insurance shall hold a hearing thereon.
(e) An insurer participating in the plan adopted by the commissioner
of insurance pursuant to this section may pay a commission with respect to
insurance assigned under the plan to an agent licensed for any other
insurer participating in the plan or to any insurer participating in the plan.
(f) The commissioner of insurance may adopt such rules and
regulations as necessary to administer the provisions of this section.
(g) The department of health and environment and the plan shall
provide to each other such information as necessary to implement and
administer the provisions of this section. Any such information which that
is confidential while in the possession of the department or plan shall
remain confidential after being provided to the other pursuant to this
subsection.
(h) This section shall be a part of and supplemental to the Kansas
storage tank act.
Sec. 6. K.S.A. 75-4101 is hereby amended to read as follows: 75-
4101. (a) There is hereby created a committee on surety bonds and
insurance, which shall consist of the state treasurer, the attorney general
and the commissioner of insurance or their respective designees. The
commissioner of insurance shall be the chairperson of the committee and
the director of purchases or the director's designee shall be the ex officio
secretary. The committee shall meet upon the call of the chairperson and at
such other times as the committee shall determine but at least once each
month on the second Monday in each month. Meetings shall be held in the
office of the commissioner of insurance. The members of the committee
shall serve without compensation. The secretary shall be the custodian of
all property, records and proceedings of the committee. Except as provided
in this section and K.S.A. 74-4925, 74-4927, 75-6501 through 75-6511
and 76-749, and amendments thereto, no state agency shall purchase any
insurance of any kind or nature or any surety bonds upon state officers or
employees, except as provided in this act. Except as otherwise provided in
this section, health care healthcare coverage and health care healthcare
services of a health maintenance organization for state officers and
employees designated under K.S.A. 75-6501(c), and amendments thereto,
shall be provided in accordance with the provisions of K.S.A. 75-6501
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through 75-6511, and amendments thereto.
(b) The Kansas turnpike authority may purchase group life, health
and accident insurance or health care services of a health maintenance
organization for its employees or members of the highway patrol assigned,
by contract or agreement entered pursuant to K.S.A. 68-2025, and
amendments thereto, to police toll or turnpike facilities, independent of the
committee on surety bonds and insurance and of the provisions of K.S.A.
75-6501 through 75-6511, and amendments thereto. Such authority may
purchase liability insurance covering all or any part of its operations and
may purchase liability and related insurance upon all vehicles owned or
operated by the authority independent of the committee on surety bonds
and insurance and such insurance may be purchased without complying
with K.S.A. 75-3738 through 75-3744, and amendments thereto. Any
board of county commissioners may purchase such insurance or health
care services, independent of such committee, for district court officers
and employees any part of whose total salary is payable by the county.
Nothing in any other provision of the laws of this state shall be construed
as prohibiting members of the highway patrol so assigned to police toll or
turnpike facilities from receiving compensation in the form of insurance or
health maintenance organization coverage as herein authorized.
(c) The agencies of the state sponsoring a foster grandparent or senior
companion program, or both, shall procure a policy of accident, personal
liability and excess automobile liability insurance insuring volunteers
participating in such programs against loss in accordance with
specifications of federal grant guidelines. Such agencies may purchase
such policy of insurance independent of the committee on surety bonds
and insurance and without complying with K.S.A. 75-3738 through 75-
3744, and amendments thereto.
(d) Any state educational institution as defined by K.S.A. 76-711, and
amendments thereto, may purchase insurance of any kind or nature except
employee health insurance. Such insurance shall be purchased on a
competitively bid or competitively negotiated basis in accordance with
procedures prescribed by the state board of regents. Such insurance may
be purchased independent of the committee on surety bonds and insurance
and without complying with K.S.A. 75-3738 through 75-3744, and
amendments thereto.
(e) (1) The state board of regents may enter into one or more group
insurance contracts to provide health and accident insurance coverage or
health care services of a health maintenance organization for all students
attending a state educational institution as defined in K.S.A. 76-711, and
amendments thereto, and such students' dependents, except that such
insurance shall not provide coverage for elective procedures that are not
medically necessary as determined by a treating physician. The
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participation by a student in such coverage shall be voluntary. In the case
of students who are employed by a state educational institution in a student
position, the level of employer contributions toward such coverage shall be
determined by the board of regents.
(2) The state board of regents is hereby authorized to independently
provide, through self-insurance or the purchase of insurance contracts,
health care benefits for employees of a state educational institution, as
such term is defined in K.S.A. 76-711, and amendments thereto, when the
state health care benefits program is insufficient to satisfy the requirements
of 22 C.F.R. § 62.14, as in effect upon the effective date of this section
April 13, 2017. Such healthcare benefits shall be limited to only those for
whom the state health care benefits program does not meet federal
requirements.
(3) The state board of regents may purchase cybersecurity insurance
as it deems necessary to protect student records, labor information and
other statutorily protected data that the board maintains, independent of the
committee on surety bonds and insurance and without complying with the
provisions of K.S.A. 75-3738 through 75-3744, and amendments thereto.
As used in this paragraph, "cybersecurity insurance" includes, but is not
limited to, first-party coverage against losses such as data destruction,
denial of service attacks, theft, hacking and liability coverage guaranteeing
compensation for damages from errors such as the failure to safeguard
data.
(4) The state board of regents may adopt rules and regulations
necessary to administer and implement the provisions of this section.
Sec. 7. K.S.A. 40-2102, 40-2109, 40-3116, 40-3413, 65-34,126 and
75-4101 are hereby repealed.
Sec. 8. This act shall take effect and be in force from and after its
publication in the statute book.
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