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Kansas House Bill HB2049

Kansas 2025-2026 Regular Session

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11 Session of 2025
22 HOUSE BILL No. 2049
33 By Committee on Insurance
44 Requested by Eric Turek, Kansas Insurance Department
55 1-21
66 AN ACT concerning insurance; relating to licensing requirements for
77 insurance agents and public adjusters; pertaining to suspension,
88 revocation, denial of licensure and licensure renewal; amending K.S.A.
99 40-5510 and K.S.A. 2024 Supp. 40-4909 and repealing the existing
1010 sections.
1111 Be it enacted by the Legislature of the State of Kansas:
1212 Section 1. K.S.A. 2024 Supp. 40-4909 is hereby amended to read as
1313 follows: 40-4909. (a) The commissioner may deny, suspend, revoke or
1414 refuse renewal of any license issued under this act if the commissioner
1515 finds that the applicant or license holder has:
1616 (1) Provided incorrect, misleading, incomplete or untrue information
1717 in the license application.
1818 (2) Violated:
1919 (A) Any provision of chapter 40 of the Kansas Statutes Annotated,
2020 and amendments thereto, or any rules and regulations promulgated
2121 thereunder;
2222 (B) any subpoena or order of the commissioner;
2323 (C) any insurance law or regulation of another state; or
2424 (D) any subpoena or order issued by the regulatory official for
2525 insurance in another state.
2626 (3) Obtained or attempted to obtain a license under this act through
2727 misrepresentation or fraud.
2828 (4) Improperly withheld, misappropriated or converted any moneys
2929 or properties received in the course of doing insurance business.
3030 (5) Intentionally misrepresented the provisions, terms and conditions
3131 of an actual or proposed insurance contract or application for insurance.
3232 (6) Been convicted of a misdemeanor or felony.
3333 (7) Admitted to or been found to have committed any insurance
3434 unfair trade practice or fraud in violation of K.S.A. 40-2404, and
3535 amendments thereto.
3636 (8) Used any fraudulent, coercive, or dishonest practice, or
3737 demonstrated any incompetence, untrustworthiness or financial
3838 irresponsibility in the conduct of business in this state or elsewhere.
3939 (9) Had an insurance agent license, public adjuster license, securities
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7575 registration, or its their equivalent, denied, suspended or revoked in any
7676 state, district or territory.
7777 (10) Forged another person's name to an application for insurance or
7878 to any document related to an insurance transaction.
7979 (11) Improperly used notes or any other reference material to
8080 complete an examination for an insurance license issued under this act.
8181 (12) Knowingly accepted insurance business from an individual who
8282 is not licensed.
8383 (13) Failed to comply with any administrative or court order
8484 imposing a child support obligation upon the applicant or license holder.
8585 (14) Failed to pay any state income tax or comply with any
8686 administrative or court order directing payment of state income tax.
8787 (15) Except as otherwise permitted by law, rebated the whole or any
8888 part of any insurance premium or offered in connection with the
8989 presentation of any contract of insurance any other inducement not
9090 contained in the contract of insurance.
9191 (16) Made any misleading representation or incomplete comparison
9292 of policies to any person for the purposes of inducing or tending to induce
9393 such person to lapse, forfeit or surrender such person's insurance then in
9494 force.
9595 (17) Failed to respond to an inquiry from the commissioner within 15
9696 business days.
9797 (b) In addition, the commissioner may deny, suspend, revoke or
9898 refuse renewal of any license issued under this act if the commissioner
9999 finds that the interests of the insurer or the insurable interests of the public
100100 are not properly served under such license.
