Kansas 2025-2026 Regular Session

Kansas House Bill HB2048 Compare Versions

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1	1	Session of 2025
2	2	HOUSE BILL No. 2048
3	3	By Committee on Insurance
4	4	Requested by Eric Turek, Kansas Insurance Department
5	5	1-21
6	6	AN ACT concerning insurance; relating to the powers, duties and
7	7	responsibilities of the commissioner; eliminating the requirement that
8	8	the commissioner submit certain reports to the governor; removing
9	9	certain specific entities from the definition of person for the purpose of
10	10	enforcing insurance law; amending K.S.A. 40-108 and 40-2253 and
11	11	K.S.A. 2024 Supp. 40-2,125 and repealing the existing sections.
12	12	Be it enacted by the Legislature of the State of Kansas:
13	13	Section 1. K.S.A. 40-108 is hereby amended to read as follows: 40-
14	14	108. The commissioner of insurance shall make an annual report to the
15	15	governor of the general conduct and condition of the insurance companies,
16	16	including fraternal benefit societies, doing business in this state. The
17	17	commissioner of insurance shall keep and preserve in a permanent form a
18	18	full record of the commissioner's proceedings, including a concise
19	19	statement of the condition of each company reported, visited or examined
20	20	by the commissioner.
21	21	Sec. 2. K.S.A. 2024 Supp. 40-2,125 is hereby amended to read as
22	22	follows: 40-2,125. (a) If the commissioner determines after notice and
23	23	opportunity for a hearing that any person has engaged or is engaging in
24	24	any act or practice constituting a violation of any provision of Kansas
25	25	insurance statutes or any rule and regulation or order thereunder, the
26	26	commissioner may, in the exercise of discretion, order any one or more of
27	27	the following:
28	28	(1) Payment of a monetary penalty of not more than $1,000 for each
29	29	and every act or violation, unless the person knew or reasonably should
30	30	have known that such person was in violation of the Kansas insurance
31	31	statutes or any rule and regulation or order thereunder, in which case the
32	32	penalty shall be not more than $2,000 for each and every act or violation;
33	33	(2) suspension or revocation of the person's license or certificate if
34	34	such person knew or reasonably should have known that such person was
35	35	in violation of the Kansas insurance statutes or any rule and regulation or
36	36	order thereunder; or
37	37	(3) that such person cease and desist from the unlawful act or practice
38	38	and take such affirmative action as that, in the judgment of the
39	39	commissioner, will carry out the purposes of the violated or potentially
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75	75	violated provision.
76	76	(b) If any person fails to file any report or other information with the
77	77	commissioner as required by statute or fails to respond to any proper
78	78	inquiry of the commissioner, the commissioner, after notice and
79	79	opportunity for hearing, may impose a civil penalty of up to $1,000, for
80	80	each violation or act, along with an additional penalty of up to $500 for
81	81	each week thereafter that such report or other information is not provided
82	82	to the commissioner.
83	83	(c) If the commissioner makes written findings of fact that there is a
84	84	situation involving an immediate danger to the public health, safety or
85	85	welfare or the public interest will be irreparably harmed by delay in
86	86	issuing an order under subsection (a)(3), the commissioner may issue an
87	87	emergency temporary cease and desist order. Such order, even when not an
88	88	order within the meaning of K.S.A. 77-502, and amendments thereto, shall
89	89	be subject to the same procedures as an emergency order issued under
90	90	K.S.A. 77-536, and amendments thereto. Upon the entry of such an order,
91	91	the commissioner shall promptly notify the person subject to the order
92	92	that: (1) It Such order has been entered; (2) the reasons therefor; and (3)
93	93	that upon written request within 15 days after service of the order, the
94	94	matter will be set for a hearing, which shall be conducted in accordance
95	95	with the provisions of the Kansas administrative procedure act. If no
96	96	hearing is requested and none is ordered by the commissioner, the order
97	97	will remain in effect until it is modified or vacated by the commissioner. If
98	98	a hearing is requested or ordered, the commissioner, after notice of and
99	99	opportunity for hearing to the person subject to the order, shall, by written
100	100	findings of fact and conclusions of law vacate, modify or make permanent
101	101	the order.
102	102	(d) For purposes of this section:
103	103	(1) "Person" means any individual, corporation, association,
104	104	partnership, reciprocal exchange, inter-insurer, Lloyd's insurer, fraternal
105	105	benefit society and any other legal entity engaged in the business of
106	106	insurance, rating organization, third party administrator, nonprofit dental
107	107	service corporation, nonprofit medical and hospital service corporation,
108	108	automobile club, premium financing company, health maintenance
109	109	organization, insurance holding company, mortgage guaranty insurance
110	110	company, risk retention or purchasing group, prepaid legal and dental
111	111	service plan, captive insurance company, automobile self-insurer or
112	112	reinsurance intermediary and any other legal entity under the jurisdiction
113	113	of the commissioner. The term "person" does not include insurance agents
114	114	and brokers as such terms are defined in K.S.A. 40-4902, and amendments
115	115	thereto.
116	116	(2) "Commissioner" means the commissioner of insurance of this
117	117	state.
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161	161	Sec. 3. K.S.A. 40-2253 is hereby amended to read as follows: 40-
162	162	2253. (a) The commissioner of insurance shall devise universal forms to be
163	163	utilized by every insurance company, including health maintenance
164	164	organizations where applicable, offering any type of accident and sickness
165	165	policy covering individuals residing in this state for the purpose of
166	166	receiving every claim under such policy by persons covered thereunder. In
167	167	the preparation of such forms, the commissioner may confer with
168	168	representatives of insurance companies, health maintenance organizations,
169	169	trade associations and other interested parties. Upon completion and final
170	170	adoption of such forms by the commissioner, the commissioner shall
171	171	notify those companies affected by sending them a copy of such forms and
172	172	an explanation of the requirements of this section. Every such company
173	173	shall implement utilization of such forms not later than six months
174	174	following the date of the commissioner's notification.
175	175	(b) An accident and sickness insurer may not refuse to accept a claim
176	176	submitted on duly promulgated uniform claim forms. An insurer may
177	177	accept claims submitted on any other form.
178	178	(c) An accident and sickness insurer does not violate subsection (a)
179	179	by using a document that the accident and sickness insurer has been
180	180	required to use by the federal government or the state.
181	181	(d) The commissioner of insurance shall report to the governor and to
182	182	the legislature, no later than the commencement of the 1993 regular
183	183	session of the Kansas legislature, regarding the development of uniform
184	184	electronic data interchange formats and standards, along with a proposed
185	185	plan, including an analysis of the cost impact thereof.
186	186	Sec. 4. K.S.A. 40-108 and 40-2253 and K.S.A. 2024 Supp. 40-2,125
187	187	are hereby repealed.
188	188	Sec. 5. This act shall take effect and be in force from and after its
189	189	publication in the statute book.
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