Kansas Senate Bill SB24 Introduced / Bill

                    Session of 2025
SENATE BILL No. 24
By Committee on Financial Institutions and Insurance
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AN ACT concerning insurance; relating to the powers, duties and 
responsibilities of the commissioner of insurance; authorizing the 
commissioner of insurance to set the amount of certain fees; requiring 
the publication of certain fees in the Kansas register; amending K.S.A. 
40-205a, 40-218, 40-252, 40-2,133, 40-504, 40-956, 40-22a04, 40-
2604, 40-2702, 40-3213, 40-3304, 40-3812, 40-3813, 40-3814, 40-
4103, 40-4116, 40-4323, 40-4334, 40-4503, 40-5003 and 40-5509 and 
K.S.A. 2024 Supp. 40-3823, 40-3824, 40-4209, 40-4302 and 40-4903 
and repealing the existing sections; also repealing K.S.A. 40-3217.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 40-205a is hereby amended to read as follows: 40-
205a. (a) No person shall do perform any act toward selling the stock of 
any insurance company or health maintenance organization unless such 
person first obtains from the commissioner of insurance written authority 
to engage in the business of selling the stock of such company. Such 
applicant shall first be appointed in writing by the president or secretary of 
the company for which such applicant intends to sell stock. The applicant 
for such license shall file with the commissioner of insurance the 
applicant's written application for a license authorizing the applicant to 
engage in the business of selling such stock. The applicant shall make 
sworn answers to such interrogatories as the commissioner of insurance 
shall require. The fee charged for the issuance of such license shall be not 
exceed $100 and shall be paid to the commissioner of insurance by the 
company requesting such license.
(b) Not later than December 1 of each year, the commissioner shall 
set and cause to be published in the Kansas register the fee required 
pursuant to this section for the next calendar year.
Sec. 2. K.S.A. 40-218 is hereby amended to read as follows: 40-218. 
(a) Every insurance company, or fraternal benefit society, on applying for 
authority to transact business in this state, and as a condition precedent to 
obtaining such authority, shall file in the insurance department its 
irrevocable written consent, irrevocable, that any action or garnishment 
proceeding may be commenced against such company or fraternal benefit 
society in the proper court of any county in this state in which the cause of 
action shall arise or in which the plaintiff may reside by the service of 
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process on the commissioner of insurance of this state, and stipulating and 
agreeing that such service shall be taken and held in all courts to be as 
valid and binding as if due service had been made upon the president or 
chief officer of such corporation. Such consent shall be executed by the 
president and secretary of the company and shall be accompanied by a 
duly certified copy of the order or resolution of the board of directors, 
trustees or managers authorizing the president and secretary to execute the 
same. The summons or order of garnishment, accompanied by a fee of not 
to exceed $25, shall be directed to the commissioner of insurance, and 
shall require the defendant or garnishee to answer or otherwise respond by 
a certain day, not less than 40 days from the date the summons or order of 
garnishment is served on the commissioner. Not later than December 1 of 
each year, the commissioner shall set and cause to be published in the 
Kansas register the fee required pursuant to this subsection for the next 
calendar year.
(b) Service on the commissioner of insurance of any process, notice 
or demand against an insurance company or fraternal benefit society shall 
be made by delivering to and leaving with the commissioner or the 
commissioner's designee, the original of the process and two copies of the 
process and the petition, notice of demand, or the clerk of the court may 
send the original process and two copies of both the process and petition, 
notice or demand directly to the commissioner by certified mail, return 
receipt requested. In the event that any process, notice or demand is served 
on the commissioner, the commissioner shall immediately cause a copy 
thereof to be forwarded by certified mail, return receipt requested to the 
insurance company or fraternal benefit society address to its general agent 
if such agent resides in this state or to the secretary of the insurance 
company or fraternal benefit society sued at its registered or principal 
office in any state in which it is domesticated. The commissioner of 
insurance shall make return of the summons to the court from whence it 
issued, showing the date of its receipt, the date of forwarding such copies, 
and the name and address of each person to whom a copy was forwarded. 
Such return shall be under the hand and seal of office, and shall have the 
same force and effect as a due and sufficient return made on process 
directed to a sheriff. The commissioner of insurance shall keep a suitable 
record in which shall be docketed every action commenced against an 
insurance company, the time when commenced, the date and manner of 
service; also the date of the judgment, its amount and costs, and the date of 
payment thereof, which shall be certified from time to time by the clerk of 
the court.
Sec. 3. K.S.A. 40-252 is hereby amended to read as follows: 40-252. 
Not later than December 1 of each year, the commissioner shall set and 
cause to be published in the Kansas register the fees required pursuant to 
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this section for the next calendar year.
Every insurance company or fraternal benefit society organized under 
the laws of this state or doing business in this state shall pay to the 
commissioner of insurance fees and taxes not to exceed the amounts 
specified in the following schedule:
A
Insurance companies organized under the laws of this state:
1.Capital stock insurance companies and mutual legal reserve life 
insurance companies:
Filing application for sale of stock or certificates of indebtedness.....$25
Admission fees:
Examination of charter and other documents......................................500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
2.Mutual life, accident and health associations:
Admission fees:
Examination of charter and other documents....................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
3.Mutual fire, hail, casualty and multiple line insurers and reciprocal or 
interinsurance exchanges:
Admission fees:
Examination of charter and other documents....................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
In addition to the above fees and as a condition precedent to the 
continuation of the certificate of authority provided in this code, all such 
companies shall pay a fee of $2 for each agent newly certified by the 
company and shall also pay a tax annually upon all premiums received on 
risk located in this state at the rate of 1% for tax year 1997, and 2% for all 
tax years thereafter per annum less (1) for tax years prior to 1984, any 
taxes paid on business in this state pursuant to the provisions of K.S.A. 40-
1701 to 40-1707, inclusive, and 75-1508, and amendments thereto, and (2) 
for tax years 1984 and thereafter, any taxes paid on business in this state 
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pursuant to the provisions of K.S.A. 75-1508, and amendments thereto, 
and the amount of the firefighters relief tax credit determined by the 
commissioner of insurance. The amount of the firefighters relief tax credit 
for a company for the current tax year shall be determined by the 
commissioner of insurance by dividing: (A) The total amount of credits 
against the tax imposed by this section for taxes paid by all such 
companies on business in this state under K.S.A. 40-1701 to through 40-
1707, inclusive, and amendments thereto, for tax year 1983, by (B) the 
total amount of taxes paid by all such companies on business in this state 
under K.S.A. 40-1703, and amendments thereto, for the tax year 
immediately preceding the current tax year, and by multiplying the result 
so obtained by (C) the amount of taxes paid by the company on business in 
this state under K.S.A. 40-1703, and amendments thereto, for the current 
tax year.
