| Old | New | Differences | |
|---|---|---|---|
| 1 | + | Session of 2025 | |
| 1 | 2 | HOUSE BILL No. 2050 | |
| 2 | - | AN ACT concerning insurance; relating to the powers, duties and responsibilities of the | |
| 3 | - | commissioner of insurance; authorizing the commissioner of insurance to set the | |
| 4 | - | amount of certain fees; requiring the publication of certain fees in the Kansas | |
| 5 | - | register; reducing the number of board members appointed by the commissioner of | |
| 6 | - | insurance on certain insurance-related boards and the frequency of the meetings of | |
| 7 | - | the committee on surety bonds and insurance; renaming the Kansas insurance | |
| 8 | - | department as the Kansas department of insurance; requiring the commissioner of | |
| 9 | - | insurance to maintain a list of eligible nonadmitted insurers; authorizing certain | |
| 10 | - | nonadmitted insurers to transact business in Kansas with vehicle dealers and to | |
| 11 | - | provide excess coverage insurance on Kansas risks; renaming the office of the | |
| 12 | - | securities commissioner as the department of insurance assistant commissioner, | |
| 13 | - | securities division; eliminating the requirement that the senate confirm the | |
| 14 | - | department of insurance assistant commissioner, securities division appointee; | |
| 15 | - | amending K.S.A. 8-2405, 40-205a, 40-218, 40-246b, 40-246e, 40-252, 40-2,133, 40- | |
| 16 | - | 504, 40-956, 40-2102, 40-2109, 40-22a04, 40-2604, 40-2702, 40-3116, 40-3213, 40- | |
| 17 | - | 3304, 40-3413, 40-3812, 40-3813, 40-3814, 40-4103, 40-4116, 40-4323, 40-4334, | |
| 18 | - | 40-4503, 40-5003, 40-5509 and 75-4101 and K.S.A. 2024 Supp. 40-102, 40-3823, | |
| 19 | - | 40-3824, 40-4209, 40-4302, 40-4903 and 75-6301 and repealing the existing | |
| 20 | - | sections; also repealing K.S.A. 40-3217, 75-6302, 75-6303, 75-6304, 75-6305, 75- | |
| 21 | - | 6306 and 75-6307. | |
| 3 | + | By Committee on Insurance | |
| 4 | + | Requested by Eric Turek, Kansas Insurance Department | |
| 5 | + | 1-21 | |
| 6 | + | AN ACT concerning insurance; relating to the powers, duties and | |
| 7 | + | responsibilities of the commissioner of insurance; authorizing the | |
| 8 | + | commissioner of insurance to set the amount of certain fees; requiring | |
| 9 | + | the publication of certain fees in the Kansas register; amending K.S.A. | |
| 10 | + | 40-205a, 40-218, 40-252, 40-2,133, 40-504, 40-956, 40-22a04, 40- | |
| 11 | + | 2604, 40-2702, 40-3213, 40-3304, 40-3812, 40-3813, 40-3814, 40- | |
| 12 | + | 4103, 40-4116, 40-4323, 40-4334, 40-4503, 40-5003 and 40-5509 and | |
| 13 | + | K.S.A. 2024 Supp. 40-3823, 40-3824, 40-4209, 40-4302 and 40-4903 | |
| 14 | + | and repealing the existing sections; also repealing K.S.A. 40-3217. | |
| 22 | 15 | Be it enacted by the Legislature of the State of Kansas: | |
| 23 | - | New Section 1. (a) The Kansas insurance department, as | |
| 24 | - | established by K.S.A. 42-102, and amendments thereto, is hereby | |
| 25 | - | renamed the Kansas department of insurance. All powers, duties and | |
| 26 | - | functions of the Kansas insurance department are hereby transferred | |
| 27 | - | and imposed upon the Kansas department of insurance. | |
| 28 | - | (b) Whenever the Kansas insurance department, or words of like | |
| 29 | - | effect, are referred to or designated by a statute, contract or other | |
| 30 | - | document, and such reference or designation is in regard to any | |
| 31 | - | function, power or duty of the Kansas insurance department, such | |
| 32 | - | reference or designation shall be deemed to apply to the Kansas | |
| 33 | - | department of insurance. | |
| 34 | - | (c) All rules and regulations, order and directives of the | |
| 35 | - | commissioner of insurance of the Kansas insurance department that are | |
| 36 | - | in effect on July 1, 2025, shall continue to be effective and shall be | |
| 37 | - | deemed to be rules and regulations, orders and directives of the | |
| 38 | - | commissioner of insurance of the Kansas department of insurance until | |
| 39 | - | amended, revoked or nullified pursuant to law. | |
| 40 | - | New Sec. 2. (a) (1) The office of the securities commissioner of | |
| 41 | - | Kansas, as established by K.S.A. 75-6301, and amendments thereto, is | |
| 42 | - | hereby renamed the department of insurance, securities division. All | |
| 43 | - | powers, duties and functions of the office of the securities | |
| 44 | - | commissioner of Kansas are hereby transferred and imposed upon the | |
| 45 | - | department of insurance, securities division. | |
| 46 | - | (2) The securities commissioner is hereby renamed the department | |
| 47 | - | of insurance assistant commissioner, securities division. All powers, | |
| 48 | - | duties and functions of the securities commissioner are hereby | |
| 49 | - | transferred and imposed upon the department of insurance assistant | |
| 50 | - | commissioner, securities division. | |
| 51 | - | (b) (1) Whenever the office of the securities commissioner of | |
| 52 | - | Kansas, or words of like effect, are referred to or designated by a | |
| 53 | - | statute, contract or other document, and such reference or designation is | |
| 54 | - | in regard to any function, power or duty of the office of the securities | |
| 55 | - | commissioner of Kansas, such reference or designation shall be deemed | |
| 56 | - | to apply to the department of insurance, securities division. | |
| 57 | - | (2) Whenever the securities commissioner, or words of like effect, | |
| 58 | - | are referred to or designated by statute, contract or other document, and | |
| 59 | - | such reference or designation is in regard to any function, power or | |
| 60 | - | duty of the securities commissioner of Kansas, such reference or | |
| 61 | - | designation shall be deemed to apply to the department of insurance | |
| 62 | - | assistant commissioner, securities division. | |
| 63 | - | (c) All rules and regulations, orders and directives of the securities | |
| 64 | - | commissioner of Kansas that are in effect on July 1, 2025, shall | |
| 65 | - | continue to be effective and shall be deemed to be rules and | |
| 66 | - | regulations, orders and directives of the department of insurance | |
| 67 | - | assistant commissioner, securities division until amended, revoked or | |
| 68 | - | nullified pursuant to law. HOUSE BILL No. 2050—page 2 | |
| 69 | - | Sec. 3. K.S.A. 8-2405 is hereby amended to read as follows: 8- | |
| 70 | - | 2405. No dealer's license shall be issued or renewed unless the | |
| 71 | - | applicant or holder of the license shall have on file with the division an | |
| 72 | - | approved insurance policy, issued by an insurance carrier authorized to | |
| 73 | - | transact business within the state of Kansas or issued by an eligible | |
| 74 | - | nonadmitted insurer pursuant to K.S.A. 40-246e, and amendments | |
| 75 | - | thereto. The term of the such policy shall be continuous and shall | |
| 76 | - | remain in full force and effect until canceled under proper notice. All | |
| 77 | - | policies must shall be issued in the name of the holder or applicant for | |
| 78 | - | the vehicle dealer's license and shall provide public liability and | |
| 79 | - | property damage insurance for the operation of any vehicle by | |
| 80 | - | prospective purchasers, owned or being offered for sale by the dealer | |
| 81 | - | when being operated by the owner or seller, the seller's agent, servants, | |
| 82 | - | employees, prospective customers or other persons. The limits of | |
| 83 | - | liability shall correspond to the amount required by law in this state for | |
| 84 | - | bodily injury or death of any one person, bodily injury or death in any | |
| 85 | - | one accident and property damage. Such insurance, when issued by an | |
| 86 | - | authorized insurer, may not be cancelled unless 30 days' notice by the | |
| 87 | - | insurance carrier has been given in writing to the director. Upon the | |
| 88 | - | effective date of cancellation of any insurance policy required under | |
| 89 | - | this section, the license to engage in business as a dealer shall be void. | |
| 90 | - | Sec. 4. K.S.A. 2024 Supp. 40-102 is hereby amended to read as | |
| 91 | - | follows: 40-102. There is hereby established a department to be known | |
| 92 | - | as the Kansas department of insurance department, and such | |
| 93 | - | department shall have a. The chief officer entitled of the department | |
| 94 | - | shall be the commissioner of insurance. The commissioner of insurance | |
| 95 | - | shall be charged with the administration of all laws relating to | |
| 96 | - | insurance, insurance companies and fraternal benefit societies doing | |
| 97 | - | business in this state and all other duties that are or may be imposed | |
| 98 | - | upon such officer by law. | |
| 99 | - | Sec. 5. K.S.A. 40-205a is hereby amended to read as follows: 40- | |
| 100 | - | 205a. (a) No person shall do perform any act toward selling the stock | |
| 101 | - | of any insurance company or health maintenance organization unless | |
| 102 | - | such person first obtains from the commissioner of insurance written | |
| 103 | - | authority to engage in the business of selling the stock of such | |
| 104 | - | company. Such applicant shall first be appointed in writing by the | |
| 105 | - | president or secretary of the company for which such applicant intends | |
| 106 | - | to sell stock. The applicant for such license shall file with the | |
| 107 | - | commissioner of insurance the applicant's written application for a | |
| 108 | - | license authorizing the applicant to engage in the business of selling | |
| 109 | - | such stock. The applicant shall make sworn answers to such | |
| 110 | - | interrogatories as the commissioner of insurance shall require. The fee | |
| 111 | - | charged for the issuance of such license shall be not exceed $100 and | |
| 112 | - | shall be paid to the commissioner of insurance by the company | |
| 113 | - | requesting such license. | |
| 114 | - | (b) Not later than December 1 of each year, the commissioner | |
| 115 | - | shall set and cause to be published in the Kansas register the fee | |
| 116 | - | required pursuant to this section for the next calendar year. | |
| 117 | - | Sec. 6. K.S.A. 40-218 is hereby amended to read as follows: 40- | |
| 118 | - | 218. (a) Every insurance company, or fraternal benefit society, on | |
| 119 | - | applying for authority to transact business in this state, and as a | |
| 120 | - | condition precedent to obtaining such authority, shall file in the | |
| 121 | - | insurance department its irrevocable written consent, irrevocable, that | |
| 122 | - | any action or garnishment proceeding may be commenced against such | |
| 123 | - | company or fraternal benefit society in the proper court of any county | |
| 124 | - | in this state in which the cause of action shall arise or in which the | |
| 125 | - | plaintiff may reside by the service of process on the commissioner of | |
| 126 | - | insurance of this state, and stipulating and agreeing that such service | |
| 127 | - | shall be taken and held in all courts to be as valid and binding as if due | |
| 128 | - | service had been made upon the president or chief officer of such | |
| 129 | - | corporation. Such consent shall be executed by the president and | |
| 130 | - | secretary of the company and shall be accompanied by a duly certified | |
| 131 | - | copy of the order or resolution of the board of directors, trustees or | |
| 132 | - | managers authorizing the president and secretary to execute the same. HOUSE BILL No. 2050—page 3 | |
| 133 | - | The summons or order of garnishment, accompanied by a fee of not to | |
| 134 | - | exceed $25, shall be directed to the commissioner of insurance, and | |
| 135 | - | shall require the defendant or garnishee to answer or otherwise respond | |
| 136 | - | by a certain day, not less than 40 days from the date the summons or | |
| 137 | - | order of garnishment is served on the commissioner. Not later than | |
| 138 | - | December 1 of each year, the commissioner shall set and cause to be | |
| 139 | - | published in the Kansas register the fee required pursuant to this | |
| 140 | - | subsection for the next calendar year. | |
| 141 | - | (b) Service on the commissioner of insurance of any process, | |
| 142 | - | notice or demand against an insurance company or fraternal benefit | |
| 143 | - | society shall be made by delivering to and leaving with the | |
| 144 | - | commissioner or the commissioner's designee, the original of the | |
| 145 | - | process and two copies of the process and the petition, notice of | |
| 146 | - | demand, or the clerk of the court may send the original process and two | |
| 147 | - | copies of both the process and petition, notice or demand directly to the | |
| 148 | - | commissioner by certified mail, return receipt requested. In the event | |
| 149 | - | that any process, notice or demand is served on the commissioner, the | |
| 150 | - | commissioner shall immediately cause a copy thereof to be forwarded | |
| 151 | - | by certified mail, return receipt requested to the insurance company or | |
| 152 | - | fraternal benefit society address to its general agent if such agent | |
| 153 | - | resides in this state or to the secretary of the insurance company or | |
| 154 | - | fraternal benefit society sued at its registered or principal office in any | |
| 155 | - | state in which it is domesticated. The commissioner of insurance shall | |
| 156 | - | make return of the summons to the court from whence it issued, | |
| 157 | - | showing the date of its receipt, the date of forwarding such copies, and | |
| 158 | - | the name and address of each person to whom a copy was forwarded. | |
| 159 | - | Such return shall be under the hand and seal of office, and shall have | |
| 160 | - | the same force and effect as a due and sufficient return made on process | |
| 161 | - | directed to a sheriff. The commissioner of insurance shall keep a | |
| 162 | - | suitable record in which shall be docketed every action commenced | |
| 163 | - | against an insurance company, the time when commenced, the date and | |
| 164 | - | manner of service; also the date of the judgment, its amount and costs, | |
| 165 | - | and the date of payment thereof, which shall be certified from time to | |
| 166 | - | time by the clerk of the court. | |
| 167 | - | Sec. 7. K.S.A. 40-246b is hereby amended to read as follows: 40- | |
| 168 | - | 246b. (a) Upon receipt of a proper application, the commissioner of | |
| 169 | - | insurance may issue an excess lines coverage license to any licensed | |
| 170 | - | property and casualty agent of this state or any other state. Any agent so | |
| 171 | - | licensed may negotiate for insureds whose home state is this state, the | |
| 172 | - | types of contracts of fire insurance enumerated in K.S.A. 40-901, and | |
| 173 | - | amendments thereto, and the type of casualty insurance contracts | |
| 174 | - | enumerated in K.S.A. 40-1102, and amendments thereto, or | |
| 175 | - | reinsurance, or to place risks, or to effect insurance or reinsurance for | |
| 176 | - | persons or corporations other than such agent, with insurers not | |
| 177 | - | authorized to do business in this state nonadmitted insurers eligible | |
| 178 | - | pursuant to K.S.A. 40-246e, and amendments thereto. An agent, as | |
| 179 | - | defined in K.S.A. 40-4902, and amendments thereto, may place the | |
| 180 | - | kind or kinds of business specified in this act for which such agent is | |
| 181 | - | licensed pursuant to K.S.A. 40-4903 and subsection (d) of 40-4906, and | |
| 182 | - | amendments thereto, with an insurer not authorized to do business in | |
| 183 | - | this state eligible nonadmitted insurer by placing such business with a | |
| 184 | - | person licensed pursuant to the provisions of this act and may share in | |
| 185 | - | the applicable commissions on such business. Before any such license | |
| 186 | - | shall be issued, the applicant shall submit proper application on a form | |
| 187 | - | prescribed by the commissioner, which application shall be | |
| 188 | - | accompanied by a fee of $50. Such license shall be renewable each year | |
| 189 | - | on May 1, upon the payment of a $50 fee. | |
| 190 | - | (b) The agent so licensed shall on or before March 1 of each year, | |
| 191 | - | file with the insurance department of this state, a sworn affidavit or | |
| 192 | - | statement to the effect that, after diligent effort, such agent has been | |
| 193 | - | unable to secure the amount of insurance required to protect the | |
| 194 | - | property, person, or firm described in such agent's affidavit or statement | |
| 195 | - | from loss or damage in regularly admitted companies during the | |
| 196 | - | preceding year. Mere rate differential shall not be grounds for placing a HOUSE BILL No. 2050—page 4 | |
| 197 | - | particular risk in with a nonadmitted carrier insurer when an admitted | |
| 198 | - | carrier insurer would accept such risk at a different rate. The licensed | |
| 199 | - | excess coverage agent must shall, prior to placing insurance with an | |
| 200 | - | eligible nonadmitted insurer not authorized to do business in this state, | |
| 201 | - | obtain the written consent of the prospective named insured and | |
| 202 | - | provide such insured the following information in a form promulgated | |
| 203 | - | by the commissioner: | |
| 204 | - | (1) A statement that the coverage will be obtained from an insurer | |
| 205 | - | not authorized to do business in this state eligible nonadmitted insurer; | |
| 206 | - | (2) a statement that the insurer's name appears on the list of | |
| 207 | - | companies maintained by the commissioner insurer is eligible pursuant | |
| 208 | - | to K.S.A. 40-246e, and amendments thereto; | |
| 209 | - | (3) a notice that the insurer's financial condition, policy forms, | |
| 210 | - | rates and trade practices are not subject to the review or jurisdiction of | |
| 211 | - | the commissioner; | |
| 212 | - | (4) a statement that the protection of the guaranty associations is | |
| 213 | - | not afforded to policyholders of the insurer; and | |
| 214 | - | (5) a statement or notice with respect to any other information | |
| 215 | - | deemed necessary by the commissioner pertinent to insuring with an | |
| 216 | - | insurer not authorized to do business in this state eligible nonadmitted | |
| 217 | - | insurer. | |
| 218 | - | (c) In the event the insured desires that coverage be bound with an | |
| 219 | - | insurer not admitted to this state eligible nonadmitted insurer and it is | |
| 220 | - | not possible to obtain the written consent of the insured prior to binding | |
| 221 | - | the coverage, the excess lines agent may bind the coverage after | |
| 222 | - | advising the insured of the information set out above and shall obtain | |
| 223 | - | written confirmation that the insured desires that coverage be placed | |
| 224 | - | with an insurer not admitted to this state eligible nonadmitted insurer | |
| 225 | - | within 30 days after binding coverage. | |
| 226 | - | (d) (1) When business comes to a licensed excess lines agent in | |
| 227 | - | which this state is the home state for placement with an insurer not | |
| 228 | - | authorized to do business in this state eligible nonadmitted insurer from | |
| 229 | - | an agent not licensed as an excess lines agent, it shall be the | |
| 230 | - | responsibility of the licensed excess lines agent to ascertain that the | |
| 231 | - | insured has been provided the preceding information and has consented | |
| 232 | - | to being insured with an insurer not authorized to do business in this | |
| 233 | - | state eligible nonadmitted insurer. Each excess lines agent shall keep a | |
| 234 | - | separate record book in such agent's office showing the transactions of | |
| 235 | - | fire and casualty insurance and reinsurance placed in companies not | |
| 236 | - | authorized to do business in this state eligible nonadmitted insurers, the | |
| 237 | - | amount of gross premiums charged thereon, the insurer with which the | |
| 238 | - | policy was placed, the date, term and number of the policy, the location | |
| 239 | - | and nature of the risk, the name of the insured and such other | |
| 240 | - | information as the commissioner may require and such record shall be | |
| 241 | - | available at all times for inspection by the commissioner of insurance | |
| 242 | - | or the commissioner's authorized representatives. The commissioner | |
| 243 | - | may revoke or suspend any license issued pursuant to the provisions of | |
| 244 | - | this act in the same manner and for the same reasons prescribed by | |
| 245 | - | K.S.A. 40-4909, and amendments thereto. | |
| 246 | - | (2) Any policy issued under the provisions of this statute shall | |
| 247 | - | have stamped or endorsed in a prominent manner thereon, the | |
| 248 | - | following: This policy is issued by an insurer not authorized to do | |
| 249 | - | business eligible nonadmitted insurer in Kansas and, as such, the form, | |
| 250 | - | financial condition and rates are not subject to review by the | |
| 251 | - | commissioner of insurance and the insured is not protected by any | |
| 252 | - | guaranty fund. | |
| 253 | - | (3) If business is placed with a nonadmitted company that is | |
| 254 | - | subsequently determined to be insolvent, the excess lines agent placing | |
| 255 | - | such business with such company is relieved of any responsibility to | |
| 256 | - | the insured as it relates to such insolvency, if the excess lines agent has | |
| 257 | - | satisfactorily complied with all requirements of this section pertaining | |
| 258 | - | to notification of the insured, has properly obtained the written consent | |
| 259 | - | of the insured and has used due diligence in selecting the insurer. It | |
| 260 | - | shall be presumed that due diligence was used in selecting the insurer if HOUSE BILL No. 2050—page 5 | |
| 261 | - | such insurer was on the list compiled pursuant to K.S.A. 40-246e, and | |
| 262 | - | amendments thereto, at the time coverage first became effective. | |
| 263 | - | Sec. 8. K.S.A. 40-246e is hereby amended to read as follows: 40- | |
| 264 | - | 246e. (a) The commissioner shall maintain a list of insurers not | |
| 265 | - | authorized to do business in this state eligible nonadmitted insurers for | |
| 266 | - | review by any interested person. Only those insurers who have filed a | |
| 267 | - | certified copy of their most recent annual statement with the | |
| 268 | - | commissioner in the form prescribed by K.S.A. 40-225, and | |
| 269 | - | amendments thereto, or, if domiciled outside the United States, have | |
| 270 | - | filed their most recent annual statement with the national association of | |
| 271 | - | insurance commissioners may appear on the list. No excess lines agent | |
| 272 | - | shall place insurance on a Kansas domiciled risk with an insurer whose | |
| 273 | - | name does not appear on this list. No company shall appear on the list | |
| 274 | - | whose capital or surplus as shown on the annual statement does not | |
| 275 | - | equal or exceed $4,500,000 $15,000,000. Individual unincorporated | |
| 276 | - | insurers not listed by the national association of insurance | |
| 277 | - | commissioners may appear on the list if they are authorized to transact | |
| 278 | - | an insurance business in at least one state of the United States, and | |
| 279 | - | possess assets which that are held in trust for the benefit of American | |
| 280 | - | policyholders in the sum of not less than $50,000,000 and pay the filing | |
| 281 | - | fee required by this section. Insurance exchanges who that issue | |
| 282 | - | contracts on behalf of their members and pay the filing fee required by | |
| 283 | - | this section may appear on the list if their individual members have a | |
| 284 | - | capital or surplus equal to or in excess of $1,500,000 and the aggregate | |
| 285 | - | capital or surplus of all members of the exchange is at least | |
| 286 | - | $15,000,000. A nonrefundable filing fee of $200 shall be required of | |
| 287 | - | any insurer submitting its annual statement for review by the | |
| 288 | - | commissioner for inclusion on such list. | |
| 289 | - | (b) The commissioner shall remove an insurer's name from the | |
| 290 | - | listing only when: (a) the: | |
| 291 | - | The (1) Insurer requests such removal; | |
| 292 | - | or (b) the(2) insurer fails to file its latest annual statement and | |
| 293 | - | required filing fee prior to May 1 of each year as required by this | |
| 294 | - | section; or (c) the | |
| 295 | - | (3) commissioner is notified by the insurance supervisory | |
| 296 | - | authority of any state of the United States that such insurer has had its | |
| 297 | - | authority to transact business restricted; or has been declared insolvent | |
| 298 | - | or placed in receivership, conservatorship, rehabilitation or any similar | |
| 299 | - | status wherein the business of the insurer is formally supervised by an | |
| 300 | - | insurance supervisory authority; or (d) the | |
| 301 | - | (4) commissioner is notified by the N.A.I.C. that any insurer | |
| 302 | - | domiciled outside the United States has been declared insolvent or | |
| 303 | - | placed in receivership, conservatorship, rehabilitation or any similar | |
| 304 | - | status wherein in which the business of the insurer is formally | |
| 305 | - | supervised by an insurance supervisory authority pursuant to an order | |
| 306 | - | by any court of competent jurisdiction; or (e) the | |
| 307 | - | (5) insurer has failed to effectuate reasonably prompt, fair and | |
| 308 | - | equitable payment of just losses and claims in this state; or | |
| 309 | - | (f) the(6) insurer encourages, promotes or rewards an agent to | |
| 310 | - | violate the provisions of K.S.A. 40-246b, and amendments thereto. | |
| 311 | - | (c) Notwithstanding its inclusion on the list, a nonadmitted insurer | |
| 312 | - | shall be eligible to place insurance in accordance with K.S.A. 40-246b, | |
| 313 | - | and amendments thereto, if such insurer meets the eligibility | |
| 314 | - | requirements of 15 U.S.C. § 8204, as in effect on July 1, 2025. | |
| 315 | - | (d) There shall be no liability on the part of and no cause of action | |
| 316 | - | of any nature shall arise against the commissioner, the commissioner's | |
| 317 | - | employees, or the state of Kansas as a result of any insurer's name | |
| 318 | - | appearing or not appearing on the list required by this section if such | |
| 319 | - | list is constructed and maintained in good faith and without malice. | |
| 320 | - | Sec. 9. K.S.A. 40-252 is hereby amended to read as follows: 40- | |
| 321 | - | 252. Not later than December 1 of each year, the commissioner shall | |
| 322 | - | set and cause to be published in the Kansas register the fees required | |
| 16 | + | Section 1. K.S.A. 40-205a is hereby amended to read as follows: 40- | |
| 17 | + | 205a. (a) No person shall do perform any act toward selling the stock of | |
| 18 | + | any insurance company or health maintenance organization unless such | |
| 19 | + | person first obtains from the commissioner of insurance written authority | |
| 20 | + | to engage in the business of selling the stock of such company. Such | |
| 21 | + | applicant shall first be appointed in writing by the president or secretary of | |
| 22 | + | the company for which such applicant intends to sell stock. The applicant | |
| 23 | + | for such license shall file with the commissioner of insurance the | |
| 24 | + | applicant's written application for a license authorizing the applicant to | |
| 25 | + | engage in the business of selling such stock. The applicant shall make | |
| 26 | + | sworn answers to such interrogatories as the commissioner of insurance | |
| 27 | + | shall require. The fee charged for the issuance of such license shall be not | |
| 28 | + | exceed $100 and shall be paid to the commissioner of insurance by the | |
| 29 | + | company requesting such license. | |
| 30 | + | (b) Not later than December 1 of each year, the commissioner shall | |
| 31 | + | set and cause to be published in the Kansas register the fee required | |
| 323 | 32 | pursuant to this section for the next calendar year. | |
| 324 | - | Every insurance company or fraternal benefit society organized HOUSE BILL No. 2050—page 6 | |
| 325 | - | under the laws of this state or doing business in this state shall pay to | |
| 326 | - | the commissioner of insurance fees and taxes not to exceed the | |
| 327 | - | amounts specified in the following schedule: | |
| 33 | + | Sec. 2. K.S.A. 40-218 is hereby amended to read as follows: 40-218. | |
| 34 | + | (a) Every insurance company, or fraternal benefit society, on applying for | |
| 35 | + | authority to transact business in this state, and as a condition precedent to | |
| 36 | + | obtaining such authority, shall file in the insurance department its | |
| 37 | + | irrevocable written consent, irrevocable, that any action or garnishment | |
| 38 | + | proceeding may be commenced against such company or fraternal benefit | |
| 39 | + | society in the proper court of any county in this state in which the cause of | |
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| 74 | + | 35 HB 2050 2 | |
| 75 | + | action shall arise or in which the plaintiff may reside by the service of | |
| 76 | + | process on the commissioner of insurance of this state, and stipulating and | |
| 77 | + | agreeing that such service shall be taken and held in all courts to be as | |
| 78 | + | valid and binding as if due service had been made upon the president or | |
| 79 | + | chief officer of such corporation. Such consent shall be executed by the | |
| 80 | + | president and secretary of the company and shall be accompanied by a | |
| 81 | + | duly certified copy of the order or resolution of the board of directors, | |
| 82 | + | trustees or managers authorizing the president and secretary to execute the | |
| 83 | + | same. The summons or order of garnishment, accompanied by a fee of not | |
| 84 | + | to exceed $25, shall be directed to the commissioner of insurance, and | |
| 85 | + | shall require the defendant or garnishee to answer or otherwise respond by | |
| 86 | + | a certain day, not less than 40 days from the date the summons or order of | |
| 87 | + | garnishment is served on the commissioner. Not later than December 1 of | |
| 88 | + | each year, the commissioner shall set and cause to be published in the | |
| 89 | + | Kansas register the fee required pursuant to this subsection for the next | |
| 90 | + | calendar year. | |
| 91 | + | (b) Service on the commissioner of insurance of any process, notice | |
| 92 | + | or demand against an insurance company or fraternal benefit society shall | |
| 93 | + | be made by delivering to and leaving with the commissioner or the | |
| 94 | + | commissioner's designee, the original of the process and two copies of the | |
| 95 | + | process and the petition, notice of demand, or the clerk of the court may | |
| 96 | + | send the original process and two copies of both the process and petition, | |
| 97 | + | notice or demand directly to the commissioner by certified mail, return | |
| 98 | + | receipt requested. In the event that any process, notice or demand is served | |
| 99 | + | on the commissioner, the commissioner shall immediately cause a copy | |
| 100 | + | thereof to be forwarded by certified mail, return receipt requested to the | |
| 101 | + | insurance company or fraternal benefit society address to its general agent | |
| 102 | + | if such agent resides in this state or to the secretary of the insurance | |
| 103 | + | company or fraternal benefit society sued at its registered or principal | |
| 104 | + | office in any state in which it is domesticated. The commissioner of | |
| 105 | + | insurance shall make return of the summons to the court from whence it | |
| 106 | + | issued, showing the date of its receipt, the date of forwarding such copies, | |
| 107 | + | and the name and address of each person to whom a copy was forwarded. | |
| 108 | + | Such return shall be under the hand and seal of office, and shall have the | |
| 109 | + | same force and effect as a due and sufficient return made on process | |
| 110 | + | directed to a sheriff. The commissioner of insurance shall keep a suitable | |
| 111 | + | record in which shall be docketed every action commenced against an | |
| 112 | + | insurance company, the time when commenced, the date and manner of | |
| 113 | + | service; also the date of the judgment, its amount and costs, and the date of | |
| 114 | + | payment thereof, which shall be certified from time to time by the clerk of | |
| 115 | + | the court. | |
| 116 | + | Sec. 3. K.S.A. 40-252 is hereby amended to read as follows: 40-252. | |
| 117 | + | Not later than December 1 of each year, the commissioner shall set and | |
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| 160 | + | 43 HB 2050 3 | |
| 161 | + | cause to be published in the Kansas register the fees required pursuant to | |
| 162 | + | this section for the next calendar year. | |
| 163 | + | Every insurance company or fraternal benefit society organized under | |
| 164 | + | the laws of this state or doing business in this state shall pay to the | |
| 165 | + | commissioner of insurance fees and taxes not to exceed the amounts | |
| 166 | + | specified in the following schedule: | |
| 328 | 167 | A | |
| 329 | 168 | Insurance companies organized under the laws of this state: | |
| 330 | 169 | 1.Capital stock insurance companies and mutual legal reserve life | |
| 331 | 170 | insurance companies: | |
| 332 | - | Filing application for sale of stock or certificates of indebtedness$25 | |
| 171 | + | Filing application for sale of stock or certificates of indebtedness.....$25 | |
| 333 | 172 | Admission fees: | |
| 334 | - | Examination of charter and other documents.................................500 | |
| 335 | - | Filing annual statement..................................................................100 | |
| 336 | - | Certificate of authority.....................................................................10 | |
| 173 | + | Examination of charter and other documents......................................500 | |
| 174 | + | Filing annual statement.......................................................................100 | |
| 175 | + | Certificate of authority..........................................................................10 | |
| 337 | 176 | Annual fees: | |
| 338 | - | Filing annual statement..................................................................100 | |
| 339 | - | Continuation of certificate of authority............................................10 | |
| 177 | + | Filing annual statement.......................................................................100 | |
| 178 | + | Continuation of certificate of authority.................................................10 | |
| 340 | 179 | 2.Mutual life, accident and health associations: | |
| 341 | 180 | Admission fees: | |
| 342 | - | Examination of charter and other documents...............................$500 | |
| 343 | - | Filing annual statement..................................................................100 | |
| 344 | - | Certificate of authority.....................................................................10 | |
| 181 | + | Examination of charter and other documents....................................$500 | |
| 182 | + | Filing annual statement.......................................................................100 | |
| 183 | + | Certificate of authority..........................................................................10 | |
| 345 | 184 | Annual fees: | |
| 346 | - | Filing annual statement..................................................................100 | |
| 347 | - | Continuation of certificate of authority............................................10 | |
| 348 | - | 3.Mutual fire, hail, casualty and multiple line insurers and reciprocal | |
| 349 | - | ||
| 185 | + | Filing annual statement.......................................................................100 | |
| 186 | + | Continuation of certificate of authority.................................................10 | |
| 187 | + | 3.Mutual fire, hail, casualty and multiple line insurers and reciprocal or | |
| 188 | + | interinsurance exchanges: | |
| 350 | 189 | Admission fees: | |
| 351 | - | Examination of charter and other documents...............................$500 | |
| 352 | - | Filing annual statement..................................................................100 | |
| 353 | - | Certificate of authority.....................................................................10 | |
| 190 | + | Examination of charter and other documents....................................$500 | |
| 191 | + | Filing annual statement.......................................................................100 | |
| 192 | + | Certificate of authority..........................................................................10 | |
| 354 | 193 | Annual fees: | |
| 355 | - | Filing annual statement..................................................................100 | |
| 356 | - | Continuation of certificate of authority............................................10 | |
| 194 | + | Filing annual statement.......................................................................100 | |
| 195 | + | Continuation of certificate of authority.................................................10 | |
| 357 | 196 | In addition to the above fees and as a condition precedent to the | |
| 358 | - | continuation of the certificate of authority provided in this code, all | |
| 359 | - | such companies shall pay a fee of $2 for each agent certified by the | |
| 360 | - | company and one-time fee of $2 for each newly certified agent. Such | |
| 361 | - | fee shall be non-recurrent and constitute the only appointment fee | |
| 362 | - | charged for the duration of such newly certified agent's employment | |
| 363 | - | with the appointing company. Such companies shall also pay a tax | |
| 364 | - | annually upon all premiums received on risk located in this state at the | |
| 365 | - | rate of 1% for tax year 1997, and 2% for all tax years thereafter per | |
| 366 | - | annum less (1) for tax years prior to 1984, any taxes paid on business in | |
| 367 | - | this state pursuant to the provisions of K.S.A. 40-1701 to 40-1707, | |
| 368 | - | inclusive, and 75-1508, and amendments thereto, and (2) for tax years | |
| 369 | - | 1984 and thereafter, any taxes paid on business in this state pursuant to | |
| 370 | - | the provisions of K.S.A. 75-1508, and amendments thereto, and the | |
| 371 | - | amount of the firefighters relief tax credit determined by the | |
| 372 | - | commissioner of insurance. The amount of the firefighters relief tax | |
| 373 | - | credit for a company for the current tax year shall be determined by the | |
| 197 | + | continuation of the certificate of authority provided in this code, all such | |
| 198 | + | companies shall pay a fee of $2 for each agent newly certified by the | |
| 199 | + | company and shall also pay a tax annually upon all premiums received on | |
| 200 | + | risk located in this state at the rate of 1% for tax year 1997, and 2% for all | |
| 201 | + | tax years thereafter per annum less (1) for tax years prior to 1984, any | |
| 202 | + | taxes paid on business in this state pursuant to the provisions of K.S.A. 40- | |
| 203 | + | 1701 to 40-1707, inclusive, and 75-1508, and amendments thereto, and (2) | |
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| 245 | + | 42 | |
| 246 | + | 43 HB 2050 4 | |
| 247 | + | for tax years 1984 and thereafter, any taxes paid on business in this state | |
| 248 | + | pursuant to the provisions of K.S.A. 75-1508, and amendments thereto, | |
| 249 | + | and the amount of the firefighters relief tax credit determined by the | |
| 250 | + | commissioner of insurance. The amount of the firefighters relief tax credit | |
| 251 | + | for a company for the current tax year shall be determined by the | |
| 374 | 252 | commissioner of insurance by dividing: (A) The total amount of credits | |
| 375 | 253 | against the tax imposed by this section for taxes paid by all such | |
| 376 | - | companies on business in this state under K.S.A. 40-1701 to through | |
| 377 | - | 40-1707, inclusive, and amendments thereto, for tax year 1983, by (B) | |
| 378 | - | the total amount of taxes paid by all such companies on business in this | |
| 379 | - | state under K.S.A. 40-1703, and amendments thereto, for the tax year | |
| 380 | - | immediately preceding the current tax year, and by multiplying the | |
| 381 | - | result so obtained by (C) the amount of taxes paid by the company on | |
| 382 | - | business in this state under K.S.A. 40-1703, and amendments thereto, | |
| 383 | - | for the current tax year. | |
| 384 | - | In the computation of the gross premiums all such companies shall | |
| 385 | - | be entitled to deduct any premiums returned on account of | |
| 386 | - | cancellations, including funds accepted before January 1, 1997, and | |
| 387 | - | declared and taxed as annuity premiums which that, on or after January | |
| 388 | - | 1, 1997, are withdrawn before application to the purchase of annuities, HOUSE BILL No. 2050—page 7 | |
| 389 | - | all premiums received for reinsurance from any other company | |
| 390 | - | authorized to do business in this state, dividends returned to | |
| 391 | - | policyholders and premiums received in connection with the funding of | |
| 392 | - | a pension, deferred compensation, annuity or profit-sharing plan | |
| 393 | - | qualified or exempt under sections 401, 403, 404, 408, 457 or 501 of | |
| 394 | - | the United States internal revenue code of 1986. Funds received by life | |
| 395 | - | insurers for the purchase of annuity contracts and funds applied by life | |
| 396 | - | insurers to the purchase of annuities shall not be deemed taxable | |
| 397 | - | premiums or be subject to tax under this section for tax years | |
| 398 | - | commencing on or after January 1, 1997. | |
| 254 | + | companies on business in this state under K.S.A. 40-1701 to through 40- | |
| 255 | + | 1707, inclusive, and amendments thereto, for tax year 1983, by (B) the | |
| 256 | + | total amount of taxes paid by all such companies on business in this state | |
| 257 | + | under K.S.A. 40-1703, and amendments thereto, for the tax year | |
| 258 | + | immediately preceding the current tax year, and by multiplying the result | |
| 259 | + | so obtained by (C) the amount of taxes paid by the company on business in | |
| 260 | + | this state under K.S.A. 40-1703, and amendments thereto, for the current | |
| 261 | + | tax year. | |
| 262 | + | In the computation of the gross premiums all such companies shall be | |
| 263 | + | entitled to deduct any premiums returned on account of cancellations, | |
| 264 | + | including funds accepted before January 1, 1997, and declared and taxed | |
| 265 | + | as annuity premiums which that, on or after January 1, 1997, are | |
| 266 | + | withdrawn before application to the purchase of annuities, all premiums | |
| 267 | + | received for reinsurance from any other company authorized to do | |
| 268 | + | business in this state, dividends returned to policyholders and premiums | |
| 269 | + | received in connection with the funding of a pension, deferred | |
| 270 | + | compensation, annuity or profit-sharing plan qualified or exempt under | |
| 271 | + | sections 401, 403, 404, 408, 457 or 501 of the United States internal | |
| 272 | + | revenue code of 1986. Funds received by life insurers for the purchase of | |
| 273 | + | annuity contracts and funds applied by life insurers to the purchase of | |
| 274 | + | annuities shall not be deemed taxable premiums or be subject to tax under | |
| 275 | + | this section for tax years commencing on or after January 1, 1997. | |
| 399 | 276 | B | |
| 400 | 277 | Fraternal benefit societies organized under the laws of this state: | |
| 401 | 278 | Admission fees: | |
| 402 | - | Examination of charter and other documents...............................$500 | |
| 403 | - | Filing annual statement..................................................................100 | |
| 404 | - | Certificate of authority.....................................................................10 | |
| 279 | + | Examination of charter and other documents....................................$500 | |
| 280 | + | Filing annual statement.......................................................................100 | |
| 281 | + | Certificate of authority..........................................................................10 | |
| 405 | 282 | Annual fees: | |
| 406 | - | Filing annual statement..................................................................100 | |
| 407 | - | Continuation of certificate of authority............................................10 | |
| 283 | + | Filing annual statement.......................................................................100 | |
| 284 | + | Continuation of certificate of authority.................................................10 | |
| 408 | 285 | C | |
| 409 | - | Mutual nonprofit hospital service corporations, nonprofit medical | |
| 410 | - | service corporations, nonprofit dental service corporations, nonprofit | |
| 411 | - | optometric service corporations and nonprofit pharmacy service | |
| 412 | - | corporations organized under the laws of this state: | |
| 286 | + | Mutual nonprofit hospital service corporations, nonprofit medical service | |
| 287 | + | corporations, nonprofit dental service corporations, nonprofit optometric | |
| 288 | + | service corporations and nonprofit pharmacy service corporations | |
| 289 | + | organized under the laws of this state: | |
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| 332 | + | 43 HB 2050 5 | |
| 413 | 333 | 1.Mutual nonprofit hospital service corporations: | |
| 414 | 334 | Admission fees: | |
| 415 | - | Examination of charter and other documents...............................$500 | |
| 416 | - | Filing annual statement..................................................................100 | |
