Kansas 2025-2026 Regular Session

Kansas Senate Bill SB20 Compare Versions

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1	1	Session of 2025
2	2	SENATE BILL No. 20
3	3	By Committee on Financial Institutions and Insurance
4	4	1-16
5	5	AN ACT concerning insurance; reducing the number of board members
6	6	appointed by the commissioner on certain insurance-related boards and
7	7	the frequency of the meetings of the committee on surety bonds and
8	8	insurance; amending K.S.A. 40-2102, 40-2109, 40-3116, 40-3413 and
9	9	75-4101 and repealing the existing sections.
10	10	Be it enacted by the Legislature of the State of Kansas:
11	11	Section 1. K.S.A. 40-2102 is hereby amended to read as follows: 40-
12	12	2102. (a) Every insurer undertaking to transact in the state of Kansas the
13	13	business of automobile and motor vehicle bodily injury and property
14	14	damage liability insurance and every rating organization which that files
15	15	rates for such insurance shall cooperate in the preparation and submission
16	16	preparing and submitting a plan to the commissioner of insurance of a
17	17	plan or plans for the equitable apportionment among insurers of applicants
18	18	for insurance who are, in good faith, are entitled to, but who are unable to
19	19	procure such insurance through ordinary methods, such insurance. Such
20	20	plan or plans shall provide:
21	21	(a)(1) Reasonable rules governing the equitable distribution of risks
22	22	by direct insurance, reinsurance or otherwise and their assignment to
23	23	insurers, including provisions requiring, at the request of the applicant, an
24	24	immediate assumption of the risk by an insurer or insurers upon
25	25	completion of an application, payment of the specified premium and
26	26	deposit the application and the premium in the United States mail, postage
27	27	prepaid and addressed to the plan's office;
28	28	(b)(2) rates and rate modifications applicable to such risks which that
29	29	shall be reasonable, adequate and not unfairly discriminatory;
30	30	(c)(3) the limits of liability which that the insurer shall be required to
31	31	assume;
32	32	(d)(4) a method whereby by which applicants for insurance, insureds
33	33	and insurers may have a hearing on grievances and the right of appeal to
34	34	the commissioner;
35	35	(e) for every such plan or plans, there shall be (5) a governing board
36	36	to be appointed by the commissioner of insurance which that shall meet at
37	37	least annually to review and prescribe operating rules, and which shall
38	38	consist of the following members:.
39	39	(1)(b) (1) Prior to January 1, 2026, such board shall consist of the
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76	76	following nine members:
77	77	(A) (i) Seven members who shall be appointed prior to December 31,
78	78	2025, as follows:
79	79	(a) Three of such members shall be representatives of foreign
80	80	insurance companies,;
81	81	(b) two members shall be representatives of domestic insurance
82	82	companies; and
83	83	(c) two members shall be licensed independent insurance agents.;
84	84	(ii) such seven members shall be appointed for a term of three years,
85	85	except that the initial appointment shall include two members appointed
86	86	for a two-year term and two members appointed for a one-year term as
87	87	designated by the commissioner; and
88	88	(2)(B) two members representative shall be representatives of the
89	89	general public interest with such members to be appointed for a term of
90	90	two years.
91	91	(2) The terms of the members appointed and serving on the
92	92	governing board as of July 1, 2025, shall expire on December 31, 2025.
93	93	(c) (1) The commissioner shall appoint a governing board for the
94	94	plan that shall serve on and after January 1, 2026, and that shall have the
95	95	same powers, duties and functions as its predecessor. On and after
96	96	January 1, 2026, all members of such governing board shall serve three-
97	97	year terms, except that such members shall be removable by the
98	98	commissioner for inefficiency, neglect of duty or malfeasance. Such
99	99	governing board shall consist of five members to be appointed as follows:
100	100	(A) Three members shall be representatives of insurers;
101	101	(B) one member shall be a representative of independent insurance
102	102	agents; and
103	103	(C) one member shall be a representative of the general public.
104	104	(2) In making appointments to the governing board, the
105	105	commissioner shall consider if foreign and domestic insurers are fairly
106	106	represented.