In the computation of the gross premiums all such companies shall be 
entitled to deduct any premiums returned on account of cancellations, 
including funds accepted before January 1, 1997, and declared and taxed 
as annuity premiums which that, on or after January 1, 1997, are 
withdrawn before application to the purchase of annuities, all premiums 
received for reinsurance from any other company authorized to do 
business in this state, dividends returned to policyholders and premiums 
received in connection with the funding of a pension, deferred 
compensation, annuity or profit-sharing plan qualified or exempt under 
sections 401, 403, 404, 408, 457 or 501 of the United States internal 
revenue code of 1986. Funds received by life insurers for the purchase of 
annuity contracts and funds applied by life insurers to the purchase of 
annuities shall not be deemed taxable premiums or be subject to tax under 
this section for tax years commencing on or after January 1, 1997.
B
Fraternal benefit societies organized under the laws of this state:
Admission fees:
Examination of charter and other documents....................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
C
Mutual nonprofit hospital service corporations, nonprofit medical service 
corporations, nonprofit dental service corporations, nonprofit optometric 
service corporations and nonprofit pharmacy service corporations 
organized under the laws of this state:
1.Mutual nonprofit hospital service corporations:
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Admission fees:
Examination of charter and other documents....................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
2.Nonprofit medical service corporations:
Admission fees:
Examination of charter and other documents....................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
3.Nonprofit dental service corporations:
Admission fees:
Examination of charter and other documents....................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
4.Nonprofit optometric service corporations:
Admission fees:
Examination of charter and other documents....................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
5.Nonprofit pharmacy service corporations:
Admission fees:
Examination of charter and other documents....................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
In addition to the above fees and as a condition precedent to the 
continuation of the certificate of authority, provided in this code, every 
corporation or association shall pay annually to the commissioner of 
insurance a tax in an amount equal to 1% for tax year 1997, and 2% for all 
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tax years thereafter per annum of the total of all premiums, subscription 
charges, or any other term which that may be used to describe the charges 
made by such corporation or association to subscribers for hospital, 
medical or other health services or indemnity received during the 
preceding year. In such computations all such corporations or associations 
shall be entitled to deduct any premiums or subscription charges returned 
on account of cancellations and dividends returned to members or 
subscribers.
D
Insurance companies organized under the laws of any other state, territory 
or country:
1.Capital stock insurance companies and mutual legal reserve life 
insurance companies:
Filing application for sale of stock or certificates of indebtedness.....$25
Admission fees:
Examination of charter and other documents......................................500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
In addition to the above fees, all such companies shall pay $5 for each 
agent newly certified by the company, except as otherwise provided by 
law.
As a condition precedent to the continuation of the certificate of 
authority, provided in this code, every company organized under the laws 
of any other state of the United States or of any foreign country shall pay a 
tax upon all premiums received during the preceding year at the rate of 2% 
per annum.
In the computation of the gross premiums all such companies shall be 
entitled to deduct any premiums returned on account of cancellations, 
including funds accepted before January 1, 1997, and declared and taxed 
as annuity premiums which that, on or after January 1, 1997, are 
withdrawn before application to the purchase of annuities, dividends 
returned to policyholders and all premiums received for reinsurance from 
any other company authorized to do business in this state and premiums 
received in connection with the funding of a pension, deferred 
compensation, annuity or profit-sharing plan qualified or exempt under 
sections 401, 403, 404, 408, 457 or 501 of the United States internal 
revenue code of 1986. Funds received by life insurers for the purchase of 
annuity contracts and funds applied by life insurers to the purchase of 
annuities shall not be deemed taxable premiums or be subject to tax under 
this section for tax years commencing on or after January 1, 1997.
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2. Mutual life, accident and health associations:
Admission fees:
Examination of charter and other documents....................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
In addition to the above fees, every such company organized under the 
laws of any other state of the United States shall pay $5 for each agent 
newly certified by the company, and shall pay a tax annually upon all 
premiums received at the rate of 2% per annum.
In the computation of the gross premiums all such companies shall be 
entitled to deduct any premiums returned on account of cancellations, 
including funds accepted before January 1, 1997, and declared and taxed 
as annuity premiums which that, on or after January 1, 1997, are 
withdrawn before application to the purchase of annuities, dividends 
returned to policyholders and all premiums received for reinsurance from 
any other company authorized to do business in this state and premiums 
received in connection with the funding of a pension, deferred 
compensation, annuity or profit-sharing plan qualified or exempt under 
sections 401, 403, 404, 408, 457 or 501 of the United States internal 
revenue code of 1986. Funds received by life insurers for the purchase of 
annuity contracts and funds applied by life insurers to the purchase of 
annuities shall not be deemed taxable premiums or be subject to tax under 
this section for tax years commencing on or after January 1, 1997.
3.Mutual fire, casualty and multiple line insurers and reciprocal or 
interinsurance exchanges:
Admission fees:
Examination of charter and other documents and issuance of certificate 
of authority........................................................................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
In addition to the above fees, every such company or association 
organized under the laws of any other state of the United States shall pay a 
fee of $5 for each agent newly certified by the company and shall also pay 
a tax annually upon all premiums received at the rate of 2% per annum.
For tax years 1998 and thereafter, the annual tax shall be reduced by the 
"applicable percentage" of: (1) Any taxes paid on business in this state 
pursuant to the provisions of K.S.A. 75-1508, and amendments thereto,; 
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and (2) the amount of the firefighters relief tax credit determined by the 
commissioner of insurance. The amount of the firefighters relief tax credit 
for a company taxable under this subsection for the current tax year shall 
be determined by the commissioner of insurance by dividing (A) the total 
amount of taxes paid by all such companies on business in this state under 
K.S.A. 40-1701 to 40-1707, and amendments thereto, for tax year 1983 as 
then in effect, by (B) the total amount of taxes paid by all such companies 
on business in this state under K.S.A. 40-1703, and amendments thereto, 
for the tax year immediately preceding the current tax year, and by 
multiplying the result so obtained by (C) the amount of taxes paid by the 
company on business in this state under K.S.A. 40-1703, and amendments 
thereto, for the current tax year. The "applicable percentage" shall be as 
follows:
Tax Year	Applicable Percentage
1998	10%
1999	20%
2000	40%
2002	50%
2003	60%
2004	70%
2005	80%
2006	90%
2007 and thereafter	100%
In the computation of the gross premiums all such companies shall be 
entitled to deduct any premiums returned on account of cancellations, all 
premiums received for reinsurance from any other company authorized to 
do business in this state, and dividends returned to policyholders.