| 417 | - | Certificate of authority.....................................................................10 | |
| 335 | + | Examination of charter and other documents....................................$500 | |
| 336 | + | Filing annual statement.......................................................................100 | |
| 337 | + | Certificate of authority..........................................................................10 | |
| 418 | 338 | Annual fees: | |
| 419 | - | Filing annual statement..................................................................100 | |
| 420 | - | Continuation of certificate of authority............................................10 | |
| 339 | + | Filing annual statement.......................................................................100 | |
| 340 | + | Continuation of certificate of authority.................................................10 | |
| 421 | 341 | 2.Nonprofit medical service corporations: | |
| 422 | 342 | Admission fees: | |
| 423 | - | Examination of charter and other documents...............................$500 | |
| 424 | - | Filing annual statement..................................................................100 | |
| 425 | - | Certificate of authority.....................................................................10 | |
| 343 | + | Examination of charter and other documents....................................$500 | |
| 344 | + | Filing annual statement.......................................................................100 | |
| 345 | + | Certificate of authority..........................................................................10 | |
| 426 | 346 | Annual fees: | |
| 427 | - | Filing annual statement..................................................................100 | |
| 428 | - | Continuation of certificate of authority............................................10 | |
| 347 | + | Filing annual statement.......................................................................100 | |
| 348 | + | Continuation of certificate of authority.................................................10 | |
| 429 | 349 | 3.Nonprofit dental service corporations: | |
| 430 | 350 | Admission fees: | |
| 431 | - | Examination of charter and other documents...............................$500 | |
| 432 | - | Filing annual statement..................................................................100 | |
| 433 | - | Certificate of authority.....................................................................10 | |
| 351 | + | Examination of charter and other documents....................................$500 | |
| 352 | + | Filing annual statement.......................................................................100 | |
| 353 | + | Certificate of authority..........................................................................10 | |
| 434 | 354 | Annual fees: | |
| 435 | - | Filing annual statement..................................................................100 | |
| 436 | - | Continuation of certificate of authority............................................10 | |
| 355 | + | Filing annual statement.......................................................................100 | |
| 356 | + | Continuation of certificate of authority.................................................10 | |
| 437 | 357 | 4.Nonprofit optometric service corporations: | |
| 438 | 358 | Admission fees: | |
| 439 | - | Examination of charter and other documents...............................$500 | |
| 440 | - | Filing annual statement..................................................................100 | |
| 441 | - | Certificate of authority.....................................................................10 | |
| 359 | + | Examination of charter and other documents....................................$500 | |
| 360 | + | Filing annual statement.......................................................................100 | |
| 361 | + | Certificate of authority..........................................................................10 | |
| 442 | 362 | Annual fees: | |
| 443 | - | Filing annual statement..................................................................100 | |
| 444 | - | Continuation of certificate of authority............................................10 | |
| 363 | + | Filing annual statement.......................................................................100 | |
| 364 | + | Continuation of certificate of authority.................................................10 | |
| 445 | 365 | 5.Nonprofit pharmacy service corporations: | |
| 446 | 366 | Admission fees: | |
| 447 | - | Examination of charter and other documents...............................$500 | |
| 448 | - | Filing annual statement..................................................................100 | |
| 449 | - | Certificate of authority.....................................................................10 | |
| 367 | + | Examination of charter and other documents....................................$500 | |
| 368 | + | Filing annual statement.......................................................................100 | |
| 369 | + | Certificate of authority..........................................................................10 | |
| 450 | 370 | Annual fees: | |
| 451 | - | Filing annual statement..................................................................100 | |
| 452 | - | Continuation of certificate of authority............................................10 | |
| 371 | + | Filing annual statement.......................................................................100 | |
| 372 | + | Continuation of certificate of authority.................................................10 | |
| 453 | 373 | In addition to the above fees and as a condition precedent to the | |
| 454 | 374 | continuation of the certificate of authority, provided in this code, every | |
| 455 | 375 | corporation or association shall pay annually to the commissioner of | |
| 456 | - | insurance a tax in an amount equal to 1% for tax year 1997, and 2% for | |
| 457 | - | all tax years thereafter per annum of the total of all premiums, | |
| 458 | - | subscription charges, or any other term which that may be used to | |
| 459 | - | describe the charges made by such corporation or association to | |
| 460 | - | subscribers for hospital, medical or other health services or indemnity | |
| 461 | - | received during the preceding year. In such computations all such | |
| 462 | - | corporations or associations shall be entitled to deduct any premiums or | |
| 463 | - | subscription charges returned on account of cancellations and dividends | |
| 464 | - | returned to members or subscribers. | |
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| 417 | + | 42 | |
| 418 | + | 43 HB 2050 6 | |
| 419 | + | insurance a tax in an amount equal to 1% for tax year 1997, and 2% for all | |
| 420 | + | tax years thereafter per annum of the total of all premiums, subscription | |
| 421 | + | charges, or any other term which that may be used to describe the charges | |
| 422 | + | made by such corporation or association to subscribers for hospital, | |
| 423 | + | medical or other health services or indemnity received during the | |
| 424 | + | preceding year. In such computations all such corporations or associations | |
| 425 | + | shall be entitled to deduct any premiums or subscription charges returned | |
| 426 | + | on account of cancellations and dividends returned to members or | |
| 427 | + | subscribers. | |
| 465 | 428 | D | |
| 466 | - | Insurance companies organized under the laws of any other state, | |
| 467 | - | ||
| 429 | + | Insurance companies organized under the laws of any other state, territory | |
| 430 | + | or country: | |
| 468 | 431 | 1.Capital stock insurance companies and mutual legal reserve life | |
| 469 | 432 | insurance companies: | |
| 470 | - | Filing application for sale of stock or certificates of indebtedness$25 | |
| 433 | + | Filing application for sale of stock or certificates of indebtedness.....$25 | |
| 471 | 434 | Admission fees: | |
| 472 | - | Examination of charter and other documents.................................500 | |
| 473 | - | Filing annual statement..................................................................100 | |
| 474 | - | Certificate of authority.....................................................................10 | |
| 435 | + | Examination of charter and other documents......................................500 | |
| 436 | + | Filing annual statement.......................................................................100 | |
| 437 | + | Certificate of authority..........................................................................10 | |
| 475 | 438 | Annual fees: | |
| 476 | - | Filing annual statement..................................................................100 | |
| 477 | - | Continuation of certificate of authority............................................10 | |
| 478 | - | In addition to the above fees, all such companies shall pay $5 for | |
| 479 | - | each agent certified by the company a one-time fee of $5 for each | |
| 480 | - | newly certified agent. Such fee shall be non-recurrent and constitute | |
| 481 | - | the only appointment fee charged for the duration of such newly | |
| 482 | - | certified agent's employment with the appointing company, except as | |
| 483 | - | otherwise provided by law. | |
| 439 | + | Filing annual statement.......................................................................100 | |
| 440 | + | Continuation of certificate of authority.................................................10 | |
| 441 | + | In addition to the above fees, all such companies shall pay $5 for each | |
| 442 | + | agent newly certified by the company, except as otherwise provided by | |
| 443 | + | law. | |
| 484 | 444 | As a condition precedent to the continuation of the certificate of | |
| 485 | - | authority, provided in this code, every company organized under the | |
| 486 | - | laws of any other state of the United States or of any foreign country | |
| 487 | - | shall pay a tax upon all premiums received during the preceding year at | |
| 488 | - | the rate of 2% per annum. | |
| 489 | - | In the computation of the gross premiums all such companies shall | |
| 490 | - | be entitled to deduct any premiums returned on account of | |
| 491 | - | cancellations, including funds accepted before January 1, 1997, and | |
| 492 | - | declared and taxed as annuity premiums which that, on or after January | |
| 493 | - | 1, 1997, are withdrawn before application to the purchase of annuities, | |
| 494 | - | dividends returned to policyholders and all premiums received for | |
| 495 | - | reinsurance from any other company authorized to do business in this | |
| 496 | - | state and premiums received in connection with the funding of a | |
| 497 | - | pension, deferred compensation, annuity or profit-sharing plan | |
| 498 | - | qualified or exempt under sections 401, 403, 404, 408, 457 or 501 of | |
| 499 | - | the United States internal revenue code of 1986. Funds received by life | |
| 500 | - | insurers for the purchase of annuity contracts and funds applied by life | |
| 501 | - | insurers to the purchase of annuities shall not be deemed taxable | |
| 502 | - | premiums or be subject to tax under this section for tax years | |
| 503 | - | commencing on or after January 1, 1997. | |
| 504 | - | 2.Mutual life, accident and health associations: | |
| 445 | + | authority, provided in this code, every company organized under the laws | |
| 446 | + | of any other state of the United States or of any foreign country shall pay a | |
| 447 | + | tax upon all premiums received during the preceding year at the rate of 2% | |
| 448 | + | per annum. | |
| 449 | + | In the computation of the gross premiums all such companies shall be | |
| 450 | + | entitled to deduct any premiums returned on account of cancellations, | |
| 451 | + | including funds accepted before January 1, 1997, and declared and taxed | |
| 452 | + | as annuity premiums which that, on or after January 1, 1997, are | |
| 453 | + | withdrawn before application to the purchase of annuities, dividends | |
| 454 | + | returned to policyholders and all premiums received for reinsurance from | |
| 455 | + | any other company authorized to do business in this state and premiums | |
| 456 | + | received in connection with the funding of a pension, deferred | |
| 457 | + | compensation, annuity or profit-sharing plan qualified or exempt under | |
| 458 | + | sections 401, 403, 404, 408, 457 or 501 of the United States internal | |
| 459 | + | revenue code of 1986. Funds received by life insurers for the purchase of | |
| 460 | + | annuity contracts and funds applied by life insurers to the purchase of | |
| 461 | + | annuities shall not be deemed taxable premiums or be subject to tax under | |
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| 504 | + | 43 HB 2050 7 | |
| 505 | + | this section for tax years commencing on or after January 1, 1997. | |
| 506 | + | 2. Mutual life, accident and health associations: | |
| 505 | 507 | Admission fees: | |
| 506 | - | Examination of charter and other documents...............................$500 | |
| 507 | - | Filing annual statement..................................................................100 | |
| 508 | - | Certificate of authority.....................................................................10 | |
| 508 | + | Examination of charter and other documents....................................$500 | |
| 509 | + | Filing annual statement.......................................................................100 | |
| 510 | + | Certificate of authority..........................................................................10 | |
| 509 | 511 | Annual fees: | |
| 510 | - | Filing annual statement..................................................................100 | |
| 511 | - | Continuation of certificate of authority............................................10 | |
| 512 | - | In addition to the above fees, every such company organized under | |
| 513 | - | the laws of any other state of the United States shall pay $5 for each | |
| 514 | - | agent certified by the company, and shall a one-time fee of $5 for each | |
| 515 | - | newly certified agent. Such fee shall be non-recurrent and constitute | |
| 516 | - | the only appointment fee charged for the duration of such newly HOUSE BILL No. 2050—page 9 | |
| 517 | - | certified agent's employment with the appointing company. Such | |
| 518 | - | companies shall pay a tax annually upon all premiums received at the | |
| 519 | - | rate of 2% per annum. | |
| 520 | - | In the computation of the gross premiums all such companies shall | |
| 521 | - | be entitled to deduct any premiums returned on account of | |
| 522 | - | cancellations, including funds accepted before January 1, 1997, and | |
| 523 | - | declared and taxed as annuity premiums which that, on or after January | |
| 524 | - | 1, 1997, are withdrawn before application to the purchase of annuities, | |
| 525 | - | dividends returned to policyholders and all premiums received for | |
| 526 | - | reinsurance from any other company authorized to do business in this | |
| 527 | - | state and premiums received in connection with the funding of a | |
| 528 | - | pension, deferred compensation, annuity or profit-sharing plan | |
| 529 | - | qualified or exempt under sections 401, 403, 404, 408, 457 or 501 of | |
| 530 | - | the United States internal revenue code of 1986. Funds received by life | |
| 531 | - | insurers for the purchase of annuity contracts and funds applied by life | |
| 532 | - | insurers to the purchase of annuities shall not be deemed taxable | |
| 533 | - | premiums or be subject to tax under this section for tax years | |
| 534 | - | commencing on or after January 1, 1997. | |
| 512 | + | Filing annual statement.......................................................................100 | |
| 513 | + | Continuation of certificate of authority.................................................10 | |
| 514 | + | In addition to the above fees, every such company organized under the | |
| 515 | + | laws of any other state of the United States shall pay $5 for each agent | |
| 516 | + | newly certified by the company, and shall pay a tax annually upon all | |
| 517 | + | premiums received at the rate of 2% per annum. | |
| 518 | + | In the computation of the gross premiums all such companies shall be | |
| 519 | + | entitled to deduct any premiums returned on account of cancellations, | |
| 520 | + | including funds accepted before January 1, 1997, and declared and taxed | |
| 521 | + | as annuity premiums which that, on or after January 1, 1997, are | |
| 522 | + | withdrawn before application to the purchase of annuities, dividends | |
| 523 | + | returned to policyholders and all premiums received for reinsurance from | |
| 524 | + | any other company authorized to do business in this state and premiums | |
| 525 | + | received in connection with the funding of a pension, deferred | |
| 526 | + | compensation, annuity or profit-sharing plan qualified or exempt under | |
| 527 | + | sections 401, 403, 404, 408, 457 or 501 of the United States internal | |
| 528 | + | revenue code of 1986. Funds received by life insurers for the purchase of | |
| 529 | + | annuity contracts and funds applied by life insurers to the purchase of | |
| 530 | + | annuities shall not be deemed taxable premiums or be subject to tax under | |
| 531 | + | this section for tax years commencing on or after January 1, 1997. | |
| 535 | 532 | 3.Mutual fire, casualty and multiple line insurers and reciprocal or | |
| 536 | 533 | interinsurance exchanges: | |
| 537 | 534 | Admission fees: | |
| 538 | - | Examination of charter and other documents and issuance of | |
| 539 | - | ||
| 540 | - | Filing annual statement..................................................................100 | |
| 541 | - | Certificate of authority.....................................................................10 | |
| 535 | + | Examination of charter and other documents and issuance of certificate | |
| 536 | + | of authority........................................................................................$500 | |
| 537 | + | Filing annual statement.......................................................................100 | |
| 538 | + | Certificate of authority..........................................................................10 | |
| 542 | 539 | Annual fees: | |
| 543 | - | Filing annual statement..................................................................100 | |
| 544 | - | Continuation of certificate of authority............................................10 | |
| 540 | + | Filing annual statement.......................................................................100 | |
| 541 | + | Continuation of certificate of authority.................................................10 | |
| 545 | 542 | In addition to the above fees, every such company or association | |
| 546 | - | organized under the laws of any other state of the United States shall | |
| 547 | - | pay a fee of $5 for each agent certified by the company and one-time | |
| 548 | - | fee of $5 for each newly certified agent. Such fee shall be non-recurrent | |
| 549 | - | and constitute the only appointment fee charged for the duration of | |
| 550 | - | such newly certified agent's employment with the appointing company. | |
| 551 | - | Such companies shall also pay a tax annually upon all premiums | |
| 552 | - | received at the rate of 2% per annum. | |
| 553 | - | For tax years 1998 and thereafter, the annual tax shall be reduced by | |
| 554 | - | the "applicable percentage" of: (1) Any taxes paid on business in this | |
| 555 | - | state pursuant to the provisions of K.S.A. 75-1508, and amendments | |
| 556 | - | thereto,; and (2) the amount of the firefighters relief tax credit | |
| 557 | - | determined by the commissioner of insurance. The amount of the | |
| 558 | - | firefighters relief tax credit for a company taxable under this subsection | |
| 559 | - | for the current tax year shall be determined by the commissioner of | |
| 560 | - | insurance by dividing (A) the total amount of taxes paid by all such | |
| 561 | - | companies on business in this state under K.S.A. 40-1701 to 40-1707, | |
| 562 | - | and amendments thereto, for tax year 1983 as then in effect, by (B) the | |
| 563 | - | total amount of taxes paid by all such companies on business in this | |
| 564 | - | state under K.S.A. 40-1703, and amendments thereto, for the tax year | |
| 565 | - | immediately preceding the current tax year, and by multiplying the | |
| 566 | - | result so obtained by (C) the amount of taxes paid by the company on | |
| 567 | - | business in this state under K.S.A. 40-1703, and amendments thereto, | |
| 568 | - | for the current tax year. The "applicable percentage" shall be as | |
| 543 | + | organized under the laws of any other state of the United States shall pay a | |
| 544 | + | fee of $5 for each agent newly certified by the company and shall also pay | |
| 545 | + | a tax annually upon all premiums received at the rate of 2% per annum. | |
| 546 | + | For tax years 1998 and thereafter, the annual tax shall be reduced by the | |
| 547 | + | "applicable percentage" of: (1) Any taxes paid on business in this state | |
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| 589 | + | 42 | |
| 590 | + | 43 HB 2050 8 | |
| 591 | + | pursuant to the provisions of K.S.A. 75-1508, and amendments thereto,; | |
| 592 | + | and (2) the amount of the firefighters relief tax credit determined by the | |
| 593 | + | commissioner of insurance. The amount of the firefighters relief tax credit | |
| 594 | + | for a company taxable under this subsection for the current tax year shall | |
| 595 | + | be determined by the commissioner of insurance by dividing (A) the total | |
| 596 | + | amount of taxes paid by all such companies on business in this state under | |
| 597 | + | K.S.A. 40-1701 to 40-1707, and amendments thereto, for tax year 1983 as | |
| 598 | + | then in effect, by (B) the total amount of taxes paid by all such companies | |
| 599 | + | on business in this state under K.S.A. 40-1703, and amendments thereto, | |
| 600 | + | for the tax year immediately preceding the current tax year, and by | |
| 601 | + | multiplying the result so obtained by (C) the amount of taxes paid by the | |
| 602 | + | company on business in this state under K.S.A. 40-1703, and amendments | |
| 603 | + | thereto, for the current tax year. The "applicable percentage" shall be as | |
| 569 | 604 | follows: | |
| 570 | 605 | Tax Year Applicable Percentage | |
| 571 | 606 | 1998 10% | |
| 572 | 607 | 1999 20% | |
| 573 | 608 | 2000 40% | |
| 574 | 609 | 2002 50% | |
| 575 | 610 | 2003 60% | |
| 576 | 611 | 2004 70% | |
| 577 | 612 | 2005 80% | |
| 578 | 613 | 2006 90% | |
| 579 | 614 | 2007 and thereafter 100% | |
| 580 | - | In the computation of the gross premiums all such companies shall HOUSE BILL No. 2050—page 10 | |
| 581 | - | be entitled to deduct any premiums returned on account of | |
| 582 | - | cancellations, all premiums received for reinsurance from any other | |
| 583 | - | company authorized to do business in this state, and dividends returned | |
| 584 | - | to policyholders. | |
| 615 | + | In the computation of the gross premiums all such companies shall be | |
| 616 | + | entitled to deduct any premiums returned on account of cancellations, all | |
| 617 | + | premiums received for reinsurance from any other company authorized to | |
| 618 | + | do business in this state, and dividends returned to policyholders. | |
| 585 | 619 | E | |
| 586 | 620 | Fraternal benefit societies organized under the laws of any other state, | |
| 587 | 621 | territory or country: | |
| 588 | 622 | Admission fees: | |
| 589 | - | Examination of charter and other documents...............................$500 | |
| 590 | - | Filing annual statement..................................................................100 | |
| 591 | - | Certificate of authority.....................................................................10 | |
| 623 | + | Examination of charter and other documents....................................$500 | |
| 624 | + | Filing annual statement.......................................................................100 | |
| 625 | + | Certificate of authority..........................................................................10 | |
| 592 | 626 | Annual fees: | |
| 593 | - | Filing annual statement..................................................................100 | |
| 594 | - | Continuation of certificate of authority............................................10 | |
| 627 | + | Filing annual statement.......................................................................100 | |
| 628 | + | Continuation of certificate of authority.................................................10 | |
| 595 | 629 | F | |
| 596 | - | Mutual nonprofit hospital service corporations, nonprofit medical | |
| 597 | - | service corporations, nonprofit dental service corporations, nonprofit | |
| 598 | - | optometric service corporations and nonprofit pharmacy service | |
| 599 | - | corporations organized under the laws of any other state, territory or | |
| 600 | - | country: | |
| 630 | + | Mutual nonprofit hospital service corporations, nonprofit medical service | |
| 631 | + | corporations, nonprofit dental service corporations, nonprofit optometric | |
| 632 | + | service corporations and nonprofit pharmacy service corporations | |
| 633 | + | organized under the laws of any other state, territory or country: | |
| 634 | + | 1 | |
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| 676 | + | 43 HB 2050 9 | |
| 601 | 677 | 1.Mutual nonprofit hospital service corporations: | |
| 602 | 678 | Admission fees: | |
| 603 | - | Examination of charter and other documents...............................$500 | |
| 604 | - | Filing annual statement..................................................................100 | |
| 605 | - | Certificate of authority.....................................................................10 | |
| 679 | + | Examination of charter and other documents....................................$500 | |
| 680 | + | Filing annual statement.......................................................................100 | |
| 681 | + | Certificate of authority..........................................................................10 | |
| 606 | 682 | Annual fees: | |
| 607 | - | Filing annual statement..................................................................100 | |
| 608 | - | Continuation of certificate of authority............................................10 | |
| 683 | + | Filing annual statement.......................................................................100 | |
| 684 | + | Continuation of certificate of authority.................................................10 | |
| 609 | 685 | 2.Nonprofit medical service corporations, nonprofit dental service | |
| 610 | - | corporations, nonprofit optometric service corporations and | |
| 611 | - | ||
| 686 | + | corporations, nonprofit optometric service corporations and nonprofit | |
| 687 | + | pharmacy service corporations: | |
| 612 | 688 | Admission fees: | |
| 613 | - | Examination of charter and other documents...............................$500 | |
| 614 | - | Filing annual statement..................................................................100 | |
| 615 | - | Certificate of authority.....................................................................10 | |
| 689 | + | Examination of charter and other documents....................................$500 | |
| 690 | + | Filing annual statement.......................................................................100 | |
| 691 | + | Certificate of authority..........................................................................10 | |
| 616 | 692 | Annual fees: | |
| 617 | - | Filing annual statement..................................................................100 | |
| 618 | - | Continuation of certificate of authority............................................10 | |
| 693 | + | Filing annual statement.......................................................................100 | |
| 694 | + | Continuation of certificate of authority.................................................10 | |
| 619 | 695 | In addition to the above fees and as a condition precedent to the | |
| 620 | 696 | continuation of the certificate of authority, provided in this code, every | |
| 621 | 697 | corporation or association shall pay annually to the commissioner of | |
| 622 | 698 | insurance a tax in an amount equal to 2% per annum of the total of all | |
| 623 | - | premiums, subscription charges, or any other term which that may be | |
| 624 | - | ||
| 699 | + | premiums, subscription charges, or any other term which that may be used | |
| 700 | + | to describe the charges made by such corporation or association to | |
| 625 | 701 | subscribers in this state for hospital, medical or other health services or | |
| 626 | 702 | indemnity received during the preceding year. In such computations all | |
| 627 | - | such corporations or associations shall be entitled to deduct any | |
| 628 | - | ||
| 629 | - | ||
| 703 | + | such corporations or associations shall be entitled to deduct any premiums | |
| 704 | + | or subscription charges returned on account of cancellations and dividends | |
| 705 | + | returned to members or subscribers. | |
| 630 | 706 | G | |
| 631 | 707 | Payment of Taxes. | |
| 632 | 708 | For the purpose of insuring the collection of the tax upon premiums, | |
| 633 | 709 | assessments and charges as set out in subsection A, C, D or F, every | |
| 634 | - | insurance company, corporation or association shall at the time it files | |
| 635 | - | its annual statement, as required by the provisions of K.S.A. 40-225, | |
| 636 | - | and amendments thereto, make a return, generated by or at the direction | |
| 637 | - | of its president and secretary or other chief officers, under penalty of | |
| 638 | - | K.S.A. 21-5824, and amendments thereto, to the commissioner of | |
| 639 | - | insurance, stating the amount of all premiums, assessments and charges | |
| 640 | - | received by the companies or corporations in this state, whether in cash | |
| 641 | - | or notes, during the year ending on the December 31 next preceding. | |
| 642 | - | Commencing in 1985 and annually thereafter the estimated taxes | |
| 643 | - | shall be paid as follows: On or before June 15 and December 15 of | |
| 644 | - | such year an amount equal to 50% of the full amount of the prior year's HOUSE BILL No. 2050—page 11 | |
| 645 | - | taxes as reported by the company shall be remitted to the commissioner | |
| 646 | - | of insurance. As used in this paragraph, "prior year's taxes" includes: | |
| 647 | - | (1) Taxes assessed pursuant to this section for the prior calendar year,; | |
| 648 | - | (2) fees and taxes assessed pursuant to K.S.A. 40-253, and amendments | |
| 649 | - | thereto, for the prior calendar year,; and (3) taxes paid for maintenance | |
| 650 | - | of the department of the state fire marshal pursuant to K.S.A. 75-1508, | |
| 651 | - | and amendments thereto, for the prior calendar year. | |
| 710 | + | insurance company, corporation or association shall at the time it files its | |
| 711 | + | annual statement, as required by the provisions of K.S.A. 40-225, and | |
| 712 | + | amendments thereto, make a return, generated by or at the direction of its | |
| 713 | + | president and secretary or other chief officers, under penalty of K.S.A. 21- | |
| 714 | + | 5824, and amendments thereto, to the commissioner of insurance, stating | |
| 715 | + | the amount of all premiums, assessments and charges received by the | |
| 716 | + | companies or corporations in this state, whether in cash or notes, during | |
| 717 | + | the year ending on the December 31 next preceding. | |
| 718 | + | Commencing in 1985 and annually thereafter the estimated taxes shall | |
| 719 | + | be paid as follows: On or before June 15 and December 15 of such year an | |
| 720 | + | 1 | |
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| 761 | + | 42 | |
| 762 | + | 43 HB 2050 10 | |
| 763 | + | amount equal to 50% of the full amount of the prior year's taxes as | |
| 764 | + | reported by the company shall be remitted to the commissioner of | |
| 765 | + | insurance. As used in this paragraph, "prior year's taxes" includes: (1) | |
| 766 | + | Taxes assessed pursuant to this section for the prior calendar year,; (2) fees | |
| 767 | + | and taxes assessed pursuant to K.S.A. 40-253, and amendments thereto, | |
| 768 | + | for the prior calendar year,; and (3) taxes paid for maintenance of the | |
| 769 | + | department of the state fire marshal pursuant to K.S.A. 75-1508, and | |
| 770 | + | amendments thereto, for the prior calendar year. | |
| 652 | 771 | Upon the receipt of such returns the commissioner of insurance shall | |
| 653 | - | verify the same and assess the taxes upon such companies, corporations | |
| 654 | - | ||
| 655 | - | ||
| 656 | - | ||
| 657 | - | ||
| 658 | - | ||
| 772 | + | verify the same and assess the taxes upon such companies, corporations or | |
| 773 | + | associations on the basis and at the rate provided herein and the balance of | |
| 774 | + | such taxes shall thereupon become due and payable giving credit for | |
| 775 | + | amounts paid pursuant to the preceding paragraph, or the commissioner | |
| 776 | + | shall make a refund if the taxes paid in the prior June and December are in | |
| 777 | + | excess of the taxes assessed. | |
| 659 | 778 | H | |
| 660 | - | The fee prescribed for the examination of charters and other | |
| 661 | - | ||
| 662 | - | ||
| 663 | - | Sec. | |
| 664 | - | ||
| 665 | - | ||
| 666 | - | ||
| 779 | + | The fee prescribed for the examination of charters and other documents | |
| 780 | + | shall apply to each company's initial application for admission and shall | |
| 781 | + | not be refundable for any reason. | |
| 782 | + | Sec. 4. K.S.A. 40-2,133 is hereby amended to read as follows: 40- | |
| 783 | + | 2,133. (a) No insurer may utilize or continue to utilize the services of an | |
| 784 | + | MGA on and after the effective date of this act unless such utilization is in | |
| 785 | + | compliance with this act. | |
| 667 | 786 | (b) The insurer shall have on file an independent financial | |
| 668 | - | examination in a form acceptable to the commissioner of each MGA | |
| 669 | - | ||
| 787 | + | examination in a form acceptable to the commissioner of each MGA with | |
| 788 | + | which it has done business. | |
| 670 | 789 | (c) If an MGA establishes loss reserves, the insurer shall annually | |
| 671 | - | obtain the opinion of an actuary attesting to the adequacy of loss | |
| 672 | - | ||
| 673 | - | ||
| 674 | - | ||
| 675 | - | (d) The insurer shall periodically, but not less frequently than | |
| 676 | - | ||
| 677 | - | ||
| 678 | - | (e) Binding authority for all reinsurance contracts or participation | |
| 679 | - | ||
| 680 | - | ||
| 790 | + | obtain the opinion of an actuary attesting to the adequacy of loss reserves | |
| 791 | + | established for losses incurred and outstanding on business produced by | |
| 792 | + | the MGA. Such requirement shall be in addition to any other required loss | |
| 793 | + | reserve certification. | |
| 794 | + | (d) The insurer shall periodically, but not less frequently than semi- | |
| 795 | + | annually, conduct an on-site review of the underwriting and claims | |
| 796 | + | processing operations of the MGA. | |
| 797 | + | (e) Binding authority for all reinsurance contracts or participation in | |
| 798 | + | insurance or reinsurance syndicates shall rest with an officer of the insurer | |
| 799 | + | who shall not be affiliated with the MGA. | |
| 681 | 800 | (f) (1) Within 30 days of entering into or termination of a contract | |
| 682 | 801 | with an MGA, the insurer shall provide written notification of such | |
| 683 | - | appointment or termination to the commissioner. Notices of | |
| 684 | - | appointment of an MGA shall include: | |
| 685 | - | (1)(A) A statement of duties which that the applicant is expected | |
| 686 | - | to perform on behalf of the insurer, ; | |
| 802 | + | appointment or termination to the commissioner. Notices of appointment | |
| 803 | + | of an MGA shall include: | |
| 804 | + | (1)(A) A statement of duties which that the applicant is expected to | |
| 805 | + | perform on behalf of the insurer, ; | |
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| 687 | 849 | (2)(B) the lines of insurance for which the applicant is to be | |
| 688 | 850 | authorized to act,; | |
| 689 | - | (3)(C) a notification fee in the an amount of not to exceed $100, | |
| 690 | - | ||
| 851 | + | (3)(C) a notification fee in the an amount of not to exceed $100, (4); | |
| 852 | + | and | |
| 691 | 853 | (D) any other information the commissioner may request. | |
| 692 | - | (2) Not later than December 1 of each year, the commissioner | |
| 693 | - | ||
| 694 | - | ||
| 854 | + | (2) Not later than December 1 of each year, the commissioner shall | |
| 855 | + | set and cause to be published in the Kansas register the fee required | |
| 856 | + | pursuant to this subsection for the next calendar year. | |
| 695 | 857 | (g) Each calendar quarter, an insurer shall each quarter review its | |
| 696 | 858 | books and records to determine if any agent or broker has become, by | |
| 697 | 859 | operation of subsection (d) of K.S.A. 40-2,130(d), and amendments | |
| 698 | 860 | thereto, an MGA as defined in that subsection. If the insurer determines | |
| 699 | 861 | that an agent or broker has become an MGA pursuant to the above, the | |
| 700 | - | insurer shall promptly notify the agent or broker and the commissioner | |
| 701 | - | ||
| 702 | - | ||
| 862 | + | insurer shall promptly notify the agent or broker and the commissioner of | |
| 863 | + | such determination, and the insurer and agent or broker shall fully comply | |
| 864 | + | with the provisions of this act within 30 days. | |
| 703 | 865 | (h) An insurer shall not appoint to its board of directors an officer, | |
| 704 | - | director, employee or controlling shareholder of its MGAs. This | |
| 705 | - | subsection shall not apply to relationships governed by the applicable | |
| 706 | - | provisions of article 33 of chapter 40 of the Kansas Statutes Annotated, | |
| 707 | - | and amendments thereto. | |
| 708 | - | Sec. 11. K.S.A. 40-504 is hereby amended to read as follows: 40- HOUSE BILL No. 2050—page 12 | |
| 709 | - | 504. Any corporation heretofore organized and existing pursuant to law | |
| 710 | - | for the purpose of making insurance on the lives of individuals, may | |
| 711 | - | take advantage and have the benefit of this act by filing in the office of | |
| 712 | - | the commissioner of insurance a declaration of the company, signed by | |
| 713 | - | the president and secretary, giving the name of the corporation, a copy | |
| 714 | - | of the bylaws, the form of application adopted by them, and a copy of | |
| 715 | - | the policy contract proposed to be issued to individuals, together with a | |
| 716 | - | fee of one hundred dollars not to exceed $100. The commissioner of | |
| 717 | - | insurance shall submit all documents to the attorney general for his | |
| 718 | - | examination, and if found by him the attorney general to be in | |
| 719 | - | accordance with the law he, the attorney general shall certify to and | |
| 720 | - | deliver the same such documents to the commissioner of insurance, | |
| 721 | - | who shall retain such documents on file, and. Upon compliance by said | |
| 722 | - | such company with the provisions of this code, the commissioner of | |
| 723 | - | insurance shall issue his a certificate authorizing said such company to | |
| 724 | - | do business in this state under the provisions of this code. Not later | |
| 725 | - | than December 1 of each year, the commissioner shall set and cause to | |
| 726 | - | be published in the Kansas register the fee required pursuant to this | |
| 727 | - | section for the next calendar year. | |
| 728 | - | Sec. 12. K.S.A. 40-956 is hereby amended to read as follows: 40- | |
| 729 | - | 956. (a) (1) Any corporation, association, partnership or individual | |
| 730 | - | whether located in or out of the state, may apply for license as a rating | |
| 731 | - | organization for such kinds of insurance or subdivisions thereof as are | |
| 732 | - | specified in its application and shall file therewith: | |
| 733 | - | (1)(A) A copy of its constitution, articles of agreement or | |
| 734 | - | association or certificate of incorporation, and its bylaws and rules | |
| 735 | - | governing the conduct of its business; | |
| 866 | + | director, employee or controlling shareholder of its MGAs. This subsection | |
| 867 | + | shall not apply to relationships governed by the applicable provisions of | |
| 868 | + | article 33 of chapter 40 of the Kansas Statutes Annotated, and amendments | |
| 869 | + | thereto. | |
| 870 | + | Sec. 5. K.S.A. 40-504 is hereby amended to read as follows: 40-504. | |
| 871 | + | Any corporation heretofore organized and existing pursuant to law for the | |
| 872 | + | purpose of making insurance on the lives of individuals, may take | |
| 873 | + | advantage and have the benefit of this act by filing in the office of the | |
| 874 | + | commissioner of insurance a declaration of the company, signed by the | |
| 875 | + | president and secretary, giving the name of the corporation, a copy of the | |
| 876 | + | bylaws, the form of application adopted by them, and a copy of the policy | |
| 877 | + | contract proposed to be issued to individuals, together with a fee of one | |
| 878 | + | hundred dollars not to exceed $100. The commissioner of insurance shall | |
| 879 | + | submit all documents to the attorney general for his examination, and if | |
| 880 | + | found by him the attorney general to be in accordance with the law he, the | |
| 881 | + | attorney general shall certify to and deliver the same such documents to | |
| 882 | + | the commissioner of insurance, who shall retain such documents on file, | |
| 883 | + | and. Upon compliance by said such company with the provisions of this | |
| 884 | + | code, the commissioner of insurance shall issue his a certificate | |
| 885 | + | authorizing said such company to do business in this state under the | |
| 886 | + | provisions of this code. Not later than December 1 of each year, the | |
| 887 | + | commissioner shall set and cause to be published in the Kansas register | |
| 888 | + | the fee required pursuant to this section for the next calendar year. | |
| 889 | + | Sec. 6. K.S.A. 40-956 is hereby amended to read as follows: 40-956. | |
| 890 | + | (a) (1) Any corporation, association, partnership or individual whether | |
| 891 | + | located in or out of the state, may apply for license as a rating organization | |
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| 935 | + | for such kinds of insurance or subdivisions thereof as are specified in its | |
| 936 | + | application and shall file therewith: | |
| 937 | + | (1)(A) A copy of its constitution, articles of agreement or association | |
| 938 | + | or certificate of incorporation, and its bylaws and rules governing the | |
| 939 | + | conduct of its business; | |
| 736 | 940 | (2)(B) a list of its members and subscribers; | |
| 737 | 941 | (3)(C) the name and address of a resident of the state upon whom | |
| 738 | 942 | service of process or orders of the commissioner may be served and an | |
| 739 | 943 | irrevocable agreement to accept such service or notices; and | |
| 740 | 944 | (4)(D) a statement of its qualification as a rating organization. | |
| 741 | - | (2) Every rating organization shall notify the commissioner | |
| 742 | - | ||
| 743 | - | ||
| 945 | + | (2) Every rating organization shall notify the commissioner promptly | |
| 946 | + | of every change in its organizational structure, members or subscribers and | |
| 947 | + | the person upon whom service or notices may be made. | |
| 744 | 948 | (3) If the commissioner finds the applicant is qualified, the | |
| 745 | 949 | commissioner shall issue a license specifying the kinds of insurance or | |
| 746 | - | subdivisions thereof for which the applicant is authorized to act as a | |
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| 758 | - | (b) Every rating organization shall furnish its rating services | |
| 759 | - | ||
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| 950 | + | subdivisions thereof for which the applicant is authorized to act as a rating | |
| 951 | + | organization. Every such application shall be granted or denied in whole or | |
| 952 | + | in part by the commissioner within 60 days of the date of its filing. | |
| 953 | + | Licenses issued pursuant to this section shall continue in force until May 1 | |
| 954 | + | next after their date unless suspended or revoked by the commissioner. The | |
| 955 | + | fee for such license shall be not exceed $25 annually. Not later than | |
| 956 | + | December 1 of each year, the commissioner of insurance shall set and | |
| 957 | + | cause to be published in the Kansas register the fee required pursuant to | |
| 958 | + | this paragraph for the next calendar year. Licenses issued pursuant to this | |
| 959 | + | section may be suspended or revoked by the commissioner, after hearing | |
| 960 | + | upon notice, in the event the rating organization ceases to meet the | |
| 961 | + | requirements of this section. | |
| 962 | + | (b) Every rating organization shall furnish its rating services without | |
| 963 | + | discrimination to its members and subscribers. Subject to rules which that | |
| 964 | + | have been approved by the commissioner as reasonable, each rating | |
| 965 | + | organization shall permit any insurer or group pool, not a member, to be a | |
| 966 | + | subscriber to its rating service for any kind of insurance or subdivision | |
| 967 | + | thereof for which it is authorized to act as a rating organization. The | |
| 968 | + | reasonableness of any rule in its application to subscribers, or the refusal | |
| 969 | + | of any rating organization to admit an insurer or group pool as a | |
| 970 | + | subscriber, at the request of any subscriber, pool or any insurer shall be | |