107	107	(d) (1) The commissioner shall review the plan as soon as reasonably
108	108	possible after filing in order to determine whether it meets the
109	109	requirements set forth in (a), (b), (c) and (d) above subsections (a)(1)
110	110	through (a)(4). As soon as reasonably possible after the plan has been filed
111	111	the commissioner shall, in writing, approve or disapprove the same such
112	112	plan. Any plan shall be deemed approved unless disapproved within 45
113	113	days. Subsequent to the waiting period the commissioner may disapprove
114	114	any plan on the ground grounds that it such plan does not meet the
115	115	requirements set forth in (a), (b), (c) and (d) above subsections (a)(1)
116	116	through (a)(4), but only after a hearing held upon not less than 10 days'
117	117	written notice to every insurer and rating organization affected specifying
118	118	the matter to be considered at such hearing, and only by an order
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162	162	specifying in what respect the commissioner finds that such plan fails to
163	163	meet such requirements, and stating when within a reasonable period
164	164	thereafter such plan shall be deemed no longer effective. Such order shall
165	165	not affect any assignment made or policy issued or made prior to the
166	166	expiration of the period set forth in such order. Amendments to such plan
167	167	or plans shall be prepared, and filed and reviewed in the same manner as
168	168	herein provided in this section with respect to the original plan or plans.
169	169	(2) If no plan meeting the standards set forth in (a), (b), (c) and (d)
170	170	subsections (a)(1) through (a)(4) is submitted to the commissioner within
171	171	the period stated in any order disapproving an existing plan, the
172	172	commissioner shall, if necessary to carry out the purpose of this section
173	173	after hearing, prepare and promulgate a plan meeting such requirements.
174	174	If, after a hearing conducted in accordance with the provisions of the
175	175	Kansas administrative procedure act, the commissioner finds that any
176	176	activity or practice of any insurer or rating organization in connection with
177	177	the operation of such plan or plans is unfair or unreasonable or otherwise
178	178	inconsistent with the provisions of this subsection, the commissioner may
179	179	issue a written order specifying in what respects such activity or practice is
180	180	unfair or unreasonable or otherwise inconsistent with the provisions of this
181	181	subsection and requiring discontinuance of such activity or practice.
182	182	Sec. 2. K.S.A. 40-2109 is hereby amended to read as follows: 40-
183	183	2109. (a) Every insurer undertaking to transact in this state the business of
184	184	either workers compensation or employer's liability insurance or both, and
185	185	every rating organization which that files rates for such insurance shall
186	186	cooperate in the preparation and submission preparing and submitting a
187	187	plan to the commissioner of insurance of a plan or plans, for the equitable
188	188	apportionment among insurers of applicants for insurance who are, in good
189	189	faith, are entitled to but who are unable to procure such insurance through
190	190	ordinary methods, such insurance. Such plan or plans shall provide:
191	191	(a)(1) Reasonable rules governing the equitable distribution of risks
192	192	by direct insurance, reinsurance or otherwise and their assignment to
193	193	insurers;
194	194	(b)(2) rates and rate modifications applicable to such risks which that
195	195	shall be reasonable, adequate and not unfairly discriminatory;
196	196	(c)(3) a method whereby by which applicants for insurance, insured
197	197	and insurers may have a hearing on grievances and the right of appeal to
198	198	the commissioner; and
199	199	(d) for every such plan or plans, there shall be (4) a governing
200	200	board to be appointed by the commissioner of insurance which that shall
201	201	meet at least annually to review and prescribe operating rules, and which
202	202	shall consist of the following members:.
203	203	(b) (1) Prior to January 1, 2026, such board shall consist of the
204	204	following nine members:
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248	248	(1)(A) (i) Seven members who shall be appointed prior to December
249	249	31, 2025, as follows:
250	250	(a) Three of such members shall be representatives of foreign
251	251	insurance companies,;
252	252	(b) two members shall be representatives of domestic insurance
253	253	companies; and
254	254	(c) two members shall be licensed independent insurance agents.
255	255	(ii) Such seven members shall be appointed for a term of three years,
256	256	except that the initial appointment shall include two members appointed
257	257	for a two-year term and two members appointed for a one-year term, as
258	258	designated by the commissioner; and
259	259	(2)(B) two members representative of the general public interest with
260	260	such members to be appointed for a term of two years.