E
Fraternal benefit societies organized under the laws of any other state, 
territory or country:
Admission fees:
Examination of charter and other documents....................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
F
Mutual nonprofit hospital service corporations, nonprofit medical service 
corporations, nonprofit dental service corporations, nonprofit optometric 
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service corporations and nonprofit pharmacy service corporations 
organized under the laws of any other state, territory or country:
1.Mutual nonprofit hospital service corporations:
Admission fees:
Examination of charter and other documents....................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
2.Nonprofit medical service corporations, nonprofit dental service 
corporations, nonprofit optometric service corporations and nonprofit 
pharmacy service corporations:
Admission fees:
Examination of charter and other documents....................................$500
Filing annual statement.......................................................................100
Certificate of authority..........................................................................10
Annual fees:
Filing annual statement.......................................................................100
Continuation of certificate of authority.................................................10
In addition to the above fees and as a condition precedent to the 
continuation of the certificate of authority, provided in this code, every 
corporation or association shall pay annually to the commissioner of 
insurance a tax in an amount equal to 2% per annum of the total of all 
premiums, subscription charges, or any other term which that may be used 
to describe the charges made by such corporation or association to 
subscribers in this state for hospital, medical or other health services or 
indemnity received during the preceding year. In such computations all 
such corporations or associations shall be entitled to deduct any premiums 
or subscription charges returned on account of cancellations and dividends 
returned to members or subscribers.
G
Payment of Taxes.
For the purpose of insuring the collection of the tax upon premiums, 
assessments and charges as set out in subsection A, C, D or F, every 
insurance company, corporation or association shall at the time it files its 
annual statement, as required by the provisions of K.S.A. 40-225, and 
amendments thereto, make a return, generated by or at the direction of its 
president and secretary or other chief officers, under penalty of K.S.A. 21-
5824, and amendments thereto, to the commissioner of insurance, stating 
the amount of all premiums, assessments and charges received by the 
companies or corporations in this state, whether in cash or notes, during 
the year ending on the December 31 next preceding.
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Commencing in 1985 and annually thereafter the estimated taxes shall 
be paid as follows: On or before June 15 and December 15 of such year an 
amount equal to 50% of the full amount of the prior year's taxes as 
reported by the company shall be remitted to the commissioner of 
insurance. As used in this paragraph, "prior year's taxes" includes: (1) 
Taxes assessed pursuant to this section for the prior calendar year,; (2) fees 
and taxes assessed pursuant to K.S.A. 40-253, and amendments thereto, 
for the prior calendar year,; and (3) taxes paid for maintenance of the 
department of the state fire marshal pursuant to K.S.A. 75-1508, and 
amendments thereto, for the prior calendar year.
Upon the receipt of such returns the commissioner of insurance shall 
verify the same and assess the taxes upon such companies, corporations or 
associations on the basis and at the rate provided herein and the balance of 
such taxes shall thereupon become due and payable giving credit for 
amounts paid pursuant to the preceding paragraph, or the commissioner 
shall make a refund if the taxes paid in the prior June and December are in 
excess of the taxes assessed.
H
The fee prescribed for the examination of charters and other documents 
shall apply to each company's initial application for admission and shall 
not be refundable for any reason.
Sec. 4. K.S.A. 40-2,133 is hereby amended to read as follows: 40-
2,133. (a) No insurer may utilize or continue to utilize the services of an 
MGA on and after the effective date of this act unless such utilization is in 
compliance with this act.
(b) The insurer shall have on file an independent financial 
examination in a form acceptable to the commissioner of each MGA with 
which it has done business.
(c) If an MGA establishes loss reserves, the insurer shall annually 
obtain the opinion of an actuary attesting to the adequacy of loss reserves 
established for losses incurred and outstanding on business produced by 
the MGA. Such requirement shall be in addition to any other required loss 
reserve certification.
(d) The insurer shall periodically, but not less frequently than semi-
annually, conduct an on-site review of the underwriting and claims 
processing operations of the MGA.
(e) Binding authority for all reinsurance contracts or participation in 
insurance or reinsurance syndicates shall rest with an officer of the insurer 
who shall not be affiliated with the MGA.
(f) (1) Within 30 days of entering into or termination of a contract 
with an MGA, the insurer shall provide written notification of such 
appointment or termination to the commissioner. Notices of appointment 
of an MGA shall include:
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43 SB 24	11
(1)(A) A statement of duties which that the applicant is expected to 
perform on behalf of the insurer, ;
(2)(B) the lines of insurance for which the applicant is to be 
authorized to act,;
(3)(C) a notification fee in the an amount of not to exceed $100, (4); 
and
(D) any other information the commissioner may request.
(2) Not later than December 1 of each year, the commissioner shall 
set and cause to be published in the Kansas register the fee required 
pursuant to this subsection for the next calendar year.
(g) Each calendar quarter, an insurer shall each quarter review its 
books and records to determine if any agent or broker has become, by 
operation of subsection (d) of K.S.A. 40-2,130(d), and amendments 
thereto, an MGA as defined in that subsection. If the insurer determines 
that an agent or broker has become an MGA pursuant to the above, the 
insurer shall promptly notify the agent or broker and the commissioner of 
such determination, and the insurer and agent or broker shall fully comply 
with the provisions of this act within 30 days.
(h) An insurer shall not appoint to its board of directors an officer, 
director, employee or controlling shareholder of its MGAs. This subsection 
shall not apply to relationships governed by the applicable provisions of 
article 33 of chapter 40 of the Kansas Statutes Annotated, and amendments 
thereto.
Sec. 5. K.S.A. 40-504 is hereby amended to read as follows: 40-504. 
Any corporation heretofore organized and existing pursuant to law for the 
purpose of making insurance on the lives of individuals, may take 
advantage and have the benefit of this act by filing in the office of the 
commissioner of insurance a declaration of the company, signed by the 
president and secretary, giving the name of the corporation, a copy of the 
bylaws, the form of application adopted by them, and a copy of the policy 
contract proposed to be issued to individuals, together with a fee of one 
hundred dollars not to exceed $100. The commissioner of insurance shall 
submit all documents to the attorney general for his examination, and if 
found by him the attorney general to be in accordance with the law he, the 
attorney general shall certify to and deliver the same such documents to 
the commissioner of insurance, who shall retain such documents on file, 
and. Upon compliance by said such company with the provisions of this 
code, the commissioner of insurance shall issue his a certificate 
authorizing said such company to do business in this state under the 
provisions of this code. Not later than December 1 of each year, the 
commissioner shall set and cause to be published in the Kansas register 
the fee required pursuant to this section for the next calendar year.
Sec. 6. K.S.A. 40-956 is hereby amended to read as follows: 40-956. 
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(a) (1) Any corporation, association, partnership or individual whether 
located in or out of the state, may apply for license as a rating organization 
for such kinds of insurance or subdivisions thereof as are specified in its 
application and shall file therewith:
(1)(A) A copy of its constitution, articles of agreement or association 
or certificate of incorporation, and its bylaws and rules governing the 
conduct of its business;
(2)(B) a list of its members and subscribers;
(3)(C) the name and address of a resident of the state upon whom 
service of process or orders of the commissioner may be served and an 
irrevocable agreement to accept such service or notices; and 
(4)(D) a statement of its qualification as a rating organization. 