101101 (c) (1) When considering whether to deny, suspend, revoke or refuse
102102 to renew the application of an individual who has been convicted of a
103103 misdemeanor or felony, the commissioner shall consider the:
104104 (A) Applicant's age at the time of the conduct;
105105 (B) recency of the conduct;
106106 (C) reliability of the information concerning the conduct;
107107 (D) seriousness of the conduct;
108108 (E) factors underlying the conduct;
109109 (F) cumulative effect of the conduct or information;
110110 (G) evidence of rehabilitation;
111111 (H) applicant's social contributions since the conduct;
112112 (I) applicant's candor in the application process; and
113113 (J) materiality of any omissions or misrepresentations.
114114 (2) In determining whether to reinstate or grant to an applicant a
115115 license that has been revoked, the commissioner shall consider the:
116116 (A) Present moral fitness of the applicant;
117117 (B) demonstrated consciousness by the applicant of the wrongful
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161161 conduct and disrepute that the conduct has brought to the insurance
162162 profession;
163163 (C) extent of the applicant's rehabilitation;
164164 (D) seriousness of the original conduct;
165165 (E) applicant's conduct subsequent to discipline;
166166 (F) amount of time that has elapsed since the original discipline;
167167 (G) applicant's character, maturity and experience at the time of
168168 revocation; and
169169 (H) applicant's present competence and skills in the insurance
170170 industry.
171171 (d) Any action taken under this section that affects any license or
172172 imposes any administrative penalty shall be taken only after notice and an
173173 opportunity for a hearing conducted in accordance with the provisions of
174174 the Kansas administrative procedure act.
175175 (e) The license of any business entity may be suspended, revoked or
176176 refused renewal if the insurance commissioner finds that any violation
177177 committed by an individual licensee employed by or acting on behalf of
178178 such business entity was known by or should have been known by one or
179179 more of the partners, officers or managers acting on behalf of the business
180180 entity and:
181181 (1) Such violation was not reported to the insurance commissioner by
182182 such business entity; or
183183 (2) such business entity failed to take any corrective action.
184184 (f) None of the following actions shall deprive the commissioner of
185185 any jurisdiction or right to institute or proceed with any disciplinary
186186 proceeding against such license, to render a decision suspending, revoking
187187 or refusing to renew such license, or to establish and make a record of the
188188 facts of any violation of law for any lawful purpose:
189189 (1) The imposition of an administrative penalty under this section;
190190 (2) the lapse or suspension of any license issued under this act by
191191 operation of law;
192192 (3) the licensee's failure to renew any license issued under this act; or
193193 (4) the licensee's voluntary surrender of any license issued under this
194194 act. No such disciplinary proceeding shall be instituted against any
195195 licensee after the expiration of two years from the termination of the
196196 license.
197197 (g) Whenever the commissioner imposes any administrative penalty
198198 or denies, suspends, revokes or refuses renewal of any license pursuant to
199199 subsection (a), any costs incurred as a result of conducting an
200200 administrative hearing authorized under the provisions of this section shall
201201 be assessed against the person who is the subject of the hearing or any
202202 business entity represented by such person who is the party to the matters
203203 giving rise to the hearing. As used in this subsection, "costs" shall include
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247247 includes witness fees, mileage allowances, any costs associated with the
248248 reproduction of documents that become a part of the hearing record and
249249 the expense of making a record of the hearing.
250250 (h) No person whose license as an agent or broker had been
251251 suspended or revoked shall be employed by any insurance company doing
252252 business in this state either directly, indirectly, as an independent
253253 contractor or otherwise to negotiate or effect contracts of insurance,
254254 suretyship or indemnity or perform any act toward the solicitation of or
255255 transaction of any business of insurance during the period of such
256256 suspension or revocation.
257257 (i) In lieu of taking any action under subsection (a), the commissioner
258258 may:
259259 (1) Censure the person; or
260260 (2) issue an order imposing an administrative penalty up to a
261261 maximum of $500 for each violation but not to exceed $2,500 for the same
262262 violation occurring within any six consecutive calendar months from the
263263 date of the original violation unless such person knew or should have
264264 known that the violative act could give rise to disciplinary action under
265265 subsection (a). If such person knew or reasonably should have known the
266266 violative act could give rise to any disciplinary proceeding authorized by
267267 subsection (a), the commissioner may impose a penalty up to a maximum
268268 of $1,000 for each violation but not to exceed $5,000 for the same
269269 violation occurring within any six consecutive calendar months from the
270270 date of the imposition of the original administrative penalty.