261	261	(2) The terms of the members appointed and serving on the
262	262	governing board as of July 1, 2025, shall expire on December 31, 2025.
263	263	(c) (1) The commissioner shall appoint a governing board for the
264	264	plan that shall serve on and after January 1, 2026, and that shall have the
265	265	same powers, duties and functions as its predecessor. On and after
266	266	January 1, 2026, all members of such governing board shall serve three-
267	267	year terms, except that such members shall be removable by the
268	268	commissioner for inefficiency, neglect of duty or malfeasance. Such
269	269	governing board shall consist of seven members to be appointed as
270	270	follows:
271	271	(A) Four members shall be representatives of insurance companies;
272	272	(B) two members shall be licensed insurance agents; and
273	273	(C) one member shall be a representative of the general public
274	274	interest.
275	275	(2) In selecting the members who shall be representatives of insurers,
276	276	the commissioner shall consider if foreign and domestic insurers are fairly
277	277	represented.
278	278	(d) (1) The commissioner shall review the plan as soon as reasonably
279	279	possible after filing in order to determine whether it meets the
280	280	requirements set forth in subsections (a) and (c) above(1) through (a)(3).
281	281	As soon as reasonably possible after the plan has been filed the
282	282	commissioner shall in writing approve or disapprove the same such plan,
283	283	except that any plan shall be deemed approved unless disapproved within
284	284	45 days. Subsequent to the waiting period the commissioner may
285	285	disapprove any plan on the ground that it does not meet the requirements
286	286	set forth in subsections (a), (b) and (c) above(1) through (a)(3), but only
287	287	after a hearing held upon not less than 10 days' written notice to every
288	288	insurer and rating organization affected specifying the matter to be
289	289	considered at such hearing, and only by an order specifying in what
290	290	respect the commissioner finds that such plan fails to meet such
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334	334	requirements and stating when within a reasonable period thereafter such
335	335	plan shall be deemed no longer effective. Such order shall not affect any
336	336	assignment made or policy issued or made prior to the expiration of the
337	337	period set forth in such order. Amendments to such plan or plans shall be
338	338	prepared, and filed and reviewed in the same manner as herein provided in
339	339	this section with respect to the original plan or plans.
340	340	(2) If no plan meeting the standards set forth in subsections (a), (b)
341	341	and (c)(1) through (a)(3) is submitted to the commissioner within the
342	342	period stated in any order, disapproving an existing plan the commissioner
343	343	shall, if necessary to carry out the purpose of this section after hearing,
344	344	prepare and promulgate a plan meeting such requirements. When such
345	345	plan or plans or amendments thereto have been approved or promulgated,
346	346	no insurer shall thereafter issue a policy of workers compensation or
347	347	employer's liability insurance or undertake to transact such business in this
348	348	state unless such insurer shall participate in such an approved or
349	349	promulgated plan. If, after a hearing conducted in accordance with the
350	350	provisions of the Kansas administrative procedure act, the commissioner
351	351	finds that any activity or practice of any insurer or rating organization in
352	352	connection with the operation of such plan or plans is unfair or
353	353	unreasonable or otherwise inconsistent with the provisions of this section,
354	354	the commissioner may issue a written order specifying in what respects
355	355	such activity or practice is unfair or unreasonable or otherwise inconsistent
356	356	with the provisions of this section and requiring discontinuance of such
357	357	activity or practice.
358	358	(e) The commissioner shall approve rates and rate modifications for
359	359	each plan that provides workers compensation insurance. This provision
360	360	shall not prohibit the application of surcharges, experience modifications
361	361	or other rating variables.