(2) Every rating organization shall notify the commissioner promptly 
of every change in its organizational structure, members or subscribers and 
the person upon whom service or notices may be made. 
(3) If the commissioner finds the applicant is qualified, the 
commissioner shall issue a license specifying the kinds of insurance or 
subdivisions thereof for which the applicant is authorized to act as a rating 
organization. Every such application shall be granted or denied in whole or 
in part by the commissioner within 60 days of the date of its filing. 
Licenses issued pursuant to this section shall continue in force until May 1 
next after their date unless suspended or revoked by the commissioner. The 
fee for such license shall be not exceed $25 annually. Not later than 
December 1 of each year, the commissioner of insurance shall set and 
cause to be published in the Kansas register the fee required pursuant to 
this paragraph for the next calendar year. Licenses issued pursuant to this 
section may be suspended or revoked by the commissioner, after hearing 
upon notice, in the event the rating organization ceases to meet the 
requirements of this section.
(b) Every rating organization shall furnish its rating services without 
discrimination to its members and subscribers. Subject to rules which that 
have been approved by the commissioner as reasonable, each rating 
organization shall permit any insurer or group pool, not a member, to be a 
subscriber to its rating service for any kind of insurance or subdivision 
thereof for which it is authorized to act as a rating organization. The 
reasonableness of any rule in its application to subscribers, or the refusal 
of any rating organization to admit an insurer or group pool as a 
subscriber, at the request of any subscriber, pool or any insurer shall be 
reviewed by the commissioner at a hearing.
(c) No rating organization shall adopt any rule, the effect of which 
would be to prohibit or regulate the payment of dividends, savings or 
unabsorbed premium deposits allowed or returned by insurers to their 
policyholders, members or subscribers.
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(d) The commissioner, at least once in five years, shall make or cause 
to be made an examination of each rating organization licensed in this 
state. The reasonable costs of such examination shall be paid by the rating 
organization examined, upon presentation to it of a detailed account of 
such cost. The officers, managers, agents and employees of such rating 
organization may be examined under oath and shall exhibit all books, 
records, accounts, documents or agreements governing its method of 
operation. The commissioner may waive such examination upon proof 
such rating organization has, within a reasonably recent period, been 
examined by the insurance supervisory official of another state, and upon 
filing with the commissioner a copy of the report of such examination.
(e) Cooperation among rating organizations or among rating 
organizations and insurers in rate making or in other matters within the 
scope of this act is hereby authorized, provided except that the filings 
resulting from such cooperation are subject to all the provisions of this act 
which that are applicable to filings generally. The commissioner may 
review such cooperative activities and practices and if, after a hearing, the 
commissioner finds any such activity or practice is unfair, unreasonable or 
otherwise inconsistent with this act or other provision of the insurance 
laws of this state, the commissioner may issue a written order requiring 
discontinuance of such activities or practices.
(f) Any rating organization may provide for the examination of 
policies, daily reports, binders and other transaction with its members or 
subscribers, providing if it makes reasonable rules governing those 
activities, which. Such rules shall be approved by the commissioner. Such 
rules  and shall contain a provision that in the event any insurer does not 
within 60 days furnish satisfactory evidence to the rating organization of 
the correction of any error or omissions previously called to its attention 
by the rating organization, it shall be the duty of the rating organization to 
notify the commissioner thereof. All information submitted for 
examination shall be confidential.
(g) Any rating organization may subscribe for or purchase actuarial, 
technical or other services, and such services shall be available to all 
members and subscribers without discrimination. Any rating organization 
may collect, compile and distribute past and current premiums of 
individual insurers.
Sec. 7. K.S.A. 40-22a04 is hereby amended to read as follows: 40-
22a04. (a) The commissioner shall adopt rules and regulations establishing 
standards governing the conduct of utilization review activities performed 
in this state or affecting residents or healthcare providers of this state by 
utilization review organizations. Unless granted an exemption under 
K.S.A. 40-22a06, and amendments thereto, no utilization review 
organization may conduct utilization review services in this state or 
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affecting residents of this state without first obtaining a certificate from the 
commissioner.
(b) The commissioner shall not issue a certificate to a utilization 
review organization until the applicant:
(1) Files a formal application for certification in such form and detail 
as required by the commissioner and such application has been executed 
under oath by the chief executive officer, president or other head official of 
the applicant;
(2) files with the commissioner a certified copy of its charter or 
articles of incorporation and bylaws, if any;
(3) states the location of the office or offices of the utilization review 
organization where utilization review affecting residents or health care 
healthcare providers of this state will be principally performed;
(4) provides a summary of the qualifications and experience of 
persons performing utilization review affecting the persons and at the 
locations identified pursuant to paragraph (3);
(5) makes payment of a certification fee of not to exceed $100 to the 
commission; and
(6) provides such other information or documentation as the 
commissioner requires.
(c) Certificates issued by the commissioner pursuant to this act shall 
remain effective until suspended, surrendered or revoked subject to 
payment of an annual continuation fee of not to exceed $50.
(d) The commissioner may suspend or revoke the certificate or any 
exemption from certification requirements upon determination that the 
interests of Kansas insureds are not being properly served under such 
certificate or exemption. Any such action shall be taken only after a 
hearing conducted in accordance with the provisions of the Kansas 
administrative procedure act.
(e) Not later than December 1 of each year, the commissioner shall 
set and cause to be published in the Kansas register the fee required 
pursuant to this section for the next calendar year.
Sec. 8. K.S.A. 40-2604 is hereby amended to read as follows: 40-
2604. (a) No person shall engage in the business of financing insurance 
premiums under this act in this state without first having obtained a license 
as a premium finance company from the commissioner of insurance. Every 
violation of any of the provisions of this act shall subject the person 
violating the same such provisions to a penalty not to exceed $500 for each 
violation or by imprisonment not to exceed six months in jail or both.
(b) (1) (A) The license continuation fee shall be not exceed $100. The 
fee for such continuation shall be paid to the commissioner to be deposited 
in the state general fund.
(B) Licenses may be continued from year to year as of May 1 of each 
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year upon payment of the continuation fee. Every licensee shall, on or 
before the first day of April, pay to the commissioner the sum of an 
amount not to exceed $100 as a continuation fee for the succeeding year. 
Failure to pay the continuation fee within the time prescribed shall 
automatically revoke the license.
(2) Not later than December 1 of each year, the commissioner shall 
set and cause to be published in the Kansas register the fees required 
pursuant to this subsection for the next calendar year.
(c) The applicant for such license shall file with the commissioner 
written application and shall make sworn answers to such interrogatories 
as the commissioner may require on forms prepared by the commissioner. 
The commissioner shall have authority, at any time, to require the 
applicant fully to disclose the identity of all stockholders, partners, officers 
and employees, and the commissioner may, in the exercise of discretion, 
refuse to issue or renew a license in the name of any firm, partnership, or 
corporation if not satisfied that any officer, employee, stockholder, or 
partner thereof who may materially influence the applicant's conduct meets 
the standards of this act.