271271 (j) (1) An applicant to whom a license has been denied after a hearing
272272 shall not apply again for a license again until after the expiration of a
273273 period of one year from the date of the commissioner's order.
274274 (2) A licensee whose license was revoked shall not apply again for a
275275 license again until after the expiration of a period of two years from the
276276 date of the commissioner's order.
277277 Sec. 2. K.S.A. 40-5510 is hereby amended to read as follows: 40-
278278 5510. (a) The commissioner may suspend, revoke or refuse to issue or
279279 renew a public adjuster's license for any of the following causes:
280280 (1) Providing incorrect, misleading, incomplete or materially untrue
281281 information in the license application;
282282 (2) violating:
283283 (A) Any provision of chapter 40 of the Kansas Statutes Annotated,
284284 and amendments thereto, or any rule and regulation promulgated
285285 thereunder;
286286 (B) any subpoena or order of the commissioner;
287287 (C) any insurance law or regulation of another state; or
288288 (D) any subpoena or order issued by the regulatory official for
289289 insurance in another state;
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333333 (3) obtaining or attempting to obtain a license through
334334 misrepresentation or fraud;
335335 (4) misappropriating, converting or improperly withholding any
336336 monies or properties received in the course of doing insurance business;
337337 (5) intentionally misrepresenting the terms of an actual or proposed
338338 insurance contract or application for insurance;
339339 (6) having been convicted of a misdemeanor or felony;
340340 (7) having admitted or committed any insurance unfair trade practice
341341 or insurance fraud;
342342 (8) using fraudulent, coercive or dishonest practices or demonstrating
343343 incompetence, untrustworthiness or financial irresponsibility in the
344344 conduct of business in this state or elsewhere;
345345 (9) having an insurance license, public adjuster license, securities
346346 registration or its their equivalent, denied, suspended or revoked in any
347347 other state, province, district or territory;
348348 (10) forging another's name to an application for insurance or to any
349349 document related to an insurance transaction;
350350 (11) cheating, including improperly using notes or any other
351351 reference material, to complete an examination for an insurance license;
352352 (12) knowingly accepting insurance business from an individual who
353353 is not licensed but who is required to be licensed by the commissioner;
354354 (13) failing to comply with an administrative or court order imposing
355355 a child support obligation upon the applicant or license holder; or
356356 (14) failing to pay state income tax or comply with any administrative
357357 or court order directing payment of state income tax; or
358358 (15) failing to respond to an inquiry from the commissioner within 15
359359 days.
360360 (b) In addition, the commissioner may deny, suspend, revoke or
361361 refuse renewal of a public adjuster's license if the commissioner finds that
362362 the interests of the public are not properly served under such license. Any
363363 action taken under this section which affects any license or imposes any
364364 administrative penalty shall be taken only after notice and an opportunity
365365 for a hearing conducted in accordance with the Kansas administrative
366366 procedure act.
367367 (c) In lieu of any action under subsection (a), the commissioner may:
368368 (1) Censure the individual; or
369369 (2) issue an order imposing an administrative penalty up to a
370370 maximum of $500 for each violation, but not to exceed $2,500 for the
371371 same violation occurring within any six consecutive calendar months from
372372 the date of the original violation, unless such person knew or should have
373373 known that the violative act could give rise to disciplinary action under
374374 subsection (a). If such person knew or reasonably should have known the
375375 violative act could give rise to any disciplinary proceeding authorized by
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419419 subsection (a), the commissioner may impose a penalty up to a maximum
420420 of $1,000 for each violation, but not to exceed $5,000 for the same
421421 violation occurring within any six consecutive calendar months from the
422422 date of the original violation.