362	362	Sec. 3. K.S.A. 40-3116 is hereby amended to read as follows: 40-
363	363	3116. (a) Insurers and self-insurers are hereby directed to organize and
364	364	maintain an assigned claims plan to provide that any person, who suffers
365	365	injury in this state may obtain personal injury protection benefits through
366	366	such plan if:
367	367	(1) Personal injury protection benefits are not available to the injured
368	368	person, except that personal injury protection benefits shall not be deemed
369	369	unavailable to any person suffering injury while such person was the
370	370	operator of a motorcycle or motor-driven cycle, for which the owner
371	371	thereof has rejected personal injury protection benefits pursuant to
372	372	subsection (f) of K.S.A. 40-3107, and amendments thereto;
373	373	(2) Motor vehicle liability insurance or self-insurance applicable to
374	374	the injury cannot be identified;
375	375	(3) Personal injury protection benefits applicable to the injury are
376	376	inadequate to provide the contracted-for benefits because of financial
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420	420	inability of an insurer or self-insurer to fulfill its obligation; however,
421	421	except that benefits available through the assigned claims plan shall be
422	422	excess over any benefits paid or payable through the Kansas insurance
423	423	guaranty association. If the personal injury protection benefits are not paid
424	424	by the Kansas insurance guaranty association within the limitation of time
425	425	specified in this act, such benefits shall be paid by the assigned claims
426	426	plan. Payments made by the assigned claims plan pursuant to this section
427	427	shall constitute covered claims under K.S.A. 40-2901et seq., and
428	428	amendments thereto.
429	429	(b) If a claim qualifies for assignment under this section, the assigned
430	430	claims plan or any insurer or self-insurer to whom the claim is assigned
431	431	shall be subrogated to all of the rights of the claimant against any insurer
432	432	or self-insurer, its successor in interest or substitute, legally obligated to
433	433	provide personal injury protection benefits to the claimant, for any of such
434	434	benefits provided by the assignment.
435	435	(c) A person shall not be entitled to personal injury protection
436	436	benefits through the assigned claims plan with respect to injury which that
437	437	such person has sustained if, at the time of such injury, such person was
438	438	the owner of a motor vehicle for which a policy of motor vehicle liability
439	439	insurance is required under this act and such person failed to have such
440	440	policy in effect.
441	441	(d) The assigned claims plan shall be governed by such rules and
442	442	regulations as are necessary for its operation and for the assessment of
443	443	costs, which shall be approved by the commissioner. Any claim brought
444	444	through said plan shall be assigned to an insurer or self-insurer, in
445	445	accordance with the approved regulations of operation, and such insurer or
446	446	self-insurer, after the assignment, shall have the same rights and
447	447	obligations as it would have if, prior to such assignment, it had issued a
448	448	motor vehicle liability insurance policy providing personal injury
449	449	protection benefits applicable to the loss or expenses incurred or was a
450	450	self-insurer providing such benefits. Any party accepting benefits
451	451	hereunder under this section shall have such rights and obligations as such
452	452	person would have if a motor vehicle liability insurance policy providing
453	453	personal injury protection benefits were issued to such person.
454	454	(e) No insurer shall write any motor vehicle liability insurance policy
455	455	in this state unless the insurer participates in the assigned claims plan
456	456	organized pursuant to this section, nor shall any person qualify as a self-
457	457	insurer pursuant to subsection (f) of K.S.A. 40-3104, and amendments
458	458	thereto, unless such person agrees to participate in such assigned claims
459	459	plan. Any insurer or self-insurer required to participate in the assigned
460	460	claims plan who violates this subsection shall be assessed a civil penalty of
461	461	not more than $5,000 for each policy issued or self-insurance certificate
462	462	obtained in violation thereof.
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506	506	(f) (1) On and after January 1, 2026, the governing committee of the
507	507	assigned claims plan shall consist of five members, who shall be
508	508	removable by the commissioner for inefficiency, neglect of duty or
509	509	malfeasance. Members shall be appointed as follows:
510	510	(A) Three members shall be representatives of insurers;
511	511	(B) one member shall be a representative of independent insurance
512	512	agents; and
513	513	(C) one member shall be a representative of the general public.
514	514	(2) In selecting the members who shall be representatives of insurers,
515	515	the commissioner shall consider whether foreign and domestic insurers
516	516	are fairly represented.