| 971 | + | reviewed by the commissioner at a hearing. | |
| 768 | 972 | (c) No rating organization shall adopt any rule, the effect of which | |
| 769 | 973 | would be to prohibit or regulate the payment of dividends, savings or | |
| 770 | 974 | unabsorbed premium deposits allowed or returned by insurers to their | |
| 771 | 975 | policyholders, members or subscribers. | |
| 772 | - | (d) The commissioner, at least once in five years, shall make or HOUSE BILL No. 2050—page 13 | |
| 773 | - | cause to be made an examination of each rating organization licensed in | |
| 774 | - | this state. The reasonable costs of such examination shall be paid by the | |
| 775 | - | rating organization examined, upon presentation to it of a detailed | |
| 776 | - | account of such cost. The officers, managers, agents and employees of | |
| 777 | - | such rating organization may be examined under oath and shall exhibit | |
| 778 | - | all books, records, accounts, documents or agreements governing its | |
| 779 | - | method of operation. The commissioner may waive such examination | |
| 780 | - | upon proof such rating organization has, within a reasonably recent | |
| 781 | - | period, been examined by the insurance supervisory official of another | |
| 782 | - | state, and upon filing with the commissioner a copy of the report of | |
| 783 | - | such examination. | |
| 976 | + | (d) The commissioner, at least once in five years, shall make or cause | |
| 977 | + | to be made an examination of each rating organization licensed in this | |
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| 1021 | + | state. The reasonable costs of such examination shall be paid by the rating | |
| 1022 | + | organization examined, upon presentation to it of a detailed account of | |
| 1023 | + | such cost. The officers, managers, agents and employees of such rating | |
| 1024 | + | organization may be examined under oath and shall exhibit all books, | |
| 1025 | + | records, accounts, documents or agreements governing its method of | |
| 1026 | + | operation. The commissioner may waive such examination upon proof | |
| 1027 | + | such rating organization has, within a reasonably recent period, been | |
| 1028 | + | examined by the insurance supervisory official of another state, and upon | |
| 1029 | + | filing with the commissioner a copy of the report of such examination. | |
| 784 | 1030 | (e) Cooperation among rating organizations or among rating | |
| 785 | 1031 | organizations and insurers in rate making or in other matters within the | |
| 786 | 1032 | scope of this act is hereby authorized, provided except that the filings | |
| 787 | - | resulting from such cooperation are subject to all the provisions of this | |
| 788 | - | ||
| 789 | - | ||
| 790 | - | ||
| 791 | - | ||
| 792 | - | ||
| 793 | - | ||
| 1033 | + | resulting from such cooperation are subject to all the provisions of this act | |
| 1034 | + | which that are applicable to filings generally. The commissioner may | |
| 1035 | + | review such cooperative activities and practices and if, after a hearing, the | |
| 1036 | + | commissioner finds any such activity or practice is unfair, unreasonable or | |
| 1037 | + | otherwise inconsistent with this act or other provision of the insurance | |
| 1038 | + | laws of this state, the commissioner may issue a written order requiring | |
| 1039 | + | discontinuance of such activities or practices. | |
| 794 | 1040 | (f) Any rating organization may provide for the examination of | |
| 795 | - | policies, daily reports, binders and other transaction with its members | |
| 796 | - | or subscribers, providing if it makes reasonable rules governing those | |
| 797 | - | activities, which. Such rules shall be approved by the commissioner. | |
| 798 | - | Such rules and shall contain a provision that in the event any insurer | |
| 799 | - | does not within 60 days furnish satisfactory evidence to the rating | |
| 800 | - | organization of the correction of any error or omissions previously | |
| 801 | - | called to its attention by the rating organization, it shall be the duty of | |
| 802 | - | the rating organization to notify the commissioner thereof. All | |
| 803 | - | information submitted for examination shall be confidential. | |
| 804 | - | (g) Any rating organization may subscribe for or purchase | |
| 805 | - | actuarial, technical or other services, and such services shall be | |
| 806 | - | available to all members and subscribers without discrimination. Any | |
| 807 | - | rating organization may collect, compile and distribute past and current | |
| 808 | - | premiums of individual insurers. | |
| 809 | - | Sec. 13. K.S.A. 40-2102 is hereby amended to read as follows: 40- | |
| 810 | - | 2102. (a) Every insurer undertaking to transact in the state of Kansas | |
| 811 | - | the business of automobile and motor vehicle bodily injury and | |
| 812 | - | property damage liability insurance and every rating organization | |
| 813 | - | which that files rates for such insurance shall cooperate in the | |
| 814 | - | preparation and submission preparing and submitting a plan to the | |
| 815 | - | commissioner of insurance of a plan or plans for the equitable | |
| 816 | - | apportionment among insurers of applicants for insurance who are, in | |
| 817 | - | good faith, are entitled to, but who are unable to procure such | |
| 818 | - | insurance through ordinary methods, such insurance. Such plan or | |
| 819 | - | plans shall provide: | |
| 820 | - | (a)(1) Reasonable rules governing the equitable distribution of | |
| 821 | - | risks by direct insurance, reinsurance or otherwise and their assignment | |
| 822 | - | to insurers, including provisions requiring, at the request of the | |
| 823 | - | applicant, an immediate assumption of the risk by an insurer or insurers | |
| 824 | - | upon completion of an application, payment of the specified premium | |
| 825 | - | and deposit the application and the premium in the United States mail, | |
| 826 | - | postage prepaid and addressed to the plan's office; | |
| 827 | - | (b)(2) rates and rate modifications applicable to such risks which | |
| 828 | - | that shall be reasonable, adequate and not unfairly discriminatory; | |
| 829 | - | (c)(3) the limits of liability which that the insurer shall be required | |
| 830 | - | to assume; | |
| 831 | - | (d)(4) a method whereby by which applicants for insurance, | |
| 832 | - | insureds and insurers may have a hearing on grievances and the right of | |
| 833 | - | appeal to the commissioner; | |
| 834 | - | (e) for every such plan or plans, there shall be (5) a governing | |
| 835 | - | board to be appointed by the commissioner of insurance which that | |
| 836 | - | shall meet at least annually to review and prescribe operating rules, and HOUSE BILL No. 2050—page 14 | |
| 837 | - | which shall consist of the following members:. | |
| 838 | - | (1)(b) (1) Prior to January 1, 2026, such board shall consist of the | |
| 839 | - | following nine members: | |
| 840 | - | (A) (i) Seven members who shall be appointed prior to December | |
| 841 | - | 31, 2025, as follows: | |
| 842 | - | (a) Three of such members shall be representatives of foreign | |
| 843 | - | insurance companies,; | |
| 844 | - | (b) two members shall be representatives of domestic insurance | |
| 845 | - | companies; and | |
| 846 | - | (c) two members shall be licensed independent insurance agents.; | |
| 847 | - | (ii) such seven members shall be appointed for a term of three | |
| 848 | - | years, except that the initial appointment shall include two members | |
| 849 | - | appointed for a two-year term and two members appointed for a one- | |
| 850 | - | year term as designated by the commissioner; and | |
| 851 | - | (2)(B) two members representative shall be representatives of the | |
| 852 | - | general public interest with such members to be appointed for a term of | |
| 853 | - | two years. | |
| 854 | - | (2) The terms of the members appointed and serving on the | |
| 855 | - | governing board as of July 1, 2025, shall expire on December 31, | |
| 856 | - | 2025. | |
| 857 | - | (c) (1) The commissioner shall appoint a governing board for the | |
| 858 | - | plan that shall serve on and after January 1, 2026, and that shall have | |
| 859 | - | the same powers, duties and functions as its predecessor. On and after | |
| 860 | - | January 1, 2026, all members of such governing board shall serve | |
| 861 | - | three-year terms, except that such members shall be removable by the | |
| 862 | - | commissioner for inefficiency, neglect of duty or malfeasance. Such | |
| 863 | - | governing board shall consist of five members to be appointed as | |
| 864 | - | follows: | |
| 865 | - | (A) Three members shall be representatives of insurers; | |
| 866 | - | (B) one member shall be a representative of independent | |
| 867 | - | insurance agents; and | |
| 868 | - | (C) one member shall be a representative of the general public. | |
| 869 | - | (2) In making appointments to the governing board, the | |
| 870 | - | commissioner shall consider if foreign and domestic insurers are fairly | |
| 871 | - | represented. | |
| 872 | - | (d) (1) The commissioner shall review the plan as soon as | |
| 873 | - | reasonably possible after filing in order to determine whether it meets | |
| 874 | - | the requirements set forth in (a), (b), (c) and (d) above subsections (a) | |
| 875 | - | (1) through (a)(4). As soon as reasonably possible after the plan has | |
| 876 | - | been filed the commissioner shall, in writing, approve or disapprove the | |
| 877 | - | same such plan. Any plan shall be deemed approved unless | |
| 878 | - | disapproved within 45 days. Subsequent to the waiting period the | |
| 879 | - | commissioner may disapprove any plan on the ground grounds that it | |
| 880 | - | such plan does not meet the requirements set forth in (a), (b), (c) and | |
| 881 | - | (d) above subsections (a)(1) through (a)(4), but only after a hearing | |
| 882 | - | held upon not less than 10 days' written notice to every insurer and | |
| 883 | - | rating organization affected specifying the matter to be considered at | |
| 884 | - | such hearing, and only by an order specifying in what respect the | |
| 885 | - | commissioner finds that such plan fails to meet such requirements, and | |
| 886 | - | stating when within a reasonable period thereafter such plan shall be | |
| 887 | - | deemed no longer effective. Such order shall not affect any assignment | |
| 888 | - | made or policy issued or made prior to the expiration of the period set | |
| 889 | - | forth in such order. Amendments to such plan or plans shall be | |
| 890 | - | prepared, and filed and reviewed in the same manner as herein | |
| 891 | - | provided in this section with respect to the original plan or plans. | |
| 892 | - | (2) If no plan meeting the standards set forth in (a), (b), (c) and (d) | |
| 893 | - | subsections (a)(1) through (a)(4) is submitted to the commissioner | |
| 894 | - | within the period stated in any order disapproving an existing plan, the | |
| 895 | - | commissioner shall, if necessary to carry out the purpose of this section | |
| 896 | - | after hearing, prepare and promulgate a plan meeting such | |
| 897 | - | requirements. If, after a hearing conducted in accordance with the | |
| 898 | - | provisions of the Kansas administrative procedure act, the | |
| 899 | - | commissioner finds that any activity or practice of any insurer or rating | |
| 900 | - | organization in connection with the operation of such plan or plans is HOUSE BILL No. 2050—page 15 | |
| 901 | - | unfair or unreasonable or otherwise inconsistent with the provisions of | |
| 902 | - | this subsection, the commissioner may issue a written order specifying | |
| 903 | - | in what respects such activity or practice is unfair or unreasonable or | |
| 904 | - | otherwise inconsistent with the provisions of this subsection and | |
| 905 | - | requiring discontinuance of such activity or practice. | |
| 906 | - | Sec. 14. K.S.A. 40-2109 is hereby amended to read as follows: 40- | |
| 907 | - | 2109. (a) Every insurer undertaking to transact in this state the business | |
| 908 | - | of either workers compensation or employer's liability insurance or | |
| 909 | - | both, and every rating organization which that files rates for such | |
| 910 | - | insurance shall cooperate in the preparation and submission preparing | |
| 911 | - | and submitting a plan to the commissioner of insurance of a plan or | |
| 912 | - | plans, for the equitable apportionment among insurers of applicants for | |
| 913 | - | insurance who are, in good faith, are entitled to but who are unable to | |
| 914 | - | procure such insurance through ordinary methods, such insurance. | |
| 915 | - | Such plan or plans shall provide: | |
| 916 | - | (a)(1) Reasonable rules governing the equitable distribution of | |
| 917 | - | risks by direct insurance, reinsurance or otherwise and their assignment | |
| 918 | - | to insurers; | |
| 919 | - | (b)(2) rates and rate modifications applicable to such risks which | |
| 920 | - | that shall be reasonable, adequate and not unfairly discriminatory; | |
| 921 | - | (c)(3) a method whereby by which applicants for insurance, | |
| 922 | - | insured and insurers may have a hearing on grievances and the right of | |
| 923 | - | appeal to the commissioner; and | |
| 924 | - | (d) for every such plan or plans, there shall be (4) a governing | |
| 925 | - | board to be appointed by the commissioner of insurance which that | |
| 926 | - | shall meet at least annually to review and prescribe operating rules, and | |
| 927 | - | which shall consist of the following members:. | |
| 928 | - | (b) (1) Prior to January 1, 2026, such board shall consist of the | |
| 929 | - | following nine members: | |
| 930 | - | (1)(A) (i) Seven members who shall be appointed prior to | |
| 931 | - | December 31, 2025, as follows: | |
| 932 | - | (a) Three of such members shall be representatives of foreign | |
| 933 | - | insurance companies,; | |
| 934 | - | (b) two members shall be representatives of domestic insurance | |
| 935 | - | companies; and | |
| 936 | - | (c) two members shall be licensed independent insurance agents. | |
| 937 | - | (ii) Such seven members shall be appointed for a term of three | |
| 938 | - | years, except that the initial appointment shall include two members | |
| 939 | - | appointed for a two-year term and two members appointed for a one- | |
| 940 | - | year term, as designated by the commissioner; and | |
| 941 | - | (2)(B) two members representative of the general public interest | |
| 942 | - | with such members to be appointed for a term of two years. | |
| 943 | - | (2) The terms of the members appointed and serving on the | |
| 944 | - | governing board as of July 1, 2025, shall expire on December 31, | |
| 945 | - | 2025. | |
| 946 | - | (c) (1) The commissioner shall appoint a governing board for the | |
| 947 | - | plan that shall serve on and after January 1, 2026, and that shall have | |
| 948 | - | the same powers, duties and functions as its predecessor. On and after | |
| 949 | - | January 1, 2026, all members of such governing board shall serve | |
| 950 | - | three-year terms, except that such members shall be removable by the | |
| 951 | - | commissioner for inefficiency, neglect of duty or malfeasance. Such | |
| 952 | - | governing board shall consist of seven members to be appointed as | |
| 953 | - | follows: | |
| 954 | - | (A) Four members shall be representatives of insurance | |
| 955 | - | companies; | |
| 956 | - | (B) two members shall be licensed insurance agents; and | |
| 957 | - | (C) one member shall be a representative of the general public | |
| 958 | - | interest. | |
| 959 | - | (2) In selecting the members who shall be representatives of | |
| 960 | - | insurers, the commissioner shall consider if foreign and domestic | |
| 961 | - | insurers are fairly represented. | |
| 962 | - | (d) (1) The commissioner shall review the plan as soon as | |
| 963 | - | reasonably possible after filing in order to determine whether it meets | |
| 964 | - | the requirements set forth in subsections (a) and (c) above(1) through HOUSE BILL No. 2050—page 16 | |
| 965 | - | (a)(3). As soon as reasonably possible after the plan has been filed the | |
| 966 | - | commissioner shall in writing approve or disapprove the same such | |
| 967 | - | plan, except that any plan shall be deemed approved unless | |
| 968 | - | disapproved within 45 days. Subsequent to the waiting period the | |
| 969 | - | commissioner may disapprove any plan on the ground that it does not | |
| 970 | - | meet the requirements set forth in subsections (a), (b) and (c) above(1) | |
| 971 | - | through (a)(3), but only after a hearing held upon not less than 10 days' | |
| 972 | - | written notice to every insurer and rating organization affected | |
| 973 | - | specifying the matter to be considered at such hearing, and only by an | |
| 974 | - | order specifying in what respect the commissioner finds that such plan | |
| 975 | - | fails to meet such requirements and stating when within a reasonable | |
| 976 | - | period thereafter such plan shall be deemed no longer effective. Such | |
| 977 | - | order shall not affect any assignment made or policy issued or made | |
| 978 | - | prior to the expiration of the period set forth in such order. | |
| 979 | - | Amendments to such plan or plans shall be prepared, and filed and | |
| 980 | - | reviewed in the same manner as herein provided in this section with | |
| 981 | - | respect to the original plan or plans. | |
| 982 | - | (2) If no plan meeting the standards set forth in subsections (a), (b) | |
| 983 | - | and (c)(1) through (a)(3) is submitted to the commissioner within the | |
| 984 | - | period stated in any order, disapproving an existing plan the | |
| 985 | - | commissioner shall, if necessary to carry out the purpose of this section | |
| 986 | - | after hearing, prepare and promulgate a plan meeting such | |
| 987 | - | requirements. When such plan or plans or amendments thereto have | |
| 988 | - | been approved or promulgated, no insurer shall thereafter issue a policy | |
| 989 | - | of workers compensation or employer's liability insurance or undertake | |
| 990 | - | to transact such business in this state unless such insurer shall | |
| 991 | - | participate in such an approved or promulgated plan. If, after a hearing | |
| 992 | - | conducted in accordance with the provisions of the Kansas | |
| 993 | - | administrative procedure act, the commissioner finds that any activity | |
| 994 | - | or practice of any insurer or rating organization in connection with the | |
| 995 | - | operation of such plan or plans is unfair or unreasonable or otherwise | |
| 996 | - | inconsistent with the provisions of this section, the commissioner may | |
| 997 | - | issue a written order specifying in what respects such activity or | |
| 998 | - | practice is unfair or unreasonable or otherwise inconsistent with the | |
| 999 | - | provisions of this section and requiring discontinuance of such activity | |
| 1000 | - | or practice. | |
| 1001 | - | (e) The commissioner shall approve rates and rate modifications | |
| 1002 | - | for each plan that provides workers compensation insurance. This | |
| 1003 | - | provision shall not prohibit the application of surcharges, experience | |
| 1004 | - | modifications or other rating variables. | |
| 1005 | - | Sec. 15. K.S.A. 40-22a04 is hereby amended to read as follows: | |
| 1006 | - | 40-22a04. (a) The commissioner shall adopt rules and regulations | |
| 1007 | - | establishing standards governing the conduct of utilization review | |
| 1008 | - | activities performed in this state or affecting residents or healthcare | |
| 1009 | - | providers of this state by utilization review organizations. Unless | |
| 1010 | - | granted an exemption under K.S.A. 40-22a06, and amendments thereto, | |
| 1011 | - | no utilization review organization may conduct utilization review | |
| 1012 | - | services in this state or affecting residents of this state without first | |
| 1013 | - | obtaining a certificate from the commissioner. | |
| 1041 | + | policies, daily reports, binders and other transaction with its members or | |
| 1042 | + | subscribers, providing if it makes reasonable rules governing those | |
| 1043 | + | activities, which. Such rules shall be approved by the commissioner. Such | |
| 1044 | + | rules and shall contain a provision that in the event any insurer does not | |
| 1045 | + | within 60 days furnish satisfactory evidence to the rating organization of | |
| 1046 | + | the correction of any error or omissions previously called to its attention | |
| 1047 | + | by the rating organization, it shall be the duty of the rating organization to | |
| 1048 | + | notify the commissioner thereof. All information submitted for | |
| 1049 | + | examination shall be confidential. | |
| 1050 | + | (g) Any rating organization may subscribe for or purchase actuarial, | |
| 1051 | + | technical or other services, and such services shall be available to all | |
| 1052 | + | members and subscribers without discrimination. Any rating organization | |
| 1053 | + | may collect, compile and distribute past and current premiums of | |
| 1054 | + | individual insurers. | |
| 1055 | + | Sec. 7. K.S.A. 40-22a04 is hereby amended to read as follows: 40- | |
| 1056 | + | 22a04. (a) The commissioner shall adopt rules and regulations establishing | |
| 1057 | + | standards governing the conduct of utilization review activities performed | |
| 1058 | + | in this state or affecting residents or healthcare providers of this state by | |
| 1059 | + | utilization review organizations. Unless granted an exemption under | |
| 1060 | + | K.S.A. 40-22a06, and amendments thereto, no utilization review | |
| 1061 | + | organization may conduct utilization review services in this state or | |
| 1062 | + | affecting residents of this state without first obtaining a certificate from the | |
| 1063 | + | commissioner. | |
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| 1014 | 1107 | (b) The commissioner shall not issue a certificate to a utilization | |
| 1015 | 1108 | review organization until the applicant: | |
| 1016 | - | (1) Files a formal application for certification in such form and | |
| 1017 | - | ||
| 1018 | - | ||
| 1019 | - | ||
| 1109 | + | (1) Files a formal application for certification in such form and detail | |
| 1110 | + | as required by the commissioner and such application has been executed | |
| 1111 | + | under oath by the chief executive officer, president or other head official of | |
| 1112 | + | the applicant; | |
| 1020 | 1113 | (2) files with the commissioner a certified copy of its charter or | |
| 1021 | 1114 | articles of incorporation and bylaws, if any; | |
| 1022 | - | (3) states the location of the office or offices of the utilization | |
| 1023 | - | ||
| 1024 | - | ||
| 1115 | + | (3) states the location of the office or offices of the utilization review | |
| 1116 | + | organization where utilization review affecting residents or health care | |
| 1117 | + | providers of this state will be principally performed; | |
| 1025 | 1118 | (4) provides a summary of the qualifications and experience of | |
| 1026 | 1119 | persons performing utilization review affecting the persons and at the | |
| 1027 | 1120 | locations identified pursuant to paragraph (3); | |
| 1028 | - | (5) makes payment of a certification fee of not to exceed $100 to | |
| 1029 | - | ||
| 1121 | + | (5) makes payment of a certification fee of not to exceed $100 to the | |
| 1122 | + | commission; and | |
| 1030 | 1123 | (6) provides such other information or documentation as the | |
| 1031 | 1124 | commissioner requires. | |
| 1032 | - | (c) Certificates issued by the commissioner pursuant to this act | |
| 1033 | - | ||
| 1034 | - | ||
| 1035 | - | (d) The commissioner may suspend or revoke the certificate or | |
| 1036 | - | ||
| 1037 | - | ||
| 1038 | - | ||
| 1039 | - | ||
| 1125 | + | (c) Certificates issued by the commissioner pursuant to this act shall | |
| 1126 | + | remain effective until suspended, surrendered or revoked subject to | |
| 1127 | + | payment of an annual continuation fee of not to exceed $50. | |
| 1128 | + | (d) The commissioner may suspend or revoke the certificate or any | |
| 1129 | + | exemption from certification requirements upon determination that the | |
| 1130 | + | interests of Kansas insureds are not being properly served under such | |
| 1131 | + | certificate or exemption. Any such action shall be taken only after a | |
| 1132 | + | hearing conducted in accordance with the provisions of the Kansas | |
| 1040 | 1133 | administrative procedure act. | |
| 1041 | - | (e) Not later than December 1 of each year, the commissioner | |
| 1042 | - | ||
| 1043 | - | ||
| 1044 | - | Sec. | |
| 1134 | + | (e) Not later than December 1 of each year, the commissioner shall | |
| 1135 | + | set and cause to be published in the Kansas register the fee required | |
| 1136 | + | pursuant to this paragraph for the next calendar year. | |
| 1137 | + | Sec. 8. K.S.A. 40-2604 is hereby amended to read as follows: 40- | |
| 1045 | 1138 | 2604. (a) No person shall engage in the business of financing insurance | |
| 1046 | - | premiums under this act in this state without first having obtained a | |
| 1047 | - | license as a premium finance company from the commissioner of | |
| 1048 | - | insurance. Every violation of any of the provisions of this act shall | |
| 1049 | - | subject the person violating the same such provisions to a penalty not to | |
| 1050 | - | exceed $500 for each violation or by imprisonment not to exceed six | |
| 1051 | - | months in jail or both. | |
| 1052 | - | (b) (1) (A) The license continuation fee shall be not exceed $100. | |
| 1053 | - | The fee for such continuation shall be paid to the commissioner to be | |
| 1054 | - | deposited in the state general fund. | |
| 1055 | - | (B) Licenses may be continued from year to year as of May 1 of | |
| 1056 | - | each year upon payment of the continuation fee. Every licensee shall, | |
| 1057 | - | on or before the first day of April, pay to the commissioner the sum of | |
| 1058 | - | an amount not to exceed $100 as a continuation fee for the succeeding | |
| 1059 | - | year. Failure to pay the continuation fee within the time prescribed shall | |
| 1139 | + | premiums under this act in this state without first having obtained a license | |
| 1140 | + | as a premium finance company from the commissioner of insurance. Every | |
| 1141 | + | violation of any of the provisions of this act shall subject the person | |
| 1142 | + | violating the same such provisions to a penalty not to exceed $500 for each | |
| 1143 | + | violation or by imprisonment not to exceed six months in jail or both. | |
| 1144 | + | (b) (1) (A) The license continuation fee shall be not exceed $100. The | |
| 1145 | + | fee for such continuation shall be paid to the commissioner to be deposited | |
| 1146 | + | in the state general fund. | |
| 1147 | + | (B) Licenses may be continued from year to year as of May 1 of each | |
| 1148 | + | year upon payment of the continuation fee. Every licensee shall, on or | |
| 1149 | + | before the first day of April, pay to the commissioner the sum of an | |
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| 1193 | + | amount not to exceed $100 as a continuation fee for the succeeding year. | |
| 1194 | + | Failure to pay the continuation fee within the time prescribed shall | |
| 1060 | 1195 | automatically revoke the license. | |
| 1061 | - | (2) Not later than December 1 of each year, the commissioner | |
| 1062 | - | ||
| 1063 | - | ||
| 1196 | + | (2) Not later than December 1 of each year, the commissioner shall | |
| 1197 | + | set and cause to be published in the Kansas register the fees required | |
| 1198 | + | pursuant to this subsection for the next calendar year. | |
| 1064 | 1199 | (c) The applicant for such license shall file with the commissioner | |
| 1065 | - | written application and shall make sworn answers to such | |
| 1066 | - | ||
| 1067 | - | ||
| 1068 | - | ||
| 1069 | - | ||
| 1070 | - | ||
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| 1072 | - | ||
| 1073 | - | ||
| 1074 | - | Sec. | |
| 1200 | + | written application and shall make sworn answers to such interrogatories | |
| 1201 | + | as the commissioner may require on forms prepared by the commissioner. | |
| 1202 | + | The commissioner shall have authority, at any time, to require the | |
| 1203 | + | applicant fully to disclose the identity of all stockholders, partners, officers | |
| 1204 | + | and employees, and the commissioner may, in the exercise of discretion, | |
| 1205 | + | refuse to issue or renew a license in the name of any firm, partnership, or | |
| 1206 | + | corporation if not satisfied that any officer, employee, stockholder, or | |
| 1207 | + | partner thereof who may materially influence the applicant's conduct meets | |
| 1208 | + | the standards of this act. | |
| 1209 | + | Sec. 9. K.S.A. 40-2702 is hereby amended to read as follows: 40- | |
| 1075 | 1210 | 2702. (a) As used in this act, unless the context otherwise requires, the | |
| 1076 | 1211 | term "insurer" means and includes all corporations, companies, | |
| 1077 | - | associations, societies, fraternal benefit societies, mutual nonprofit | |
| 1078 | - | hospital service and nonprofit medical service companies, partnerships | |
| 1079 | - | and persons engaged as principals in the business of insurance of the | |
| 1080 | - | kinds enumerated in articles 4, 5, 6, 7, 11, 18, 19, 19a, 19b, 19c, 22, 32 | |
| 1081 | - | and 38 of chapter 40 of the Kansas Statutes Annotated, and any | |
| 1082 | - | amendments thereto, insofar as the business of insurance of the kinds | |
| 1083 | - | enumerated in such articles relate to life and accident or sickness. | |
| 1084 | - | Whenever in this section there is reference to an act effected or | |
| 1085 | - | committed by mail, the venue of such act shall be at the point where the | |
| 1086 | - | matter transmitted by mail is delivered and takes effect. | |
| 1087 | - | It shall be unlawful for any insurer to transact insurance business in | |
| 1088 | - | this state, as set forth in subsection (b) of this section, without a | |
| 1089 | - | certificate of authority from the commissioner of insurance. This | |
| 1090 | - | section shall not apply to: | |
| 1091 | - | (1) The lawful transaction of insurance procured by agents under | |
| 1092 | - | the authority of K.S.A. 40-246b, 40-246c and 40-246d, and HOUSE BILL No. 2050—page 18 | |
| 1093 | - | amendments thereto, relating to accident and sickness insurance; | |
| 1094 | - | (2) contracts of reinsurance issued by an insurer not organized | |
| 1095 | - | under the laws of this state; | |
| 1212 | + | associations, societies, fraternal benefit societies, mutual nonprofit hospital | |
| 1213 | + | service and nonprofit medical service companies, partnerships and persons | |
| 1214 | + | engaged as principals in the business of insurance of the kinds enumerated | |
| 1215 | + | in articles 4, 5, 6, 7, 11, 18, 19, 19a, 19b, 19c, 22, 32 and 38 of chapter 40 | |
| 1216 | + | of the Kansas Statutes Annotated, and any amendments thereto, insofar as | |
| 1217 | + | the business of insurance of the kinds enumerated in such articles relate to | |
| 1218 | + | life and accident or sickness. Whenever in this section there is reference to | |
| 1219 | + | an act effected or committed by mail, the venue of such act shall be at the | |
| 1220 | + | point where the matter transmitted by mail is delivered and takes effect. | |
| 1221 | + | It shall be unlawful for any insurer to transact insurance business in this | |
| 1222 | + | state, as set forth in subsection (b) of this section, without a certificate of | |
| 1223 | + | authority from the commissioner of insurance. This section shall not apply | |
| 1224 | + | to: | |
| 1225 | + | (1) The lawful transaction of insurance procured by agents under the | |
| 1226 | + | authority of K.S.A. 40-246b, 40-246c and 40-246d, and amendments | |
| 1227 | + | thereto, relating to accident and sickness insurance; | |
| 1228 | + | (2) contracts of reinsurance issued by an insurer not organized under | |
| 1229 | + | the laws of this state; | |
| 1096 | 1230 | (3) transactions in this state involving a policy lawfully solicited, | |
| 1097 | 1231 | written and delivered outside of this state, covering only subjects of | |
| 1098 | 1232 | insurance not resident in this state at the time of issuance and which | |
| 1099 | 1233 | transactions are subsequent to the issuance of such policy; | |
| 1100 | - | (4) attorneys acting in the ordinary relation of attorney and client | |
| 1101 | - | in the adjustment of claims or losses; | |
| 1102 | - | (5) transactions in this state involving group life and group | |
| 1103 | - | sickness and accident or blanket sickness and accident insurance or | |
| 1104 | - | group annuities, where the master policy of such groups was lawfully | |
| 1105 | - | issued and delivered in and pursuant to the laws of a state in which the | |
| 1106 | - | insurer was authorized to do an insurance business to a group organized | |
| 1107 | - | for purposes other than the procurement of insurance and where the | |
| 1108 | - | policyholder is domiciled or otherwise has a bona fide residence; | |
| 1109 | - | (6) transactions in this state involving any policy of life or | |
| 1110 | - | accident and health insurance or annuity contract issued prior to the | |
| 1111 | - | effective date of this act; | |
| 1112 | - | (7) contracts of insurance written by certain lodges, societies, | |
| 1113 | - | persons and associations specified in K.S.A. 40-202, and amendments | |
| 1114 | - | thereto, and organizations preempted from state jurisdiction as a result | |
| 1115 | - | of compliance with both the employees retirement income security act | |
| 1116 | - | of 1974, as amended, including all bonding provisions, and paragraph | |
| 1117 | - | (9) of subsection (c) of section 501 of the internal revenue code; and | |
| 1118 | - | (8) any life insurance company organized and operated, without | |
| 1119 | - | profit to any private shareholder or individual, exclusively for the | |
| 1120 | - | purpose of aiding and strengthening educational institutions, organized | |
| 1121 | - | and operated without profit to any private shareholder or individual, by | |
| 1122 | - | issuing insurance and annuity contracts directly from the home office | |
| 1123 | - | of the company, without insurance agents or insurance representatives | |
| 1124 | - | in this state, only to or for the benefit of such institutions and | |
| 1125 | - | individuals engaged in the services of such institutions, but this | |
| 1126 | - | exemption shall be conditioned upon any such company complying | |
| 1127 | - | with the following requirements: | |
| 1128 | - | (i)(A) Payment of an annual registration fee of not to exceed | |
| 1129 | - | $500;. Not later than December 1 of each year, the commissioner shall | |
| 1130 | - | set and cause to be published in the Kansas register such fee for the | |
| 1131 | - | next calendar year; | |
| 1234 | + | (4) attorneys acting in the ordinary relation of attorney and client in | |
| 1235 | + | the adjustment of claims or losses; | |
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| 1278 | + | 43 HB 2050 16 | |
| 1279 | + | (5) transactions in this state involving group life and group sickness | |
| 1280 | + | and accident or blanket sickness and accident insurance or group annuities, | |
| 1281 | + | where the master policy of such groups was lawfully issued and delivered | |
| 1282 | + | in and pursuant to the laws of a state in which the insurer was authorized | |
| 1283 | + | to do an insurance business to a group organized for purposes other than | |
| 1284 | + | the procurement of insurance and where the policyholder is domiciled or | |
| 1285 | + | otherwise has a bona fide residence; | |
| 1286 | + | (6) transactions in this state involving any policy of life or accident | |
| 1287 | + | and health insurance or annuity contract issued prior to the effective date | |
| 1288 | + | of this act; | |
| 1289 | + | (7) contracts of insurance written by certain lodges, societies, persons | |
| 1290 | + | and associations specified in K.S.A. 40-202, and amendments thereto, and | |
| 1291 | + | organizations preempted from state jurisdiction as a result of compliance | |
| 1292 | + | with both the employees retirement income security act of 1974, as | |
| 1293 | + | amended, including all bonding provisions, and paragraph (9) of | |
| 1294 | + | subsection (c) of section 501 of the internal revenue code; and | |
| 1295 | + | (8) any life insurance company organized and operated, without profit | |
| 1296 | + | to any private shareholder or individual, exclusively for the purpose of | |
| 1297 | + | aiding and strengthening educational institutions, organized and operated | |
| 1298 | + | without profit to any private shareholder or individual, by issuing | |
| 1299 | + | insurance and annuity contracts directly from the home office of the | |
| 1300 | + | company, without insurance agents or insurance representatives in this | |
| 1301 | + | state, only to or for the benefit of such institutions and individuals engaged | |
| 1302 | + | in the services of such institutions, but this exemption shall be conditioned | |
| 1303 | + | upon any such company complying with the following requirements: | |
| 1304 | + | (i)(A) Payment of an annual registration fee of not to exceed $500;. | |
| 1305 | + | Not later than December 1 of each year, the commissioner shall set and | |
| 1306 | + | cause to be published in the Kansas register such fee for the next calendar | |
| 1307 | + | year; | |
| 1132 | 1308 | (ii)(B) filing a copy of the form of any policy or contract issued to | |
| 1133 | 1309 | Kansas residents with the commissioner of insurance; | |
| 1134 | - | (iii)(C) filing a copy of its annual statement prepared pursuant to | |
| 1135 | - | ||
| 1136 | - | ||
| 1310 | + | (iii)(C) filing a copy of its annual statement prepared pursuant to the | |
| 1311 | + | laws of its state of domicile, as well as such other financial material as | |
| 1312 | + | may be requested, with the commissioner of insurance; and | |
| 1137 | 1313 | (iv)(D) providing, in such form as may be prescribed by the | |
| 1138 | 1314 | commissioner of insurance, for the appointment of the commissioner of | |
| 1139 | 1315 | insurance as its true and lawful attorney upon whom may be served all | |
| 1140 | - | lawful process in any action or proceeding against such company | |
| 1141 | - | arising out of any policy or contract it has issued to, or which is | |
| 1142 | - | currently held by, a Kansas citizen and process so served against such | |
| 1143 | - | company shall have the same force and validity as if served upon the | |
| 1144 | - | company. | |
| 1316 | + | lawful process in any action or proceeding against such company arising | |
| 1317 | + | out of any policy or contract it has issued to, or which is currently held by, | |
| 1318 | + | a Kansas citizen and process so served against such company shall have | |
| 1319 | + | the same force and validity as if served upon the company. | |
| 1145 | 1320 | (b) Any of the following acts in this state effected by mail or | |
| 1146 | - | otherwise by or on behalf of an unauthorized insurer is shall be deemed | |
| 1147 | - | to constitute the transaction of an insurance business in this state: | |
| 1148 | - | (1) The making of or proposing to make, as an insurer, an | |
| 1149 | - | insurance contract; | |
| 1321 | + | otherwise by or on behalf of an unauthorized insurer is shall be deemed to | |
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| 1365 | + | constitute the transaction of an insurance business in this state: | |
| 1366 | + | (1) The making of or proposing to make, as an insurer, an insurance | |
| 1367 | + | contract; | |
| 1150 | 1368 | (2) the taking or receiving of any application for insurance; | |
| 1151 | 1369 | (3) the receiving or collection of any premium, commission, | |
| 1152 | 1370 | membership fees, assessments, dues or other consideration for any | |
| 1153 | 1371 | insurance or any part thereof; | |
| 1154 | - | (4) the issuance or delivery of contracts of insurance to residents | |
| 1155 | - | ||
| 1156 | - | (5) (A) directly or indirectly acting as an agent for or otherwise | |
| 1157 | - | representing or aiding on behalf of another any other person or insurer | |
| 1158 | - | ||
| 1159 | - | (i) solicitation, negotiation, procurement or effectuation of | |
| 1160 | - | ||
| 1161 | - | (ii) dissemination of coverage or rate information as to coverage | |
| 1162 | - | ||
| 1163 | - | (iii) forwarding of applications or delivery of policies or contracts | |
| 1164 | - | ||
| 1372 | + | (4) the issuance or delivery of contracts of insurance to residents of | |
| 1373 | + | this state or to persons authorized to do business in this state; | |
| 1374 | + | (5) (A) directly or indirectly acting as an agent for or otherwise | |
| 1375 | + | representing or aiding on behalf of another any other person or insurer in | |
| 1376 | + | the: | |
| 1377 | + | (i) solicitation, negotiation, procurement or effectuation of insurance | |
| 1378 | + | or renewals thereof or in the ; | |
| 1379 | + | (ii) dissemination of coverage or rate information as to coverage or | |
| 1380 | + | rates, or; | |
| 1381 | + | (iii) forwarding of applications or delivery of policies or contracts or | |
| 1382 | + | ; | |
| 1165 | 1383 | (iv) investigation or adjustment of claims or losses or in the | |
| 1166 | - | transaction of matters subsequent to effectuation of the contract and | |
| 1167 | - | ||
| 1168 | - | (v) in any other manner representing or assisting a person or | |
| 1169 | - | ||
| 1170 | - | ||
| 1384 | + | transaction of matters subsequent to effectuation of the contract and rising | |
| 1385 | + | out of it; or | |
| 1386 | + | (v) in any other manner representing or assisting a person or insurer | |
| 1387 | + | in the transaction of insurance with respect to subjects of insurance | |
| 1388 | + | resident in this state. | |
| 1171 | 1389 | (B) Nothing herein in this paragraph shall be construed to prohibit | |
| 1172 | 1390 | full-time salaried employees of a corporate insured from acting in the | |
| 1173 | 1391 | capacity of an insurance manager or buyer in placing insurance in on | |
| 1174 | 1392 | behalf of such employer; | |
| 1175 | 1393 | (6) the transaction of any kind of insurance business specifically | |
| 1176 | - | recognized as transacting an insurance business within the meaning of | |
| 1177 | - | the statutes relating to insurance; or | |
| 1178 | - | (7) the transacting of or proposing to transact any insurance | |
| 1179 | - | business, in substance equivalent to any of the foregoing, in a manner | |
| 1180 | - | designed to evade the provisions of this act. | |
| 1181 | - | (c) (1) The failure of an insurer transacting insurance business in | |
| 1182 | - | this state to obtain a certificate of authority from the commissioner of | |
| 1183 | - | insurance shall not impair the validity of any act or contract of such | |
| 1184 | - | insurer and shall not prevent such insurer from defending any action at | |
| 1185 | - | law or suit in equity in any court of this state, but no insurer transacting | |
| 1186 | - | insurance business in this state without a certificate of authority shall be | |
| 1187 | - | permitted to maintain an action in any court of this state to enforce any | |
| 1188 | - | right, claim or demand arising out of the transaction of such business | |
| 1189 | - | until such insurer shall have obtained a certificate of authority. | |
| 1190 | - | (2) In the event of failure of any such unauthorized insurer to pay | |
| 1191 | - | any claim or loss within the provisions of such insurance contract, any | |
| 1192 | - | person who assisted or in any manner aided, directly or indirectly, in | |
| 1193 | - | the procurement of such insurance contract shall be liable to the insured | |
| 1194 | - | for the full amount of the claim or loss in the manner provided by the | |
| 1394 | + | recognized as transacting an insurance business within the meaning of the | |
| 1395 | + | statutes relating to insurance; or | |
| 1396 | + | (7) the transacting of or proposing to transact any insurance business, | |
| 1397 | + | in substance equivalent to any of the foregoing, in a manner designed to | |
| 1398 | + | evade the provisions of this act. | |
| 1399 | + | (c) (1) The failure of an insurer transacting insurance business in this | |
| 1400 | + | state to obtain a certificate of authority from the commissioner of | |
| 1401 | + | insurance shall not impair the validity of any act or contract of such insurer | |
| 1402 | + | and shall not prevent such insurer from defending any action at law or suit | |
| 1403 | + | in equity in any court of this state, but no insurer transacting insurance | |
| 1404 | + | business in this state without a certificate of authority shall be permitted to | |
| 1405 | + | maintain an action in any court of this state to enforce any right, claim or | |
| 1406 | + | demand arising out of the transaction of such business until such insurer | |
| 1407 | + | shall have obtained a certificate of authority. | |
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| 1450 | + | 43 HB 2050 18 | |
| 1451 | + | (2) In the event of failure of any such unauthorized insurer to pay any | |
| 1452 | + | claim or loss within the provisions of such insurance contract, any person | |
| 1453 | + | who assisted or in any manner aided, directly or indirectly, in the | |
| 1454 | + | procurement of such insurance contract shall be liable to the insured for | |
| 1455 | + | the full amount of the claim or loss in the manner provided by the | |
| 1195 | 1456 | provisions of such insurance contract. | |
| 1196 | - | Sec. 18. K.S.A. 40-3116 is hereby amended to read as follows: 40- | |
| 1197 | - | 3116. (a) Insurers and self-insurers are hereby directed to organize and | |
| 1198 | - | maintain an assigned claims plan to provide that any person, who | |
| 1199 | - | suffers injury in this state may obtain personal injury protection | |
| 1200 | - | benefits through such plan if: | |