423423 (d) (1) When considering whether to deny, suspend, revoke or refuse
424424 to renew the application of an individual who has been convicted of a
425425 misdemeanor or felony, the commissioner shall consider the:
426426 (A) Applicant's age at the time of the conduct;
427427 (B) recency of the conduct;
428428 (C) reliability of the information concerning the conduct;
429429 (D) seriousness of the conduct;
430430 (E) factors underlying the conduct;
431431 (F) cumulative effect of the conduct or the information;
432432 (G) evidence of rehabilitation;
433433 (H) applicant's social contributions since the conduct;
434434 (I) applicant's candor in the application process; and
435435 (J) materiality of any omissions or misrepresentations.
436436 (2) In determining whether to reinstate or grant to an applicant a
437437 license that has been revoked, the commissioner shall consider the:
438438 (A) Present moral fitness of the applicant;
439439 (B) demonstrated consciousness by the applicant of the wrongful
440440 conduct and disrepute that the conduct has brought to the insurance
441441 profession;
442442 (C) extent of the applicant's rehabilitation;
443443 (D) seriousness of the original conduct;
444444 (E) applicant's conduct subsequent to discipline;
445445 (F) amount of time that has elapsed since the original discipline;
446446 (G) applicant's character, maturity and experience at the time of
447447 revocation; and
448448 (H)  applicant's present competence and skills in the insurance
449449 industry.
450450 (e) Any action taken under this section that affects any license or
451451 imposes any administrative penalty shall be taken only after notice and an
452452 opportunity for a hearing conducted in accordance with the provisions of
453453 the Kansas administrative procedure act.
454454 (d)(f) The commissioner shall remit all such fines collected under
455455 subsection (c) to the state treasurer in accordance with the provisions of
456456 K.S.A. 75-4215, and amendments thereto. Upon receipt of each such
457457 remittance, the state treasurer shall deposit the entire amount in the state
458458 treasury to the credit of the state general fund.
459459 (g) Whenever the commissioner imposes any administrative penalty
460460 or denies, suspends, revokes or refuses renewal of any license pursuant to
461461 subsection (a), any costs incurred as a result of conducting an
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505505 administrative hearing authorized under the provisions of this section
506506 shall be assessed against the person who is the subject of the hearing or
507507 any business entity represented by such person who is the party to the
508508 matters giving rise to the hearing. As used in this subsection, "costs"
509509 includes witness fees, mileage allowances, any costs associated with the
510510 reproduction of documents that become a part of the hearing record and
511511 the expense of making a record of the hearing.
512512 (h) No person whose license as a public adjuster had been suspended
513513 or revoked shall be employed by any insurance company doing business in
514514 this state either directly, indirectly, as an independent contractor or
515515 otherwise to negotiate or effect contracts of insurance, suretyship or
516516 indemnity or perform any act toward the solicitation or transaction of any
517517 business of insurance during the period of such suspension or revocation.
518518 (e)(i) The commissioner shall retain the authority to enforce the
519519 provisions of and impose any penalty or remedy authorized by this act
520520 against any individual who is under investigation for or charged with a
521521 violation of this act, even if the individual's license or registration has been
522522 surrendered or has lapsed by operation of law.
523523 (j) (1) An applicant to whom a license has been denied after a
524524 hearing shall not apply again for a license until after the expiration of a
525525 period of one year from the date of the commissioner's order.
526526 (2) A licensee whose license was revoked shall not apply again for a
527527 license until after the expiration of a period of two years from the date of
528528 the commissioner's order.
529529 Sec. 3. K.S.A. 40-5510 and K.S.A. 2024 Supp. 40-4909 are hereby
530530 repealed.
531531 Sec. 4. This act shall take effect and be in force from and after its
532532 publication in the statute book.
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