517	517	Sec. 4. K.S.A. 40-3413 is hereby amended to read as follows: 40-
518	518	3413. (a) Every insurer and every rating organization shall cooperate in the
519	519	preparation of preparing a plan or plans for the equitable apportionment
520	520	among such insurers of applicants for professional liability insurance and
521	521	such other liability insurance as may be included in or added to the plan,
522	522	who are, in good faith, are entitled to such insurance but are unable to
523	523	procure the same through ordinary methods. Such plan or plans shall be
524	524	prepared and filed with the commissioner and the board of governors
525	525	within a reasonable time but not exceeding 60 calendar days from the
526	526	effective date of this act. Such plan or plans shall provide:
527	527	(1) Reasonable rules governing the equitable distribution of risks by
528	528	direct insurance, reinsurance or otherwise including the authority to make
529	529	assessments against the insurers participating in the plan or plans;
530	530	(2) rates and rate modifications applicable to such risks which that
531	531	shall be reasonable, adequate and not unfairly discriminatory;
532	532	(3) a method whereby periodically the plan shall compare the
533	533	premiums earned to the losses and expenses sustained by the plan. If there
534	534	is any surplus of premiums over losses and expenses received for that year
535	535	such surplus shall be transferred to the fund. If there is any excess of losses
536	536	and expenses over premiums earned such losses shall be transferred from
537	537	the fund, however except that such transfers shall not occur more often
538	538	than once each three months;
539	539	(4) the limits of liability which that the plan shall be required to
540	540	provide, but in no event shall except that such limits shall not be less than
541	541	those limits provided for in subsection (a) of K.S.A. 40-3402, and
542	542	amendments thereto; and
543	543	(5) a method whereby by which applicants for insurance, insureds and
544	544	insurers may have a hearing on grievances and the right of appeal to the
545	545	commissioner.
546	546	(b) (1) For every such plan or plans, there shall be a governing board
547	547	which that shall meet at least annually to review and prescribe operating
548	548	rules. Prior to December 31, 2025, such board of directors shall consist of
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592	592	nine members to be appointed, for terms of four years, by the
593	593	commissioner as follows:
594	594	(1)(A) Two members who shall be representatives of foreign insurers;
595	595	(2)(B) two members who shall be representatives of domestic
596	596	insurers;
597	597	(3)(C) two members who shall be health care healthcare providers;
598	598	(4)(D) one member who shall be a licensed insurance agent actively
599	599	engaged in the solicitation of casualty insurance;
600	600	(5)(E) one member who shall be the chairperson of the board of
601	601	governors or the chairperson's designee; and
602	602	(6)(F) one member who shall be a representative of the general
603	603	public.
604	604	(2) The members of the governing board appointed on or before July
605	605	1, 2025, shall serve their current terms that shall expire on December 31,
606	606	2025. On and after January 1, 2026, the governing board shall consist of
607	607	five members who shall be appointed for a term of four years except that
608	608	such members shall be removable by the commissioner for inefficiency,
609	609	neglect of duty or malfeasance as follows:
610	610	(i) One member who shall be a representative of foreign insurers;
611	611	(ii) one member who shall be a representative of domestic insurers;
612	612	(iii) one member shall be a healthcare provider;
613	613	(iv) one member who shall be a licensed insurance agent engaged in
614	614	the solicitation of casualty insurance; and
615	615	(v) one member who shall be chairperson of the board or the
616	616	chairperson's designee.
617	617	(c) The commissioner and board of directors governing board shall
618	618	review the plan as soon as reasonably possible after filing in order to
619	619	determine whether it if such plan meets the requirements set forth in
620	620	subsection (a). As soon as reasonably possible after the plan has been
621	621	filed, the commissioner, consistent with the recommendations of the board
622	622	of directors governing board, shall in writing approve or disapprove the
623	623	plan in writing. Any plan shall be deemed approved unless disapproved
624	624	within 30 days. Subsequent to the waiting period the commissioner may
625	625	disapprove any plan on the ground grounds that it such plan does not meet
626	626	the requirements set forth in subsection (a), but only after a hearing held
627	627	upon not less than 10 days' written notice to every insurer and rating
628	628	organization affected specifying in what respect the commissioner finds
629	629	that such plan fails to meet such requirements, and stating when, within a
630	630	reasonable period thereafter, such plan shall be deemed no longer
631	631	effective. Such order shall not affect any assignment made or policy issued
632	632	or made prior to the expiration of the period set forth in the order.
633	633	Amendments to such plan or plans shall be prepared, and filed and
634	634	reviewed in the same manner as herein provided in this section with
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678	678	respect to the original plan or plans.