| 1201 | - | (1) Personal injury protection benefits are not available to the | |
| 1202 | - | injured person, except that personal injury protection benefits shall not | |
| 1203 | - | be deemed unavailable to any person suffering injury while such person | |
| 1204 | - | was the operator of a motorcycle or motor-driven cycle, for which the | |
| 1205 | - | owner thereof has rejected personal injury protection benefits pursuant | |
| 1206 | - | to subsection (f) of K.S.A. 40-3107, and amendments thereto; | |
| 1207 | - | (2) Motor vehicle liability insurance or self-insurance applicable | |
| 1208 | - | to the injury cannot be identified; | |
| 1209 | - | (3) Personal injury protection benefits applicable to the injury are | |
| 1210 | - | inadequate to provide the contracted-for benefits because of financial | |
| 1211 | - | inability of an insurer or self-insurer to fulfill its obligation; however, | |
| 1212 | - | except that benefits available through the assigned claims plan shall be | |
| 1213 | - | excess over any benefits paid or payable through the Kansas insurance | |
| 1214 | - | guaranty association. If the personal injury protection benefits are not | |
| 1215 | - | paid by the Kansas insurance guaranty association within the limitation | |
| 1216 | - | of time specified in this act, such benefits shall be paid by the assigned | |
| 1217 | - | claims plan. Payments made by the assigned claims plan pursuant to | |
| 1218 | - | this section shall constitute covered claims under K.S.A. 40-2901et | |
| 1219 | - | seq., and amendments thereto. | |
| 1220 | - | (b) If a claim qualifies for assignment under this section, the HOUSE BILL No. 2050—page 20 | |
| 1221 | - | assigned claims plan or any insurer or self-insurer to whom the claim is | |
| 1222 | - | assigned shall be subrogated to all of the rights of the claimant against | |
| 1223 | - | any insurer or self-insurer, its successor in interest or substitute, legally | |
| 1224 | - | obligated to provide personal injury protection benefits to the claimant, | |
| 1225 | - | for any of such benefits provided by the assignment. | |
| 1226 | - | (c) A person shall not be entitled to personal injury protection | |
| 1227 | - | benefits through the assigned claims plan with respect to injury which | |
| 1228 | - | that such person has sustained if, at the time of such injury, such person | |
| 1229 | - | was the owner of a motor vehicle for which a policy of motor vehicle | |
| 1230 | - | liability insurance is required under this act and such person failed to | |
| 1231 | - | have such policy in effect. | |
| 1232 | - | (d) The assigned claims plan shall be governed by such rules and | |
| 1233 | - | regulations as are necessary for its operation and for the assessment of | |
| 1234 | - | costs, which shall be approved by the commissioner. Any claim brought | |
| 1235 | - | through said plan shall be assigned to an insurer or self-insurer, in | |
| 1236 | - | accordance with the approved regulations of operation, and such | |
| 1237 | - | insurer or self-insurer, after the assignment, shall have the same rights | |
| 1238 | - | and obligations as it would have if, prior to such assignment, it had | |
| 1239 | - | issued a motor vehicle liability insurance policy providing personal | |
| 1240 | - | injury protection benefits applicable to the loss or expenses incurred or | |
| 1241 | - | was a self-insurer providing such benefits. Any party accepting benefits | |
| 1242 | - | hereunder under this section shall have such rights and obligations as | |
| 1243 | - | such person would have if a motor vehicle liability insurance policy | |
| 1244 | - | providing personal injury protection benefits were issued to such | |
| 1245 | - | person. | |
| 1246 | - | (e) No insurer shall write any motor vehicle liability insurance | |
| 1247 | - | policy in this state unless the insurer participates in the assigned claims | |
| 1248 | - | plan organized pursuant to this section, nor shall any person qualify as | |
| 1249 | - | a self-insurer pursuant to subsection (f) of K.S.A. 40-3104, and | |
| 1250 | - | amendments thereto, unless such person agrees to participate in such | |
| 1251 | - | assigned claims plan. Any insurer or self-insurer required to participate | |
| 1252 | - | in the assigned claims plan who violates this subsection shall be | |
| 1253 | - | assessed a civil penalty of not more than $5,000 for each policy issued | |
| 1254 | - | or self-insurance certificate obtained in violation thereof. | |
| 1255 | - | (f) (1) On and after January 1, 2026, the governing committee of | |
| 1256 | - | the assigned claims plan shall consist of five members, who shall be | |
| 1257 | - | removable by the commissioner for inefficiency, neglect of duty or | |
| 1258 | - | malfeasance. Members shall be appointed as follows: | |
| 1259 | - | (A) Three members shall be representatives of insurers; | |
| 1260 | - | (B) one member shall be a representative of independent | |
| 1261 | - | insurance agents; and | |
| 1262 | - | (C) one member shall be a representative of the general public. | |
| 1263 | - | (2) In selecting the members who shall be representatives of | |
| 1264 | - | insurers, the commissioner shall consider whether foreign and | |
| 1265 | - | domestic insurers are fairly represented. | |
| 1266 | - | Sec. 19. K.S.A. 40-3213 is hereby amended to read as follows: 40- | |
| 1457 | + | Sec. 10. K.S.A. 40-3213 is hereby amended to read as follows: 40- | |
| 1267 | 1458 | 3213. (a) (1) Every health maintenance organization and medicare | |
| 1268 | - | provider organization subject to this act shall pay to the commissioner | |
| 1269 | - | ||
| 1459 | + | provider organization subject to this act shall pay to the commissioner the | |
| 1460 | + | following fees: | |
| 1270 | 1461 | (1)(A) For filing an application for a certificate of authority, an | |
| 1271 | 1462 | amount not to exceed $150; | |
| 1272 | 1463 | (2)(B) for filing each annual report, an amount not to exceed $50; | |
| 1273 | 1464 | and | |
| 1274 | 1465 | (3)(C) for filing an amendment to the certificate of authority, an | |
| 1275 | 1466 | amount not to exceed $10. | |
| 1276 | - | (2) Not later than December 1 of each year, the commissioner | |
| 1277 | - | ||
| 1278 | - | ||
| 1467 | + | (2) Not later than December 1 of each year, the commissioner shall | |
| 1468 | + | set and cause to be published in the Kansas register the fees required | |
| 1469 | + | pursuant to this subsection for the next calendar year. | |
| 1279 | 1470 | (b) Every health maintenance organization subject to this act shall | |
| 1280 | 1471 | pay annually to the commissioner at the time such organization files its | |
| 1281 | 1472 | annual report, a privilege fee in an amount equal to the following | |
| 1282 | - | percentages of the total of all premiums, subscription charges or any | |
| 1283 | - | other term that may be used to describe the charges made by such | |
| 1284 | - | organization to enrollees: 3.31% during the reporting period beginning HOUSE BILL No. 2050—page 21 | |
| 1285 | - | January 1, 2015, and ending December 31, 2017; and 5.77% on and | |
| 1286 | - | after January 1, 2018. In such computations all such organizations shall | |
| 1287 | - | be entitled to deduct therefrom any premiums or subscription charges | |
| 1288 | - | returned on account of cancellations and dividends returned to | |
| 1289 | - | enrollees. If the commissioner shall determine at any time that the | |
| 1290 | - | application of the privilege fee, or a change in the rate of the privilege | |
| 1291 | - | fee, would cause a denial of, reduction in or elimination of federal | |
| 1292 | - | financial assistance to the state or to any health maintenance | |
| 1293 | - | organization subject to this act, the commissioner is hereby authorized | |
| 1294 | - | to terminate the operation of such privilege fee or the change in such | |
| 1295 | - | privilege fee. | |
| 1473 | + | percentages of the total of all premiums, subscription charges or any other | |
| 1474 | + | term that may be used to describe the charges made by such organization | |
| 1475 | + | to enrollees: 3.31% during the reporting period beginning January 1, 2015, | |
| 1476 | + | and ending December 31, 2017; and 5.77% on and after January 1, 2018. | |
| 1477 | + | In such computations all such organizations shall be entitled to deduct | |
| 1478 | + | therefrom any premiums or subscription charges returned on account of | |
| 1479 | + | cancellations and dividends returned to enrollees. If the commissioner | |
| 1480 | + | shall determine at any time that the application of the privilege fee, or a | |
| 1481 | + | change in the rate of the privilege fee, would cause a denial of, reduction | |
| 1482 | + | in or elimination of federal financial assistance to the state or to any health | |
| 1483 | + | maintenance organization subject to this act, the commissioner is hereby | |
| 1484 | + | authorized to terminate the operation of such privilege fee or the change in | |
| 1485 | + | such privilege fee. | |
| 1296 | 1486 | (c) For the purpose of insuring the collection of the privilege fee | |
| 1297 | 1487 | provided for by subsection (b), every health maintenance organization | |
| 1298 | - | subject to this act and required by subsection (b) to pay such privilege | |
| 1299 | - | fee shall at the time it files its annual report, as required by K.S.A. 40- | |
| 1300 | - | 3220, and amendments thereto, make a return, generated by or at the | |
| 1301 | - | direction of its chief officer or principal managing director, under | |
| 1302 | - | penalty of K.S.A. 21-5824, and amendments thereto, to the | |
| 1303 | - | commissioner, stating the amount of all premiums, assessments and | |
| 1304 | - | charges received by the health maintenance organization, whether in | |
| 1305 | - | cash or notes, during the year ending on the last day of the preceding | |
| 1306 | - | calendar year. Upon the receipt of such returns the commissioner of | |
| 1307 | - | insurance shall verify such returns and reconcile the fees pursuant to | |
| 1308 | - | subsection (f) upon such organization on the basis and at the rate | |
| 1309 | - | provided in this section. | |
| 1488 | + | subject to this act and required by subsection (b) to pay such privilege fee | |
| 1489 | + | shall at the time it files its annual report, as required by K.S.A. 40-3220, | |
| 1490 | + | and amendments thereto, make a return, generated by or at the direction of | |
| 1491 | + | its chief officer or principal managing director, under penalty of K.S.A. | |
| 1492 | + | 21-5824, and amendments thereto, to the commissioner, stating the amount | |
| 1493 | + | of all premiums, assessments and charges received by the health | |
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| 1536 | + | 43 HB 2050 19 | |
| 1537 | + | maintenance organization, whether in cash or notes, during the year ending | |
| 1538 | + | on the last day of the preceding calendar year. Upon the receipt of such | |
| 1539 | + | returns the commissioner of insurance shall verify such returns and | |
| 1540 | + | reconcile the fees pursuant to subsection (f) upon such organization on the | |
| 1541 | + | basis and at the rate provided in this section. | |
| 1310 | 1542 | (d) Premiums or other charges received by an insurance company | |
| 1311 | - | from the operation of a health maintenance organization subject to this | |
| 1312 | - | ||
| 1313 | - | ||
| 1543 | + | from the operation of a health maintenance organization subject to this act | |
| 1544 | + | shall not be subject to any fee or tax imposed under the provisions of | |
| 1545 | + | K.S.A. 40-252, and amendments thereto. | |
| 1314 | 1546 | (e) Fees charged under this section shall be remitted to the state | |
| 1315 | 1547 | treasurer in accordance with the provisions of K.S.A. 75-4215, and | |
| 1316 | 1548 | amendments thereto. Upon receipt of each such remittance, the state | |
| 1317 | - | treasurer shall deposit the entire amount in the state treasury to the | |
| 1318 | - | ||
| 1319 | - | ||
| 1320 | - | (f) (1) On and after January 1, 2018, In addition to any other filing | |
| 1321 | - | ||
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| 1549 | + | treasurer shall deposit the entire amount in the state treasury to the credit | |
| 1550 | + | of the medical assistance fee fund created by K.S.A. 40-3236, and | |
| 1551 | + | amendments thereto. | |
| 1552 | + | (f) (1) On and after January 1, 2018, In addition to any other filing or | |
| 1553 | + | return required by this section, each health maintenance organization shall | |
| 1554 | + | submit a report to the commissioner on or before March 31 and September | |
| 1555 | + | 30 of each year containing an estimate of the total amount of all premiums, | |
| 1556 | + | subscription charges or any other term that may be used to describe the | |
| 1557 | + | charges made by such organization to enrollees that the organization | |
| 1558 | + | expects to collect during the current calendar year. Upon filing each March | |
| 1559 | + | 31 report, the organization shall submit payment equal to ½ of the | |
| 1560 | + | privilege fee that would be assessed by the commissioner for the current | |
| 1561 | + | calendar year based upon the organization's reported estimate. Upon filing | |
| 1562 | + | each September 30 report, the organization shall submit payment equal to | |
| 1563 | + | the balance of the privilege fee that would be assessed by the | |
| 1564 | + | commissioner for the current calendar year based upon the organization's | |
| 1565 | + | reported estimates. | |
| 1334 | 1566 | (2) Any amount of privilege fees actually owed by a health | |
| 1335 | - | maintenance organization during any calendar year in excess of | |
| 1336 | - | ||
| 1337 | - | ||
| 1567 | + | maintenance organization during any calendar year in excess of estimated | |
| 1568 | + | privilege fees paid shall be assessed by the commissioner and shall be due | |
| 1569 | + | and payable upon issuance of such assessment. | |
| 1338 | 1570 | (3) Any amount of estimated privilege fees paid by a health | |
| 1339 | - | maintenance organization during any calendar year in excess of | |
| 1340 | - | privilege fees actually owed shall be reconciled when the commissioner | |
| 1341 | - | assesses privilege fees in the ensuing calendar year. The commissioner | |
| 1342 | - | shall credit such excess amount against future privilege fee | |
| 1343 | - | assessments. Any such excess amount paid by a health maintenance | |
| 1344 | - | organization that is no longer doing business in Kansas and that no | |
| 1345 | - | longer has a duty to pay the privilege fee shall be refunded by the | |
| 1346 | - | commissioner from funds appropriated by the legislature for such | |
| 1347 | - | purpose. | |
| 1348 | - | Sec. 20. K.S.A. 40-3304 is hereby amended to read as follows: 40- HOUSE BILL No. 2050—page 22 | |
| 1349 | - | 3304. (a) (1) No person other than the issuer shall make a tender offer | |
| 1350 | - | for or a request or invitation for tenders of, or enter into any agreement | |
| 1351 | - | to exchange securities or, seek to acquire, or acquire, in the open | |
| 1352 | - | market or otherwise, any voting security of a domestic insurer if, after | |
| 1353 | - | the consummation thereof, such person would, directly or indirectly, or | |
| 1354 | - | by conversion or by exercise of any right to acquire, be in control of | |
| 1355 | - | such insurer, and no person shall enter into an agreement to merge with | |
| 1356 | - | or otherwise to acquire control of a domestic insurer or any person | |
| 1357 | - | controlling a domestic insurer unless, at the time any such offer, | |
| 1358 | - | request, or invitation is made or any such agreement is entered into, or | |
| 1359 | - | prior to the acquisition of such securities if no offer or agreement is | |
| 1360 | - | involved, such person has filed with the commissioner of insurance and | |
| 1361 | - | has sent to such insurer, a statement containing the information | |
| 1362 | - | required by this section and such offer, request, invitation, agreement or | |
| 1363 | - | acquisition has been approved by the commissioner of insurance in the | |
| 1364 | - | manner hereinafter prescribed. The requirements of this section shall | |
| 1365 | - | not apply to the merger or consolidation of those companies subject to | |
| 1366 | - | the requirements of K.S.A. 40-507 and 40-1216 through 40-1225, and | |
| 1367 | - | amendments thereto. | |
| 1368 | - | (2) For purposes of this section, any controlling person of a | |
| 1369 | - | domestic insurer seeking to divest its controlling interest in the | |
| 1370 | - | domestic insurer, in any manner, shall file with the commissioner, with | |
| 1371 | - | a copy to the insurer, confidential notice of its proposed divestiture at | |
| 1372 | - | least 30 days prior to the cessation of control. The commissioner shall | |
| 1373 | - | determine those instances in which each party seeking to divest or to | |
| 1374 | - | acquire a controlling interest in an insurer shall be required to file for | |
| 1375 | - | and obtain approval of the transaction. The information shall remain | |
| 1376 | - | confidential until the conclusion of the transaction unless the | |
| 1377 | - | commissioner, in the commissioner's discretion, determines that | |
| 1378 | - | confidential treatment will interfere with enforcement of this section. If | |
| 1379 | - | the statement referred to in paragraph (1) is otherwise filed, this | |
| 1380 | - | paragraph shall not apply. | |
| 1381 | - | (3) With respect to a transaction subject to this section, the | |
| 1382 | - | acquiring person shall also be required to file a preacquisition | |
| 1383 | - | notification with the commissioner, and such preacquistion notification | |
| 1384 | - | shall contain the information in the form and manner prescribed by the | |
| 1385 | - | commissioner through rules and regulations. | |
| 1571 | + | maintenance organization during any calendar year in excess of privilege | |
| 1572 | + | fees actually owed shall be reconciled when the commissioner assesses | |
| 1573 | + | privilege fees in the ensuing calendar year. The commissioner shall credit | |
| 1574 | + | such excess amount against future privilege fee assessments. Any such | |
| 1575 | + | excess amount paid by a health maintenance organization that is no longer | |
| 1576 | + | doing business in Kansas and that no longer has a duty to pay the privilege | |
| 1577 | + | fee shall be refunded by the commissioner from funds appropriated by the | |
| 1578 | + | legislature for such purpose. | |
| 1579 | + | Sec. 11. K.S.A. 40-3304 is hereby amended to read as follows: 40- | |
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| 1622 | + | 43 HB 2050 20 | |
| 1623 | + | 3304. (a) (1) No person other than the issuer shall make a tender offer for | |
| 1624 | + | or a request or invitation for tenders of, or enter into any agreement to | |
| 1625 | + | exchange securities or, seek to acquire, or acquire, in the open market or | |
| 1626 | + | otherwise, any voting security of a domestic insurer if, after the | |
| 1627 | + | consummation thereof, such person would, directly or indirectly, or by | |
| 1628 | + | conversion or by exercise of any right to acquire, be in control of such | |
| 1629 | + | insurer, and no person shall enter into an agreement to merge with or | |
| 1630 | + | otherwise to acquire control of a domestic insurer or any person | |
| 1631 | + | controlling a domestic insurer unless, at the time any such offer, request, or | |
| 1632 | + | invitation is made or any such agreement is entered into, or prior to the | |
| 1633 | + | acquisition of such securities if no offer or agreement is involved, such | |
| 1634 | + | person has filed with the commissioner of insurance and has sent to such | |
| 1635 | + | insurer, a statement containing the information required by this section and | |
| 1636 | + | such offer, request, invitation, agreement or acquisition has been approved | |
| 1637 | + | by the commissioner of insurance in the manner hereinafter prescribed. | |
| 1638 | + | The requirements of this section shall not apply to the merger or | |
| 1639 | + | consolidation of those companies subject to the requirements of K.S.A. 40- | |
| 1640 | + | 507 and 40-1216 through 40-1225, and amendments thereto. | |
| 1641 | + | (2) For purposes of this section, any controlling person of a domestic | |
| 1642 | + | insurer seeking to divest its controlling interest in the domestic insurer, in | |
| 1643 | + | any manner, shall file with the commissioner, with a copy to the insurer, | |
| 1644 | + | confidential notice of its proposed divestiture at least 30 days prior to the | |
| 1645 | + | cessation of control. The commissioner shall determine those instances in | |
| 1646 | + | which each party seeking to divest or to acquire a controlling interest in an | |
| 1647 | + | insurer shall be required to file for and obtain approval of the transaction. | |
| 1648 | + | The information shall remain confidential until the conclusion of the | |
| 1649 | + | transaction unless the commissioner, in the commissioner's discretion, | |
| 1650 | + | determines that confidential treatment will interfere with enforcement of | |
| 1651 | + | this section. If the statement referred to in paragraph (1) is otherwise filed, | |
| 1652 | + | this paragraph shall not apply. | |
| 1653 | + | (3) With respect to a transaction subject to this section, the acquiring | |
| 1654 | + | person shall also be required to file a preacquisition notification with the | |
| 1655 | + | commissioner, and such preacquistion notification shall contain the | |
| 1656 | + | information in the form and manner prescribed by the commissioner | |
| 1657 | + | through rules and regulations. | |
| 1386 | 1658 | (4) For the purposes ofAs used in this section: | |
| 1387 | 1659 | (A) A "Domestic" insurer shall include includes any person | |
| 1388 | 1660 | controlling a domestic insurer unless such person, as determined by the | |
| 1389 | 1661 | commissioner of insurance, is either directly or through its affiliates | |
| 1390 | 1662 | primarily engaged in business other than the business of insurance. | |
| 1391 | - | (B) "Person" shall does not include any securities broker holding, | |
| 1392 | - | in the usual and customary broker's function, less than 20% of the | |
| 1393 | - | voting securities of the insurance company or of any person which that | |
| 1394 | - | controls the insurance company. | |
| 1395 | - | (b) (1) The statement to be filed with the commissioner of | |
| 1396 | - | insurance hereunder shall be made under oath or affirmation, shall be | |
| 1397 | - | accompanied by a nonrefundable filing fee of not to exceed $1,000 and | |
| 1398 | - | shall contain the following information: | |
| 1399 | - | (1)(A) The name and address of each person by whom or on | |
| 1400 | - | whose behalf the merger or other acquisition of control referred to in | |
| 1401 | - | subsection (a) is to be affected effected, hereinafter called "acquiring | |
| 1402 | - | party," and: | |
| 1663 | + | (B) "Person" shall does not include any securities broker holding, in | |
| 1664 | + | the usual and customary broker's function, less than 20% of the voting | |
| 1665 | + | securities of the insurance company or of any person which that controls | |
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| 1708 | + | 43 HB 2050 21 | |
| 1709 | + | the insurance company. | |
| 1710 | + | (b) (1) The statement to be filed with the commissioner of insurance | |
| 1711 | + | hereunder shall be made under oath or affirmation, shall be accompanied | |
| 1712 | + | by a nonrefundable filing fee of not to exceed $1,000 and shall contain the | |
| 1713 | + | following information: | |
| 1714 | + | (1)(A) The name and address of each person by whom or on whose | |
| 1715 | + | behalf the merger or other acquisition of control referred to in subsection | |
| 1716 | + | (a) is to be affected effected, hereinafter called "acquiring party," and: | |
| 1403 | 1717 | (A)(i) If such person is an individual, such individual's principal | |
| 1404 | 1718 | occupation, all offices and positions held by such individual during the | |
| 1405 | 1719 | past five years and any conviction of crimes other than minor traffic | |
| 1406 | 1720 | violations during the past 10 years; and | |
| 1407 | - | (B)(ii) if such person is not an individual, a report of the nature of | |
| 1408 | - | its business operations during the past five years or for such lesser | |
| 1409 | - | shorter period as such person and any predecessors thereof shall have | |
| 1410 | - | been in existence;, an informative description of the business intended | |
| 1411 | - | to be done by such person and such person's subsidiaries; and a list of | |
| 1412 | - | all individuals who are or who have been selected to become directors HOUSE BILL No. 2050—page 23 | |
| 1413 | - | or executive officers of such person, or who perform or will perform | |
| 1414 | - | functions appropriate to such positions. Such list shall include for each | |
| 1415 | - | such individual the information required by subparagraph (A) clause | |
| 1416 | - | (i); | |
| 1417 | - | (2)(B) the source, nature and amount of the consideration used or | |
| 1418 | - | to be used in effecting the merger or other acquisition of control, a | |
| 1419 | - | description of any transaction wherein funds were or are to be obtained | |
| 1420 | - | for any such purpose including any pledge of the insurer's stock, or the | |
| 1421 | - | stock of any of its subsidiaries or controlling affiliates, and the identity | |
| 1422 | - | of persons furnishing such consideration, except that where a source of | |
| 1423 | - | such consideration is a loan made in the lender's ordinary course of | |
| 1424 | - | business, the identity of the lender shall remain confidential, if the | |
| 1425 | - | person filing such statement so requests; | |
| 1721 | + | (B)(ii) if such person is not an individual, a report of the nature of its | |
| 1722 | + | business operations during the past five years or for such lesser shorter | |
| 1723 | + | period as such person and any predecessors thereof shall have been in | |
| 1724 | + | existence;, an informative description of the business intended to be done | |
| 1725 | + | by such person and such person's subsidiaries; and a list of all individuals | |
| 1726 | + | who are or who have been selected to become directors or executive | |
| 1727 | + | officers of such person, or who perform or will perform functions | |
| 1728 | + | appropriate to such positions. Such list shall include for each such | |
| 1729 | + | individual the information required by subparagraph (A) clause (i); | |
| 1730 | + | (2)(B) the source, nature and amount of the consideration used or to | |
| 1731 | + | be used in effecting the merger or other acquisition of control, a | |
| 1732 | + | description of any transaction wherein funds were or are to be obtained for | |
| 1733 | + | any such purpose including any pledge of the insurer's stock, or the stock | |
| 1734 | + | of any of its subsidiaries or controlling affiliates, and the identity of | |
| 1735 | + | persons furnishing such consideration, except that where a source of such | |
| 1736 | + | consideration is a loan made in the lender's ordinary course of business, | |
| 1737 | + | the identity of the lender shall remain confidential, if the person filing such | |
| 1738 | + | statement so requests; | |
| 1426 | 1739 | (3)(C) fully audited financial information as to the earnings and | |
| 1427 | 1740 | financial condition of each acquiring party for the preceding five fiscal | |
| 1428 | 1741 | years of each such acquiring party or for such lesser period as such | |
| 1429 | - | acquiring party and any predecessors thereof shall have been in | |
| 1430 | - | existence and similar unaudited information as of a date not earlier than | |
| 1431 | - | 90 days prior to the filing of the statement; | |
| 1432 | - | (4)(D) any plans or proposals that each acquiring party may have | |
| 1433 | - | to liquidate such insurer, to sell its assets, merge or consolidate it with | |
| 1434 | - | any person or to make any other material change to its business, | |
| 1435 | - | corporate structure or management; | |
| 1436 | - | (5)(E) the number of shares of any security referred to in | |
| 1437 | - | subsection (a) that each acquiring party proposes to acquire and the | |
| 1438 | - | terms of the offer, request, invitation, agreement or acquisition referred | |
| 1439 | - | to in subsection (a) and a statement regarding the method utilized to | |
| 1440 | - | determine the fairness of the proposal; | |
| 1742 | + | acquiring party and any predecessors thereof shall have been in existence | |
| 1743 | + | and similar unaudited information as of a date not earlier than 90 days | |
| 1744 | + | prior to the filing of the statement; | |
| 1745 | + | (4)(D) any plans or proposals that each acquiring party may have to | |
| 1746 | + | liquidate such insurer, to sell its assets, merge or consolidate it with any | |
| 1747 | + | person or to make any other material change to its business, corporate | |
| 1748 | + | structure or management; | |
| 1749 | + | (5)(E) the number of shares of any security referred to in subsection | |
| 1750 | + | (a) that each acquiring party proposes to acquire and the terms of the offer, | |
| 1751 | + | request, invitation, agreement or acquisition referred to in subsection (a) | |
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| 1794 | + | 43 HB 2050 22 | |
| 1795 | + | and a statement regarding the method utilized to determine the fairness of | |
| 1796 | + | the proposal; | |
| 1441 | 1797 | (6)(F) the amount of each class of any security referred to in | |
| 1442 | 1798 | subsection (a) that is beneficially owned or concerning which there is a | |
| 1443 | 1799 | right to acquire beneficial ownership by each acquiring party; | |
| 1444 | 1800 | (7)(G) a full description of any contracts, arrangements or | |
| 1445 | - | understandings with respect to any security referred to in subsection (a) | |
| 1446 | - | ||
| 1801 | + | understandings with respect to any security referred to in subsection (a) in | |
| 1802 | + | which any acquiring party is involved, including, but not limited to, | |
| 1447 | 1803 | transfer of any of the securities, joint ventures, loan or option | |
| 1448 | - | arrangements, puts or calls, guarantees of loans, guarantees against loss | |
| 1449 | - | ||
| 1804 | + | arrangements, puts or calls, guarantees of loans, guarantees against loss or | |
| 1805 | + | guarantees of profits, division of losses or profits, or the giving or | |
| 1450 | 1806 | withholding of proxies. Such description shall identify the persons with | |
| 1451 | - | whom such contracts, arrangements or understandings have been | |
| 1452 | - | ||
| 1807 | + | whom such contracts, arrangements or understandings have been entered | |
| 1808 | + | into; | |
| 1453 | 1809 | (8)(H) a description of the purchase of any security referred to in | |
| 1454 | 1810 | subsection (a) during the 12 calendar months preceding the filing of the | |
| 1455 | - | statement, by any acquiring party, including the dates of purchase, | |
| 1456 | - | names of the purchasers and consideration paid or agreed to be paid | |
| 1457 | - | therefor; | |
| 1458 | - | (9)(I) a description of any recommendations to purchase any | |
| 1459 | - | security referred to in subsection (a) made during the 12 calendar | |
| 1460 | - | months preceding the filing of the statement, by any acquiring party, or | |
| 1461 | - | by anyone based upon interviews or at the suggestion of such acquiring | |
| 1462 | - | party; | |
| 1811 | + | statement, by any acquiring party, including the dates of purchase, names | |
| 1812 | + | of the purchasers and consideration paid or agreed to be paid therefor; | |
| 1813 | + | (9)(I) a description of any recommendations to purchase any security | |
| 1814 | + | referred to in subsection (a) made during the 12 calendar months preceding | |
| 1815 | + | the filing of the statement, by any acquiring party, or by anyone based | |
| 1816 | + | upon interviews or at the suggestion of such acquiring party; | |
| 1463 | 1817 | (10)(J) copies of all tender offers for, requests or invitations for | |
| 1464 | - | tenders of, exchange offers for and agreements to acquire or exchange | |
| 1465 | - | ||
| 1466 | - | ||
| 1467 | - | (11)(K) the terms of any agreement, contract or understanding | |
| 1468 | - | ||
| 1469 | - | ||
| 1470 | - | ||
| 1471 | - | ||
| 1818 | + | tenders of, exchange offers for and agreements to acquire or exchange any | |
| 1819 | + | securities referred to in subsection (a) and, if distributed, of additional | |
| 1820 | + | soliciting material relating thereto; | |
| 1821 | + | (11)(K) the terms of any agreement, contract or understanding made | |
| 1822 | + | with or proposed to be made with any broker-dealer as to solicitation of | |
| 1823 | + | securities referred to in subsection (a) for tender and the amount of any | |
| 1824 | + | fees, commissions or other compensation to be paid to broker-dealers with | |
| 1825 | + | regard thereto; | |
| 1472 | 1826 | (12)(L) an agreement by the person required to file the statement | |
| 1473 | - | referred to in subsection (a) that such person will shall provide the | |
| 1474 | - | annual report, as specified in K.S.A. 40-3305(l), and amendments | |
| 1475 | - | thereto, for so long as control exists; | |
| 1476 | - | (13)(M) an acknowledgment by the person required to file the HOUSE BILL No. 2050—page 24 | |
| 1477 | - | statement referred to in subsection (a) that the person and all | |
| 1478 | - | subsidiaries within its control in the insurance holding company system | |
| 1479 | - | will provide to the commissioner of insurance upon request such | |
| 1480 | - | information as the commissioner of insurance deems necessary to | |
| 1481 | - | evaluate enterprise risk to the insurer; and | |
| 1482 | - | (14)(N) such additional information as the commissioner of | |
| 1483 | - | insurance may by rule or regulation prescribe as necessary or | |
| 1484 | - | appropriate for the protection of policyholders of the insurer or in the | |
| 1485 | - | public interest. | |
| 1827 | + | referred to in subsection (a) that such person will shall provide the annual | |
| 1828 | + | report, as specified in K.S.A. 40-3305(l), and amendments thereto, for so | |
| 1829 | + | long as control exists; | |
| 1830 | + | (13)(M) an acknowledgment by the person required to file the | |
| 1831 | + | statement referred to in subsection (a) that the person and all subsidiaries | |
| 1832 | + | within its control in the insurance holding company system will provide to | |
| 1833 | + | the commissioner of insurance upon request such information as the | |
| 1834 | + | commissioner of insurance deems necessary to evaluate enterprise risk to | |
| 1835 | + | the insurer; and | |
| 1836 | + | (14)(N) such additional information as the commissioner of insurance | |
| 1837 | + | may by rule or regulation prescribe as necessary or appropriate for the | |
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| 1881 | + | protection of policyholders of the insurer or in the public interest. | |
| 1486 | 1882 | (2) If the person required to file the statement referred to in | |
| 1487 | 1883 | subsection (a) is a partnership, limited partnership, syndicate or other | |
| 1488 | 1884 | group, the commissioner of insurance may require that the information | |
| 1489 | 1885 | called for by paragraphs required pursuant to subparagraphs (1) (A) | |
| 1490 | 1886 | through (14) (N) shall be given provided with respect to each partner of | |
| 1491 | - | such partnership or limited partnership, each member of such syndicate | |
| 1492 | - | or group and each person who controls such partner or member. If any | |
| 1493 | - | such partner, member or person is a corporation or the person required | |
| 1494 | - | to file the statement referred to in subsection (a) is a corporation, the | |
| 1495 | - | commissioner of insurance may require that the information called for | |
| 1496 | - | by paragraphs required pursuant to subparagraphs (1) (A) through (14) | |
| 1497 | - | (N) shall be given provided with respect to such corporation, each | |
| 1498 | - | officer and director of such corporation and each person who is directly | |
| 1499 | - | or indirectly the beneficial owner of more than 10% of the outstanding | |
| 1500 | - | voting securities of such corporation. | |
| 1501 | - | (3) If any material change occurs in the facts set forth in the | |
| 1502 | - | statement filed with the commissioner of insurance and sent to such | |
| 1503 | - | insurer pursuant to this section, an amendment setting forth such | |
| 1504 | - | change, together with copies of all documents and other material | |
| 1505 | - | relevant to such change, shall be filed with the commissioner of | |
| 1506 | - | insurance and sent to such insurer within two business days after the | |
| 1507 | - | such person learns of such change. | |
| 1508 | - | (4) Not later than December 1 of each year, the commissioner | |
| 1509 | - | shall set and cause to be published in the Kansas register the fee | |
| 1510 | - | required pursuant to this subsection for the next calendar year. | |
| 1511 | - | (c) If any offer, request, invitation, agreement or acquisition | |
| 1512 | - | referred to in subsection (a) is proposed to be made by means of a | |
| 1513 | - | registration statement under the securities act of 1933 or in | |
| 1514 | - | circumstances requiring the disclosure of similar information under the | |
| 1515 | - | securities exchange act of 1934, or under a state law requiring similar | |
| 1516 | - | registration or disclosure, the person required to file the statement | |
| 1517 | - | referred to in subsection (a) may utilize such documents in furnishing | |
| 1518 | - | the information called for by that statement. | |
| 1519 | - | (d) (1) The commissioner of insurance shall approve any merger | |
| 1520 | - | or other acquisition of control referred to in subsection (a) unless, after | |
| 1521 | - | a public hearing thereon conducted in accordance with the provisions | |
| 1522 | - | of the Kansas administrative procedure act, the commissioner of | |
| 1523 | - | insurance finds that: | |
| 1887 | + | such partnership or limited partnership, each member of such syndicate or | |
| 1888 | + | group and each person who controls such partner or member. If any such | |
| 1889 | + | partner, member or person is a corporation or the person required to file | |
| 1890 | + | the statement referred to in subsection (a) is a corporation, the | |
| 1891 | + | commissioner of insurance may require that the information called for by | |
| 1892 | + | paragraphs required pursuant to subparagraphs (1) (A) through (14) (N) | |
| 1893 | + | shall be given provided with respect to such corporation, each officer and | |
| 1894 | + | director of such corporation and each person who is directly or indirectly | |
| 1895 | + | the beneficial owner of more than 10% of the outstanding voting securities | |
| 1896 | + | of such corporation. | |
| 1897 | + | (3) If any material change occurs in the facts set forth in the statement | |
| 1898 | + | filed with the commissioner of insurance and sent to such insurer pursuant | |
| 1899 | + | to this section, an amendment setting forth such change, together with | |
| 1900 | + | copies of all documents and other material relevant to such change, shall | |
| 1901 | + | be filed with the commissioner of insurance and sent to such insurer within | |
| 1902 | + | two business days after the such person learns of such change. | |
| 1903 | + | (4) Not later than December 1 of each year, the commissioner shall | |
| 1904 | + | set and cause to be published in the Kansas register the fee required | |
| 1905 | + | pursuant to this subsection for the next calendar year. | |
| 1906 | + | (c) If any offer, request, invitation, agreement or acquisition referred | |
| 1907 | + | to in subsection (a) is proposed to be made by means of a registration | |
| 1908 | + | statement under the securities act of 1933 or in circumstances requiring the | |
| 1909 | + | disclosure of similar information under the securities exchange act of | |
| 1910 | + | 1934, or under a state law requiring similar registration or disclosure, the | |
| 1911 | + | person required to file the statement referred to in subsection (a) may | |
| 1912 | + | utilize such documents in furnishing the information called for by that | |
| 1913 | + | statement. | |
| 1914 | + | (d) (1) The commissioner of insurance shall approve any merger or | |
| 1915 | + | other acquisition of control referred to in subsection (a) unless, after a | |
| 1916 | + | public hearing thereon conducted in accordance with the provisions of the | |
| 1917 | + | Kansas administrative procedure act, the commissioner of insurance finds | |
| 1918 | + | that: | |
| 1524 | 1919 | (A) After the change of control the domestic insurer referred to in | |
| 1525 | 1920 | subsection (a) would not be able to satisfy the requirements for the | |
| 1526 | - | issuance of a license to write the line or lines of insurance for which it | |
| 1527 | - | ||
| 1921 | + | issuance of a license to write the line or lines of insurance for which it is | |
| 1922 | + | presently licensed; | |
| 1528 | 1923 | (B) the financial condition of any acquiring party is such as might | |
| 1529 | - | jeopardize the financial stability of the insurer or prejudice the interest | |
| 1530 | - | of its policyholders; | |
| 1531 | - | (C) the plans or proposals which the acquiring party has to | |
| 1532 | - | liquidate the insurer, sell its assets, consolidate or merge it with any | |
| 1533 | - | person, or to make any other material change in its business, corporate | |
| 1534 | - | structure or management, are unfair and unreasonable to policyholders | |
| 1535 | - | of the insurer or are not in the public interest; | |
| 1536 | - | (D) the competence, experience and integrity of those persons | |
| 1537 | - | who would control the operation of the insurer are such that it would | |
| 1538 | - | not be in the interest of policyholders of the insurer or of the public to | |
| 1539 | - | permit the merger or other acquisition of control; or | |
| 1540 | - | (E) the acquisition is likely to be hazardous or prejudicial to the HOUSE BILL No. 2050—page 25 | |
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| 1967 | + | jeopardize the financial stability of the insurer or prejudice the interest of | |
| 1968 | + | its policyholders; | |
| 1969 | + | (C) the plans or proposals which the acquiring party has to liquidate | |
| 1970 | + | the insurer, sell its assets, consolidate or merge it with any person, or to | |
| 1971 | + | make any other material change in its business, corporate structure or | |
| 1972 | + | management, are unfair and unreasonable to policyholders of the insurer or | |
| 1973 | + | are not in the public interest; | |
| 1974 | + | (D) the competence, experience and integrity of those persons who | |
| 1975 | + | would control the operation of the insurer are such that it would not be in | |
| 1976 | + | the interest of policyholders of the insurer or of the public to permit the | |
| 1977 | + | merger or other acquisition of control; or | |
| 1978 | + | (E) the acquisition is likely to be hazardous or prejudicial to the | |
| 1541 | 1979 | insurance-buying public. | |
| 1542 | - | (2) The public hearing referred to in subsection (d)(1) shall be | |
| 1543 | - | held as soon as practical practicable after the statement required by this | |
| 1544 | - | subsection (a) is filed, and at least 20 days' notice thereof shall be given | |
| 1545 | - | by the commissioner of insurance to the person filing the statement. | |
| 1546 | - | Not less than seven days' notice of such public hearing shall be given | |
| 1547 | - | by the person filing the statement to the insurer and to such other | |
| 1548 | - | persons as may be designated by the commissioner of insurance. At | |
| 1549 | - | such hearing, the person filing the statement, the insurer, any person to | |
| 1550 | - | whom notice of hearing was sent and any other person whose interests | |
| 1551 | - | may be affected thereby shall have the right to present evidence, | |
| 1552 | - | examine and cross-examine witnesses and offer oral and written | |
| 1553 | - | arguments in accordance with the Kansas administrative procedure act. | |
| 1554 | - | In the absence of intervention, such insurer or person shall have the | |
| 1555 | - | right to present oral or written statements in accordance with K.S.A. | |
| 1556 | - | 77-523(c), and amendments thereto. | |
| 1557 | - | (3) If the proposed acquisition of control will require the approval | |
| 1558 | - | of more than one commissioner of insurance, the public hearing | |
| 1559 | - | referred to in paragraph (2) may be held on a consolidated basis upon | |
| 1560 | - | request of the person filing the statement referred to in subsection (a). | |
| 1561 | - | Such person shall file the statement referred to in subsection (a) with | |
| 1562 | - | the national association of insurance commissioners within five days of | |
| 1563 | - | making the request for a public hearing. A commissioner of insurance | |
| 1564 | - | may opt out of a consolidated hearing and shall provide notice to the | |
| 1565 | - | applicant of the opt-out within 10 days of the receipt of the statement | |
| 1566 | - | referred to in subsection (a). A hearing conducted on a consolidated | |
| 1567 | - | basis shall be public and shall be held within the United States before | |
| 1568 | - | the commissioners of insurance of the states in which the insurers are | |
| 1569 | - | domiciled. Such commissioners of insurance shall hear and receive | |
| 1570 | - | evidence. A commissioner of insurance may attend such hearing in | |
| 1571 | - | person or by telecommunication. | |
| 1572 | - | (4) As a condition of a change of control of a domestic insurer, | |
| 1573 | - | any determination by the commissioner of insurance that the person | |
| 1574 | - | acquiring control of the insurer shall be required to maintain or restore | |
| 1575 | - | the capital of the insurer to the level required by the laws and | |
| 1576 | - | regulations of this state shall be made not later than 60 days after the | |