Sec. 9. K.S.A. 40-2702 is hereby amended to read as follows: 40-
2702. (a) As used in this act, unless the context otherwise requires, the 
term "insurer" means and includes all corporations, companies, 
associations, societies, fraternal benefit societies, mutual nonprofit hospital 
service and nonprofit medical service companies, partnerships and persons 
engaged as principals in the business of insurance of the kinds enumerated 
in articles 4, 5, 6, 7, 11, 18, 19, 19a, 19b, 19c, 22, 32 and 38 of chapter 40 
of the Kansas Statutes Annotated, and any amendments thereto, insofar as 
the business of insurance of the kinds enumerated in such articles relate to 
life and accident or sickness. Whenever in this section there is reference to 
an act effected or committed by mail, the venue of such act shall be at the 
point where the matter transmitted by mail is delivered and takes effect.
It shall be unlawful for any insurer to transact insurance business in this 
state, as set forth in subsection (b) of this section, without a certificate of 
authority from the commissioner of insurance. This section shall not apply 
to:
(1) The lawful transaction of insurance procured by agents under the 
authority of K.S.A. 40-246b, 40-246c and 40-246d, and amendments 
thereto, relating to accident and sickness insurance;
(2) contracts of reinsurance issued by an insurer not organized under 
the laws of this state;
(3) transactions in this state involving a policy lawfully solicited, 
written and delivered outside of this state, covering only subjects of 
insurance not resident in this state at the time of issuance and which 
transactions are subsequent to the issuance of such policy;
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(4) attorneys acting in the ordinary relation of attorney and client in 
the adjustment of claims or losses;
(5) transactions in this state involving group life and group sickness 
and accident or blanket sickness and accident insurance or group annuities, 
where the master policy of such groups was lawfully issued and delivered 
in and pursuant to the laws of a state in which the insurer was authorized 
to do an insurance business to a group organized for purposes other than 
the procurement of insurance and where the policyholder is domiciled or 
otherwise has a bona fide residence;
(6) transactions in this state involving any policy of life or accident 
and health insurance or annuity contract issued prior to the effective date 
of this act;
(7) contracts of insurance written by certain lodges, societies, persons 
and associations specified in K.S.A. 40-202, and amendments thereto, and 
organizations preempted from state jurisdiction as a result of compliance 
with both the employees retirement income security act of 1974, as 
amended, including all bonding provisions, and paragraph (9) of 
subsection (c) of section 501 of the internal revenue code; and
(8) any life insurance company organized and operated, without profit 
to any private shareholder or individual, exclusively for the purpose of 
aiding and strengthening educational institutions, organized and operated 
without profit to any private shareholder or individual, by issuing 
insurance and annuity contracts directly from the home office of the 
company, without insurance agents or insurance representatives in this 
state, only to or for the benefit of such institutions and individuals engaged 
in the services of such institutions, but this exemption shall be conditioned 
upon any such company complying with the following requirements:
(i)(A) Payment of an annual registration fee of not to exceed $500;. 
Not later than December 1 of each year, the commissioner shall set and 
cause to be published in the Kansas register such fee for the next calendar 
year;
(ii)(B) filing a copy of the form of any policy or contract issued to 
Kansas residents with the commissioner of insurance;
(iii)(C) filing a copy of its annual statement prepared pursuant to the 
laws of its state of domicile, as well as such other financial material as 
may be requested, with the commissioner of insurance; and
(iv)(D) providing, in such form as may be prescribed by the 
commissioner of insurance, for the appointment of the commissioner of 
insurance as its true and lawful attorney upon whom may be served all 
lawful process in any action or proceeding against such company arising 
out of any policy or contract it has issued to, or which is currently held by, 
a Kansas citizen and process so served against such company shall have 
the same force and validity as if served upon the company.
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(b) Any of the following acts in this state effected by mail or 
otherwise by or on behalf of an unauthorized insurer is shall be deemed to 
constitute the transaction of an insurance business in this state:
(1) The making of or proposing to make, as an insurer, an insurance 
contract;
(2) the taking or receiving of any application for insurance;
(3) the receiving or collection of any premium, commission, 
membership fees, assessments, dues or other consideration for any 
insurance or any part thereof;
(4) the issuance or delivery of contracts of insurance to residents of 
this state or to persons authorized to do business in this state;
(5) (A) directly or indirectly acting as an agent for or otherwise 
representing or aiding on behalf of another any other person or insurer in 
the:
(i) solicitation, negotiation, procurement or effectuation of insurance 
or renewals thereof or in the ;
(ii) dissemination of coverage or rate information as to coverage or 
rates, or;
(iii) forwarding of applications or delivery of policies or contracts or 
;
(iv) investigation or adjustment of claims or losses or in the 
transaction of matters subsequent to effectuation of the contract and rising 
out of it; or 
(v) in any other manner representing or assisting a person or insurer 
in the transaction of insurance with respect to subjects of insurance 
resident in this state. 
(B) Nothing herein in this paragraph shall be construed to prohibit 
full-time salaried employees of a corporate insured from acting in the 
capacity of an insurance manager or buyer in placing insurance in on 
behalf of such employer;
(6) the transaction of any kind of insurance business specifically 
recognized as transacting an insurance business within the meaning of the 
statutes relating to insurance; or
(7) the transacting of or proposing to transact any insurance business, 
in substance equivalent to any of the foregoing, in a manner designed to 
evade the provisions of this act.
(c) (1) The failure of an insurer transacting insurance business in this 
state to obtain a certificate of authority from the commissioner of 
insurance shall not impair the validity of any act or contract of such insurer 
and shall not prevent such insurer from defending any action at law or suit 
in equity in any court of this state, but no insurer transacting insurance 
business in this state without a certificate of authority shall be permitted to 
maintain an action in any court of this state to enforce any right, claim or 
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demand arising out of the transaction of such business until such insurer 
shall have obtained a certificate of authority.
(2) In the event of failure of any such unauthorized insurer to pay any 
claim or loss within the provisions of such insurance contract, any person 
who assisted or in any manner aided, directly or indirectly, in the 
procurement of such insurance contract shall be liable to the insured for 
the full amount of the claim or loss in the manner provided by the 
provisions of such insurance contract.
Sec. 10. K.S.A. 40-3213 is hereby amended to read as follows: 40-
3213. (a) (1) Every health maintenance organization and medicare 
provider organization subject to this act shall pay to the commissioner the 
following fees:
(1)(A) For filing an application for a certificate of authority, an 
amount not to exceed $150;
(2)(B) for filing each annual report, an amount not to exceed $50; 
and
(3)(C) for filing an amendment to the certificate of authority, an 
amount not to exceed $10.
(2) Not later than December 1 of each year, the commissioner shall 
set and cause to be published in the Kansas register the fees required 
pursuant to this subsection for the next calendar year.