679	679	(d) If no plan meeting the standards set forth in subsection (a) is
680	680	submitted to the commissioner and board of directors within 60 calendar
681	681	days from the effective date of this act July 1, 1982, or within the period
682	682	stated in any order disapproving an existing plan, the commissioner with
683	683	the assistance of the board of directors shall after a hearing, if necessary to
684	684	carry out the purpose of this act, prepare and promulgate a plan meeting
685	685	such requirements.
686	686	(e) If, after a hearing conducted in accordance with the provisions of
687	687	the Kansas administrative procedure act, the commissioner and board of
688	688	directors find that any activity or practice of any insurer or rating
689	689	organization in connection with the operation of such plan or plans is
690	690	unfair or unreasonable or otherwise inconsistent with the provisions of this
691	691	act, the commissioner and board of directors may issue a written order
692	692	specifying in what respects such activity or practice is unfair or
693	693	unreasonable or otherwise inconsistent with the provisions of this act and
694	694	requiring discontinuance of such activity or practice.
695	695	(f) An insurer participating in the plan approved by the commissioner
696	696	may pay a commission with respect to insurance written under the plan to
697	697	an insurance agent licensed for any other insurer participating in the plan
698	698	or to any insurer participating in the plan. Such commission shall be
699	699	reasonably equivalent to the usual customary commission paid on similar
700	700	types of policies issued in the voluntary market.
701	701	(g) Notwithstanding the provisions of K.S.A. 40-3402, and
702	702	amendments thereto, the plan shall make available policies of professional
703	703	liability insurance covering prior acts. Such professional liability insurance
704	704	policies shall have limits of coverage not exceeding $1,000,000 per claim,
705	705	subject to not more than $3,000,000 annual aggregate liability for all
706	706	claims made as a result of personal injury or death arising out of the
707	707	rendering of or the failure to render professional services within this state
708	708	on or before December 31, 2014. Such professional liability insurance
709	709	policies shall be made available only to physician assistants licensed by
710	710	the state board of healing arts, licensed advanced practice registered nurses
711	711	authorized by the state board of nursing to practice as an advanced practice
712	712	registered nurse in the classification of a nurse-midwife, nursing facilities
713	713	licensed by the state of Kansas, assisted living facilities licensed by the
714	714	state of Kansas and residential health care facilities licensed by the state of
715	715	Kansas that will be in compliance with K.S.A. 40-3402, and amendments
716	716	thereto, on January 1, 2015. The premiums for such professional liability
717	717	insurance policies shall be based upon reasonably prudent actuarial
718	718	principles. The provisions of this subsection shall expire on January 1,
719	719	2016.
720	720	Sec. 5. K.S.A. 75-4101 is hereby amended to read as follows: 75-
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764	764	4101. (a) There is hereby created a committee on surety bonds and
765	765	insurance, which shall consist of the state treasurer, the attorney general
766	766	and the commissioner of insurance or their respective designees. The
767	767	commissioner of insurance shall be the chairperson of the committee and
768	768	the director of purchases or the director's designee shall be the ex officio
769	769	secretary. The committee shall meet upon the call of the chairperson and at
770	770	such other times as the committee shall determine but at least once each
771	771	month on the second Monday in each month. Meetings shall be held in the
772	772	office of the commissioner of insurance. The members of the committee
773	773	shall serve without compensation. The secretary shall be the custodian of
774	774	all property, records and proceedings of the committee. Except as provided
775	775	in this section and K.S.A. 74-4925, 74-4927, 75-6501 through 75-6511
776	776	and 76-749, and amendments thereto, no state agency shall purchase any
777	777	insurance of any kind or nature or any surety bonds upon state officers or
778	778	employees, except as provided in this act. Except as otherwise provided in
779	779	this section, health care healthcare coverage and health care healthcare
780	780	services of a health maintenance organization for state officers and
781	781	employees designated under K.S.A. 75-6501(c), and amendments thereto,
782	782	shall be provided in accordance with the provisions of K.S.A. 75-6501
783	783	through 75-6511, and amendments thereto.
784	784	(b) The Kansas turnpike authority may purchase group life, health
785	785	and accident insurance or health care services of a health maintenance
786	786	organization for its employees or members of the highway patrol assigned,
787	787	by contract or agreement entered pursuant to K.S.A. 68-2025, and
788	788	amendments thereto, to police toll or turnpike facilities, independent of the
789	789	committee on surety bonds and insurance and of the provisions of K.S.A.