| 1577 | - | date of notification of the change in control submitted pursuant to | |
| 1578 | - | subsection (a). | |
| 1980 | + | (2) The public hearing referred to in subsection (d)(1) shall be held as | |
| 1981 | + | soon as practical practicable after the statement required by this | |
| 1982 | + | subsection (a) is filed, and at least 20 days' notice thereof shall be given by | |
| 1983 | + | the commissioner of insurance to the person filing the statement. Not less | |
| 1984 | + | than seven days' notice of such public hearing shall be given by the person | |
| 1985 | + | filing the statement to the insurer and to such other persons as may be | |
| 1986 | + | designated by the commissioner of insurance. At such hearing, the person | |
| 1987 | + | filing the statement, the insurer, any person to whom notice of hearing was | |
| 1988 | + | sent and any other person whose interests may be affected thereby shall | |
| 1989 | + | have the right to present evidence, examine and cross-examine witnesses | |
| 1990 | + | and offer oral and written arguments in accordance with the Kansas | |
| 1991 | + | administrative procedure act. In the absence of intervention, such insurer | |
| 1992 | + | or person shall have the right to present oral or written statements in | |
| 1993 | + | accordance with K.S.A. 77-523(c), and amendments thereto. | |
| 1994 | + | (3) If the proposed acquisition of control will require the approval of | |
| 1995 | + | more than one commissioner of insurance, the public hearing referred to in | |
| 1996 | + | paragraph (2) may be held on a consolidated basis upon request of the | |
| 1997 | + | person filing the statement referred to in subsection (a). Such person shall | |
| 1998 | + | file the statement referred to in subsection (a) with the national association | |
| 1999 | + | of insurance commissioners within five days of making the request for a | |
| 2000 | + | public hearing. A commissioner of insurance may opt out of a consolidated | |
| 2001 | + | hearing and shall provide notice to the applicant of the opt-out within 10 | |
| 2002 | + | days of the receipt of the statement referred to in subsection (a). A hearing | |
| 2003 | + | conducted on a consolidated basis shall be public and shall be held within | |
| 2004 | + | the United States before the commissioners of insurance of the states in | |
| 2005 | + | which the insurers are domiciled. Such commissioners of insurance shall | |
| 2006 | + | hear and receive evidence. A commissioner of insurance may attend such | |
| 2007 | + | hearing in person or by telecommunication. | |
| 2008 | + | (4) As a condition of a change of control of a domestic insurer, any | |
| 2009 | + | determination by the commissioner of insurance that the person acquiring | |
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| 2052 | + | 43 HB 2050 25 | |
| 2053 | + | control of the insurer shall be required to maintain or restore the capital of | |
| 2054 | + | the insurer to the level required by the laws and regulations of this state | |
| 2055 | + | shall be made not later than 60 days after the date of notification of the | |
| 2056 | + | change in control submitted pursuant to subsection (a). | |
| 1579 | 2057 | (5) The commissioner of insurance may retain at the acquiring | |
| 1580 | 2058 | person's expense any attorneys, actuaries, accountants and other experts | |
| 1581 | 2059 | not otherwise a part of the staff of the commissioner of insurance as the | |
| 1582 | - | commissioner of insurance deems to be reasonably necessary to assist | |
| 1583 | - | ||
| 2060 | + | commissioner of insurance deems to be reasonably necessary to assist the | |
| 2061 | + | commissioner of insurance in reviewing the proposed acquisition of | |
| 1584 | 2062 | control. | |
| 1585 | - | (e) The provisions of this section shall not apply to any offer, | |
| 1586 | - | ||
| 1587 | - | ||
| 2063 | + | (e) The provisions of this section shall not apply to any offer, request, | |
| 2064 | + | invitation, agreement or acquisition that the commissioner of insurance by | |
| 2065 | + | order shall exempt therefrom as: | |
| 1588 | 2066 | (1) Not having been made or entered into for the purpose and not | |
| 1589 | 2067 | having the effect of changing or influencing the control of a domestic | |
| 1590 | 2068 | insurer; or | |
| 1591 | 2069 | (2) as otherwise not comprehended within the purposes of this | |
| 1592 | 2070 | section. | |
| 1593 | 2071 | (f) The following shall be violations of this section: | |
| 1594 | 2072 | (1) The failure to file any statement, amendment or other material | |
| 1595 | 2073 | required to be filed pursuant to subsection (a) or (b); or | |
| 1596 | 2074 | (2) the effectuation or any attempt to effectuate an acquisition of | |
| 1597 | - | control of, or merger with, a domestic insurer unless the commissioner | |
| 1598 | - | ||
| 2075 | + | control of, or merger with, a domestic insurer unless the commissioner of | |
| 2076 | + | insurance has given the requisite approval thereto. | |
| 1599 | 2077 | (g) The courts of this state are hereby vested with jurisdiction over | |
| 1600 | - | every securityholder of a domestic insurer and every person not | |
| 1601 | - | resident, domiciled or authorized to do business in this state who files a | |
| 1602 | - | statement with the commissioner of insurance under this section and | |
| 1603 | - | over all actions involving such person arising out of violations of this | |
| 1604 | - | section. Each such person shall be deemed to have performed acts HOUSE BILL No. 2050—page 26 | |
| 1605 | - | equivalent to and constituting an appointment by such a person of the | |
| 1606 | - | commissioner of insurance to be such person's true and lawful attorney | |
| 1607 | - | upon whom may be served all lawful process in any action, suit or | |
| 1608 | - | proceeding arising out of violations of this section. Copies of all such | |
| 1609 | - | lawful process shall be served on the commissioner of insurance and | |
| 1610 | - | transmitted by registered or certified mail by the commissioner of | |
| 1611 | - | insurance to such person at such person's last known address. | |
| 1612 | - | Sec. 21. K.S.A. 40-3413 is hereby amended to read as follows: 40- | |
| 1613 | - | 3413. (a) Every insurer and every rating organization shall cooperate in | |
| 1614 | - | the preparation of preparing a plan or plans for the equitable | |
| 1615 | - | apportionment among such insurers of applicants for professional | |
| 1616 | - | liability insurance and such other liability insurance as may be included | |
| 1617 | - | in or added to the plan, who are, in good faith, are entitled to such | |
| 1618 | - | insurance but are unable to procure the same through ordinary methods. | |
| 1619 | - | Such plan or plans shall be prepared and filed with the commissioner | |
| 1620 | - | and the board of governors within a reasonable time but not exceeding | |
| 1621 | - | 60 calendar days from the effective date of this act. Such plan or plans | |
| 1622 | - | shall provide: | |
| 1623 | - | (1) Reasonable rules governing the equitable distribution of risks | |
| 1624 | - | by direct insurance, reinsurance or otherwise including the authority to | |
| 1625 | - | make assessments against the insurers participating in the plan or plans; | |
| 1626 | - | (2) rates and rate modifications applicable to such risks which that | |
| 1627 | - | shall be reasonable, adequate and not unfairly discriminatory; | |
| 1628 | - | (3) a method whereby periodically the plan shall compare the | |
| 1629 | - | premiums earned to the losses and expenses sustained by the plan. If | |
| 1630 | - | there is any surplus of premiums over losses and expenses received for | |
| 1631 | - | that year such surplus shall be transferred to the fund. If there is any | |
| 1632 | - | excess of losses and expenses over premiums earned such losses shall | |
| 1633 | - | be transferred from the fund, however except that such transfers shall | |
| 1634 | - | not occur more often than once each three months; | |
| 1635 | - | (4) the limits of liability which that the plan shall be required to | |
| 1636 | - | provide, but in no event shall except that such limits shall not be less | |
| 1637 | - | than those limits provided for in subsection (a) of K.S.A. 40-3402, and | |
| 1638 | - | amendments thereto; and | |
| 1639 | - | (5) a method whereby by which applicants for insurance, insureds | |
| 1640 | - | and insurers may have a hearing on grievances and the right of appeal | |
| 1641 | - | to the commissioner. | |
| 1642 | - | (b) (1) For every such plan or plans, there shall be a governing | |
| 1643 | - | board which that shall meet at least annually to review and prescribe | |
| 1644 | - | operating rules. Prior to December 31, 2025, such board of directors | |
| 1645 | - | shall consist of nine members to be appointed, for terms of four years, | |
| 1646 | - | by the commissioner as follows: | |
| 1647 | - | (1)(A) Two members who shall be representatives of foreign | |
| 1648 | - | insurers; | |
| 1649 | - | (2)(B) two members who shall be representatives of domestic | |
| 1650 | - | insurers; | |
| 1651 | - | (3)(C) two members who shall be health care healthcare | |
| 1652 | - | providers; | |
| 1653 | - | (4)(D) one member who shall be a licensed insurance agent | |
| 1654 | - | actively engaged in the solicitation of casualty insurance; | |
| 1655 | - | (5)(E) one member who shall be the chairperson of the board of | |
| 1656 | - | governors or the chairperson's designee; and | |
| 1657 | - | (6)(F) one member who shall be a representative of the general | |
| 1658 | - | public. | |
| 1659 | - | (2) The members of the governing board appointed on or before | |
| 1660 | - | July 1, 2025, shall serve their current terms that shall expire on | |
| 1661 | - | December 31, 2025. On and after January 1, 2026, the governing | |
| 1662 | - | board shall consist of five members who shall be appointed for a term | |
| 1663 | - | of four years except that such members shall be removable by the | |
| 1664 | - | commissioner for inefficiency, neglect of duty or malfeasance as | |
| 1665 | - | follows: | |
| 1666 | - | (A) One member who shall be a representative of foreign insurers; | |
| 1667 | - | (B) one member who shall be a representative of domestic | |
| 1668 | - | insurers; HOUSE BILL No. 2050—page 27 | |
| 1669 | - | (C) one member shall be a healthcare provider; | |
| 1670 | - | (D) one member who shall be a licensed insurance agent engaged | |
| 1671 | - | in the solicitation of casualty insurance; and | |
| 1672 | - | (E) one member who shall be chairperson of the board or the | |
| 1673 | - | chairperson's designee. | |
| 1674 | - | (c) The commissioner and board of directors governing board | |
| 1675 | - | shall review the plan as soon as reasonably possible after filing in order | |
| 1676 | - | to determine whether it if such plan meets the requirements set forth in | |
| 1677 | - | subsection (a). As soon as reasonably possible after the plan has been | |
| 1678 | - | filed, the commissioner, consistent with the recommendations of the | |
| 1679 | - | board of directors governing board, shall in writing approve or | |
| 1680 | - | disapprove the plan in writing. Any plan shall be deemed approved | |
| 1681 | - | unless disapproved within 30 days. Subsequent to the waiting period | |
| 1682 | - | the commissioner may disapprove any plan on the ground grounds that | |
| 1683 | - | it such plan does not meet the requirements set forth in subsection (a), | |
| 1684 | - | but only after a hearing held upon not less than 10 days' written notice | |
| 1685 | - | to every insurer and rating organization affected specifying in what | |
| 1686 | - | respect the commissioner finds that such plan fails to meet such | |
| 1687 | - | requirements, and stating when, within a reasonable period thereafter, | |
| 1688 | - | such plan shall be deemed no longer effective. Such order shall not | |
| 1689 | - | affect any assignment made or policy issued or made prior to the | |
| 1690 | - | expiration of the period set forth in the order. Amendments to such plan | |
| 1691 | - | or plans shall be prepared, and filed and reviewed in the same manner | |
| 1692 | - | as herein provided in this section with respect to the original plan or | |
| 1693 | - | plans. | |
| 1694 | - | (d) If no plan meeting the standards set forth in subsection (a) is | |
| 1695 | - | submitted to the commissioner and board of directors within 60 | |
| 1696 | - | calendar days from the effective date of this act July 1, 1982, or within | |
| 1697 | - | the period stated in any order disapproving an existing plan, the | |
| 1698 | - | commissioner with the assistance of the board of directors shall after a | |
| 1699 | - | hearing, if necessary to carry out the purpose of this act, prepare and | |
| 1700 | - | promulgate a plan meeting such requirements. | |
| 1701 | - | (e) If, after a hearing conducted in accordance with the provisions | |
| 1702 | - | of the Kansas administrative procedure act, the commissioner and | |
| 1703 | - | board of directors find that any activity or practice of any insurer or | |
| 1704 | - | rating organization in connection with the operation of such plan or | |
| 1705 | - | plans is unfair or unreasonable or otherwise inconsistent with the | |
| 1706 | - | provisions of this act, the commissioner and board of directors may | |
| 1707 | - | issue a written order specifying in what respects such activity or | |
| 1708 | - | practice is unfair or unreasonable or otherwise inconsistent with the | |
| 1709 | - | provisions of this act and requiring discontinuance of such activity or | |
| 1710 | - | practice. | |
| 1711 | - | (f) An insurer participating in the plan approved by the | |
| 1712 | - | commissioner may pay a commission with respect to insurance written | |
| 1713 | - | under the plan to an insurance agent licensed for any other insurer | |
| 1714 | - | participating in the plan or to any insurer participating in the plan. Such | |
| 1715 | - | commission shall be reasonably equivalent to the usual customary | |
| 1716 | - | commission paid on similar types of policies issued in the voluntary | |
| 1717 | - | market. | |
| 1718 | - | (g) Notwithstanding the provisions of K.S.A. 40-3402, and | |
| 1719 | - | amendments thereto, the plan shall make available policies of | |
| 1720 | - | professional liability insurance covering prior acts. Such professional | |
| 1721 | - | liability insurance policies shall have limits of coverage not exceeding | |
| 1722 | - | $1,000,000 per claim, subject to not more than $3,000,000 annual | |
| 1723 | - | aggregate liability for all claims made as a result of personal injury or | |
| 1724 | - | death arising out of the rendering of or the failure to render professional | |
| 1725 | - | services within this state on or before December 31, 2014. Such | |
| 1726 | - | professional liability insurance policies shall be made available only to | |
| 1727 | - | physician assistants licensed by the state board of healing arts, licensed | |
| 1728 | - | advanced practice registered nurses authorized by the state board of | |
| 1729 | - | nursing to practice as an advanced practice registered nurse in the | |
| 1730 | - | classification of a nurse-midwife, nursing facilities licensed by the state | |
| 1731 | - | of Kansas, assisted living facilities licensed by the state of Kansas and | |
| 1732 | - | residential health care facilities licensed by the state of Kansas that will HOUSE BILL No. 2050—page 28 | |
| 1733 | - | be in compliance with K.S.A. 40-3402, and amendments thereto, on | |
| 1734 | - | January 1, 2015. The premiums for such professional liability insurance | |
| 1735 | - | policies shall be based upon reasonably prudent actuarial principles. | |
| 1736 | - | The provisions of this subsection shall expire on January 1, 2016. | |
| 1737 | - | Sec. 22. K.S.A. 40-3812 is hereby amended to read as follows: 40- | |
| 1738 | - | 3812. (a) A person shall apply to be an administrator in its home state | |
| 1739 | - | and shall receive a license from the regulatory authority of its home | |
| 1740 | - | state prior to performing any function of an administrator in this state. | |
| 2078 | + | every securityholder of a domestic insurer and every person not resident, | |
| 2079 | + | domiciled or authorized to do business in this state who files a statement | |
| 2080 | + | with the commissioner of insurance under this section and over all actions | |
| 2081 | + | involving such person arising out of violations of this section. Each such | |
| 2082 | + | person shall be deemed to have performed acts equivalent to and | |
| 2083 | + | constituting an appointment by such a person of the commissioner of | |
| 2084 | + | insurance to be such person's true and lawful attorney upon whom may be | |
| 2085 | + | served all lawful process in any action, suit or proceeding arising out of | |
| 2086 | + | violations of this section. Copies of all such lawful process shall be served | |
| 2087 | + | on the commissioner of insurance and transmitted by registered or certified | |
| 2088 | + | mail by the commissioner of insurance to such person at such person's last | |
| 2089 | + | known address. | |
| 2090 | + | Sec. 12. K.S.A. 40-3812 is hereby amended to read as follows: 40- | |
| 2091 | + | 3812. (a) A person shall apply to be an administrator in its home state and | |
| 2092 | + | shall receive a license from the regulatory authority of its home state prior | |
| 2093 | + | to performing any function of an administrator in this state. | |
| 1741 | 2094 | (b) A person applying to Kansas as its home state shall apply for | |
| 1742 | 2095 | licensure by submitting to the commissioner an application in the form | |
| 1743 | - | prescribed by the commissioner that shall include or be accompanied | |
| 1744 | - | by the following information and documents: | |
| 1745 | - | (1) All basic organizational documents of the applicant, including | |
| 1746 | - | any articles of incorporation, articles of association, partnership | |
| 1747 | - | agreement, trade name certificate, trust agreement, shareholder | |
| 1748 | - | agreement, certificate of existence from the Kansas secretary of state | |
| 1749 | - | and other applicable documents and all amendments to such | |
| 1750 | - | documents; | |
| 1751 | - | (2) the bylaws, rules, regulations or similar documents regulating | |
| 1752 | - | the internal affairs of the applicant; | |
| 1753 | - | (3) NAIC biographical affidavits for the individuals who are | |
| 1754 | - | directly or indirectly responsible for the conduct of affairs of the | |
| 1755 | - | applicant, including all members of the board of directors, board of | |
| 1756 | - | trustees, executive committee or other governing board or committee, | |
| 1757 | - | the principal officers in the case of a corporation or the partners or | |
| 1758 | - | members in the case of a partnership, association or limited liability | |
| 1759 | - | company, any shareholders or members holding directly or indirectly | |
| 1760 | - | 10% or more of the voting stock, voting securities or voting interest of | |
| 1761 | - | the applicant and any other person who directly or indirectly exercises | |
| 1762 | - | control or influence over the affairs of the applicant; | |
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| 2139 | + | prescribed by the commissioner that shall include or be accompanied by | |
| 2140 | + | the following information and documents: | |
| 2141 | + | (1) All basic organizational documents of the applicant, including any | |
| 2142 | + | articles of incorporation, articles of association, partnership agreement, | |
| 2143 | + | trade name certificate, trust agreement, shareholder agreement, certificate | |
| 2144 | + | of existence from the Kansas secretary of state and other applicable | |
| 2145 | + | documents and all amendments to such documents; | |
| 2146 | + | (2) the bylaws, rules, regulations or similar documents regulating the | |
| 2147 | + | internal affairs of the applicant; | |
| 2148 | + | (3) NAIC biographical affidavits for the individuals who are directly | |
| 2149 | + | or indirectly responsible for the conduct of affairs of the applicant, | |
| 2150 | + | including all members of the board of directors, board of trustees, | |
| 2151 | + | executive committee or other governing board or committee, the principal | |
| 2152 | + | officers in the case of a corporation or the partners or members in the case | |
| 2153 | + | of a partnership, association or limited liability company, any shareholders | |
| 2154 | + | or members holding directly or indirectly 10% or more of the voting stock, | |
| 2155 | + | voting securities or voting interest of the applicant and any other person | |
| 2156 | + | who directly or indirectly exercises control or influence over the affairs of | |
| 2157 | + | the applicant; | |
| 1763 | 2158 | (4) audited annual financial statements or reports for the two most | |
| 1764 | 2159 | recent fiscal years that demonstrate that the applicant has a positive net | |
| 1765 | - | worth. If the applicant has been in existence for less than two fiscal | |
| 1766 | - | ||
| 1767 | - | ||
| 1768 | - | ||
| 1769 | - | ||
| 1770 | - | ||
| 1771 | - | ||
| 1772 | - | ||
| 1773 | - | ||
| 2160 | + | worth. If the applicant has been in existence for less than two fiscal years, | |
| 2161 | + | the uniform application shall include financial statements or reports, | |
| 2162 | + | certified by at least two officers, owners or directors of the applicant and | |
| 2163 | + | prepared in accordance with GAAP, for any completed fiscal years and for | |
| 2164 | + | any month during the current fiscal year for which such financial | |
| 2165 | + | statements or reports have been completed. An audited annual financial | |
| 2166 | + | report prepared on a consolidated basis shall include a columnar | |
| 2167 | + | consolidating or combining worksheet that shall be filed with the report | |
| 2168 | + | and include the following: | |
| 1774 | 2169 | (A) Amounts shown on the consolidated audited financial report | |
| 1775 | 2170 | shown on the worksheet; | |
| 1776 | 2171 | (B) amounts for each entity stated separately; and | |
| 1777 | 2172 | (C) explanations of consolidating and eliminating entries included. | |
| 1778 | 2173 | The applicant shall also include such other information as the | |
| 1779 | 2174 | commissioner may require in order to review the current financial | |
| 1780 | 2175 | condition of the applicant; | |
| 1781 | 2176 | (5) in lieu of submitting audited financial statements, and upon | |
| 1782 | 2177 | written application by an applicant and good cause shown, the | |
| 1783 | 2178 | commissioner may grant a hardship exemption from filing audited | |
| 1784 | 2179 | financial statements and allow the submission of unaudited financial | |
| 1785 | 2180 | statements. Acceptable formats for unaudited financial statements, that | |
| 1786 | 2181 | shall include notes, are: | |
| 1787 | - | (A) Reports compiled or reviewed by a certified public | |
| 1788 | - | accountant; or | |
| 1789 | - | (B) (i) internal financial reports prepared in accordance with | |
| 1790 | - | GAAP, certified by at least two officers, owners or directors of the | |
| 1791 | - | administrator. | |
| 1792 | - | (ii) If unaudited financial statements are submitted, the applicant | |
| 1793 | - | must shall also secure and maintain a surety bond in a form prescribed | |
| 1794 | - | by the commissioner for the use and benefit of the commissioner to be | |
| 1795 | - | held in trust for the benefit and protection of covered persons and any | |
| 1796 | - | payor or self-funded plan against loss by reason of acts of fraud or HOUSE BILL No. 2050—page 29 | |
| 1797 | - | dishonesty, for the greater of 10% of funds handled for the benefit of | |
| 1798 | - | Kansas residents or $20,000. Administrators of self-funded plans in | |
| 1799 | - | Kansas are shall be subject to the mandatory surety bond requirement | |
| 1800 | - | found described in subsection (h), regardless of whether they file | |
| 1801 | - | audited or unaudited financial reports; | |
| 1802 | - | (6) a statement describing the business plan, including information | |
| 1803 | - | on staffing levels and activities, proposed in this state and nationwide. | |
| 1804 | - | The plan shall provide details setting forth the applicant's capability for | |
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| 2224 | + | 43 HB 2050 27 | |
| 2225 | + | (A) Reports compiled or reviewed by a certified public accountant; or | |
| 2226 | + | (B) (i) internal financial reports prepared in accordance with GAAP, | |
| 2227 | + | certified by at least two officers, owners or directors of the administrator. | |
| 2228 | + | (ii) If unaudited financial statements are submitted, the applicant must | |
| 2229 | + | shall also secure and maintain a surety bond in a form prescribed by the | |
| 2230 | + | commissioner for the use and benefit of the commissioner to be held in | |
| 2231 | + | trust for the benefit and protection of covered persons and any payor or | |
| 2232 | + | self-funded plan against loss by reason of acts of fraud or dishonesty, for | |
| 2233 | + | the greater of 10% of funds handled for the benefit of Kansas residents or | |
| 2234 | + | $20,000. Administrators of self-funded plans in Kansas are shall be subject | |
| 2235 | + | to the mandatory surety bond requirement found described in subsection | |
| 2236 | + | (h), regardless of whether they file audited or unaudited financial reports; | |
| 2237 | + | (6) a statement describing the business plan, including information on | |
| 2238 | + | staffing levels and activities, proposed in this state and nationwide. The | |
| 2239 | + | plan shall provide details setting forth the applicant's capability for | |
| 1805 | 2240 | providing a sufficient number of experienced and qualified personnel in | |
| 1806 | 2241 | the areas of claims processing, record keeping and underwriting; | |
| 1807 | - | (7) a license application fee in the amount of not to exceed $400; | |
| 1808 | - | and | |
| 2242 | + | (7) a license application fee in the amount of not to exceed $400; and | |
| 1809 | 2243 | (8) such other pertinent information as may be required by the | |
| 1810 | 2244 | commissioner. | |
| 1811 | 2245 | (c) An administrator licensed or applying for licensure under the | |
| 1812 | 2246 | provisions of this section shall make available for inspection by the | |
| 1813 | - | commissioner, copies of all contracts with payors or other persons | |
| 1814 | - | ||
| 2247 | + | commissioner, copies of all contracts with payors or other persons utilizing | |
| 2248 | + | the services of the administrator. | |
| 1815 | 2249 | (d) An administrator licensed or applying for licensure under the | |
| 1816 | - | provisions of this section shall produce its accounts, records and files | |
| 1817 | - | for examination, and makes its officers available to give information | |
| 1818 | - | with respect to its affairs, as often as reasonably required by the | |
| 1819 | - | commissioner. | |
| 2250 | + | provisions of this section shall produce its accounts, records and files for | |
| 2251 | + | examination, and makes its officers available to give information with | |
| 2252 | + | respect to its affairs, as often as reasonably required by the commissioner. | |
| 1820 | 2253 | (e) The commissioner may refuse to issue a license if the | |
| 1821 | - | commissioner determines that the applicant or any individual | |
| 1822 | - | responsible for the conduct of affairs of the applicant is not competent, | |
| 1823 | - | trustworthy, financially responsible or of good personal and business | |
| 1824 | - | reputation, or has had an insurance or an administrator certificate of | |
| 1825 | - | authority or license denied or revoked for cause by any jurisdiction, or | |
| 1826 | - | if the commissioner determines that any of the grounds set forth in | |
| 1827 | - | K.S.A. 40-3810, and amendments thereto, exist with respect to the | |
| 1828 | - | applicant. | |
| 2254 | + | commissioner determines that the applicant or any individual responsible | |
| 2255 | + | for the conduct of affairs of the applicant is not competent, trustworthy, | |
| 2256 | + | financially responsible or of good personal and business reputation, or has | |
| 2257 | + | had an insurance or an administrator certificate of authority or license | |
| 2258 | + | denied or revoked for cause by any jurisdiction, or if the commissioner | |
| 2259 | + | determines that any of the grounds set forth in K.S.A. 40-3810, and | |
| 2260 | + | amendments thereto, exist with respect to the applicant. | |
| 1829 | 2261 | (f) A license issued under this section shall remain valid, unless | |
| 1830 | - | surrendered, suspended or revoked by the commissioner, for so long as | |
| 1831 | - | the administrator continues in business in this state and remains in | |
| 1832 | - | compliance with the provisions of this act and any applicable rules and | |
| 1833 | - | regulations. | |
| 2262 | + | surrendered, suspended or revoked by the commissioner, for so long as the | |
| 2263 | + | administrator continues in business in this state and remains in compliance | |
| 2264 | + | with the provisions of this act and any applicable rules and regulations. | |
| 1834 | 2265 | (g) An administrator licensed or applying for licensure under the | |
| 1835 | 2266 | provisions of this section shall immediately notify the commissioner of | |
| 1836 | - | any material change in its ownership, control or other fact or | |
| 1837 | - | circumstance affecting its qualification for a license in this state. | |
| 1838 | - | (h) An administrator licensed or applying for a home state license | |
| 1839 | - | that administers or will administer governmental or church self-insured | |
| 1840 | - | plans in this state or any other state shall maintain a surety bond for the | |
| 1841 | - | use and benefit of the commissioner to be held in trust for the benefit | |
| 1842 | - | and protection of covered persons and any payor or self-funded plan | |
| 1843 | - | against loss by reason of acts of fraud or dishonesty. The bond shall be | |
| 1844 | - | in the greater of the following amounts: | |
| 2267 | + | any material change in its ownership, control or other fact or circumstance | |
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| 2311 | + | affecting its qualification for a license in this state. | |
| 2312 | + | (h) An administrator licensed or applying for a home state license that | |
| 2313 | + | administers or will administer governmental or church self-insured plans | |
| 2314 | + | in this state or any other state shall maintain a surety bond for the use and | |
| 2315 | + | benefit of the commissioner to be held in trust for the benefit and | |
| 2316 | + | protection of covered persons and any payor or self-funded plan against | |
| 2317 | + | loss by reason of acts of fraud or dishonesty. The bond shall be in the | |
| 2318 | + | greater of the following amounts: | |
| 1845 | 2319 | (1) $100,000; or | |
| 1846 | 2320 | (2) an amount equal to 10% of the aggregate total amount of self- | |
| 1847 | - | funded coverage under church plans or governmental plans handled in | |
| 1848 | - | this state and all additional states in which the administrator is | |
| 1849 | - | authorized to do business. | |
| 1850 | - | (i) Not later than December 1 of each year, the commissioner | |
| 1851 | - | shall set and cause to be published in the Kansas register the fee | |
| 1852 | - | required pursuant to this section for the next calendar year. | |
| 1853 | - | Sec. 23. K.S.A. 40-3813 is hereby amended to read as follows: 40- | |
| 1854 | - | 3813. (a) Unless an administrator has obtained a home state license in | |
| 1855 | - | this state, any administrator who performs duties as an administrator in | |
| 1856 | - | this state shall obtain a nonresident administrator license in accordance | |
| 1857 | - | with the provisions of this section by filing with the commissioner the | |
| 1858 | - | uniform application, accompanied by a letter of certification. In lieu of | |
| 1859 | - | requiring an administrator to file a letter of certification with the | |
| 1860 | - | uniform application, the commissioner may verify the nonresident HOUSE BILL No. 2050—page 30 | |
| 1861 | - | administrator's home state certificate of authority or license status | |
| 1862 | - | through an electronic database maintained by the NAIC, its affiliates or | |
| 1863 | - | subsidiaries. | |
| 2321 | + | funded coverage under church plans or governmental plans handled in this | |
| 2322 | + | state and all additional states in which the administrator is authorized to do | |
| 2323 | + | business. | |
| 2324 | + | (i) Not later than December 1 of each year, the commissioner shall | |
| 2325 | + | set and cause to be published in the Kansas register the fee required | |
| 2326 | + | pursuant to this section for the next calendar year. | |
| 2327 | + | Sec. 13. K.S.A. 40-3813 is hereby amended to read as follows: 40- | |
| 2328 | + | 3813. (a) Unless an administrator has obtained a home state license in this | |
| 2329 | + | state, any administrator who performs duties as an administrator in this | |
| 2330 | + | state shall obtain a nonresident administrator license in accordance with | |
| 2331 | + | the provisions of this section by filing with the commissioner the uniform | |
| 2332 | + | application, accompanied by a letter of certification. In lieu of requiring an | |
| 2333 | + | administrator to file a letter of certification with the uniform application, | |
| 2334 | + | the commissioner may verify the nonresident administrator's home state | |
| 2335 | + | certificate of authority or license status through an electronic database | |
| 2336 | + | maintained by the NAIC, its affiliates or subsidiaries. | |
| 1864 | 2337 | (b) An administrator shall not be eligible for a nonresident | |
| 1865 | 2338 | administrator license under the provisions of this section if it such | |
| 1866 | 2339 | administrator does not hold a license in a home state that has adopted a | |
| 1867 | 2340 | substantially similar law governing administrators. | |
| 1868 | - | (c) Except as provided in subsections (b) and (h), the | |
| 1869 | - | ||
| 1870 | - | ||
| 1871 | - | (d) Each nonresident administrator shall file biennially, as a part of | |
| 1872 | - | ||
| 2341 | + | (c) Except as provided in subsections (b) and (h), the commissioner | |
| 2342 | + | shall issue to the administrator a nonresident administrator license | |
| 2343 | + | promptly upon receipt of a complete application. | |
| 2344 | + | (d) Each nonresident administrator shall file biennially, as a part of its | |
| 2345 | + | application for renewal of its license, a statement that its home state | |
| 1873 | 2346 | administrator license remains in force and has not been revoked or | |
| 1874 | - | suspended by its home state during the preceding years. Each | |
| 1875 | - | ||
| 1876 | - | ||
| 1877 | - | (e) At the time of filing the application for licensing required | |
| 1878 | - | ||
| 1879 | - | ||
| 2347 | + | suspended by its home state during the preceding years. Each nonresident | |
| 2348 | + | administrator renewal application shall be accompanied by a renewal | |
| 2349 | + | application fee in the amount of not to exceed $200. | |
| 2350 | + | (e) At the time of filing the application for licensing required under | |
| 2351 | + | the provisions of this section, the nonresident administrator shall pay a | |
| 2352 | + | license application fee in the amount of not to exceed $400. | |
| 1880 | 2353 | (f) An administrator licensed or applying for licensure under the | |
| 1881 | - | provisions of this section shall produce its accounts, records and files | |
| 1882 | - | for examination, and make its officers available to give information | |
| 1883 | - | with respect to its affairs, as often as reasonably required by the | |
| 1884 | - | commissioner. | |
| 1885 | - | (g) A nonresident administrator is not required to hold a | |
| 1886 | - | nonresident administrator license in this state if the administrator is | |
| 1887 | - | licensed in its home state and the administrator's duties in this state are | |
| 1888 | - | limited to: | |
| 1889 | - | (1) The administration of a group policy or plan and no not more | |
| 1890 | - | than a total of 20% of covered persons, for all plans the administrator | |
| 1891 | - | services, reside in this state; and | |
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| 2396 | + | 43 HB 2050 29 | |
| 2397 | + | provisions of this section shall produce its accounts, records and files for | |
| 2398 | + | examination, and make its officers available to give information with | |
| 2399 | + | respect to its affairs, as often as reasonably required by the commissioner. | |
| 2400 | + | (g) A nonresident administrator is not required to hold a nonresident | |
| 2401 | + | administrator license in this state if the administrator is licensed in its | |
| 2402 | + | home state and the administrator's duties in this state are limited to: | |
| 2403 | + | (1) The administration of a group policy or plan and no not more than | |
| 2404 | + | a total of 20% of covered persons, for all plans the administrator services, | |
| 2405 | + | reside in this state; and | |
| 1892 | 2406 | (2) the total number of covered persons residing in this state is less | |
| 1893 | 2407 | fewer than 100. | |
| 1894 | - | (h) The commissioner may refuse to issue a nonresident | |
| 1895 | - | administrator license, or delay the issuance of a nonresident | |
| 1896 | - | administrator license, if the commissioner determines that, due to | |
| 1897 | - | events or information obtained subsequent to the home state's licensure | |
| 1898 | - | of the administrator, the nonresident administrator cannot satisfy the | |
| 1899 | - | requirements of this act or that grounds exist for the home state's | |
| 1900 | - | revocation or suspension of the administrator's home state certificate of | |
| 1901 | - | authority or license. | |
| 1902 | - | (i) Not later than December 1 of each year, the commissioner | |
| 1903 | - | shall set and cause to be published in the Kansas register the fees | |
| 1904 | - | required pursuant to this section for the next calendar year. | |
| 1905 | - | Sec. 24. K.S.A. 40-3814 is hereby amended to read as follows: 40- | |
| 1906 | - | 3814. (a) Each administrator licensed under the provisions of this act | |
| 1907 | - | shall file an annual report for the preceding calendar year with the | |
| 1908 | - | commissioner on or before July 1 of each year, or within such | |
| 1909 | - | extension of time as the commissioner may grant for good cause, | |
| 1910 | - | accompanied by an annual report fee in the amount of not to exceed | |
| 1911 | - | $100. Not later than December 1 of each year, the commissioner shall | |
| 1912 | - | set and cause to be published in the Kansas register such fee for the | |
| 1913 | - | next calendar year. | |
| 2408 | + | (h) The commissioner may refuse to issue a nonresident administrator | |
| 2409 | + | license, or delay the issuance of a nonresident administrator license, if the | |
| 2410 | + | commissioner determines that, due to events or information obtained | |
| 2411 | + | subsequent to the home state's licensure of the administrator, the | |
| 2412 | + | nonresident administrator cannot satisfy the requirements of this act or that | |
| 2413 | + | grounds exist for the home state's revocation or suspension of the | |
| 2414 | + | administrator's home state certificate of authority or license. | |
| 2415 | + | (i) Not later than December 1 of each year, the commissioner shall | |
| 2416 | + | set and cause to be published in the Kansas register the fees required | |
| 2417 | + | pursuant to this section for the next calendar year. | |
| 2418 | + | Sec. 14. K.S.A. 40-3814 is hereby amended to read as follows: 40- | |
| 2419 | + | 3814. (a) Each administrator licensed under the provisions of this act shall | |
| 2420 | + | file an annual report for the preceding calendar year with the | |
| 2421 | + | commissioner on or before July 1 of each year, or within such extension of | |
| 2422 | + | time as the commissioner may grant for good cause, accompanied by an | |
| 2423 | + | annual report fee in the amount of not to exceed $100. Not later than | |
| 2424 | + | December 1 of each year, the commissioner shall set and cause to be | |
| 2425 | + | published in the Kansas register such fee for the next calendar year. | |
| 1914 | 2426 | (b) The annual report shall include: | |
| 1915 | 2427 | (1) The complete names and addresses of all payors, and for self- | |
| 1916 | - | funded plans, all employers and trusts with which the administrator | |
| 1917 | - | had agreements during the preceding fiscal year. | |
| 1918 | - | (2) the number of Kansas residents covered by each of the plans; | |
| 1919 | - | and | |
| 1920 | - | (3) (A) an audited financial statement attested to by an | |
| 1921 | - | independent certified public accountant. An audited annual financial | |
| 1922 | - | report prepared on a consolidated basis shall include a columnar | |
| 1923 | - | consolidating or combining worksheet that shall be filed with the report | |
| 1924 | - | and. Such worksheet shall include the following: HOUSE BILL No. 2050—page 31 | |
| 2428 | + | funded plans, all employers and trusts with which the administrator had | |
| 2429 | + | agreements during the preceding fiscal year. | |
| 2430 | + | (2) the number of Kansas residents covered by each of the plans; and | |
| 2431 | + | (3) (A) an audited financial statement attested to by an independent | |
| 2432 | + | certified public accountant. An audited annual financial report prepared on | |
| 2433 | + | a consolidated basis shall include a columnar consolidating or combining | |
| 2434 | + | worksheet that shall be filed with the report and. Such worksheet shall | |
| 2435 | + | include the following: | |
| 1925 | 2436 | (A)(i) Amounts shown on the consolidated audited financial report | |
| 1926 | 2437 | shown on the worksheet; | |
| 1927 | 2438 | (B)(ii) amounts for each entity stated separately; and | |
| 1928 | 2439 | (C)(iii) explanations of consolidating and eliminating entries | |
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| 2482 | + | 43 HB 2050 30 | |
| 1929 | 2483 | included. | |
| 1930 | - | (2)(B) In lieu of submitting an audited financial statement, and | |
| 1931 | - | ||
| 1932 | - | ||
| 2484 | + | (2)(B) In lieu of submitting an audited financial statement, and upon | |
| 2485 | + | written application by an administrator and good cause shown, the | |
| 2486 | + | commissioner may grant a hardship exemption from filing audited | |
| 1933 | 2487 | financial statements and allow the submission of unaudited financial | |
| 1934 | 2488 | statements. Acceptable formats for unaudited financial statements, that | |
| 1935 | 2489 | which shall include notes, are: | |
| 1936 | - | (A)(i) Reports compiled or reviewed by a certified public | |
| 1937 | - | accountant; or | |
| 1938 | - | (B)(ii) internal financial reports prepared in accordance with | |
| 1939 | - | GAAP, certified by at least two officers, owners or directors of the | |
| 1940 | - | administrator. | |
| 1941 | - | (C) If unaudited financial statements are submitted, the | |
| 1942 | - | administrator must shall secure and maintain a surety bond in a form | |
| 1943 | - | prescribed by the commissioner for the use and benefit of the | |
| 1944 | - | commissioner to be held in trust for the benefit and protection of | |
| 1945 | - | covered persons and any payor or self-funded plan against loss by | |
| 1946 | - | reason of acts of fraud or dishonesty, for the greater of 10% of funds | |
| 1947 | - | handled for the benefit of Kansas residents or $20,000. | |
| 1948 | - | (b)(c) The annual report shall be in the form and contain such | |
| 1949 | - | matters as the commissioner prescribes and shall be verified by at least | |
| 1950 | - | two officers, owners or directors of the administrator. | |
| 1951 | - | (c) The annual report shall include the complete names and | |
| 1952 | - | addresses of all payors and for self-funded plans, all employers and | |
| 1953 | - | trusts, with which the administrator had agreements during the | |
| 1954 | - | preceding fiscal year. The report shall also include the number of | |
| 1955 | - | Kansas residents covered by each of the plans. | |
| 1956 | - | Sec. 25. K.S.A. 2024 Supp. 40-3823 is hereby amended to read as | |
| 1957 | - | follows: 40-3823. (a) No person shall act or operate as a pharmacy | |
| 1958 | - | benefits manager without first obtaining a valid license issued by the | |
| 2490 | + | (A)(i) Reports compiled or reviewed by a certified public accountant; | |
| 2491 | + | or | |
| 2492 | + | (B)(ii) internal financial reports prepared in accordance with GAAP, | |
| 2493 | + | certified by at least two officers, owners or directors of the administrator. | |
| 2494 | + | (C) If unaudited financial statements are submitted, the administrator | |
| 2495 | + | must shall secure and maintain a surety bond in a form prescribed by the | |
| 2496 | + | commissioner for the use and benefit of the commissioner to be held in | |
| 2497 | + | trust for the benefit and protection of covered persons and any payor or | |
| 2498 | + | self-funded plan against loss by reason of acts of fraud or dishonesty, for | |
| 2499 | + | the greater of 10% of funds handled for the benefit of Kansas residents or | |
| 2500 | + | $20,000. | |
| 2501 | + | (b)(c) The annual report shall be in the form and contain such matters | |
| 2502 | + | as the commissioner prescribes and shall be verified by at least two | |
| 2503 | + | officers, owners or directors of the administrator. | |
| 2504 | + | (c) The annual report shall include the complete names and addresses | |
| 2505 | + | of all payors and for self-funded plans, all employers and trusts, with | |
| 2506 | + | which the administrator had agreements during the preceding fiscal year. | |
| 2507 | + | The report shall also include the number of Kansas residents covered by | |
| 2508 | + | each of the plans. | |
| 2509 | + | Sec. 15. K.S.A. 2024 Supp. 40-3823 is hereby amended to read as | |
| 2510 | + | follows: 40-3823. (a) No person shall act or operate as a pharmacy benefits | |