(b) Every health maintenance organization subject to this act shall 
pay annually to the commissioner at the time such organization files its 
annual report, a privilege fee in an amount equal to the following 
percentages of the total of all premiums, subscription charges or any other 
term that may be used to describe the charges made by such organization 
to enrollees: 3.31% during the reporting period beginning January 1, 2015, 
and ending December 31, 2017; and 5.77% on and after January 1, 2018. 
In such computations all such organizations shall be entitled to deduct 
therefrom any premiums or subscription charges returned on account of 
cancellations and dividends returned to enrollees. If the commissioner 
shall determine at any time that the application of the privilege fee, or a 
change in the rate of the privilege fee, would cause a denial of, reduction 
in or elimination of federal financial assistance to the state or to any health 
maintenance organization subject to this act, the commissioner is hereby 
authorized to terminate the operation of such privilege fee or the change in 
such privilege fee.
(c) For the purpose of insuring the collection of the privilege fee 
provided for by subsection (b), every health maintenance organization 
subject to this act and required by subsection (b) to pay such privilege fee 
shall at the time it files its annual report, as required by K.S.A. 40-3220, 
and amendments thereto, make a return, generated by or at the direction of 
its chief officer or principal managing director, under penalty of K.S.A. 
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21-5824, and amendments thereto, to the commissioner, stating the amount 
of all premiums, assessments and charges received by the health 
maintenance organization, whether in cash or notes, during the year ending 
on the last day of the preceding calendar year. Upon the receipt of such 
returns the commissioner of insurance shall verify such returns and 
reconcile the fees pursuant to subsection (f) upon such organization on the 
basis and at the rate provided in this section.
(d) Premiums or other charges received by an insurance company 
from the operation of a health maintenance organization subject to this act 
shall not be subject to any fee or tax imposed under the provisions of 
K.S.A. 40-252, and amendments thereto.
(e) Fees charged under this section shall be remitted to the state 
treasurer in accordance with the provisions of K.S.A. 75-4215, and 
amendments thereto. Upon receipt of each such remittance, the state 
treasurer shall deposit the entire amount in the state treasury to the credit 
of the medical assistance fee fund created by K.S.A. 40-3236, and 
amendments thereto.
(f) (1) On and after January 1, 2018, In addition to any other filing or 
return required by this section, each health maintenance organization shall 
submit a report to the commissioner on or before March 31 and September 
30 of each year containing an estimate of the total amount of all premiums, 
subscription charges or any other term that may be used to describe the 
charges made by such organization to enrollees that the organization 
expects to collect during the current calendar year. Upon filing each March 
31 report, the organization shall submit payment equal to ½ of the 
privilege fee that would be assessed by the commissioner for the current 
calendar year based upon the organization's reported estimate. Upon filing 
each September 30 report, the organization shall submit payment equal to 
the balance of the privilege fee that would be assessed by the 
commissioner for the current calendar year based upon the organization's 
reported estimates.
(2) Any amount of privilege fees actually owed by a health 
maintenance organization during any calendar year in excess of estimated 
privilege fees paid shall be assessed by the commissioner and shall be due 
and payable upon issuance of such assessment.
(3) Any amount of estimated privilege fees paid by a health 
maintenance organization during any calendar year in excess of privilege 
fees actually owed shall be reconciled when the commissioner assesses 
privilege fees in the ensuing calendar year. The commissioner shall credit 
such excess amount against future privilege fee assessments. Any such 
excess amount paid by a health maintenance organization that is no longer 
doing business in Kansas and that no longer has a duty to pay the privilege 
fee shall be refunded by the commissioner from funds appropriated by the 
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legislature for such purpose.
Sec. 11. K.S.A. 40-3304 is hereby amended to read as follows: 40-
3304. (a) (1) No person other than the issuer shall make a tender offer for 
or a request or invitation for tenders of, or enter into any agreement to 
exchange securities or, seek to acquire, or acquire, in the open market or 
otherwise, any voting security of a domestic insurer if, after the 
consummation thereof, such person would, directly or indirectly, or by 
conversion or by exercise of any right to acquire, be in control of such 
insurer, and no person shall enter into an agreement to merge with or 
otherwise to acquire control of a domestic insurer or any person 
controlling a domestic insurer unless, at the time any such offer, request, or 
invitation is made or any such agreement is entered into, or prior to the 
acquisition of such securities if no offer or agreement is involved, such 
person has filed with the commissioner of insurance and has sent to such 
insurer, a statement containing the information required by this section and 
such offer, request, invitation, agreement or acquisition has been approved 
by the commissioner of insurance in the manner hereinafter prescribed. 
The requirements of this section shall not apply to the merger or 
consolidation of those companies subject to the requirements of K.S.A. 40-
507 and 40-1216 through 40-1225, and amendments thereto.
(2) For purposes of this section, any controlling person of a domestic 
insurer seeking to divest its controlling interest in the domestic insurer, in 
any manner, shall file with the commissioner, with a copy to the insurer, 
confidential notice of its proposed divestiture at least 30 days prior to the 
cessation of control. The commissioner shall determine those instances in 
which each party seeking to divest or to acquire a controlling interest in an 
insurer shall be required to file for and obtain approval of the transaction. 
The information shall remain confidential until the conclusion of the 
transaction unless the commissioner, in the commissioner's discretion, 
determines that confidential treatment will interfere with enforcement of 
this section. If the statement referred to in paragraph (1) is otherwise filed, 
this paragraph shall not apply.
(3) With respect to a transaction subject to this section, the acquiring 
person shall also be required to file a preacquisition notification with the 
commissioner, and such preacquistion notification shall contain the 
information in the form and manner prescribed by the commissioner 
through rules and regulations.
(4) For the purposes ofAs used in this section:
(A) A "Domestic" insurer shall include includes any person 
controlling a domestic insurer unless such person, as determined by the 
commissioner of insurance, is either directly or through its affiliates 
primarily engaged in business other than the business of insurance.
(B) "Person" shall does not include any securities broker holding, in 
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the usual and customary broker's function, less than 20% of the voting 
securities of the insurance company or of any person which that controls 
the insurance company.