790	790	75-6501 through 75-6511, and amendments thereto. Such authority may
791	791	purchase liability insurance covering all or any part of its operations and
792	792	may purchase liability and related insurance upon all vehicles owned or
793	793	operated by the authority independent of the committee on surety bonds
794	794	and insurance and such insurance may be purchased without complying
795	795	with K.S.A. 75-3738 through 75-3744, and amendments thereto. Any
796	796	board of county commissioners may purchase such insurance or health
797	797	care healthcare services, independent of such committee, for district court
798	798	officers and employees any part of whose total salary is payable by the
799	799	county. Nothing in any other provision of the laws of this state shall be
800	800	construed as prohibiting members of the highway patrol so assigned to
801	801	police toll or turnpike facilities from receiving compensation in the form
802	802	of insurance or health maintenance organization coverage as herein
803	803	authorized.
804	804	(c) The agencies of the state sponsoring a foster grandparent or senior
805	805	companion program, or both, shall procure a policy of accident, personal
806	806	liability and excess automobile liability insurance insuring volunteers
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850	850	participating in such programs against loss in accordance with
851	851	specifications of federal grant guidelines. Such agencies may purchase
852	852	such policy of insurance independent of the committee on surety bonds
853	853	and insurance and without complying with K.S.A. 75-3738 through 75-
854	854	3744, and amendments thereto.
855	855	(d) Any state educational institution as defined by K.S.A. 76-711, and
856	856	amendments thereto, may purchase insurance of any kind or nature except
857	857	employee health insurance. Such insurance shall be purchased on a
858	858	competitively bid or competitively negotiated basis in accordance with
859	859	procedures prescribed by the state board of regents. Such insurance may
860	860	be purchased independent of the committee on surety bonds and insurance
861	861	and without complying with K.S.A. 75-3738 through 75-3744, and
862	862	amendments thereto.
863	863	(e) (1) The state board of regents may enter into one or more group
864	864	insurance contracts to provide health and accident insurance coverage or
865	865	health care healthcare services of a health maintenance organization for all
866	866	students attending a state educational institution as defined in K.S.A. 76-
867	867	711, and amendments thereto, and such students' dependents, except that
868	868	such insurance shall not provide coverage for elective procedures that are
869	869	not medically necessary as determined by a treating physician. The
870	870	participation by a student in such coverage shall be voluntary. In the case
871	871	of students who are employed by a state educational institution in a student
872	872	position, the level of employer contributions toward such coverage shall be
873	873	determined by the board of regents.
874	874	(2) The state board of regents is hereby authorized to independently
875	875	provide, through self-insurance or the purchase of insurance contracts,
876	876	health care healthcare benefits for employees of a state educational
877	877	institution, as such term is defined in K.S.A. 76-711, and amendments
878	878	thereto, when the state health care healthcare benefits program is
879	879	insufficient to satisfy the requirements of 22 C.F.R. § 62.14, as in effect
880	880	upon the effective date of this section April 13, 2017. Such healthcare
881	881	benefits shall be limited to only those for whom the state health care
882	882	healthcare benefits program does not meet federal requirements.
883	883	(3) The state board of regents may purchase cybersecurity insurance
884	884	as it deems necessary to protect student records, labor information and
885	885	other statutorily protected data that the board maintains, independent of the
886	886	committee on surety bonds and insurance and without complying with the
887	887	provisions of K.S.A. 75-3738 through 75-3744, and amendments thereto.
888	888	As used in this paragraph, "cybersecurity insurance" includes, but is not
889	889	limited to, first-party coverage against losses such as data destruction,
890	890	denial of service attacks, theft, hacking and liability coverage guaranteeing
891	891	compensation for damages from errors such as the failure to safeguard
892	892	data.
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936	936	(4) The state board of regents may adopt rules and regulations
937	937	necessary to administer and implement the provisions of this section.
938	938	Sec. 6. K.S.A. 40-2102, 40-2109, 40-3116, 40-3413 and 75-4101 are
939	939	hereby repealed.
940	940	Sec. 7. This act shall take effect and be in force from and after its
941	941	publication in the statute book.
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