| 2511 | + | manager without first obtaining a valid license issued by the | |
| 1959 | 2512 | commissioner. | |
| 1960 | 2513 | (b) Each person seeking a license to act as a pharmacy benefits | |
| 1961 | - | manager shall file with the commissioner an application for a license | |
| 1962 | - | ||
| 2514 | + | manager shall file with the commissioner an application for a license upon | |
| 2515 | + | a form to be furnished by the commissioner. At a minimum, the | |
| 1963 | 2516 | application form shall include the following information: | |
| 1964 | 2517 | (1) The name, address and telephone number of the pharmacy | |
| 1965 | 2518 | benefits manager.; | |
| 1966 | - | (2) the name, address, official position and professional | |
| 1967 | - | qualifications of each individual who is responsible for the conduct of | |
| 1968 | - | the affairs of the pharmacy benefits manager, including all members of | |
| 1969 | - | the board of directors, board of trustees, executive committee, other | |
| 1970 | - | governing board or committee, the principal officers in the case of a | |
| 1971 | - | corporation, the partners or members in the case of a partnership or | |
| 1972 | - | association.; | |
| 2519 | + | (2) the name, address, official position and professional qualifications | |
| 2520 | + | of each individual who is responsible for the conduct of the affairs of the | |
| 2521 | + | pharmacy benefits manager, including all members of the board of | |
| 2522 | + | directors, board of trustees, executive committee, other governing board or | |
| 2523 | + | committee, the principal officers in the case of a corporation, the partners | |
| 2524 | + | or members in the case of a partnership or association.; | |
| 1973 | 2525 | (3) the name and address of the applicant's agent for service of | |
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| 2568 | + | 43 HB 2050 31 | |
| 1974 | 2569 | process in the state.; | |
| 1975 | 2570 | (4) the name, address, phone number, email address and official | |
| 1976 | 2571 | position of the employee who will serve as the primary contact for the | |
| 1977 | 2572 | department.; | |
| 1978 | 2573 | (5) a copy of the pharmacy benefits manager's corporate charter, | |
| 1979 | 2574 | articles of incorporation or other charter document.; | |
| 1980 | 2575 | (6) a template contract, which shall include including a dispute | |
| 1981 | 2576 | resolution process, that ultimately involves an independent fact finder | |
| 1982 | 2577 | between: | |
| 1983 | 2578 | (A) The pharmacy benefits manager and the health insurer; or | |
| 1984 | - | (B) the pharmacy benefits manager and the pharmacy or a | |
| 1985 | - | ||
| 2579 | + | (B) the pharmacy benefits manager and the pharmacy or a pharmacy's | |
| 2580 | + | contracting agent.; and | |
| 1986 | 2581 | (7) a network adequacy report on a form prescribed by the | |
| 1987 | 2582 | department through rules and regulations. | |
| 1988 | - | (c) A nonrefundable application fee of not to exceed $2,500. Not HOUSE BILL No. 2050—page 32 | |
| 1989 | - | later than December 1 of each year, the commissioner shall set and | |
| 1990 | - | cause to be published in the Kansas register such fee for the next | |
| 1991 | - | calendar year. | |
| 2583 | + | (c) A nonrefundable application fee of not to exceed $2,500. Not later | |
| 2584 | + | than December 1 of each year, the commissioner shall set and cause to be | |
| 2585 | + | published in the Kansas register such fee for the next calendar year. | |
| 1992 | 2586 | (d) The licensee shall inform the commissioner, by any means | |
| 1993 | - | acceptable to the commissioner, of any material change in the | |
| 1994 | - | ||
| 1995 | - | ||
| 1996 | - | ||
| 2587 | + | acceptable to the commissioner, of any material change in the information | |
| 2588 | + | required by this subsection within 90 days of such change. Failure to | |
| 2589 | + | timely inform the commissioner of a material change may result in a | |
| 2590 | + | penalty against the licensee in the amount of $500. | |
| 1997 | 2591 | (e) Within 90 days after receipt of a completed application, the | |
| 1998 | - | network adequacy report and the applicable license fee, the | |
| 1999 | - | ||
| 2000 | - | ||
| 2001 | - | ||
| 2002 | - | ||
| 2592 | + | network adequacy report and the applicable license fee, the commissioner | |
| 2593 | + | shall review the application and issue a license if the applicant is deemed | |
| 2594 | + | qualified under this section. If the commissioner determines that the | |
| 2595 | + | applicant is not qualified, the commissioner shall notify the applicant and | |
| 2596 | + | shall specify the reason for the denial. | |
| 2003 | 2597 | (f) (1) All documents, materials or other information and copies | |
| 2004 | 2598 | thereof in the possession or control of the department or any other | |
| 2005 | - | governmental entity that are obtained by or disclosed to the | |
| 2006 | - | ||
| 2007 | - | ||
| 2008 | - | ||
| 2009 | - | ||
| 2010 | - | ||
| 2011 | - | (2) The provisions of paragraph (1) shall only apply to the | |
| 2012 | - | ||
| 2013 | - | ||
| 2014 | - | ||
| 2599 | + | governmental entity that are obtained by or disclosed to the commissioner | |
| 2600 | + | or any other person in the course of an application, examination or | |
| 2601 | + | investigation made pursuant to this act shall be confidential by law and | |
| 2602 | + | privileged, shall not be subject to any open records, freedom of | |
| 2603 | + | information, sunshine or other public record disclosure laws, and shall not | |
| 2604 | + | be subject to subpoena or discovery. | |
| 2605 | + | (2) The provisions of paragraph (1) shall only apply to the disclosure | |
| 2606 | + | of the confidential documents described in paragraph (1) by the | |
| 2607 | + | department or any other governmental entity and shall not be construed to | |
| 2608 | + | create any privilege in favor of any other party. | |
| 2015 | 2609 | (3) The provisions of this subsection shall expire on July 1, 2027, | |
| 2016 | 2610 | unless the legislature reviews and reenacts this provision pursuant to | |
| 2017 | 2611 | K.S.A. 45-229, and amendments thereto, prior to July 1, 2027. | |
| 2018 | - | Sec. 26. K.S.A. 2024 Supp. 40-3824 is hereby amended to read as | |
| 2019 | - | follows: 40-3824. (a) Each pharmacy benefits manager license shall | |
| 2020 | - | expire on March 31 of each year and may be renewed annually on the | |
| 2021 | - | request of the licensee. The application for renewal shall be submitted | |
| 2022 | - | on a form furnished by the commissioner and accompanied by a | |
| 2023 | - | renewal fee of not to exceed $2,500. The application for renewal shall | |
| 2024 | - | be in such form and contain such matters as the commissioner | |
| 2025 | - | prescribes. | |
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| 2654 | + | 43 HB 2050 32 | |
| 2655 | + | Sec. 16. K.S.A. 2024 Supp. 40-3824 is hereby amended to read as | |
| 2656 | + | follows: 40-3824. (a) Each pharmacy benefits manager license shall expire | |
| 2657 | + | on March 31 of each year and may be renewed annually on the request of | |
| 2658 | + | the licensee. The application for renewal shall be submitted on a form | |
| 2659 | + | furnished by the commissioner and accompanied by a renewal fee of not | |
| 2660 | + | to exceed $2,500. The application for renewal shall be in such form and | |
| 2661 | + | contain such matters as the commissioner prescribes. | |
| 2026 | 2662 | (b) If a license renewal fee is not paid by the prescribed date, the | |
| 2027 | - | amount of the fee, plus a penalty fee of not to exceed $2,500 shall be | |
| 2028 | - | ||
| 2029 | - | ||
| 2030 | - | ||
| 2031 | - | (c) Any person who performs or is performing any pharmacy | |
| 2032 | - | ||
| 2033 | - | ||
| 2034 | - | ||
| 2035 | - | (d) Not later than December 1 of each year, the commissioner | |
| 2036 | - | ||
| 2037 | - | ||
| 2038 | - | Sec. | |
| 2039 | - | 4103. Risk retention groups chartered in states other than this state | |
| 2040 | - | ||
| 2041 | - | ||
| 2042 | - | (a) Notice of operations and designation of commissioner as | |
| 2043 | - | ||
| 2044 | - | ||
| 2663 | + | amount of the fee, plus a penalty fee of not to exceed $2,500 shall be paid. | |
| 2664 | + | The pharmacy benefits manager's license may be revoked or suspended by | |
| 2665 | + | the commissioner until the renewal fee and any penalty assessed has been | |
| 2666 | + | paid. | |
| 2667 | + | (c) Any person who performs or is performing any pharmacy benefits | |
| 2668 | + | management service shall be required to obtain a license as a pharmacy | |
| 2669 | + | benefits manager from the commissioner not later than January 1, 2023, in | |
| 2670 | + | order to continue to do business in Kansas. | |
| 2671 | + | (d) Not later than December 1 of each year, the commissioner shall | |
| 2672 | + | set and cause to be published in the Kansas register the fees required | |
| 2673 | + | pursuant to this section for the next calendar year. | |
| 2674 | + | Sec. 17. K.S.A. 40-4103 is hereby amended to read as follows: 40- | |
| 2675 | + | 4103. Risk retention groups chartered in states other than this state seeking | |
| 2676 | + | to do business as a risk retention group in this state shall observe and abide | |
| 2677 | + | by the laws of this state as follows: | |
| 2678 | + | (a) Notice of operations and designation of commissioner as agent. | |
| 2679 | + | Before offering insurance in this state, a risk retention group shall submit | |
| 2680 | + | to the commissioner: | |
| 2045 | 2681 | (1) A statement identifying the state or states in which the risk | |
| 2046 | - | retention group is chartered and licensed as a liability insurance | |
| 2047 | - | ||
| 2048 | - | ||
| 2682 | + | retention group is chartered and licensed as a liability insurance company, | |
| 2683 | + | date of chartering, its principal place of business and such other | |
| 2684 | + | information, including information on its membership, as the | |
| 2049 | 2685 | commissioner of this state may require to verify that the risk retention | |
| 2050 | 2686 | group is qualified under K.S.A. 40-4101(k), and amendments thereto; | |
| 2051 | - | (2) a copy of its plan of operations or a feasibility study and | |
| 2052 | - | ||
| 2053 | - | ||
| 2054 | - | ||
| 2055 | - | ||
| 2687 | + | (2) a copy of its plan of operations or a feasibility study and revisions | |
| 2688 | + | of such plan or study submitted to its state of domicile, except that the | |
| 2689 | + | provision relating to the submission of a plan of operation or a feasibility | |
| 2690 | + | study shall not apply with respect to any line or classification of liability | |
| 2691 | + | insurance that was: | |
| 2056 | 2692 | (A) Was Defined in the product liability risk retention act of 1981 | |
| 2057 | 2693 | before October 27, 1986; and | |
| 2058 | - | (B) was offered before such date by any risk retention group that | |
| 2059 | - | had been chartered and operating for not less than three years before | |
| 2060 | - | such date; | |
| 2061 | - | (3) a statement of registration that designates the commissioner as | |
| 2062 | - | its agent for the purpose of receiving service of legal documents or | |
| 2063 | - | process; and | |
| 2064 | - | (4) a notification fee in the amount of not to exceed $250. Not | |
| 2065 | - | later than December 1 of each year, the commissioner shall set and | |
| 2066 | - | cause to be published in the Kansas register such fee for the next | |
| 2067 | - | calendar year. | |
| 2068 | - | (b) Financial condition. Any risk retention group doing business | |
| 2069 | - | in this state shall submit to the commissioner: | |
| 2070 | - | (1) A copy of the group's financial statement submitted to its state | |
| 2071 | - | of domicile that contains a statement of opinion on loss and loss | |
| 2072 | - | adjustment expense reserves made by a member of the American | |
| 2073 | - | academy of actuaries or a qualified loss reserve specialist under criteria | |
| 2074 | - | established by the national association of insurance commissioners; | |
| 2075 | - | (2) a copy of each examination of the risk retention group as | |
| 2076 | - | certified by the commissioner or public official conducting the | |
| 2077 | - | examination; | |
| 2078 | - | (3) upon request by the commissioner, a copy of any audit | |
| 2079 | - | performed with respect to the risk retention group; and | |
| 2694 | + | (B) was offered before such date by any risk retention group that had | |
| 2695 | + | been chartered and operating for not less than three years before such date; | |
| 2696 | + | (3) a statement of registration that designates the commissioner as its | |
| 2697 | + | agent for the purpose of receiving service of legal documents or process; | |
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| 2741 | + | and | |
| 2742 | + | (4) a notification fee in the amount of not to exceed $250. Not later | |
| 2743 | + | than December 1 of each year, the commissioner shall set and cause to be | |
| 2744 | + | published in the Kansas register such fee for the next calendar year. | |
| 2745 | + | (b) Financial condition. Any risk retention group doing business in | |
| 2746 | + | this state shall submit to the commissioner: | |
| 2747 | + | (1) A copy of the group's financial statement submitted to its state of | |
| 2748 | + | domicile that contains a statement of opinion on loss and loss adjustment | |
| 2749 | + | expense reserves made by a member of the American academy of actuaries | |
| 2750 | + | or a qualified loss reserve specialist under criteria established by the | |
| 2751 | + | national association of insurance commissioners; | |
| 2752 | + | (2) a copy of each examination of the risk retention group as certified | |
| 2753 | + | by the commissioner or public official conducting the examination; | |
| 2754 | + | (3) upon request by the commissioner, a copy of any audit performed | |
| 2755 | + | with respect to the risk retention group; and | |
| 2080 | 2756 | (4) such information as may be required to verify its continuing | |
| 2081 | 2757 | qualification as a risk retention group under K.S.A. 40-4101(k), and | |
| 2082 | 2758 | amendments thereto. | |
| 2083 | - | (c) Taxation. (1) All premiums paid for coverages within this state | |
| 2084 | - | to risk retention groups chartered outside this state shall be subject to | |
| 2085 | - | taxation at the same rate and subject to the same interest, fines and | |
| 2086 | - | penalties for nonpayment as that provided by K.S.A. 40-246c, and | |
| 2087 | - | amendments thereto. Risk retention groups chartered or licensed in this | |
| 2088 | - | state shall be taxed in accordance with K.S.A. 40-252, and amendments | |
| 2089 | - | thereto. | |
| 2090 | - | (2) To the extent agents or brokers are utilized, they shall report | |
| 2091 | - | and pay the taxes for the premiums for risks that they have placed with | |
| 2092 | - | or on behalf of a risk retention group not chartered in this state. | |
| 2093 | - | (3) To the extent agents or brokers are not utilized or fail to pay | |
| 2094 | - | the tax, each risk retention group shall pay the tax for risks insured | |
| 2095 | - | within the state. Each risk retention group shall report all premiums | |
| 2096 | - | paid to it for risks insured within the state. | |
| 2097 | - | (d) Compliance with unfair claims settlement practices law. Any | |
| 2098 | - | risk retention group, its agents and representatives, shall comply with | |
| 2099 | - | K.S.A. 40-2404(9), and amendments thereto. | |
| 2100 | - | (e) Deceptive, false or fraudulent practices. Any risk retention | |
| 2101 | - | group shall comply with the laws of this state regarding deceptive, false | |
| 2102 | - | or fraudulent acts or practices, except that if the commissioner seeks an | |
| 2103 | - | injunction regarding such conduct, the injunction shall be obtained | |
| 2104 | - | from a court of competent jurisdiction. | |
| 2759 | + | (c) Taxation. (1) All premiums paid for coverages within this state to | |
| 2760 | + | risk retention groups chartered outside this state shall be subject to taxation | |
| 2761 | + | at the same rate and subject to the same interest, fines and penalties for | |
| 2762 | + | nonpayment as that provided by K.S.A. 40-246c, and amendments thereto. | |
| 2763 | + | Risk retention groups chartered or licensed in this state shall be taxed in | |
| 2764 | + | accordance with K.S.A. 40-252, and amendments thereto. | |
| 2765 | + | (2) To the extent agents or brokers are utilized, they shall report and | |
| 2766 | + | pay the taxes for the premiums for risks that they have placed with or on | |
| 2767 | + | behalf of a risk retention group not chartered in this state. | |
| 2768 | + | (3) To the extent agents or brokers are not utilized or fail to pay the | |
| 2769 | + | tax, each risk retention group shall pay the tax for risks insured within the | |
| 2770 | + | state. Each risk retention group shall report all premiums paid to it for | |
| 2771 | + | risks insured within the state. | |
| 2772 | + | (d) Compliance with unfair claims settlement practices law. Any risk | |
| 2773 | + | retention group, its agents and representatives, shall comply with K.S.A. | |
| 2774 | + | 40-2404(9), and amendments thereto. | |
| 2775 | + | (e) Deceptive, false or fraudulent practices. Any risk retention group | |
| 2776 | + | shall comply with the laws of this state regarding deceptive, false or | |
| 2777 | + | fraudulent acts or practices, except that if the commissioner seeks an | |
| 2778 | + | injunction regarding such conduct, the injunction shall be obtained from a | |
| 2779 | + | court of competent jurisdiction. | |
| 2105 | 2780 | (f) Examination regarding financial condition. Any risk retention | |
| 2106 | 2781 | group shall submit to an examination in accordance with K.S.A. 40-222 | |
| 2107 | - | and 40-223, and amendments thereto, by the commissioner to | |
| 2108 | - | determine its financial condition if the commissioner of the jurisdiction | |
| 2109 | - | in which the group is chartered has not initiated an examination or does | |
| 2110 | - | not initiate an examination within 60 days after a request by the | |
| 2111 | - | commissioner of this state. | |
| 2112 | - | (g) Notice to purchasers. Any policy issued by a risk retention | |
| 2113 | - | group shall contain in 10 point type on the front page and the | |
| 2114 | - | declaration page, the following notice: | |
| 2782 | + | and 40-223, and amendments thereto, by the commissioner to determine | |
| 2783 | + | its financial condition if the commissioner of the jurisdiction in which the | |
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| 2826 | + | 43 HB 2050 34 | |
| 2827 | + | group is chartered has not initiated an examination or does not initiate an | |
| 2828 | + | examination within 60 days after a request by the commissioner of this | |
| 2829 | + | state. | |
| 2830 | + | (g) Notice to purchasers. Any policy issued by a risk retention group | |
| 2831 | + | shall contain in 10 point type on the front page and the declaration page, | |
| 2832 | + | the following notice: | |
| 2115 | 2833 | NOTICE | |
| 2116 | - | This policy is issued by your risk retention group. Your risk | |
| 2117 | - | ||
| 2118 | - | ||
| 2119 | - | ||
| 2120 | - | (h) Prohibited acts regarding solicitation or sale. The following | |
| 2121 | - | ||
| 2122 | - | (1) The solicitation or sale of insurance by a risk retention group | |
| 2123 | - | ||
| 2834 | + | This policy is issued by your risk retention group. Your risk retention | |
| 2835 | + | group may not be subject to all of the insurance laws and regulations of | |
| 2836 | + | your state. State insurance insolvency guaranty funds are not available for | |
| 2837 | + | your risk retention group. | |
| 2838 | + | (h) Prohibited acts regarding solicitation or sale. The following acts | |
| 2839 | + | by a risk retention group are hereby prohibited: | |
| 2840 | + | (1) The solicitation or sale of insurance by a risk retention group to | |
| 2841 | + | any person who is not eligible for membership in such group; and | |
| 2124 | 2842 | (2) the solicitation or sale of insurance by, or operation of, a risk | |
| 2125 | - | retention group that is in a hazardous financial condition or is | |
| 2126 | - | ||
| 2843 | + | retention group that is in a hazardous financial condition or is financially | |
| 2844 | + | impaired. | |
| 2127 | 2845 | (i) Prohibition on ownership by an insurance company. No risk | |
| 2128 | - | retention group shall be allowed to do business in this state if an | |
| 2129 | - | ||
| 2130 | - | ||
| 2131 | - | (j) Prohibited coverage. No risk retention group may offer | |
| 2132 | - | ||
| 2133 | - | ||
| 2134 | - | (k) Delinquency proceedings. A risk retention group not chartered | |
| 2135 | - | ||
| 2136 | - | ||
| 2846 | + | retention group shall be allowed to do business in this state if an insurance | |
| 2847 | + | company is directly or indirectly a retention group all of whose members | |
| 2848 | + | are insurance companies. | |
| 2849 | + | (j) Prohibited coverage. No risk retention group may offer insurance | |
| 2850 | + | policy coverage prohibited by the laws of this state or declared unlawful | |
| 2851 | + | by the supreme court of the state of Kansas. | |
| 2852 | + | (k) Delinquency proceedings. A risk retention group not chartered in | |
| 2853 | + | this state and doing business in this state must comply with a lawful order | |
| 2854 | + | issued in a voluntary dissolution proceeding or in a delinquency | |
| 2137 | 2855 | proceeding commenced by a state insurance commissioner if there has | |
| 2138 | 2856 | been a finding of financial impairment after an examination under | |
| 2139 | 2857 | subsection (f). | |
| 2140 | - | Sec. 28. K.S.A. 40-4116 is hereby amended to read as follows: 40- | |
| 2141 | - | 4116. (a) (1) A purchasing group which that intends to do business in | |
| 2142 | - | this state shall furnish notice to the commissioner which shall: | |
| 2143 | - | (1)(A) IdentifyIdentifying the state in which the group is | |
| 2144 | - | domiciled; | |
| 2858 | + | Sec. 18. K.S.A. 40-4116 is hereby amended to read as follows: 40- | |
| 2859 | + | 4116. (a) (1) A purchasing group which that intends to do business in this | |
| 2860 | + | state shall furnish notice to the commissioner which shall: | |
| 2861 | + | (1)(A) IdentifyIdentifying the state in which the group is domiciled; | |
| 2145 | 2862 | (2)(B) specifyspecifying the lines and classifications of liability | |
| 2146 | 2863 | insurance which that the purchasing group intends to purchase; | |
| 2147 | 2864 | (3)(C) identifyidentifying the insurance company from which the | |
| 2148 | - | group intends to purchase its insurance and the domicile of such | |
| 2149 | - | company; | |
| 2150 | - | (4)(D) identifyidentifying the principal place of business of the | |
| 2151 | - | group; and | |
| 2152 | - | (5)(E) provideproviding such other information as may be | |
| 2153 | - | required by the commissioner to verify that the purchasing group is | |
| 2154 | - | qualified under subsection (j) of K.S.A. 40-4101(j), and amendments | |
| 2155 | - | thereto. | |
| 2156 | - | (2) The notice submitted to the commissioner shall be | |
| 2157 | - | accompanied by a notification fee of not to exceed $250. | |
| 2158 | - | (b) The purchasing group shall file with the insurance department | |
| 2159 | - | its written consent, irrevocable, that any action or garnishment | |
| 2160 | - | proceeding may be commenced against such group in the proper court | |
| 2161 | - | of any county in this state in which the cause of action shall arise or in | |
| 2162 | - | which the plaintiff may reside by the service of process on the | |
| 2163 | - | commissioner of insurance of this state and stipulating and agreeing | |
| 2164 | - | that such service shall be taken and held in all courts to be as valid and | |
| 2165 | - | binding as if due service had been made upon the president or chief | |
| 2166 | - | officer of such corporation. Such consent shall be executed by the | |
| 2167 | - | president of the company and shall be accompanied by a certified copy | |
| 2168 | - | of the order or resolution of the board of directors, trustees or managers | |
| 2169 | - | authorizing the president to execute the same. The summons, | |
| 2170 | - | accompanied by a fee of not to exceed $25, shall be directed to the | |
| 2171 | - | commissioner of insurance and shall require the defendant to answer | |
| 2172 | - | not less than 40 days from its date. Such summons, and a certified copy | |
| 2173 | - | of the petition shall be forthwith immediately forwarded by the clerk of | |
| 2174 | - | the court to the commissioner of insurance, who shall immediately | |
| 2175 | - | forward a copy of the summons and the certified copy of the petition, to | |
| 2176 | - | the president of the group sued, and thereupon the commissioner of | |
| 2177 | - | insurance shall make return of the summons to the court from which it | |
| 2178 | - | issued, showing the date of the receipt by the commissioner, the date of | |
| 2179 | - | forwarding of such copies and the name and address of the person to | |
| 2180 | - | whom the commissioner forwarded the copy. Such return shall be made HOUSE BILL No. 2050—page 35 | |
| 2181 | - | under the commissioner's hand and seal of office, and shall have the | |
| 2182 | - | same force and effect as a due and sufficient return made by the sheriff | |
| 2183 | - | on process directed to the sheriff. The foregoing shall not apply in the | |
| 2184 | - | case of a purchasing group which that: | |
| 2865 | + | group intends to purchase its insurance and the domicile of such company; | |
| 2866 | + | (4)(D) identifyidentifying the principal place of business of the group; | |
| 2867 | + | and | |
| 2868 | + | (5)(E) provideproviding such other information as may be required by | |
| 2869 | + | the commissioner to verify that the purchasing group is qualified under | |
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| 2912 | + | 43 HB 2050 35 | |
| 2913 | + | subsection (j) of K.S.A. 40-4101(j), and amendments thereto. | |
| 2914 | + | (2) The notice submitted to the commissioner shall be accompanied | |
| 2915 | + | by a notification fee of not to exceed $250. | |
| 2916 | + | (b) The purchasing group shall file with the insurance department its | |
| 2917 | + | written consent, irrevocable, that any action or garnishment proceeding | |
| 2918 | + | may be commenced against such group in the proper court of any county | |
| 2919 | + | in this state in which the cause of action shall arise or in which the plaintiff | |
| 2920 | + | may reside by the service of process on the commissioner of insurance of | |
| 2921 | + | this state and stipulating and agreeing that such service shall be taken and | |
| 2922 | + | held in all courts to be as valid and binding as if due service had been | |
| 2923 | + | made upon the president or chief officer of such corporation. Such consent | |
| 2924 | + | shall be executed by the president of the company and shall be | |
| 2925 | + | accompanied by a certified copy of the order or resolution of the board of | |
| 2926 | + | directors, trustees or managers authorizing the president to execute the | |
| 2927 | + | same. The summons, accompanied by a fee of not to exceed $25, shall be | |
| 2928 | + | directed to the commissioner of insurance and shall require the defendant | |
| 2929 | + | to answer not less than 40 days from its date. Such summons, and a | |
| 2930 | + | certified copy of the petition shall be forthwith immediately forwarded by | |
| 2931 | + | the clerk of the court to the commissioner of insurance, who shall | |
| 2932 | + | immediately forward a copy of the summons and the certified copy of the | |
| 2933 | + | petition, to the president of the group sued, and thereupon the | |
| 2934 | + | commissioner of insurance shall make return of the summons to the court | |
| 2935 | + | from which it issued, showing the date of the receipt by the commissioner, | |
| 2936 | + | the date of forwarding of such copies and the name and address of the | |
| 2937 | + | person to whom the commissioner forwarded the copy. Such return shall | |
| 2938 | + | be made under the commissioner's hand and seal of office, and shall have | |
| 2939 | + | the same force and effect as a due and sufficient return made by the sheriff | |
| 2940 | + | on process directed to the sheriff. The foregoing shall not apply in the case | |
| 2941 | + | of a purchasing group which that: | |
| 2185 | 2942 | (1) (A) Was domiciled before April 2, 1986; and | |
| 2186 | 2943 | (B) is domiciled on and after October 27, 1986, in any state of the | |
| 2187 | 2944 | United States; | |
| 2188 | 2945 | (2) (A) before October 27, 1986, purchased insurance from an | |
| 2189 | 2946 | insurance carrier licensed in any state; and | |
| 2190 | 2947 | (B) since October 27, 1986, purchased its insurance from an | |
| 2191 | 2948 | insurance carrier licensed in any state; | |
| 2192 | 2949 | (3) was a purchasing group under the requirements of the product | |
| 2193 | 2950 | liability retention act of 1981 before October 27, 1986; and | |
| 2194 | - | (4) does not purchase insurance that was not authorized for | |
| 2195 | - | purposes of an exemption under that act, as in effect before October 27, | |
| 2196 | - | 1986. | |
| 2197 | - | (c) Not later than December 1 of each year, the commissioner | |
| 2198 | - | shall set and cause to be published in the Kansas register the fees | |
| 2199 | - | required pursuant to this section for the next calendar year. | |
| 2200 | - | Sec. 29. K.S.A. 2024 Supp. 40-4209 is hereby amended to read as | |
| 2201 | - | follows: 40-4209. (a) (1) No person shall act as or hold such person out | |
| 2202 | - | to be a prepaid service plan in this state unless such person holds a | |
| 2203 | - | certificate of registration as a prepaid service plan issued by the | |
| 2204 | - | commissioner of insurance. An application for such certificate may be | |
| 2205 | - | made to the commissioner of insurance on forms prescribed by the | |
| 2206 | - | commissioner and shall include: | |
| 2951 | + | (4) does not purchase insurance that was not authorized for purposes | |
| 2952 | + | of an exemption under that act, as in effect before October 27, 1986. | |
| 2953 | + | (c) Not later than December 1 of each year, the commissioner shall | |
| 2954 | + | set and cause to be published in the Kansas register the fees required | |
| 2955 | + | pursuant to this section for the next calendar year. | |
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| 2998 | + | 43 HB 2050 36 | |
| 2999 | + | Sec. 19. K.S.A. 2024 Supp. 40-4209 is hereby amended to read as | |
| 3000 | + | follows: 40-4209. (a) (1) No person shall act as or hold such person out to | |
| 3001 | + | be a prepaid service plan in this state unless such person holds a certificate | |
| 3002 | + | of registration as a prepaid service plan issued by the commissioner of | |
| 3003 | + | insurance. An application for such certificate may be made to the | |
| 3004 | + | commissioner of insurance on forms prescribed by the commissioner and | |
| 3005 | + | shall include: | |
| 2207 | 3006 | (A) The completed application form; | |
| 2208 | 3007 | (B) a list of each individual who solicits memberships on behalf of | |
| 2209 | 3008 | such prepaid service plan; and | |
| 2210 | 3009 | (C) a filing fee of not to exceed $100. | |
| 2211 | 3010 | (2) The certificate of registration may be continued for successive | |
| 2212 | 3011 | annual periods by notifying the commissioner of such intent, paying an | |
| 2213 | 3012 | annual continuation fee of not to exceed $50 and advising the | |
| 2214 | - | commissioner of insurance of any additions to or deletions from the list | |
| 2215 | - | ||
| 2216 | - | ||
| 2217 | - | (b) The certificate of registration shall be issued to or continued | |
| 2218 | - | ||
| 2219 | - | commissioner of insurance, after due notice and hearing, determines | |
| 2220 | - | ||
| 3013 | + | commissioner of insurance of any additions to or deletions from the list of | |
| 3014 | + | individuals who solicit memberships on behalf of such prepaid service | |
| 3015 | + | plan since the last reporting date. | |
| 3016 | + | (b) The certificate of registration shall be issued to or continued for a | |
| 3017 | + | prepaid service plan by the commissioner of insurance unless the | |
| 3018 | + | commissioner of insurance, after due notice and hearing, determines that | |
| 3019 | + | the prepaid service plan is not competent, trustworthy, financially | |
| 2221 | 3020 | responsible or of good personal and business reputation, or has had a | |
| 2222 | - | previous application for a certificate of registration denied for cause | |
| 2223 | - | since January 1, 1988, or within five years of the date of application, | |
| 2224 | - | whichever is later. | |
| 2225 | - | (c) Not later than December 1 of each year, the commissioner | |
| 2226 | - | shall set and cause to be published in the Kansas register the fees | |
| 2227 | - | required pursuant to this section for the next calendar year. | |
| 2228 | - | Sec. 30. K.S.A. 2024 Supp. 40-4302 is hereby amended to read as | |
| 2229 | - | follows: 40-4302. (a) Any captive insurance company, when permitted | |
| 2230 | - | by its organizational documents, may apply to the commissioner for a | |
| 2231 | - | certificate of authority to do any and all insurance comprised in K.S.A. | |
| 2232 | - | 40-901 et seq., 40-1102(1)(a), and (1)(c) through (1)(n), and | |
| 2233 | - | amendments thereto, and to issue life, accident and health insurance | |
| 2234 | - | policies provided that: | |
| 2235 | - | (1) No pure captive insurance company shall insure any risks | |
| 2236 | - | other than those of its parent and affiliated companies and, upon prior | |
| 2237 | - | approval of the commissioner, any controlled unaffiliated business up | |
| 2238 | - | to 5% of total direct written premium; | |
| 2239 | - | (2) no association captive insurance company shall insure any | |
| 2240 | - | risks other than those of its association and those of the member | |
| 2241 | - | organizations of its association. No association captive insurance | |
| 2242 | - | company shall expose itself to loss on any one risk or hazard in an | |
| 2243 | - | amount exceeding 10% of its paid-up capital and surplus; | |
| 2244 | - | (3) no captive insurance company shall provide personal lines of HOUSE BILL No. 2050—page 36 | |
| 2245 | - | insurance, workers' compensation, employers' liability insurance | |
| 2246 | - | coverage, long-term care coverage, critical care coverage, surety, title | |
| 2247 | - | insurance, credit insurance or any component thereof, except that a | |
| 2248 | - | technology-enabled fiduciary financial institution insurance company | |
| 2249 | - | shall be permitted to provide contracts of suretyship and credit | |
| 2250 | - | insurance in accordance with K.S.A. 2024 Supp. 40-4354, and | |
| 2251 | - | amendments thereto; | |
| 3021 | + | previous application for a certificate of registration denied for cause since | |
| 3022 | + | January 1, 1988, or within five years of the date of application, whichever | |
| 3023 | + | is later. | |
| 3024 | + | (c) Not later than December 1 of each year, the commissioner shall | |
| 3025 | + | set and cause to be published in the Kansas register the fees required | |
| 3026 | + | pursuant to this section for the next calendar year. | |
| 3027 | + | Sec. 20. K.S.A. 2024 Supp. 40-4302 is hereby amended to read as | |
| 3028 | + | follows: 40-4302. (a) Any captive insurance company, when permitted by | |
| 3029 | + | its organizational documents, may apply to the commissioner for a | |
| 3030 | + | certificate of authority to do any and all insurance comprised in K.S.A. 40- | |
| 3031 | + | 901 et seq., 40-1102(1)(a), and (1)(c) through (1)(n), and amendments | |
| 3032 | + | thereto, and to issue life, accident and health insurance policies provided | |
| 3033 | + | that: | |
| 3034 | + | (1) No pure captive insurance company shall insure any risks other | |
| 3035 | + | than those of its parent and affiliated companies and, upon prior approval | |
| 3036 | + | of the commissioner, any controlled unaffiliated business up to 5% of total | |
| 3037 | + | direct written premium; | |
| 3038 | + | (2) no association captive insurance company shall insure any risks | |
| 3039 | + | other than those of its association and those of the member organizations | |
| 3040 | + | of its association. No association captive insurance company shall expose | |
| 3041 | + | itself to loss on any one risk or hazard in an amount exceeding 10% of its | |
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| 3085 | + | paid-up capital and surplus; | |
| 3086 | + | (3) no captive insurance company shall provide personal lines of | |
| 3087 | + | insurance, workers' compensation, employers' liability insurance coverage, | |
| 3088 | + | long-term care coverage, critical care coverage, surety, title insurance, | |
| 3089 | + | credit insurance or any component thereof, except that a technology- | |
| 3090 | + | enabled fiduciary financial institution insurance company shall be | |
| 3091 | + | permitted to provide contracts of suretyship and credit insurance in | |
| 3092 | + | accordance with K.S.A. 2024 Supp. 40-4354, and amendments thereto; | |
| 2252 | 3093 | (4) no captive insurance company shall accept or cede reinsurance | |
| 2253 | 3094 | except as provided in K.S.A. 40-4311, and amendments thereto; | |
| 2254 | - | (5) no captive insurance company shall provide accident and | |
| 2255 | - | ||
| 3095 | + | (5) no captive insurance company shall provide accident and health, | |
| 3096 | + | life insurance or annuities on a direct basis; | |
| 2256 | 3097 | (6) no captive insurance company authorized as a life insurance | |
| 2257 | 3098 | company shall transact business other than life insurance; and | |
| 2258 | 3099 | (7) no captive insurance company authorized to transact business | |
| 2259 | - | under article 9 or 11 of chapter 40 of the Kansas Statutes Annotated, | |
| 2260 | - | ||
| 2261 | - | (b) No captive insurance company organized under the laws of | |
| 2262 | - | ||
| 3100 | + | under article 9 or 11 of chapter 40 of the Kansas Statutes Annotated, and | |
| 3101 | + | amendments thereto, shall engage in the business of life insurance. | |
| 3102 | + | (b) No captive insurance company organized under the laws of this | |
| 3103 | + | state shall do any insurance business in this state unless: | |
| 2263 | 3104 | (1) It first obtains from the commissioner a certificate of authority | |
| 2264 | 3105 | authorizing it to do insurance business in this state; | |
| 2265 | - | (2) its board of directors, members, partners, managers, committee | |
| 2266 | - | ||
| 2267 | - | ||
| 3106 | + | (2) its board of directors, members, partners, managers, committee of | |
| 3107 | + | managers or other governing body holds at least one meeting each year in | |
| 3108 | + | this state; | |
| 2268 | 3109 | (3) it maintains its principal place of business in this state; and | |
| 2269 | - | (4) it authorizes the commissioner to accept service of process on | |
| 2270 | - | ||
| 3110 | + | (4) it authorizes the commissioner to accept service of process on its | |
| 3111 | + | behalf in accordance with K.S.A. 40-218, and amendments thereto. | |
| 2271 | 3112 | (c) Before receiving a certificate of authority, an applicant captive | |
| 2272 | 3113 | insurance company shall file with the commissioner: | |
| 2273 | 3114 | (1) A copy of the applicant captive insurance company's | |
| 2274 | 3115 | organizational documents; and | |
| 2275 | - | (2) a plan of operation or a feasibility study describing the | |
| 2276 | - | ||
| 2277 | - | ||
| 3116 | + | (2) a plan of operation or a feasibility study describing the anticipated | |
| 3117 | + | activities and results of the applicant captive insurance company that shall | |
| 3118 | + | include: | |
| 2278 | 3119 | (A) The company's loss prevention program of its parent and | |
| 2279 | 3120 | insureds, as applicable; | |
| 2280 | - | (B) historical and expected loss experience of the risks to be | |
| 2281 | - | ||
| 3121 | + | (B) historical and expected loss experience of the risks to be insured | |
| 3122 | + | or reinsured by the applicant captive insurance company; | |
| 2282 | 3123 | (C) pro forma financial statements and projections of the proposed | |
| 2283 | 3124 | business operations of the applicant captive insurance company; | |
| 2284 | 3125 | (D) an analysis of the adequacy of the applicant captive insurance | |
| 2285 | 3126 | company's proposed premiums, assets and capital and surplus levels | |
| 2286 | 3127 | relative to the risks to be insured or reinsured by the captive insurance | |
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| 2287 | 3171 | company; | |
| 2288 | 3172 | (E) a statement of the applicant captive insurance company's net | |
| 2289 | 3173 | retained limited liability on any contract of insurance or reinsurance it | |
| 2290 | 3174 | intends to issue and the nature of any reinsurance it intends to cede; | |
| 2291 | 3175 | (F) a statement certifying that the applicant captive insurance | |
| 2292 | - | company's investment policy is in compliance with this act and | |
| 2293 | - | ||
| 3176 | + | company's investment policy is in compliance with this act and specifying | |
| 3177 | + | the type of investments to be made; | |
| 2294 | 3178 | (G) a statement identifying the geographic areas in which the | |
| 2295 | 3179 | applicant captive insurance company intends to operate; | |
| 2296 | 3180 | (H) a statement identifying the persons or organizations that will | |
| 2297 | 3181 | perform the applicant captive insurance company's major operational | |
| 2298 | 3182 | functions, including management, underwriting, accounting, asset | |
| 2299 | 3183 | investment, claims adjusting and loss control and the adequacy of the | |
| 2300 | - | expertise, experience and character of such persons or organizations; | |
| 2301 | - | and | |
| 2302 | - | (I) whenever required by the commissioner, an appropriate | |
| 2303 | - | opinion by a qualified independent actuary regarding the adequacy of | |
| 2304 | - | the applicant captive insurance company's proposed capital, surplus and | |
| 2305 | - | premium levels; | |
| 2306 | - | (3) a description of the coverages, deductibles, coverage limits, | |
| 2307 | - | rates and forms, together with any additional information that the | |
| 2308 | - | commissioner may require; HOUSE BILL No. 2050—page 37 | |
| 3184 | + | expertise, experience and character of such persons or organizations; and | |
| 3185 | + | (I) whenever required by the commissioner, an appropriate opinion | |
| 3186 | + | by a qualified independent actuary regarding the adequacy of the applicant | |
| 3187 | + | captive insurance company's proposed capital, surplus and premium levels; | |
| 3188 | + | (3) a description of the coverages, deductibles, coverage limits, rates | |
| 3189 | + | and forms, together with any additional information that the commissioner | |
| 3190 | + | may require; | |
| 2309 | 3191 | (4) such other items deemed relevant by the commissioner in | |
| 2310 | - | ascertaining whether the proposed captive insurance company will be | |
| 2311 | - | ||
| 3192 | + | ascertaining whether the proposed captive insurance company will be able | |
| 3193 | + | to meet its obligations; and | |
| 2312 | 3194 | (5) any modification or change in the items required under this | |
| 2313 | 3195 | subsection that shall require the prior approval of the commissioner. | |
| 2314 | 3196 | (d) Each captive insurance company not in existence on January 1, | |
| 2315 | - | 2018, shall pay to the commissioner a nonrefundable fee of not to | |
| 2316 | - | exceed $10,000 for examining, investigating and processing its | |
| 2317 | - | application for a certificate of authority. The commissioner is | |
| 2318 | - | authorized to retain legal, financial, actuarial, analysis and examination | |
| 2319 | - | services from outside the department, the reasonable costs of which | |
| 2320 | - | shall be charged against the applicant. In addition, it shall pay a | |
| 2321 | - | renewal fee for each year thereafter of not to exceed $10,000. Not later | |
| 2322 | - | than December 1 of each year, the commissioner shall set and cause to | |
| 2323 | - | be published in the Kansas register the fee required by this subsection | |
| 2324 | - | for the next calendar year. | |
| 2325 | - | (e) Each captive insurance company already in existence on | |
| 2326 | - | January 1, 2018, shall pay an annual renewal fee of $110 until January | |
| 2327 | - | 1, 2028, after which date the provisions of subsection (d) shall apply. | |
| 2328 | - | (f) If the commissioner is satisfied that the documents and | |
| 2329 | - | statements that such captive insurance company has filed comply with | |
| 2330 | - | the provisions of this act, the commissioner may grant a certificate of | |
| 2331 | - | authority authorizing a: | |
| 3197 | + | 2018, shall pay to the commissioner a nonrefundable fee of not to exceed | |
| 3198 | + | $10,000 for examining, investigating and processing its application for a | |
| 3199 | + | certificate of authority. The commissioner is authorized to retain legal, | |
| 3200 | + | financial, actuarial, analysis and examination services from outside the | |
| 3201 | + | department, the reasonable costs of which shall be charged against the | |
| 3202 | + | applicant. In addition, it shall pay a renewal fee for each year thereafter of | |
| 3203 | + | not to exceed $10,000. Not later than December 1 of each year, the | |
| 3204 | + | commissioner shall set and cause to be published in the Kansas register | |
| 3205 | + | the fee required by this subsection for the next calendar year. | |
| 3206 | + | (e) Each captive insurance company already in existence on January | |
| 3207 | + | 1, 2018, shall pay an annual renewal fee of $110 until January 1, 2028, | |
| 3208 | + | after which date the provisions of subsection (d) shall apply. | |
| 3209 | + | (f) If the commissioner is satisfied that the documents and statements | |
| 3210 | + | that such captive insurance company has filed comply with the provisions | |
| 3211 | + | of this act, the commissioner may grant a certificate of authority | |
| 3212 | + | authorizing a: | |