(b) (1) The statement to be filed with the commissioner of insurance 
hereunder shall be made under oath or affirmation, shall be accompanied 
by a nonrefundable filing fee of not to exceed $1,000 and shall contain the 
following information:
(1)(A) The name and address of each person by whom or on whose 
behalf the merger or other acquisition of control referred to in subsection 
(a) is to be affected effected, hereinafter called "acquiring party," and:
(A)(i) If such person is an individual, such individual's principal 
occupation, all offices and positions held by such individual during the 
past five years and any conviction of crimes other than minor traffic 
violations during the past 10 years; and
(B)(ii) if such person is not an individual, a report of the nature of its 
business operations during the past five years or for such lesser shorter 
period as such person and any predecessors thereof shall have been in 
existence;, an informative description of the business intended to be done 
by such person and such person's subsidiaries; and a list of all individuals 
who are or who have been selected to become directors or executive 
officers of such person, or who perform or will perform functions 
appropriate to such positions. Such list shall include for each such 
individual the information required by subparagraph (A) clause (i);
(2)(B) the source, nature and amount of the consideration used or to 
be used in effecting the merger or other acquisition of control, a 
description of any transaction wherein funds were or are to be obtained for 
any such purpose including any pledge of the insurer's stock, or the stock 
of any of its subsidiaries or controlling affiliates, and the identity of 
persons furnishing such consideration, except that where a source of such 
consideration is a loan made in the lender's ordinary course of business, 
the identity of the lender shall remain confidential, if the person filing such 
statement so requests;
(3)(C) fully audited financial information as to the earnings and 
financial condition of each acquiring party for the preceding five fiscal 
years of each such acquiring party or for such lesser period as such 
acquiring party and any predecessors thereof shall have been in existence 
and similar unaudited information as of a date not earlier than 90 days 
prior to the filing of the statement;
(4)(D) any plans or proposals that each acquiring party may have to 
liquidate such insurer, to sell its assets, merge or consolidate it with any 
person or to make any other material change to its business, corporate 
structure or management;
(5)(E) the number of shares of any security referred to in subsection 
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(a) that each acquiring party proposes to acquire and the terms of the offer, 
request, invitation, agreement or acquisition referred to in subsection (a) 
and a statement regarding the method utilized to determine the fairness of 
the proposal;
(6)(F) the amount of each class of any security referred to in 
subsection (a) that is beneficially owned or concerning which there is a 
right to acquire beneficial ownership by each acquiring party;
(7)(G) a full description of any contracts, arrangements or 
understandings with respect to any security referred to in subsection (a) in 
which any acquiring party is involved, including, but not limited to, 
transfer of any of the securities, joint ventures, loan or option 
arrangements, puts or calls, guarantees of loans, guarantees against loss or 
guarantees of profits, division of losses or profits, or the giving or 
withholding of proxies. Such description shall identify the persons with 
whom such contracts, arrangements or understandings have been entered 
into;
(8)(H) a description of the purchase of any security referred to in 
subsection (a) during the 12 calendar months preceding the filing of the 
statement, by any acquiring party, including the dates of purchase, names 
of the purchasers and consideration paid or agreed to be paid therefor;
(9)(I) a description of any recommendations to purchase any security 
referred to in subsection (a) made during the 12 calendar months preceding 
the filing of the statement, by any acquiring party, or by anyone based 
upon interviews or at the suggestion of such acquiring party;
(10)(J) copies of all tender offers for, requests or invitations for 
tenders of, exchange offers for and agreements to acquire or exchange any 
securities referred to in subsection (a) and, if distributed, of additional 
soliciting material relating thereto;
(11)(K) the terms of any agreement, contract or understanding made 
with or proposed to be made with any broker-dealer as to solicitation of 
securities referred to in subsection (a) for tender and the amount of any 
fees, commissions or other compensation to be paid to broker-dealers with 
regard thereto;
(12)(L) an agreement by the person required to file the statement 
referred to in subsection (a) that such person will shall provide the annual 
report, as specified in K.S.A. 40-3305(l), and amendments thereto, for so 
long as control exists;
(13)(M) an acknowledgment by the person required to file the 
statement referred to in subsection (a) that the person and all subsidiaries 
within its control in the insurance holding company system will provide to 
the commissioner of insurance upon request such information as the 
commissioner of insurance deems necessary to evaluate enterprise risk to 
the insurer; and
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(14)(N) such additional information as the commissioner of insurance 
may by rule or regulation prescribe as necessary or appropriate for the 
protection of policyholders of the insurer or in the public interest.
(2) If the person required to file the statement referred to in 
subsection (a) is a partnership, limited partnership, syndicate or other 
group, the commissioner of insurance may require that the information 
called for by paragraphs required pursuant to subparagraphs (1) (A) 
through (14) (N) shall be given provided with respect to each partner of 
such partnership or limited partnership, each member of such syndicate or 
group and each person who controls such partner or member. If any such 
partner, member or person is a corporation or the person required to file 
the statement referred to in subsection (a) is a corporation, the 
commissioner of insurance may require that the information called for by 
paragraphs required pursuant to subparagraphs (1) (A) through (14) (N) 
shall be given provided with respect to such corporation, each officer and 
director of such corporation and each person who is directly or indirectly 
the beneficial owner of more than 10% of the outstanding voting securities 
of such corporation.
(3) If any material change occurs in the facts set forth in the statement 
filed with the commissioner of insurance and sent to such insurer pursuant 
to this section, an amendment setting forth such change, together with 
copies of all documents and other material relevant to such change, shall 
be filed with the commissioner of insurance and sent to such insurer within 
two business days after the such person learns of such change.
(4) Not later than December 1 of each year, the commissioner shall 
set and cause to be published in the Kansas register the fee required 
pursuant to this subsection for the next calendar year.
(c) If any offer, request, invitation, agreement or acquisition referred 
to in subsection (a) is proposed to be made by means of a registration 
statement under the securities act of 1933 or in circumstances requiring the 
disclosure of similar information under the securities exchange act of 
1934, or under a state law requiring similar registration or disclosure, the 
person required to file the statement referred to in subsection (a) may 
utilize such documents in furnishing the information called for by that 
statement.
(d) (1) The commissioner of insurance shall approve any merger or 
other acquisition of control referred to in subsection (a) unless, after a 
public hearing thereon conducted in accordance with the provisions of the 
Kansas administrative procedure act, the commissioner of insurance finds 
that:
(A) After the change of control the domestic insurer referred to in 
subsection (a) would not be able to satisfy the requirements for the 
issuance of a license to write the line or lines of insurance for which it is 
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presently licensed;
(B) the financial condition of any acquiring party is such as might 
jeopardize the financial stability of the insurer or prejudice the interest of 
its policyholders;
(C) the plans or proposals which the acquiring party has to liquidate 
the insurer, sell its assets, consolidate or merge it with any person, or to 
make any other material change in its business, corporate structure or 
management, are unfair and unreasonable to policyholders of the insurer or 
are not in the public interest;
(D) the competence, experience and integrity of those persons who 
would control the operation of the insurer are such that it would not be in 
the interest of policyholders of the insurer or of the public to permit the 
merger or other acquisition of control; or
(E) the acquisition is likely to be hazardous or prejudicial to the 
insurance-buying public.
(2) The public hearing referred to in subsection (d)(1) shall be held as 
soon as practical practicable after the statement required by this 
subsection (a) is filed, and at least 20 days' notice thereof shall be given by 
the commissioner of insurance to the person filing the statement. Not less 
than seven days' notice of such public hearing shall be given by the person 
filing the statement to the insurer and to such other persons as may be 
designated by the commissioner of insurance. At such hearing, the person 
filing the statement, the insurer, any person to whom notice of hearing was 
sent and any other person whose interests may be affected thereby shall 
have the right to present evidence, examine and cross-examine witnesses 
and offer oral and written arguments in accordance with the Kansas 
administrative procedure act. In the absence of intervention, such insurer 
or person shall have the right to present oral or written statements in 
accordance with K.S.A. 77-523(c), and amendments thereto.