| 2332 | 3213 | (1) Captive insurance company other than a technology-enabled | |
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| 2333 | 3257 | fiduciary financial institution to do insurance business in this state until | |
| 2334 | 3258 | March 1 thereafter, which certificate of authority may be renewed; and | |
| 2335 | 3259 | (2) technology-enabled fiduciary financial institution insurance | |
| 2336 | 3260 | company to do insurance business in this state until the later of March 1 | |
| 2337 | 3261 | thereafter or the maturity date of the last payment-in-kind asset held by | |
| 2338 | - | such technology-enabled fiduciary financial institution insurance | |
| 2339 | - | ||
| 3262 | + | such technology-enabled fiduciary financial institution insurance company | |
| 3263 | + | pursuant to this act. | |
| 2340 | 3264 | (g)(f) Information submitted under this section shall be and remain | |
| 2341 | 3265 | confidential, and shall not be made public by the commissioner or any | |
| 2342 | - | employee or agent of the commissioner without the written consent of | |
| 2343 | - | ||
| 2344 | - | (1) Such information may be discoverable by a party in a civil | |
| 2345 | - | ||
| 2346 | - | ||
| 2347 | - | ||
| 3266 | + | employee or agent of the commissioner without the written consent of the | |
| 3267 | + | company, except that: | |
| 3268 | + | (1) Such information may be discoverable by a party in a civil action | |
| 3269 | + | or contested case to which the captive insurance company that submitted | |
| 3270 | + | such information is a party, upon a showing by the party seeking to | |
| 3271 | + | discover such information that: | |
| 2348 | 3272 | (A) The information sought is relevant to and necessary for the | |
| 2349 | 3273 | furtherance of such action or case; | |
| 2350 | - | (B) the information sought is unavailable from other non- | |
| 2351 | - | ||
| 3274 | + | (B) the information sought is unavailable from other non-confidential | |
| 3275 | + | sources; | |
| 2352 | 3276 | (C) a subpoena issued by a judicial or administrative officer or | |
| 2353 | 3277 | competent jurisdiction has been submitted to the commissioner; and | |
| 2354 | - | (D) the privacy of a qualified policyholder shall be protected in | |
| 2355 | - | any court proceeding concerning such qualified policyholder if the | |
| 2356 | - | technology-enabled fiduciary financial institution insurance company | |
| 2357 | - | so petitions the court. Upon the filing of such petition, any information, | |
| 2358 | - | including, but not limited to, an instrument, inventory, statement or | |
| 2359 | - | verified report produced by the technology-enabled fiduciary financial | |
| 2360 | - | institution insurance company regarding a policy issued to a qualified | |
| 2361 | - | policyholder or payment-in-kind assets held by the technology-enabled | |
| 2362 | - | fiduciary financial institution insurance company to satisfy claims of | |
| 2363 | - | such qualified policyholder, all payment-in-kind policies, all petitions | |
| 2364 | - | relevant to such information and all court orders thereon, shall be | |
| 2365 | - | sealed upon filing and shall not be made a part of the public record of | |
| 2366 | - | the proceeding, except that such petition shall be available to the court, | |
| 2367 | - | the commissioner, the technology-enabled fiduciary financial | |
| 2368 | - | institution insurance company, their attorneys and to such other | |
| 2369 | - | interested persons as the court may order upon a showing of good | |
| 2370 | - | cause; | |
| 3278 | + | (D) the privacy of a qualified policyholder shall be protected in any | |
| 3279 | + | court proceeding concerning such qualified policyholder if the technology- | |
| 3280 | + | enabled fiduciary financial institution insurance company so petitions the | |
| 3281 | + | court. Upon the filing of such petition, any information, including, but not | |
| 3282 | + | limited to, an instrument, inventory, statement or verified report produced | |
| 3283 | + | by the technology-enabled fiduciary financial institution insurance | |
| 3284 | + | company regarding a policy issued to a qualified policyholder or payment- | |
| 3285 | + | in-kind assets held by the technology-enabled fiduciary financial | |
| 3286 | + | institution insurance company to satisfy claims of such qualified | |
| 3287 | + | policyholder, all payment-in-kind policies, all petitions relevant to such | |
| 3288 | + | information and all court orders thereon, shall be sealed upon filing and | |
| 3289 | + | shall not be made a part of the public record of the proceeding, except that | |
| 3290 | + | such petition shall be available to the court, the commissioner, the | |
| 3291 | + | technology-enabled fiduciary financial institution insurance company, their | |
| 3292 | + | attorneys and to such other interested persons as the court may order upon | |
| 3293 | + | a showing of good cause; | |
| 2371 | 3294 | (2) the commissioner may disclose such information to a public | |
| 2372 | - | officer having jurisdiction over the regulation of insurance in another | |
| 2373 | - | ||
| 3295 | + | officer having jurisdiction over the regulation of insurance in another state, | |
| 3296 | + | provided that if: | |
| 2374 | 3297 | (A) Such public official shall agree in writing to maintain the | |
| 2375 | 3298 | confidentiality of such information; and | |
| 2376 | - | (B) the laws of the state in which such public official serves | |
| 2377 | - | requires such information to be and to remain confidential; | |
| 3299 | + | (B) the laws of the state in which such public official serves requires | |
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| 3343 | + | such information to be and to remain confidential; | |
| 2378 | 3344 | (3) access may also be granted to the national association of | |
| 2379 | 3345 | insurance commissioners and its affiliates, and the international | |
| 2380 | - | association of supervisors and its affiliates. Such parties must shall | |
| 2381 | - | ||
| 2382 | - | ||
| 2383 | - | ||
| 2384 | - | (4) the privacy of those who have established an affiliated fidfin | |
| 2385 | - | ||
| 2386 | - | proceeding concerning such trust or custody account if the acting | |
| 2387 | - | ||
| 2388 | - | ||
| 2389 | - | ||
| 2390 | - | ||
| 2391 | - | ||
| 2392 | - | ||
| 2393 | - | ||
| 2394 | - | ||
| 2395 | - | ||
| 2396 | - | Sec. | |
| 3346 | + | association of supervisors and its affiliates. Such parties must shall agree | |
| 3347 | + | in writing prior to receiving the information to provide to it the same | |
| 3348 | + | confidential treatment as required by this section, unless the company | |
| 3349 | + | gives prior written consent; and | |
| 3350 | + | (4) the privacy of those who have established an affiliated fidfin trust | |
| 3351 | + | or alternative asset custody account shall be protected in any court | |
| 3352 | + | proceeding concerning such trust or custody account if the acting trustee, | |
| 3353 | + | custodian, trustor or any beneficiary so petition the court. Upon the filing | |
| 3354 | + | of such a petition, the instrument, inventory, statement filed by any trustee | |
| 3355 | + | or custodian, annual verified report of the trustee or custodian and all | |
| 3356 | + | petitions relevant to trust administration and all court orders thereon shall | |
| 3357 | + | be sealed upon filing and shall not be made a part of the public record of | |
| 3358 | + | the proceeding, except that such petition shall be available to the court, the | |
| 3359 | + | trustor, the trustee, the custodian, any beneficiary, their attorneys and to | |
| 3360 | + | such other interested persons as the court may order upon a showing of | |
| 3361 | + | good cause. | |
| 3362 | + | Sec. 21. K.S.A. 40-4323 is hereby amended to read as follows: 40- | |
| 2397 | 3363 | 4323. (a) As used in this section, unless the context requires otherwise, | |
| 2398 | - | "dormant captive insurance company" means a captive insurance | |
| 2399 | - | ||
| 3364 | + | "dormant captive insurance company" means a captive insurance company | |
| 3365 | + | that has: | |
| 2400 | 3366 | (1) Ceased transacting the business of insurance, including the | |
| 2401 | 3367 | issuance of insurance policies; and | |
| 2402 | 3368 | (2) no remaining liabilities associated with insurance business | |
| 2403 | 3369 | transactions or insurance policies issued prior to the filing of its | |
| 2404 | 3370 | application for a certificate of dormancy under this section. | |
| 2405 | - | (b) A captive insurance company domiciled in Kansas that meets | |
| 2406 | - | the criteria of subsection (a) may apply to the commissioner for a | |
| 2407 | - | certificate of dormancy. The certificate of dormancy shall be subject to | |
| 2408 | - | renewal every five years and shall be forfeited if not renewed within | |
| 2409 | - | such time. | |
| 3371 | + | (b) A captive insurance company domiciled in Kansas that meets the | |
| 3372 | + | criteria of subsection (a) may apply to the commissioner for a certificate of | |
| 3373 | + | dormancy. The certificate of dormancy shall be subject to renewal every | |
| 3374 | + | five years and shall be forfeited if not renewed within such time. | |
| 2410 | 3375 | (c) A dormant captive insurance company that has been issued a | |
| 2411 | 3376 | certificate of dormancy shall: | |
| 2412 | 3377 | (1) Possess and thereafter maintain unimpaired, paid-in capital and | |
| 2413 | 3378 | surplus of not less than $25,000; | |
| 2414 | 3379 | (2) prior to March 15 of each year, submit to the commissioner a | |
| 2415 | 3380 | report of its financial condition, verified by oath by two of its executive | |
| 2416 | 3381 | officers, in a form as may be prescribed by the commissioner; and | |
| 2417 | 3382 | (3) pay a license renewal fee of not to exceed $500. Not later than | |
| 2418 | 3383 | December 1 of each year, the commissioner shall set and cause to be | |
| 2419 | 3384 | published in the Kansas register such fee required pursuant to this | |
| 2420 | 3385 | paragraph. | |
| 2421 | - | (d) A dormant captive insurance company shall not be subject to | |
| 2422 | - | or liable for the payment of any tax under K.S.A. 40-4314, and | |
| 2423 | - | amendments thereto, or as provided in article 28 of chapter 40 of the | |
| 2424 | - | Kansas Statutes Annotated, and amendments thereto. | |
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| 3426 | + | 41 | |
| 3427 | + | 42 | |
| 3428 | + | 43 HB 2050 41 | |
| 3429 | + | (d) A dormant captive insurance company shall not be subject to or | |
| 3430 | + | liable for the payment of any tax under K.S.A. 40-4314, and amendments | |
| 3431 | + | thereto, or as provided in article 28 of chapter 40 of the Kansas Statutes | |
| 3432 | + | Annotated, and amendments thereto. | |
| 2425 | 3433 | (e) A dormant captive insurance company shall apply to the | |
| 2426 | 3434 | commissioner for approval to surrender its certificate of dormancy and | |
| 2427 | - | resume conducting the business of insurance prior to issuing any | |
| 2428 | - | ||
| 3435 | + | resume conducting the business of insurance prior to issuing any insurance | |
| 3436 | + | policies. | |
| 2429 | 3437 | (f) A certificate of dormancy shall be revoked if a dormant captive | |
| 2430 | 3438 | insurance company no longer meets the criteria of subsection (a). | |
| 2431 | 3439 | (g) The commissioner may promulgate rules and regulations as | |
| 2432 | 3440 | necessary to carry out the provisions of this section. | |
| 2433 | - | Sec. | |
| 3441 | + | Sec. 22. K.S.A. 40-4334 is hereby amended to read as follows: 40- | |
| 2434 | 3442 | 4334. (a) To transact business in Kansas, a special purpose insurance | |
| 2435 | 3443 | captive shall: | |
| 2436 | - | (1) Obtain from the commissioner a certificate of authority | |
| 3444 | + | (1) Obtain from the commissioner a certificate of authority | |
| 2437 | 3445 | authorizing it to conduct reinsurance business in Kansas; | |
| 2438 | - | (2) hold at least one meeting of its board of directors each year | |
| 2439 | - | ||
| 3446 | + | (2) hold at least one meeting of its board of directors each year within | |
| 3447 | + | Kansas; | |
| 2440 | 3448 | (3) maintain its principal place of business in Kansas; | |
| 2441 | 3449 | (4) authorize the commissioner to accept service of process on its | |
| 2442 | 3450 | behalf in accordance with K.S.A. 40-218, and amendments thereto; | |
| 2443 | - | (5) maintain unimpaired paid-in capital and surplus of not less | |
| 2444 | - | ||
| 3451 | + | (5) maintain unimpaired paid-in capital and surplus of not less than | |
| 3452 | + | $5,000,000; | |
| 2445 | 3453 | (6) maintain a risk-based capital of at least 200%; and | |
| 2446 | 3454 | (7) pay all applicable fees as required by this act. | |
| 2447 | 3455 | (b) A special purpose insurance captive, when permitted by its | |
| 2448 | - | organizational documents, may apply to the commissioner for a | |
| 2449 | - | certificate of authority to conduct reinsurance in Kansas as authorized | |
| 2450 | - | by this section. | |
| 3456 | + | organizational documents, may apply to the commissioner for a certificate | |
| 3457 | + | of authority to conduct reinsurance in Kansas as authorized by this section. | |
| 2451 | 3458 | (1) An authorized special purpose insurance captive may only | |
| 2452 | 3459 | reinsure the risks of its ceding company. A special purpose insurance | |
| 2453 | - | captive may reinsure risks of more than one ceding company, provided | |
| 2454 | - | ||
| 3460 | + | captive may reinsure risks of more than one ceding company, provided if | |
| 3461 | + | all ceding companies from which a special purpose insurance captive | |
| 2455 | 3462 | assumes risks shall be are affiliated with one another. | |
| 2456 | - | (2) An authorized special purpose insurance captive may cede all | |
| 2457 | - | or a portion of its assumed risks under ceded reinsurance agreements. | |
| 2458 | - | (3) An authorized special purpose insurance captive may take | |
| 2459 | - | credit or a reduction from liability for the reinsurance of risks or | |
| 2460 | - | portions of risks ceded to a reinsurer in accordance with K.S.A. 40- | |
| 2461 | - | 221a, and amendments thereto, or as otherwise approved by the | |
| 2462 | - | commissioner. | |
| 2463 | - | (c) To obtain a certificate of authority to transact business as a | |
| 2464 | - | special purpose insurance captive in Kansas, the special purpose | |
| 2465 | - | insurance captive shall: | |
| 3463 | + | (2) An authorized special purpose insurance captive may cede all or a | |
| 3464 | + | portion of its assumed risks under ceded reinsurance agreements. | |
| 3465 | + | (3) An authorized special purpose insurance captive may take credit | |
| 3466 | + | or a reduction from liability for the reinsurance of risks or portions of risks | |
| 3467 | + | ceded to a reinsurer in accordance with K.S.A. 40-221a, and amendments | |
| 3468 | + | thereto, or as otherwise approved by the commissioner. | |
| 3469 | + | (c) To obtain a certificate of authority to transact business as a special | |
| 3470 | + | purpose insurance captive in Kansas, the special purpose insurance captive | |
| 3471 | + | shall: | |
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| 3513 | + | 42 | |
| 3514 | + | 43 HB 2050 42 | |
| 2466 | 3515 | (1) File an application, which that shall include the following: | |
| 2467 | 3516 | (A) Certified copies of its organizational documents; | |
| 2468 | - | (B) a statement under oath from any of the applicant's officers as | |
| 2469 | - | to the financial condition of the applicant as of the time the application | |
| 2470 | - | is filed; | |
| 2471 | - | (C) evidence of the applicant's assets as of the time of the | |
| 2472 | - | application; | |
| 2473 | - | (D) complete biographical sketches for each officer and director | |
| 2474 | - | on forms created by the NAIC; | |
| 3517 | + | (B) a statement under oath from any of the applicant's officers as to | |
| 3518 | + | the financial condition of the applicant as of the time the application is | |
| 3519 | + | filed; | |
| 3520 | + | (C) evidence of the applicant's assets as of the time of the application; | |
| 3521 | + | (D) complete biographical sketches for each officer and director on | |
| 3522 | + | forms created by the NAIC; | |
| 2475 | 3523 | (E) a plan of operation as described in K.S.A. 40-4335, and | |
| 2476 | 3524 | amendments thereto; | |
| 2477 | 3525 | (F) an affidavit signed by the applicant that the special purpose | |
| 2478 | 3526 | insurance captive will operate only in accordance with the provisions of | |
| 2479 | 3527 | this section and its plan of operation; | |
| 2480 | 3528 | (G) a description of the investment strategy the special purpose | |
| 2481 | 3529 | insurance captive will follow; and | |
| 2482 | 3530 | (H) a description of the source and form of the initial minimum | |
| 2483 | 3531 | capital proposed in the plan of operation; and | |
| 2484 | 3532 | (2) have deposited with the commissioner of insurance pursuant to | |
| 2485 | - | K.S.A. 40-229a, and amendments thereto, securities authorized by | |
| 2486 | - | ||
| 2487 | - | ||
| 2488 | - | ||
| 2489 | - | (3) demonstrate that the minimum surplus required is established | |
| 2490 | - | ||
| 2491 | - | (4) provide copies of any filings made by the ceding company | |
| 2492 | - | ||
| 2493 | - | ||
| 2494 | - | ||
| 2495 | - | ||
| 2496 | - | ||
| 2497 | - | ||
| 2498 | - | ||
| 2499 | - | ||
| 2500 | - | ||
| 3533 | + | K.S.A. 40-229a, and amendments thereto, securities authorized by K.S.A. | |
| 3534 | + | 40-2a01 et seq., and amendments thereto, in an amount equal to not less | |
| 3535 | + | than the minimum capital stock required of such company for the | |
| 3536 | + | protection of its policyholders or creditors, or both; | |
| 3537 | + | (3) demonstrate that the minimum surplus required is established and | |
| 3538 | + | held in Kansas; and | |
| 3539 | + | (4) provide copies of any filings made by the ceding company with | |
| 3540 | + | the ceding company's domiciliary insurance regulator to obtain approval | |
| 3541 | + | for the ceding company to enter into the special purpose insurance captive | |
| 3542 | + | contract and copies of any filings made by any affiliate of the special | |
| 3543 | + | purpose insurance captive to obtain regulatory approval to contribute | |
| 3544 | + | capital to the special purpose insurance captive or to acquire direct or | |
| 3545 | + | indirect ownership of the special purpose insurance captive. The special | |
| 3546 | + | purpose insurance captive shall provide copies of any letters of approval or | |
| 3547 | + | disapproval received from the insurance regulator responding to such | |
| 3548 | + | filing. | |
| 2501 | 3549 | (d) The commissioner may require the special purpose insurance | |
| 2502 | 3550 | captive to revise its plan of operation under K.S.A. 40-4335, and | |
| 2503 | - | amendments thereto, and meet all requirements imposed by a revised | |
| 2504 | - | ||
| 2505 | - | (e) The department shall act upon a complete application within | |
| 2506 | - | ||
| 2507 | - | ||
| 3551 | + | amendments thereto, and meet all requirements imposed by a revised plan | |
| 3552 | + | of operation as approved by the commissioner thereunder. | |
| 3553 | + | (e) The department shall act upon a complete application within 30 | |
| 3554 | + | days of its filing. Upon good cause shown, the commissioner may extend | |
| 3555 | + | the time to act on the application by 30 days. | |
| 2508 | 3556 | (f) In the event that the ceding company is not required to make | |
| 2509 | - | filings with its domiciliary insurance regulator as described in | |
| 2510 | - | subsection (c)(4), no such filing shall be required under subsection (c) | |
| 2511 | - | (4) in Kansas, provided if the applicant provides the commissioner with | |
| 2512 | - | a certification signed by one of its officers attesting that no such filing | |
| 2513 | - | is required with the ceding company's domiciliary regulator. | |
| 3557 | + | filings with its domiciliary insurance regulator as described in subsection | |
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| 3600 | + | 43 HB 2050 43 | |
| 3601 | + | (c)(4), no such filing shall be required under subsection (c)(4) in Kansas, | |
| 3602 | + | provided if the applicant provides the commissioner with a certification | |
| 3603 | + | signed by one of its officers attesting that no such filing is required with | |
| 3604 | + | the ceding company's domiciliary regulator. | |
| 2514 | 3605 | (g) Once granted, a certificate of authority under this section shall | |
| 2515 | 3606 | continue until March 1 of each year. At such time, the certificate of | |
| 2516 | 3607 | authority may be renewed at the discretion of the commissioner. | |
| 2517 | - | (h) A special purpose insurance captive shall pay to the | |
| 2518 | - | commissioner a nonrefundable application fee of not to exceed $10,000 | |
| 2519 | - | for examining, investigating and processing its application for | |
| 2520 | - | certificate of authority, and the commissioner is authorized to retain | |
| 2521 | - | legal, financial, actuarial and examination services from outside the | |
| 2522 | - | department, the reasonable costs of which may be additionally charged | |
| 2523 | - | against the applicant. In addition, each special purpose insurance | |
| 2524 | - | captive shall pay a renewal fee for each year thereafter of not to exceed | |
| 2525 | - | $10,000 for each subsequent year. Not later than December 1 of each | |
| 2526 | - | year, the commissioner shall set and cause to be published in the | |
| 2527 | - | Kansas register the fee required pursuant to this subsection for the next | |
| 2528 | - | calendar year. | |
| 2529 | - | Sec. 33. K.S.A. 40-4503 is hereby amended to read as follows: 40- | |
| 3608 | + | (h) A special purpose insurance captive shall pay to the commissioner | |
| 3609 | + | a nonrefundable application fee of not to exceed $10,000 for examining, | |
| 3610 | + | investigating and processing its application for certificate of authority, and | |
| 3611 | + | the commissioner is authorized to retain legal, financial, actuarial and | |
| 3612 | + | examination services from outside the department, the reasonable costs of | |
| 3613 | + | which may be additionally charged against the applicant. In addition, each | |
| 3614 | + | special purpose insurance captive shall pay a renewal fee for each year | |
| 3615 | + | thereafter of not to exceed $10,000 for each subsequent year. Not later | |
| 3616 | + | than December 1 of each year, the commissioner shall set and cause to be | |
| 3617 | + | published in the Kansas register the fee required pursuant to this | |
| 3618 | + | subsection for the next calendar year. | |
| 3619 | + | Sec. 23. K.S.A. 40-4503 is hereby amended to read as follows: 40- | |
| 2530 | 3620 | 4503. (a) No person, firm, association or corporation shall act as a | |
| 2531 | 3621 | reinsurance broker in this state if the reinsurance broker maintains an | |
| 2532 | - | office either directly or as a member or employee of a firm or | |
| 2533 | - | ||
| 2534 | - | (1) In this state, unless such reinsurance broker is a licensed | |
| 2535 | - | ||
| 3622 | + | office either directly or as a member or employee of a firm or association, | |
| 3623 | + | or as an officer, director or employee of a corporation: | |
| 3624 | + | (1) In this state, unless such reinsurance broker is a licensed producer | |
| 3625 | + | in this state; or | |
| 2536 | 3626 | (2) in another state, unless such reinsurance broker is a licensed | |
| 2537 | - | producer in this state or another state having a law substantially similar | |
| 2538 | - | ||
| 2539 | - | ||
| 3627 | + | producer in this state or another state having a law substantially similar to | |
| 3628 | + | this act or such reinsurance broker is licensed in this state as a nonresident | |
| 3629 | + | reinsurance intermediary. | |
| 2540 | 3630 | (b) No person, firm, association or corporation shall act as a | |
| 2541 | 3631 | reinsurance manager: | |
| 2542 | 3632 | (1) For a reinsurer domiciled in this state, unless such reinsurance | |
| 2543 | 3633 | manager is a licensed producer in this state; | |
| 2544 | - | (2) in this state, if the reinsurance manager maintains an office | |
| 2545 | - | either directly or as a member or employee of a firm or association, or | |
| 2546 | - | an officer, director or employee of a corporation in this state, unless | |
| 2547 | - | such reinsurance manager is a licensed producer in this state; | |
| 2548 | - | (3) in another state for a nondomestic insurer, unless such | |
| 2549 | - | reinsurance manager is a licensed producer in this state or another state | |
| 2550 | - | having a law substantially similar to this act or such person is licensed | |
| 2551 | - | in this state as a nonresident reinsurance intermediary. | |
| 2552 | - | (c) The commissioner may require a reinsurance manager subject | |
| 2553 | - | to subsection (b) to file a bond in an amount from an insurer acceptable | |
| 2554 | - | to the commissioner for the protection of each reinsurer represented. | |
| 3634 | + | (2) in this state, if the reinsurance manager maintains an office either | |
| 3635 | + | directly or as a member or employee of a firm or association, or an officer, | |
| 3636 | + | director or employee of a corporation in this state, unless such reinsurance | |
| 3637 | + | manager is a licensed producer in this state; | |
| 3638 | + | (3) in another state for a nondomestic insurer, unless such reinsurance | |
| 3639 | + | manager is a licensed producer in this state or another state having a law | |
| 3640 | + | substantially similar to this act or such person is licensed in this state as a | |
| 3641 | + | nonresident reinsurance intermediary. | |
| 3642 | + | (c) The commissioner may require a reinsurance manager subject to | |
| 3643 | + | subsection (b) to file a bond in an amount from an insurer acceptable to the | |
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| 3685 | + | 42 | |
| 3686 | + | 43 HB 2050 44 | |
| 3687 | + | commissioner for the protection of each reinsurer represented. | |
| 2555 | 3688 | (d) (1) The commissioner may issue a reinsurance intermediary | |
| 2556 | - | license to any person, firm, association or corporation who has | |
| 2557 | - | complied with the requirements of this act. Before any such license | |
| 2558 | - | may be issued, the applicant shall submit proper application therefor on | |
| 2559 | - | a form prescribed by the commissioner which that shall be | |
| 2560 | - | accompanied by an initial fee of not to exceed $150. Any license so | |
| 2561 | - | issued shall remain in effect until suspended, revoked, voluntarily | |
| 2562 | - | surrendered or otherwise terminated by the commissioner or licensee | |
| 2563 | - | subject to payment of an annual continuation fee of not to exceed $100 | |
| 2564 | - | on or before May 1 of each year. Any such license issued to a firm or HOUSE BILL No. 2050—page 41 | |
| 2565 | - | association will authorize all the members of such firm or association | |
| 2566 | - | and any designated employees to act as reinsurance intermediaries | |
| 2567 | - | under the license, and all such persons shall be named in the application | |
| 2568 | - | and any supplements thereto. Any such license issued to a corporation | |
| 2569 | - | shall authorize all of the officers, and any designated employees and | |
| 2570 | - | directors thereof, to act as reinsurance intermediaries on behalf of such | |
| 2571 | - | corporation, and all such persons shall be named in the application and | |
| 2572 | - | any supplements thereto. | |
| 3689 | + | license to any person, firm, association or corporation who has complied | |
| 3690 | + | with the requirements of this act. Before any such license may be issued, | |
| 3691 | + | the applicant shall submit proper application therefor on a form prescribed | |
| 3692 | + | by the commissioner which that shall be accompanied by an initial fee of | |
| 3693 | + | not to exceed $150. Any license so issued shall remain in effect until | |
| 3694 | + | suspended, revoked, voluntarily surrendered or otherwise terminated by | |
| 3695 | + | the commissioner or licensee subject to payment of an annual continuation | |
| 3696 | + | fee of not to exceed $100 on or before May 1 of each year. Any such | |
| 3697 | + | license issued to a firm or association will authorize all the members of | |
| 3698 | + | such firm or association and any designated employees to act as | |
| 3699 | + | reinsurance intermediaries under the license, and all such persons shall be | |
| 3700 | + | named in the application and any supplements thereto. Any such license | |
| 3701 | + | issued to a corporation shall authorize all of the officers, and any | |
| 3702 | + | designated employees and directors thereof, to act as reinsurance | |
| 3703 | + | intermediaries on behalf of such corporation, and all such persons shall be | |
| 3704 | + | named in the application and any supplements thereto. | |
| 2573 | 3705 | (2) If the applicant for a reinsurance intermediary license is a | |
| 2574 | 3706 | nonresident, such applicant, as a condition precedent to receiving or | |
| 2575 | - | holding a license, shall designate the commissioner as agent for service | |
| 2576 | - | of process in the manner, and with the same legal effect, as is provided | |
| 2577 | - | for by this act for designation of service of process upon insurers | |
| 2578 | - | holding a Kansas certificate of authority. Such applicant shall furnish | |
| 2579 | - | the commissioner with the name and address of a resident of this state | |
| 2580 | - | upon whom notices or orders of the commissioner or process affecting | |
| 2581 | - | such nonresident reinsurance intermediary may be served. Such | |
| 2582 | - | licensee shall promptly notify the commissioner in writing of every | |
| 2583 | - | change in its designated agent for service of process, and such change | |
| 2584 | - | shall not become effective until acknowledged by the commissioner. | |
| 2585 | - | (3) Not later than December 1 of each year, the commissioner | |
| 2586 | - | shall set and cause to be published in the Kansas register the fee | |
| 2587 | - | required pursuant to this subsection for the next calendar year. | |
| 2588 | - | (e) The commissioner may, after a hearing conducted in | |
| 2589 | - | accordance with the provisions of the Kansas administrative procedure | |
| 2590 | - | act, and held on not less than 20 days' notice, refuse to issue a | |
| 2591 | - | reinsurance intermediary license if, in the judgment of the | |
| 2592 | - | commissioner,: (1) The applicant, any one named on the application, or | |
| 2593 | - | any member, principal, officer or director of the applicant, is not | |
| 2594 | - | trustworthy, or; (2) any controlling person of such applicant is not | |
| 2595 | - | trustworthy to act as a reinsurance intermediary,; or (3) any of the | |
| 2596 | - | foregoing has given cause for revocation or suspension of such license, | |
| 2597 | - | or has failed to comply with any prerequisite for the issuance of such | |
| 2598 | - | license. | |
| 3707 | + | holding a license, shall designate the commissioner as agent for service of | |
| 3708 | + | process in the manner, and with the same legal effect, as is provided for by | |
| 3709 | + | this act for designation of service of process upon insurers holding a | |
| 3710 | + | Kansas certificate of authority. Such applicant shall furnish the | |
| 3711 | + | commissioner with the name and address of a resident of this state upon | |
| 3712 | + | whom notices or orders of the commissioner or process affecting such | |
| 3713 | + | nonresident reinsurance intermediary may be served. Such licensee shall | |
| 3714 | + | promptly notify the commissioner in writing of every change in its | |
| 3715 | + | designated agent for service of process, and such change shall not become | |
| 3716 | + | effective until acknowledged by the commissioner. | |
| 3717 | + | (3) Not later than December 1 of each year, the commissioner shall | |
| 3718 | + | set and cause to be published in the Kansas register the fee required | |
| 3719 | + | pursuant to this subsection for the next calendar year. | |
| 3720 | + | (e) The commissioner may, after a hearing conducted in accordance | |
| 3721 | + | with the provisions of the Kansas administrative procedure act, and held | |
| 3722 | + | on not less than 20 days' notice, refuse to issue a reinsurance intermediary | |
| 3723 | + | license if, in the judgment of the commissioner,: (1) The applicant, any | |
| 3724 | + | one named on the application, or any member, principal, officer or director | |
| 3725 | + | of the applicant, is not trustworthy, or; (2) any controlling person of such | |
| 3726 | + | applicant is not trustworthy to act as a reinsurance intermediary,; or (3) | |
| 3727 | + | any of the foregoing has given cause for revocation or suspension of such | |
| 3728 | + | license, or has failed to comply with any prerequisite for the issuance of | |
| 3729 | + | such license. | |
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| 3772 | + | 43 HB 2050 45 | |
| 2599 | 3773 | (f) Licensed attorneys at law in this state when acting in their | |
| 2600 | 3774 | professional capacity as such shall be exempt from this section. | |
| 2601 | - | Sec. | |
| 2602 | - | follows: 40-4903. (a) Unless denied licensure pursuant to K.S.A. 40- | |
| 2603 | - | ||
| 2604 | - | ||
| 2605 | - | ||
| 2606 | - | ||
| 3775 | + | Sec. 24. K.S.A. 2024 Supp. 40-4903 is hereby amended to read as | |
| 3776 | + | follows: 40-4903. (a) Unless denied licensure pursuant to K.S.A. 40-4909, | |
| 3777 | + | and amendments thereto, any person who meets the requirements of | |
| 3778 | + | K.S.A. 40-4905, and amendments thereto, shall be issued an insurance | |
| 3779 | + | agent license. An insurance agent may receive qualifications for a license | |
| 3780 | + | in one or more of the following lines of authority: | |
| 2607 | 3781 | (1) Life: Insurance coverage on human lives including benefits of | |
| 2608 | - | endowment and annuities, and may include benefits in the event of | |
| 2609 | - | death or dismemberment by accident and benefits for disability income. | |
| 2610 | - | (2) Accident and health or sickness: Insurance coverage for | |
| 2611 | - | sickness, bodily injury or accidental death, and may include benefits for | |
| 2612 | - | disability income. | |
| 2613 | - | (3) Property: Insurance coverage for the direct or consequential | |
| 2614 | - | loss or damage to property of every kind. | |
| 2615 | - | (4) Casualty: Insurance coverage against legal liability, including | |
| 2616 | - | that for death, injury or disability or damage to real or personal | |
| 2617 | - | property. | |
| 3782 | + | endowment and annuities, and may include benefits in the event of death | |
| 3783 | + | or dismemberment by accident and benefits for disability income. | |
| 3784 | + | (2) Accident and health or sickness: Insurance coverage for sickness, | |
| 3785 | + | bodily injury or accidental death, and may include benefits for disability | |
| 3786 | + | income. | |
| 3787 | + | (3) Property: Insurance coverage for the direct or consequential loss | |
| 3788 | + | or damage to property of every kind. | |
| 3789 | + | (4) Casualty: Insurance coverage against legal liability, including that | |
| 3790 | + | for death, injury or disability or damage to real or personal property. | |
| 2618 | 3791 | (5) Variable life and variable annuity products: Insurance coverage | |
| 2619 | - | provided under variable life insurance contracts, variable annuities or | |
| 2620 | - | ||
| 3792 | + | provided under variable life insurance contracts, variable annuities or any | |
| 3793 | + | other life insurance or annuity product that reflects the investment | |
| 2621 | 3794 | experience of a separate account. | |
| 2622 | 3795 | (6) Personal lines: Property and casualty insurance coverage sold | |
| 2623 | 3796 | primarily to an individual or family for noncommercial purposes. | |
| 2624 | 3797 | (7) Credit: Limited line credit insurance. | |
| 2625 | - | (8) Crop insurance: Limited line insurance for damage to crops | |
| 2626 | - | ||
| 3798 | + | (8) Crop insurance: Limited line insurance for damage to crops from | |
| 3799 | + | unfavorable weather conditions, fire, lightning, flood, hail, insect | |
| 2627 | 3800 | infestation, disease or other yield-reducing conditions or any other peril | |
| 2628 | - | subsidized by the federal crop insurance corporation, including multi- | |
| 2629 | - | ||
| 3801 | + | subsidized by the federal crop insurance corporation, including multi-peril | |
| 3802 | + | crop insurance. | |
| 2630 | 3803 | (9) Title insurance: Limited line insurance that insures titles to | |
| 2631 | 3804 | property against loss by reason of defective titles or encumbrances. | |
| 2632 | - | (10) (A) Travel insurance: Limited line insurance for personal | |
| 2633 | - | ||
| 3805 | + | (10) (A) Travel insurance: Limited line insurance for personal risks | |
| 3806 | + | incidental to planned travel, including, but not limited to: | |
| 2634 | 3807 | (i) Interruption or cancellation of trip or event; | |
| 2635 | 3808 | (ii) loss of baggage or personal effects; | |
| 2636 | 3809 | (iii) damages to accommodations or rental vehicles; | |
| 2637 | 3810 | (iv) sickness, accident, disability or death occurring during travel.; | |
| 2638 | 3811 | (v) emergency evacuation; | |
| 2639 | 3812 | (vi) repatriation of remains; or | |
| 2640 | - | (vii) any other contractual obligations to indemnify or pay a | |
| 2641 | - | specified amount to the traveler upon determinable contingencies | |
| 2642 | - | related to travel as approved by the commissioner. | |
| 3813 | + | (vii) any other contractual obligations to indemnify or pay a specified | |
| 3814 | + | amount to the traveler upon determinable contingencies related to travel as | |
| 3815 | + | approved by the commissioner. | |
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| 3858 | + | 43 HB 2050 46 | |
| 2643 | 3859 | (B) Travel insurance does not include major medical plans that | |
| 2644 | - | provide comprehensive medical protection for travelers with trips | |
| 2645 | - | ||
| 2646 | - | ||
| 3860 | + | provide comprehensive medical protection for travelers with trips lasting | |
| 3861 | + | six months or longer, for example, persons working overseas, including | |
| 3862 | + | military personnel deployed overseas. | |
| 2647 | 3863 | (11) Pre-need funeral insurance: Limited line insurance that allows | |
| 2648 | - | for the purchase of a life insurance or annuity contract by or on behalf | |
| 2649 | - | ||
| 3864 | + | for the purchase of a life insurance or annuity contract by or on behalf of | |
| 3865 | + | the insured solely to fund a pre-need contract or arrangement with a | |
| 2650 | 3866 | funeral home for specific services. | |
| 2651 | - | (12) Bail bond insurance: Limited line insurance that provides | |
| 2652 | - | ||
| 2653 | - | ||
| 3867 | + | (12) Bail bond insurance: Limited line insurance that provides surety | |
| 3868 | + | for a monetary guarantee that an individual released from jail will be | |
| 3869 | + | present in court at an appointed time. | |
| 2654 | 3870 | (13) Self-service storage unit insurance: Limited line insurance | |
| 2655 | 3871 | relating to the rental of self-service storage units, including: | |
| 2656 | 3872 | (A) Personal effects insurance that provides coverage to renters of | |
| 2657 | 3873 | storage units at the same facility for the loss of, or damage to, personal | |
| 2658 | 3874 | effects that occurs at the same facility during the rental period; and | |
| 2659 | 3875 | (B) any other coverage that the commissioner may approve as | |
| 2660 | - | meaningful and appropriate in connection with the rental of storage | |
| 2661 | - | ||
| 2662 | - | ||
| 3876 | + | meaningful and appropriate in connection with the rental of storage units. | |
| 3877 | + | Such insurance may only be issued in accordance with K.S.A. 40-241, and | |
| 3878 | + | amendments thereto. | |
| 2663 | 3879 | (14) Any other line of insurance permitted under the provisions of | |
| 2664 | - | chapter 40 of the Kansas Statutes Annotated, and amendments thereto, | |
| 2665 | - | ||
| 2666 | - | (b) Unless suspended, revoked or refused renewal pursuant to | |
| 2667 | - | ||
| 2668 | - | ||
| 2669 | - | (1) Education requirements for resident individual agents are met | |
| 2670 | - | ||
| 2671 | - | (2) such insurance agent submits an application for renewal on a | |
| 2672 | - | ||
| 3880 | + | chapter 40 of the Kansas Statutes Annotated, and amendments thereto, and | |
| 3881 | + | any rules and regulations promulgated thereunder. | |
| 3882 | + | (b) Unless suspended, revoked or refused renewal pursuant to K.S.A. | |
| 3883 | + | 40-4909, and amendments thereto, an insurance agent license shall remain | |
| 3884 | + | in effect as long as: | |
| 3885 | + | (1) Education requirements for resident individual agents are met by | |
| 3886 | + | such insurance agent's biennial due date; | |
| 3887 | + | (2) such insurance agent submits an application for renewal on a form | |
| 3888 | + | prescribed by the commissioner; and | |
| 2673 | 3889 | (3) such insurance agent pays a biennial renewal application fee of | |
| 2674 | 3890 | not to exceed $4. | |
| 2675 | 3891 | (c) Except as provided in paragraphs (1) through (4), each licensed | |
| 2676 | 3892 | insurance agent shall biennially obtain a minimum of 18 C.E.C.s that | |
| 2677 | - | include at least three hours of instruction in insurance ethics that also | |
| 2678 | - | may include regulatory compliance. | |
| 2679 | - | (1) Each licensed insurance agent who is an individual and holds | |
| 2680 | - | only a crop qualification shall biennially obtain a minimum of two | |
| 2681 | - | C.E.C.s in courses certified as crop C.E.C.s under the property and | |
| 2682 | - | casualty category. | |
| 2683 | - | (2) Each licensed insurance agent who is an individual and is | |
| 2684 | - | licensed only for title insurance shall biennially obtain a minimum of | |
| 2685 | - | four C.E.C.s in courses certified by the board of abstract examiners as | |
| 2686 | - | title C.E.C.s under the property and casualty category. | |
| 3893 | + | include at least three hours of instruction in insurance ethics that also may | |
| 3894 | + | include regulatory compliance. | |
| 3895 | + | (1) Each licensed insurance agent who is an individual and holds only | |
| 3896 | + | a crop qualification shall biennially obtain a minimum of two C.E.C.s in | |
| 3897 | + | courses certified as crop C.E.C.s under the property and casualty category. | |
| 3898 | + | (2) Each licensed insurance agent who is an individual and is licensed | |
| 3899 | + | only for title insurance shall biennially obtain a minimum of four C.E.C.s | |
| 3900 | + | in courses certified by the board of abstract examiners as title C.E.C.s | |
| 3901 | + | under the property and casualty category. | |
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| 2687 | 3945 | (3) Each licensed insurance agent who is an individual and holds a | |
| 2688 | 3946 | life insurance license solely for the purpose of selling pre-need funeral | |
| 2689 | - | insurance or annuity products shall file a report on or before such | |
| 2690 | - | ||
| 2691 | - | ||
| 2692 | - | ||
| 2693 | - | ||
| 2694 | - | ||
| 2695 | - | ||
| 2696 | - | ||
| 2697 | - | (4) Each licensed insurance agent who is an individual and holds | |
| 2698 | - | ||
| 2699 | - | ||
| 2700 | - | (5) (A) A licensed insurance agent who is a member of the | |
| 2701 | - | ||
| 2702 | - | ||
| 2703 | - | ||
| 2704 | - | ||
| 3947 | + | insurance or annuity products shall file a report on or before such agent's | |
| 3948 | + | biennial due date affirming that such agent transacted no other insurance | |
| 3949 | + | business during the period covered by the report and shall provide | |
| 3950 | + | certification from an officer of each insurance company that has appointed | |
| 3951 | + | such agent that the agent transacted no other insurance business during the | |
| 3952 | + | period covered by the report. Agents who have offered to sell or sold only | |
| 3953 | + | pre-need funeral insurance are exempt from the requirement to obtain | |
| 3954 | + | C.E.C.s. | |
| 3955 | + | (4) Each licensed insurance agent who is an individual and holds only | |
| 3956 | + | a bail bond, self-service storage unit or travel insurance qualification is | |
| 3957 | + | exempt from the requirement to obtain C.E.C.s. | |
| 3958 | + | (5) (A) A licensed insurance agent who is a member of the national | |
| 3959 | + | guard or any reserve component of the armed services of the United States | |
| 3960 | + | who serves on active duty for at least 90 consecutive days shall be exempt | |
| 3961 | + | from the requirement to obtain C.E.C.s during the time that such insurance | |
| 3962 | + | agent is on active duty. | |
| 2705 | 3963 | (B) The commissioner shall grant an extension to any licensed | |
| 2706 | - | insurance agent described in subparagraph (A) until the biennial due | |
| 2707 | - | date that occurs in the year next succeeding the year in which such | |
| 2708 | - | active duty ceases. | |
| 2709 | - | (d) An instructor of an approved subject shall be entitled to the | |
| 2710 | - | same C.E.C. as a student completing the study. | |
| 2711 | - | (e) (1) An individual insurance agent who has been licensed for | |
| 2712 | - | more than one year, on or before such insurance agent's biennial due | |
| 2713 | - | date, shall file a report with the commissioner certifying that such | |
| 2714 | - | insurance agent has met the continuing education requirements for the | |
| 2715 | - | previous biennium ending on such insurance agent's biennial due date. | |
| 2716 | - | Each individual insurance agent shall maintain a record of all courses | |
| 2717 | - | attended together with a certificate of attendance for the remainder of | |
| 2718 | - | the biennium in which the courses were attended and the entire next | |
| 2719 | - | succeeding biennium. | |
| 3964 | + | insurance agent described in subparagraph (A) until the biennial due date | |
| 3965 | + | that occurs in the year next succeeding the year in which such active duty | |
| 3966 | + | ceases. | |
| 3967 | + | (d) An instructor of an approved subject shall be entitled to the same | |
| 3968 | + | C.E.C. as a student completing the study. | |
| 3969 | + | (e) (1) An individual insurance agent who has been licensed for more | |
| 3970 | + | than one year, on or before such insurance agent's biennial due date, shall | |
| 3971 | + | file a report with the commissioner certifying that such insurance agent has | |
| 3972 | + | met the continuing education requirements for the previous biennium | |
| 3973 | + | ending on such insurance agent's biennial due date. Each individual | |
| 3974 | + | insurance agent shall maintain a record of all courses attended together | |
| 3975 | + | with a certificate of attendance for the remainder of the biennium in which | |
| 3976 | + | the courses were attended and the entire next succeeding biennium. | |
| 2720 | 3977 | (2) If the required report showing proof of continuing education | |
| 2721 | 3978 | completion is not received by the commissioner by the individual | |
| 2722 | 3979 | insurance agent's biennial due date, such individual insurance agent's | |
| 2723 | - | qualification and each and every corresponding license shall be | |
| 2724 | - | suspended automatically for a period of 90 calendar days or until such | |
| 2725 | - | time as the producer satisfactorily demonstrates completion of the | |
| 2726 | - | continuing education requirement, whichever is sooner. In addition, the | |
| 2727 | - | commissioner shall assess a penalty of $100 for each license | |
| 2728 | - | suspended. If such insurance agent fails to furnish to the commissioner | |
| 2729 | - | the required proof of continuing education completion and the | |
| 2730 | - | monetary penalty within 90 calendar days of such insurance agent's | |
| 2731 | - | biennial due date, such individual insurance agent's qualification and | |
| 2732 | - | each and every corresponding license shall expire on such insurance | |
| 2733 | - | agent's biennial due date. If after more than three but less than 12 | |
| 2734 | - | months from the date the license expired, the insurance agent wants to | |
| 2735 | - | reinstate such insurance agent's license, such individual shall provide | |
| 2736 | - | the required proof of continuing education completion and pay a | |
| 3980 | + | qualification and each and every corresponding license shall be suspended | |
| 3981 | + | automatically for a period of 90 calendar days or until such time as the | |
| 3982 | + | producer satisfactorily demonstrates completion of the continuing | |
| 3983 | + | education requirement, whichever is sooner. In addition, the commissioner | |
| 3984 | + | shall assess a penalty of $100 for each license suspended. If such insurance | |
| 3985 | + | agent fails to furnish to the commissioner the required proof of continuing | |
| 3986 | + | education completion and the monetary penalty within 90 calendar days of | |
| 3987 | + | such insurance agent's biennial due date, such individual insurance agent's | |
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| 4030 | + | 43 HB 2050 48 | |
| 4031 | + | qualification and each and every corresponding license shall expire on | |
| 4032 | + | such insurance agent's biennial due date. If after more than three but less | |
| 4033 | + | than 12 months from the date the license expired, the insurance agent | |
| 4034 | + | wants to reinstate such insurance agent's license, such individual shall | |
| 4035 | + | provide the required proof of continuing education completion and pay a | |
| 2737 | 4036 | reinstatement fee in the amount of $100 for each license suspended. If | |
| 2738 | - | after more than 12 months from the date an insurance agent's license | |
| 2739 | - | ||
| 2740 | - | ||
| 2741 | - | ||
| 2742 | - | ||
| 2743 | - | ||
| 2744 | - | ||
| 2745 | - | ||
| 4037 | + | after more than 12 months from the date an insurance agent's license has | |
| 4038 | + | expired, such insurance agent wants to reinstate such insurance agent's | |
| 4039 | + | license, such individual shall apply for an insurance agent's license, | |
| 4040 | + | provide the required proof of continuing education completion and pay a | |
| 4041 | + | reinstatement fee in the amount of $100 for each license suspended. Upon | |
| 4042 | + | receipt of a written application from such insurance agent claiming | |
| 4043 | + | extreme hardship, the commissioner may waive any penalty imposed | |
| 4044 | + | under this subsection. | |
| 2746 | 4045 | (3) On and after the effective date of this act, any applicant for an | |
| 2747 | 4046 | individual insurance agent's license who previously held a license that | |
| 2748 | 4047 | expires on or after June 30, 2001, because of failure to meet continuing | |
| 2749 | 4048 | education requirements and who seeks to be relicensed shall provide | |
| 2750 | 4049 | evidence that appropriate C.E.C.s have been completed for the prior | |
| 2751 | 4050 | biennium. | |
| 2752 | - | (4) Upon receipt of a written application from an individual | |
| 2753 | - | ||
| 2754 | - | ||
| 2755 | - | ||
| 2756 | - | ||
| 2757 | - | (5) This section shall not apply to any inactive insurance agent | |
| 2758 | - | ||
| 2759 | - | ||
| 2760 | - | ||
| 2761 | - | ||
| 2762 | - | ||
| 2763 | - | (A) File a report with the commissioner certifying that such agent | |
| 2764 | - | ||
| 2765 | - | (B) pay the renewal fee. If the required proof of continuing | |
| 2766 | - | ||
| 2767 | - | ||
| 2768 | - | ||
| 2769 | - | ||
| 2770 | - | ||
| 4051 | + | (4) Upon receipt of a written application from an individual insurance | |
| 4052 | + | agent, the commissioner, in cases involving medical hardship or military | |
| 4053 | + | service, may extend the time within which to fulfill the minimum | |
| 4054 | + | continuing educational requirements for a period of not to exceed 180 | |
| 4055 | + | days. | |
| 4056 | + | (5) This section shall not apply to any inactive insurance agent during | |
| 4057 | + | the period of such inactivity. For the purposes of this paragraph, "inactive | |
| 4058 | + | period" or "period of inactivity" means a continuous period of time of not | |
| 4059 | + | more than four years starting from the date inactive status is granted by the | |
| 4060 | + | commissioner. Before returning to active status, such inactive insurance | |
| 4061 | + | agent shall: | |
| 4062 | + | (A) File a report with the commissioner certifying that such agent has | |
| 4063 | + | met the continuing education requirement; and | |
| 4064 | + | (B) pay the renewal fee. If the required proof of continuing education | |
| 4065 | + | completion and the renewal fee is not furnished at the end of the inactive | |
| 4066 | + | period, such individual insurance agent's qualification and each and every | |
| 4067 | + | corresponding license shall expire at the end of the period of inactivity. For | |
| 4068 | + | issuance of a new license, the individual shall apply for a license and pass | |
| 4069 | + | the required examination. | |
| 2771 | 4070 | (6) Any individual who allows such individual's insurance agent | |
| 2772 | - | license in this state and in all other states in which where such | |
| 2773 | - | individual is licensed as an insurance agent to expire for a period of | |
| 2774 | - | four or more consecutive years, shall apply for a new insurance agent | |
| 2775 | - | license and pass the required examination. | |
| 2776 | - | (f) (1) Each course, program of study, or subject shall be | |
| 2777 | - | submitted to and certified by the commissioner in order to qualify for | |
| 2778 | - | purposes of continuing education. | |
| 2779 | - | (2) Each request for certification of any course, program of study | |
| 2780 | - | or subject shall contain the following information: | |
| 4071 | + | license in this state and in all other states in which where such individual is | |
| 4072 | + | licensed as an insurance agent to expire for a period of four or more | |
| 4073 | + | consecutive years, shall apply for a new insurance agent license and pass | |
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| 4117 | + | the required examination. | |
| 4118 | + | (f) (1) Each course, program of study, or subject shall be submitted to | |
| 4119 | + | and certified by the commissioner in order to qualify for purposes of | |
| 4120 | + | continuing education. | |
| 4121 | + | (2) Each request for certification of any course, program of study or | |
| 4122 | + | subject shall contain the following information: | |
| 2781 | 4123 | (A) The name of the provider or provider organization; | |
| 2782 | 4124 | (B) the title of such course, program of study or subject; | |
| 2783 | - | (C) the date the course, program of study or subject will be | |
| 4125 | + | (C) the date the course, program of study or subject will be offered; | |
| 4126 | + | (D) the location where the course, program of study or subject will be | |
| 2784 | 4127 | offered; | |
| 2785 | - | (D) the location where the course, program of study or subject will | |
| 2786 | - | be offered; | |
| 2787 | - | (E) an outline of each course, program of study or subject, | |
| 2788 | - | including a schedule of times when such material will be presented; | |
| 4128 | + | (E) an outline of each course, program of study or subject, including | |
| 4129 | + | a schedule of times when such material will be presented; | |
| 2789 | 4130 | (F) the names and qualifications of instructors; | |
| 2790 | 4131 | (G) the number of C.E.C.s requested; | |
| 2791 | - | (H) a nonrefundable C.E.C. qualification fee in the amount of not | |
| 2792 | - | ||
| 2793 | - | ||
| 2794 | - | ||
| 4132 | + | (H) a nonrefundable C.E.C. qualification fee in the amount of not to | |
| 4133 | + | exceed $50 per course, program of study or subject or not to exceed $250 | |
| 4134 | + | per year for all courses, programs of study or subjects submitted by a | |
| 4135 | + | specific provider or provider organization; and | |
| 2795 | 4136 | (I) a nonrefundable annual provider fee of not to exceed $100. | |
| 2796 | - | (3) Upon receipt of such information, the commissioner shall | |
| 2797 | - | grant or deny certification of any submitted course, program of study or | |
| 2798 | - | subject as an approved subject, program of study or course and indicate | |
| 2799 | - | the number of C.E.C.s that will be recognized for each approved | |
| 2800 | - | course, program of study or subject. Each approved course, program of | |
| 2801 | - | study or subject shall be assigned by the commissioner to one or both | |
| 2802 | - | of the following classes: | |
| 4137 | + | (3) Upon receipt of such information, the commissioner shall grant or | |
| 4138 | + | deny certification of any submitted course, program of study or subject as | |
| 4139 | + | an approved subject, program of study or course and indicate the number | |
| 4140 | + | of C.E.C.s that will be recognized for each approved course, program of | |
| 4141 | + | study or subject. Each approved course, program of study or subject shall | |
| 4142 | + | be assigned by the commissioner to one or both of the following classes: | |
| 2803 | 4143 | (A) Property and casualty; or | |
| 2804 | 4144 | (B) life insurance, including annuity and variable contracts, and | |
| 2805 | 4145 | accident and health insurance. | |
| 2806 | - | (4) Each course, program of study or subject shall have a value of | |
| 2807 | - | at least one C.E.C. | |
| 2808 | - | (5) (A) Each provider seeking approval of a course, program of | |
| 2809 | - | study or subject for continuing education credit shall issue or cause to | |
| 2810 | - | be issued to each person who attends a course, program of study or | |
| 2811 | - | subject offered by such provider a certificate of attendance. The | |
| 2812 | - | certificate shall be signed by either the instructor who presents the | |
| 2813 | - | course, program of study or course or such provider's authorized | |
| 2814 | - | representative. Each provider shall maintain a list of all individuals who | |
| 2815 | - | attend courses offered by such provider for continuing education credit | |
| 2816 | - | for the remainder of the biennium in which the courses are offered and | |
| 2817 | - | the entire next succeeding biennium. | |
| 2818 | - | (B) The commissioner shall accept, without substantive review, | |
| 2819 | - | any course, program of study or subject submitted by a provider that | |
| 2820 | - | has been approved by the insurance supervisory authority of any other HOUSE BILL No. 2050—page 45 | |
| 2821 | - | state or territory accredited by the NAIC. The commissioner may | |
| 2822 | - | disapprove any individual instructor or provider who has been the | |
| 2823 | - | subject of disciplinary proceedings or who has otherwise failed to | |
| 2824 | - | comply with any other state's or territory's laws or regulations. | |
| 4146 | + | (4) Each course, program of study or subject shall have a value of at | |
| 4147 | + | least one C.E.C. | |
| 4148 | + | (5) (A) Each provider seeking approval of a course, program of study | |
| 4149 | + | or subject for continuing education credit shall issue or cause to be issued | |
| 4150 | + | to each person who attends a course, program of study or subject offered | |
| 4151 | + | by such provider a certificate of attendance. The certificate shall be signed | |
| 4152 | + | by either the instructor who presents the course, program of study or | |
| 4153 | + | course or such provider's authorized representative. Each provider shall | |
| 4154 | + | maintain a list of all individuals who attend courses offered by such | |
| 4155 | + | provider for continuing education credit for the remainder of the biennium | |
| 4156 | + | in which the courses are offered and the entire next succeeding biennium. | |
| 4157 | + | (B) The commissioner shall accept, without substantive review, any | |
| 4158 | + | course, program of study or subject submitted by a provider that has been | |
| 4159 | + | approved by the insurance supervisory authority of any other state or | |
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| 4203 | + | territory accredited by the NAIC. The commissioner may disapprove any | |
| 4204 | + | individual instructor or provider who has been the subject of disciplinary | |
| 4205 | + | proceedings or who has otherwise failed to comply with any other state's | |
| 4206 | + | or territory's laws or regulations. | |
| 2825 | 4207 | (6) The commissioner may grant or approve any specific course, | |
| 2826 | - | program of study or course that has appropriate merit, such as any | |
| 2827 | - | ||
| 2828 | - | ||
| 2829 | - | ||
| 2830 | - | ||
| 4208 | + | program of study or course that has appropriate merit, such as any course, | |
| 4209 | + | programs of study or course with broad national or regional recognition, | |
| 4210 | + | without receiving any request for certification. The fee prescribed by | |
| 4211 | + | subsection (f)(2) shall not apply to any approval granted pursuant to this | |
| 4212 | + | provision. | |
| 2831 | 4213 | (7) The C.E.C. value assigned to any course, program of study or | |
| 2832 | 4214 | subject, other than a correspondence course, computer based training, | |
| 2833 | - | interactive internet study training or other course pursued by | |
| 2834 | - | independent study, shall in no way be contingent upon passage or | |
| 2835 | - | satisfactory completion of any examination given in connection with | |
| 2836 | - | such course, program of study or subject. The commissioner shall | |
| 2837 | - | establish, by rules and regulations, the criteria for determining | |
| 2838 | - | acceptability of any method used for verification of the completion of | |
| 2839 | - | each stage of any computer based or interactive internet study training. | |
| 2840 | - | Completion of any computer based training or interactive internet study | |
| 2841 | - | training shall be verified in accordance with a method approved by the | |
| 2842 | - | commissioner. | |
| 4215 | + | interactive internet study training or other course pursued by independent | |
| 4216 | + | study, shall in no way be contingent upon passage or satisfactory | |
| 4217 | + | completion of any examination given in connection with such course, | |
| 4218 | + | program of study or subject. The commissioner shall establish, by rules | |
| 4219 | + | and regulations, the criteria for determining acceptability of any method | |
| 4220 | + | used for verification of the completion of each stage of any computer | |
| 4221 | + | based or interactive internet study training. Completion of any computer | |
| 4222 | + | based training or interactive internet study training shall be verified in | |
| 4223 | + | accordance with a method approved by the commissioner. | |
| 2843 | 4224 | (g) Upon request, the commissioner shall provide a list of all | |
| 2844 | - | approved continuing education courses currently available to the | |
| 2845 | - | public. | |
| 4225 | + | approved continuing education courses currently available to the public. | |
| 2846 | 4226 | (h) An individual insurance agent who independently studies an | |
| 2847 | 4227 | insurance course, program of study or subject that is not an agent's | |
| 2848 | 4228 | examination approved by the commissioner shall receive credit for the | |
| 2849 | 4229 | C.E.C.s assigned by the commissioner as recognition for the approved | |
| 2850 | 4230 | subject. No other credit shall be given for independent study. | |
| 2851 | - | (i) Any licensed individual insurance agent who is unable to | |
| 2852 | - | comply with license renewal procedures due to military service or some | |
| 2853 | - | other extenuating circumstances may request a waiver of those | |
| 2854 | - | procedures from the commissioner. Such agent may also request from | |
| 2855 | - | the commissioner a waiver of any examination requirement or any | |
| 2856 | - | other fine or sanction imposed for failure to comply with renewal | |
| 2857 | - | procedures. | |
| 2858 | - | (j) Not later than December 1 of each year, the commissioner | |
| 2859 | - | shall set and cause to be published in the Kansas register the fees | |
| 2860 | - | required pursuant to this section for the next calendar year. | |
| 2861 | - | Sec. 35. K.S.A. 40-5003 is hereby amended to read as follows: 40- | |
| 4231 | + | (i) Any licensed individual insurance agent who is unable to comply | |
| 4232 | + | with license renewal procedures due to military service or some other | |
| 4233 | + | extenuating circumstances may request a waiver of those procedures from | |
| 4234 | + | the commissioner. Such agent may also request from the commissioner a | |
| 4235 | + | waiver of any examination requirement or any other fine or sanction | |
| 4236 | + | imposed for failure to comply with renewal procedures. | |
| 4237 | + | (j) Not later than December 1 of each year, the commissioner shall | |
| 4238 | + | set and cause to be published in the Kansas register the fees required | |
| 4239 | + | pursuant to this section for the next calendar year. | |
| 4240 | + | Sec. 25. K.S.A. 40-5003 is hereby amended to read as follows: 40- | |
| 2862 | 4241 | 5003. (a) No person shall operate as a viatical settlement provider or | |
| 2863 | 4242 | viatical settlement broker without first obtaining a license from the | |
| 2864 | - | commissioner or the insurance regulatory official of the state of | |
| 2865 | - | residence of the viator. If there is more than one viator on a single | |
| 2866 | - | policy and the viators are residents of different states, the viatical | |
| 2867 | - | settlement shall be governed by the law of the state in which the viator | |
| 2868 | - | having the largest percentage ownership resides or, if the viators hold | |
| 2869 | - | equal ownership, the state of residence of one viator agreed upon in | |
| 2870 | - | writing by all viators. | |
| 4243 | + | commissioner or the insurance regulatory official of the state of residence | |
| 4244 | + | of the viator. If there is more than one viator on a single policy and the | |
| 4245 | + | viators are residents of different states, the viatical settlement shall be | |
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| 4288 | + | 43 HB 2050 51 | |
| 4289 | + | governed by the law of the state in which the viator having the largest | |
| 4290 | + | percentage ownership resides or, if the viators hold equal ownership, the | |
| 4291 | + | state of residence of one viator agreed upon in writing by all viators. | |
| 2871 | 4292 | (b) Application for a viatical settlement provider license shall be | |
| 2872 | 4293 | made to the commissioner by the applicant on a form prescribed by the | |
| 2873 | 4294 | commissioner, and these applications shall be accompanied by a | |
| 2874 | 4295 | nonrefundable fee of not to exceed $1,000. | |
| 2875 | - | (c) Licenses for viatical settlement providers may be renewed | |
| 4296 | + | (c) Licenses for viatical settlement providers may be renewed from | |
| 4297 | + | year to year on the anniversary date upon payment of the annual renewal | |
| 4298 | + | fee of not to exceed $500. Failure to pay the fees by the renewal date | |
| 4299 | + | results in expiration of the license. | |
| 4300 | + | (d) Application for a viatical settlement broker license shall be made | |
| 4301 | + | to the commissioner by the applicant on a form prescribed by the | |
| 4302 | + | commissioner. Each application shall be accompanied by a nonrefundable | |
| 4303 | + | application fee of not to exceed $100. | |
| 4304 | + | (e) Licenses for a viatical settlement broker license may be renewed | |
| 2876 | 4305 | from year to year on the anniversary date upon payment of the annual | |
| 2877 | - | renewal fee of not to exceed $500. Failure to pay the fees by the | |
| 2878 | - | renewal date results in expiration of the license. | |
| 2879 | - | (d) Application for a viatical settlement broker license shall be | |
| 2880 | - | made to the commissioner by the applicant on a form prescribed by the | |
| 2881 | - | commissioner. Each application shall be accompanied by a | |
| 2882 | - | nonrefundable application fee of not to exceed $100. | |
| 2883 | - | (e) Licenses for a viatical settlement broker license may be | |
| 2884 | - | renewed from year to year on the anniversary date upon payment of the HOUSE BILL No. 2050—page 46 | |
| 2885 | - | annual renewal fee of not to exceed $50. Failure to pay the fees by the | |
| 2886 | - | renewal date results in expiration of such license. | |
| 2887 | - | (f) The applicant shall provide information on forms required by | |
| 2888 | - | the commissioner. The commissioner shall have authority, at any time, | |
| 2889 | - | to require the applicant to fully disclose the identity of all stockholders, | |
| 2890 | - | partners, officers, members and employees, and the commissioner, in | |
| 2891 | - | the exercise of the commissioner's discretion, may refuse to issue a | |
| 2892 | - | license in the name of a legal entity if not satisfied that any officer, | |
| 2893 | - | employee, stockholder, partner or member thereof who may materially | |
| 2894 | - | influence the applicant's conduct meets the standards of this act. | |
| 2895 | - | (g) A license issued to a legal entity authorizes all partners, | |
| 2896 | - | officers, members and designated employees to act as viatical | |
| 2897 | - | settlement providers or viatical settlement brokers, as applicable, under | |
| 2898 | - | the license, and all those persons shall be named in the application and | |
| 2899 | - | any supplements to the application. | |
| 2900 | - | (h) Upon the filing of an application and the payment of the | |
| 2901 | - | license fee, the commissioner shall make an investigation of each | |
| 2902 | - | applicant and issue a license if the commissioner finds that the | |
| 2903 | - | applicant: | |
| 4306 | + | renewal fee of not to exceed $50. Failure to pay the fees by the renewal | |
| 4307 | + | date results in expiration of such license. | |
| 4308 | + | (f) The applicant shall provide information on forms required by the | |
| 4309 | + | commissioner. The commissioner shall have authority, at any time, to | |
| 4310 | + | require the applicant to fully disclose the identity of all stockholders, | |
| 4311 | + | partners, officers, members and employees, and the commissioner, in the | |
| 4312 | + | exercise of the commissioner's discretion, may refuse to issue a license in | |
| 4313 | + | the name of a legal entity if not satisfied that any officer, employee, | |
| 4314 | + | stockholder, partner or member thereof who may materially influence the | |
| 4315 | + | applicant's conduct meets the standards of this act. | |
| 4316 | + | (g) A license issued to a legal entity authorizes all partners, officers, | |
| 4317 | + | members and designated employees to act as viatical settlement providers | |
| 4318 | + | or viatical settlement brokers, as applicable, under the license, and all | |
| 4319 | + | those persons shall be named in the application and any supplements to the | |
| 4320 | + | application. | |
| 4321 | + | (h) Upon the filing of an application and the payment of the license | |
| 4322 | + | fee, the commissioner shall make an investigation of each applicant and | |
| 4323 | + | issue a license if the commissioner finds that the applicant: | |
| 2904 | 4324 | (1) If a viatical settlement provider, has provided a detailed plan of | |
| 2905 | 4325 | operation; | |
| 2906 | 4326 | (2) is competent and trustworthy and intends to act in good faith in | |
| 2907 | 4327 | the capacity involved by the license applied for; | |
| 2908 | - | (3) has a good business reputation and has had experience, | |
| 2909 | - | training or education so as to be qualified in the business for which the | |
| 2910 | - | license is applied for; | |
| 2911 | - | (4) if a legal entity, provides a certificate of good standing from | |
| 2912 | - | the state of its domicile; and | |
| 2913 | - | (5) if a viatical settlement provider or viatical settlement broker, | |
| 2914 | - | has provided an anti-fraud plan that meets the requirements of | |
| 2915 | - | paragraph (g) of K.S.A. 40-5012(g), and amendments thereto. | |
| 4328 | + | (3) has a good business reputation and has had experience, training or | |
| 4329 | + | education so as to be qualified in the business for which the license is | |
| 4330 | + | applied for; | |
| 4331 | + | (4) if a legal entity, provides a certificate of good standing from the | |
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| 4374 | + | 43 HB 2050 52 | |
| 4375 | + | state of its domicile; and | |
| 4376 | + | (5) if a viatical settlement provider or viatical settlement broker, has | |
| 4377 | + | provided an anti-fraud plan that meets the requirements of paragraph (g) of | |
| 4378 | + | K.S.A. 40-5012(g), and amendments thereto. | |
| 2916 | 4379 | (i) The commissioner shall not issue a license to a nonresident | |
| 2917 | - | applicant, unless a written designation of an agent for service of | |
| 2918 | - | ||
| 2919 | - | ||
| 2920 | - | ||
| 2921 | - | ||
| 4380 | + | applicant, unless a written designation of an agent for service of process is | |
| 4381 | + | filed and maintained with the commissioner or the applicant has filed with | |
| 4382 | + | the commissioner, the applicant's written irrevocable consent that any | |
| 4383 | + | action against the applicant may be commenced against the applicant by | |
| 4384 | + | service of process on the commissioner. | |
| 2922 | 4385 | (j) A viatical settlement provider or viatical settlement broker shall | |
| 2923 | 4386 | provide to the commissioner new or revised information about officers, | |
| 2924 | 4387 | 10% or more stockholders, partners, directors, members or designated | |
| 2925 | 4388 | employees within 30 days of the change. | |
| 2926 | - | (k) Not later than December 1 of each year, the commissioner | |
| 2927 | - | ||
| 2928 | - | ||
| 2929 | - | Sec. | |
| 4389 | + | (k) Not later than December 1 of each year, the commissioner shall | |
| 4390 | + | set and cause to be published in the Kansas register the fees required | |
| 4391 | + | pursuant to this section for the next calendar year. | |
| 4392 | + | Sec. 26. K.S.A. 40-5509 is hereby amended to read as follows: 40- | |
| 2930 | 4393 | 5509. (a) (1) An individual who has met the requirements for licensure | |
| 2931 | 4394 | under this act shall be issued a public adjuster license. A public adjuster | |
| 2932 | - | license shall remain in effect, unless revoked, terminated or suspended, | |
| 2933 | - | ||
| 2934 | - | ||
| 2935 | - | ||
| 2936 | - | ||
| 2937 | - | ||
| 2938 | - | ||
| 2939 | - | (2) Not later than December 1 of each year, the commissioner | |
| 2940 | - | ||
| 2941 | - | ||
| 2942 | - | (b) A public adjuster shall be subject to the provisions of | |
| 2943 | - | ||
| 2944 | - | (c) A public adjuster who allows such person's license to lapse | |
| 2945 | - | ||
| 2946 | - | ||
| 2947 | - | ||
| 2948 | - | ||
| 2949 | - | ||
| 2950 | - | ||
| 4395 | + | license shall remain in effect, unless revoked, terminated or suspended, as | |
| 4396 | + | long as the request for renewal is timely submitted and a license renewal | |
| 4397 | + | fee of not to exceed $100 is paid and any other requirements for license | |
| 4398 | + | renewal are met by the due date. The licensee shall inform the | |
| 4399 | + | commissioner by any means acceptable to the commissioner of a change | |
| 4400 | + | of address, change of legal name or change of information submitted on | |
| 4401 | + | the application within 30 days of the change. | |
| 4402 | + | (2) Not later than December 1 of each year, the commissioner shall | |
| 4403 | + | set and cause to be published in the Kansas register the fees required | |
| 4404 | + | pursuant to this subsection for the next calendar year. | |
| 4405 | + | (b) A public adjuster shall be subject to the provisions of subsection | |
| 4406 | + | (9) of K.S.A. 40-2404(9), and amendments thereto. | |
| 4407 | + | (c) A public adjuster who allows such person's license to lapse may, | |
| 4408 | + | within 12 months from the due date of the renewal, be issued a new public | |
| 4409 | + | adjuster license upon the commissioner's receipt of proof that the licensee | |
| 4410 | + | has satisfactorily completed the renewal process and the licensee's | |
| 4411 | + | payment of a reinstatement fee of $100. The new public adjuster license | |
| 4412 | + | shall be effective on the date that the commissioner receives such proof | |
| 4413 | + | and the reinstatement fee. | |
| 2951 | 4414 | (d) A licensed public adjuster that is unable to comply with license | |
| 2952 | - | renewal procedures due to military service, a long-term medical | |
| 2953 | - | disability or some other extenuating circumstance, may request an | |
| 2954 | - | extension of time to comply with those procedures. | |
| 2955 | - | (e) The public adjuster license shall contain the licensee's name, | |
| 2956 | - | city and state of business address, personal identification number, the | |
| 2957 | - | date of issuance, the expiration date and any other information the | |
| 2958 | - | commissioner deems necessary. | |
| 2959 | - | (f) In order to assist in the performance of the commissioner's | |
| 2960 | - | duties, the commissioner may contract with non-governmental entities, | |
| 2961 | - | including the NAIC, to perform any ministerial functions, including the | |
| 2962 | - | collection of fees and data related to licensing that the commissioner | |
| 2963 | - | may deem appropriate. | |
| 2964 | - | Sec. 37. K.S.A. 75-4101 is hereby amended to read as follows: 75- | |
| 2965 | - | 4101. (a) There is hereby created a committee on surety bonds and | |
| 2966 | - | insurance, which shall consist of the state treasurer, the attorney general | |
| 2967 | - | and the commissioner of insurance or their respective designees. The | |
| 2968 | - | commissioner of insurance shall be the chairperson of the committee | |
| 2969 | - | and the director of purchases or the director's designee shall be the ex | |
| 2970 | - | officio secretary. The committee shall meet upon the call of the | |
| 2971 | - | chairperson and at such other times as the committee shall determine | |
| 2972 | - | but at least once each month on the second Monday in each month. | |
| 2973 | - | Meetings shall be held in the office of the commissioner of insurance. | |
| 2974 | - | The members of the committee shall serve without compensation. The | |
| 2975 | - | secretary shall be the custodian of all property, records and proceedings | |
| 2976 | - | of the committee. Except as provided in this section and K.S.A. 74- | |
| 2977 | - | 4925, 74-4927, 75-6501 through 75-6511 and 76-749, and amendments | |
| 2978 | - | thereto, no state agency shall purchase any insurance of any kind or | |
| 2979 | - | nature or any surety bonds upon state officers or employees, except as | |
| 2980 | - | provided in this act. Except as otherwise provided in this section, health | |
| 2981 | - | care healthcare coverage and health care healthcare services of a health | |
| 2982 | - | maintenance organization for state officers and employees designated | |
| 2983 | - | under K.S.A. 75-6501(c), and amendments thereto, shall be provided in | |
| 2984 | - | accordance with the provisions of K.S.A. 75-6501 through 75-6511, | |
| 2985 | - | and amendments thereto. | |
| 2986 | - | (b) The Kansas turnpike authority may purchase group life, health | |
| 2987 | - | and accident insurance or health care services of a health maintenance | |
| 2988 | - | organization for its employees or members of the highway patrol | |
| 2989 | - | assigned, by contract or agreement entered pursuant to K.S.A. 68-2025, | |
| 2990 | - | and amendments thereto, to police toll or turnpike facilities, | |
| 2991 | - | independent of the committee on surety bonds and insurance and of the | |
| 2992 | - | provisions of K.S.A. 75-6501 through 75-6511, and amendments | |
| 2993 | - | thereto. Such authority may purchase liability insurance covering all or | |
| 2994 | - | any part of its operations and may purchase liability and related | |
| 2995 | - | insurance upon all vehicles owned or operated by the authority | |
| 2996 | - | independent of the committee on surety bonds and insurance and such | |
| 2997 | - | insurance may be purchased without complying with K.S.A. 75-3738 | |
| 2998 | - | through 75-3744, and amendments thereto. Any board of county | |
| 2999 | - | commissioners may purchase such insurance or health care healthcare | |
| 3000 | - | services, independent of such committee, for district court officers and | |
| 3001 | - | employees any part of whose total salary is payable by the county. | |
| 3002 | - | Nothing in any other provision of the laws of this state shall be | |
| 3003 | - | construed as prohibiting members of the highway patrol so assigned to | |
| 3004 | - | police toll or turnpike facilities from receiving compensation in the | |
| 3005 | - | form of insurance or health maintenance organization coverage as | |
| 3006 | - | herein authorized. | |
| 3007 | - | (c) The agencies of the state sponsoring a foster grandparent or | |
| 3008 | - | senior companion program, or both, shall procure a policy of accident, | |
| 3009 | - | personal liability and excess automobile liability insurance insuring | |
| 3010 | - | volunteers participating in such programs against loss in accordance | |
| 3011 | - | with specifications of federal grant guidelines. Such agencies may | |
| 3012 | - | purchase such policy of insurance independent of the committee on HOUSE BILL No. 2050—page 48 | |
| 3013 | - | surety bonds and insurance and without complying with K.S.A. 75- | |
| 3014 | - | 3738 through 75-3744, and amendments thereto. | |
| 3015 | - | (d) Any state educational institution as defined by K.S.A. 76-711, | |
| 3016 | - | and amendments thereto, may purchase insurance of any kind or nature | |
| 3017 | - | except employee health insurance. Such insurance shall be purchased | |
| 3018 | - | on a competitively bid or competitively negotiated basis in accordance | |
| 3019 | - | with procedures prescribed by the state board of regents. Such | |
| 3020 | - | insurance may be purchased independent of the committee on surety | |
| 3021 | - | bonds and insurance and without complying with K.S.A. 75-3738 | |
| 3022 | - | through 75-3744, and amendments thereto. | |
| 3023 | - | (e) (1) The state board of regents may enter into one or more | |
| 3024 | - | group insurance contracts to provide health and accident insurance | |
| 3025 | - | coverage or health care healthcare services of a health maintenance | |
| 3026 | - | organization for all students attending a state educational institution as | |
| 3027 | - | defined in K.S.A. 76-711, and amendments thereto, and such students' | |
| 3028 | - | dependents, except that such insurance shall not provide coverage for | |
| 3029 | - | elective procedures that are not medically necessary as determined by a | |
| 3030 | - | treating physician. The participation by a student in such coverage shall | |
| 3031 | - | be voluntary. In the case of students who are employed by a state | |
| 3032 | - | educational institution in a student position, the level of employer | |
| 3033 | - | contributions toward such coverage shall be determined by the board of | |
| 3034 | - | regents. | |
| 3035 | - | (2) The state board of regents is hereby authorized to | |
| 3036 | - | independently provide, through self-insurance or the purchase of | |
| 3037 | - | insurance contracts, health care healthcare benefits for employees of a | |
| 3038 | - | state educational institution, as such term is defined in K.S.A. 76-711, | |
| 3039 | - | and amendments thereto, when the state health care healthcare benefits | |
| 3040 | - | program is insufficient to satisfy the requirements of 22 C.F.R. § 62.14, | |
| 3041 | - | as in effect upon the effective date of this section April 13, 2017. Such | |
| 3042 | - | healthcare benefits shall be limited to only those for whom the state | |
| 3043 | - | health care healthcare benefits program does not meet federal | |
| 3044 | - | requirements. | |
| 3045 | - | (3) The state board of regents may purchase cybersecurity | |
| 3046 | - | insurance as it deems necessary to protect student records, labor | |
| 3047 | - | information and other statutorily protected data that the board | |
| 3048 | - | maintains, independent of the committee on surety bonds and insurance | |
| 3049 | - | and without complying with the provisions of K.S.A. 75-3738 through | |
| 3050 | - | 75-3744, and amendments thereto. As used in this paragraph, | |
| 3051 | - | "cybersecurity insurance" includes, but is not limited to, first-party | |
| 3052 | - | coverage against losses such as data destruction, denial of service | |
| 3053 | - | attacks, theft, hacking and liability coverage guaranteeing | |
| 3054 | - | compensation for damages from errors such as the failure to safeguard | |
| 3055 | - | data. | |
| 3056 | - | (4) The state board of regents may adopt rules and regulations | |
| 3057 | - | necessary to administer and implement the provisions of this section. | |
| 3058 | - | Sec. 38. K.S.A. 2024 Supp. 75-6301 is hereby amended to read as | |
| 3059 | - | follows: 75-6301. (a) There is hereby established under the jurisdiction | |
| 3060 | - | of the commissioner of insurance a division to be known as the office | |
| 3061 | - | of the securities commissioner of Kansas the department of insurance, | |
| 3062 | - | securities division. The office department of insurance, securities | |
| 3063 | - | division shall be administered by the securities commissioner of Kansas | |
| 3064 | - | department of insurance assistant commissioner, securities division | |
| 3065 | - | who shall be in the unclassified service under the Kansas civil service | |
| 3066 | - | act. The securities commissioner department of insurance assistant | |
| 3067 | - | commissioner, securities division shall be appointed by the | |
| 3068 | - | commissioner of insurance and be subject to confirmation by the senate | |
| 3069 | - | as provided in K.S.A. 75-4315b, and amendments thereto. The | |
| 3070 | - | securities commissioner department of insurance assistant | |
| 3071 | - | commissioner, securities division shall have special training and | |
| 3072 | - | qualifications for such position, shall receive such compensation as | |
| 3073 | - | may be fixed by the commissioner of insurance and shall serve at the | |
| 3074 | - | pleasure of the commissioner of insurance. Except as provided by | |
| 3075 | - | K.S.A. 46-2601, and amendments thereto, no person appointed as | |
| 3076 | - | securities commissioner shall exercise any power, duty or function as HOUSE BILL No. 2050—page 49 | |
| 3077 | - | securities commissioner until confirmed by the senate. | |
| 3078 | - | (b) The securities commissioner department of insurance assistant | |
| 3079 | - | commissioner, securities division shall devote full time to the | |
| 3080 | - | performance of the duties of the office of the securities commissioner | |
| 3081 | - | department of insurance, securities division. | |
| 3082 | - | (c) The securities commissioner department of insurance assistant | |
| 3083 | - | commissioner, securities division may appoint directors and other | |
| 3084 | - | employees within the office of the securities commissioner department | |
| 3085 | - | of insurance, securities division as determined necessary by the | |
| 3086 | - | securities commissioner department of insurance assistant | |
| 3087 | - | commissioner, securities division to effectively carry out the mission of | |
| 3088 | - | the office. All directors appointed after the effective date of this act | |
| 3089 | - | shall be in the unclassified service under the Kansas civil service act, | |
| 3090 | - | shall have special training and qualifications for such positions, shall | |
| 3091 | - | serve at the pleasure of the securities commissioner department of | |
| 3092 | - | insurance assistant commissioner, securities division and shall receive | |
| 3093 | - | compensation fixed by the securities commissioner department of | |
| 3094 | - | insurance assistant commissioner, securities division and approved by | |
| 3095 | - | the commissioner of insurance. | |
| 3096 | - | (d) Nothing in subsection (c) shall affect the classified status of | |
| 3097 | - | any person employed in the office of the securities commissioner | |
| 3098 | - | department of insurance, securities division on the day immediately | |
| 3099 | - | preceding the effective date of this act. The provisions of this | |
| 3100 | - | subsection shall not be construed to limit the powers of the securities | |
| 3101 | - | commissioner department of insurance assistant commissioner, | |
| 3102 | - | securities division pursuant to K.S.A. 75-2948, and amendments | |
| 3103 | - | thereto. | |
| 3104 | - | (e) The office of the securities commissioner of Kansas | |
| 3105 | - | department of insurance, securities division shall cooperate with the | |
| 3106 | - | department of insurance department to consolidate administrative | |
| 3107 | - | functions and cross-appoint such employees as deemed necessary to | |
| 3108 | - | provide efficiency. The commissioner of insurance and the securities | |
| 3109 | - | commissioner department of insurance assistant commissioner, | |
| 3110 | - | securities division are hereby authorized to enter into agreements and | |
| 3111 | - | adopt rules and regulations as necessary to administer the provisions of | |
| 3112 | - | this subsection. HOUSE BILL No. 2050—page 50 | |
| 3113 | - | Sec. 39. K.S.A. 8-2405, 40-205a, 40-218, 40-246b, 40-246e, 40- | |
| 3114 | - | 252, 40-2,133, 40-504, 40-956, 40-2102, 40-2109, 40-22a04, 40-2604, | |
| 3115 | - | 40-2702, 40-3116, 40-3213, 40-3217, 40-3304, 40-3413, 40-3812, 40- | |
| 3116 | - | 3813, 40-3814, 40-4103, 40-4116, 40-4323, 40-4334, 40-4503, 40- | |
| 3117 | - | 5003, 40-5509, 75-4101, 75-6302, 75-6303, 75-6304, 75-6305, 75- | |
| 3118 | - | 6306 and 75-6307 and K.S.A. 2024 Supp. 40-102, 40-3823, 40-3824, | |
| 3119 | - | 40-4209, 40-4302, 40-4903 and 75-6301 are hereby repealed. | |
| 3120 | - | Sec. 40. This act shall take effect and be in force from and after its | |
| 4415 | + | renewal procedures due to military service, a long-term medical disability | |
| 4416 | + | or some other extenuating circumstance, may request an extension of time | |
| 4417 | + | to comply with those procedures. | |
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| 4460 | + | 43 HB 2050 53 | |
| 4461 | + | (e) The public adjuster license shall contain the licensee's name, city | |
| 4462 | + | and state of business address, personal identification number, the date of | |
| 4463 | + | issuance, the expiration date and any other information the commissioner | |
| 4464 | + | deems necessary. | |
| 4465 | + | (f) In order to assist in the performance of the commissioner's duties, | |
| 4466 | + | the commissioner may contract with non-governmental entities, including | |
| 4467 | + | the NAIC, to perform any ministerial functions, including the collection of | |
| 4468 | + | fees and data related to licensing that the commissioner may deem | |
| 4469 | + | appropriate. | |
| 4470 | + | Sec. 27. K.S.A. 40-205a, 40-218, 40-252, 40-2,133, 40-504, 40-956, | |
| 4471 | + | 40-22a04, 40-2604, 40-2702, 40-3213, 40-3217, 40-3304, 40-3812, 40- | |
| 4472 | + | 3813, 40-3814, 40-4103, 40-4116, 40-4323, 40-4334, 40-4503, 40-5003 | |
| 4473 | + | and 40-5509 and K.S.A. 2024 Supp. 40-3823, 40-3824, 40-4209, 40-4302 | |
| 4474 | + | and 40-4903 are hereby repealed. | |
| 4475 | + | Sec. 28. This act shall take effect and be in force from and after its | |
| 3121 | 4476 | publication in the statute book. | |
| 3122 | - | I hereby certify that the above BILL originated in the | |
| 3123 | - | HOUSE, and was adopted by that body | |
| 3124 | - | ||
| 3125 | - | HOUSE adopted | |
| 3126 | - | Conference Committee Report | |
| 3127 | - | ||
| 3128 | - | Speaker of the House. | |
| 3129 | - | ||
| 3130 | - | Chief Clerk of the House. | |
| 3131 | - | Passed the SENATE | |
| 3132 | - | as amended | |
| 3133 | - | SENATE adopted | |
| 3134 | - | Conference Committee Report | |
| 3135 | - | ||
| 3136 | - | President of the Senate. | |
| 3137 | - | ||
| 3138 | - | Secretary of the Senate. | |
| 3139 | - | APPROVED | |
| 3140 | - | ||
| 3141 | - | ||
| 3142 | - | Governor. | |
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