(3) If the proposed acquisition of control will require the approval of 
more than one commissioner of insurance, the public hearing referred to in 
paragraph (2) may be held on a consolidated basis upon request of the 
person filing the statement referred to in subsection (a). Such person shall 
file the statement referred to in subsection (a) with the national association 
of insurance commissioners within five days of making the request for a 
public hearing. A commissioner of insurance may opt out of a consolidated 
hearing and shall provide notice to the applicant of the opt-out within 10 
days of the receipt of the statement referred to in subsection (a). A hearing 
conducted on a consolidated basis shall be public and shall be held within 
the United States before the commissioners of insurance of the states in 
which the insurers are domiciled. Such commissioners of insurance shall 
hear and receive evidence. A commissioner of insurance may attend such 
hearing in person or by telecommunication.
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(4) As a condition of a change of control of a domestic insurer, any 
determination by the commissioner of insurance that the person acquiring 
control of the insurer shall be required to maintain or restore the capital of 
the insurer to the level required by the laws and regulations of this state 
shall be made not later than 60 days after the date of notification of the 
change in control submitted pursuant to subsection (a).
(5) The commissioner of insurance may retain at the acquiring 
person's expense any attorneys, actuaries, accountants and other experts 
not otherwise a part of the staff of the commissioner of insurance as the 
commissioner of insurance deems to be reasonably necessary to assist the 
commissioner of insurance in reviewing the proposed acquisition of 
control.
(e) The provisions of this section shall not apply to any offer, request, 
invitation, agreement or acquisition that the commissioner of insurance by 
order shall exempt therefrom as:
(1) Not having been made or entered into for the purpose and not 
having the effect of changing or influencing the control of a domestic 
insurer; or
(2) as otherwise not comprehended within the purposes of this 
section.
(f) The following shall be violations of this section:
(1) The failure to file any statement, amendment or other material 
required to be filed pursuant to subsection (a) or (b); or
(2) the effectuation or any attempt to effectuate an acquisition of 
control of, or merger with, a domestic insurer unless the commissioner of 
insurance has given the requisite approval thereto.
(g) The courts of this state are hereby vested with jurisdiction over 
every securityholder of a domestic insurer and every person not resident, 
domiciled or authorized to do business in this state who files a statement 
with the commissioner of insurance under this section and over all actions 
involving such person arising out of violations of this section. Each such 
person shall be deemed to have performed acts equivalent to and 
constituting an appointment by such a person of the commissioner of 
insurance to be such person's true and lawful attorney upon whom may be 
served all lawful process in any action, suit or proceeding arising out of 
violations of this section. Copies of all such lawful process shall be served 
on the commissioner of insurance and transmitted by registered or certified 
mail by the commissioner of insurance to such person at such person's last 
known address.
Sec. 12. K.S.A. 40-3812 is hereby amended to read as follows: 40-
3812. (a) A person shall apply to be an administrator in its home state and 
shall receive a license from the regulatory authority of its home state prior 
to performing any function of an administrator in this state.
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(b) A person applying to Kansas as its home state shall apply for 
licensure by submitting to the commissioner an application in the form 
prescribed by the commissioner that shall include or be accompanied by 
the following information and documents:
(1) All basic organizational documents of the applicant, including any 
articles of incorporation, articles of association, partnership agreement, 
trade name certificate, trust agreement, shareholder agreement, certificate 
of existence from the Kansas secretary of state and other applicable 
documents and all amendments to such documents;
(2) the bylaws, rules, regulations or similar documents regulating the 
internal affairs of the applicant;
(3) NAIC biographical affidavits for the individuals who are directly 
or indirectly responsible for the conduct of affairs of the applicant, 
including all members of the board of directors, board of trustees, 
executive committee or other governing board or committee, the principal 
officers in the case of a corporation or the partners or members in the case 
of a partnership, association or limited liability company, any shareholders 
or members holding directly or indirectly 10% or more of the voting stock, 
voting securities or voting interest of the applicant and any other person 
who directly or indirectly exercises control or influence over the affairs of 
the applicant;
(4) audited annual financial statements or reports for the two most 
recent fiscal years that demonstrate that the applicant has a positive net 
worth. If the applicant has been in existence for less than two fiscal years, 
the uniform application shall include financial statements or reports, 
certified by at least two officers, owners or directors of the applicant and 
prepared in accordance with GAAP, for any completed fiscal years and for 
any month during the current fiscal year for which such financial 
statements or reports have been completed. An audited annual financial 
report prepared on a consolidated basis shall include a columnar 
consolidating or combining worksheet that shall be filed with the report 
and include the following:
(A) Amounts shown on the consolidated audited financial report 
shown on the worksheet;
(B) amounts for each entity stated separately; and
(C) explanations of consolidating and eliminating entries included.
The applicant shall also include such other information as the 
commissioner may require in order to review the current financial 
condition of the applicant;
(5) in lieu of submitting audited financial statements, and upon 
written application by an applicant and good cause shown, the 
commissioner may grant a hardship exemption from filing audited 
financial statements and allow the submission of unaudited financial 
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statements. Acceptable formats for unaudited financial statements, that 
shall include notes, are:
(A) Reports compiled or reviewed by a certified public accountant; or
(B) (i) internal financial reports prepared in accordance with GAAP, 
certified by at least two officers, owners or directors of the administrator.
(ii) If unaudited financial statements are submitted, the applicant must 
shall also secure and maintain a surety bond in a form prescribed by the 
commissioner for the use and benefit of the commissioner to be held in 
trust for the benefit and protection of covered persons and any payor or 
self-funded plan against loss by reason of acts of fraud or dishonesty, for 
the greater of 10% of funds handled for the benefit of Kansas residents or 
$20,000. Administrators of self-funded plans in Kansas are shall be subject 
to the mandatory surety bond requirement found described in subsection 
(h), regardless of whether they file audited or unaudited financial reports;
(6) a statement describing the business plan, including information on 
staffing levels and activities, proposed in this state and nationwide. The 
plan shall provide details setting forth the applicant's capability for 
providing a sufficient number of experienced and qualified personnel in 
the areas of claims processing, record keeping and underwriting;
(7) a license application fee in the amount of not to exceed $400; and
(8) such other pertinent information as may be required by the 
commissioner.
(c) An administrator licensed or applying for licensure under the 
provisions of this section shall make available for inspection by the 
commissioner, copies of all contracts with payors or other persons utilizing 
the services of the administrator.
(d) An administrator licensed or applying for licensure under the 
provisions of this section shall produce its accounts, records and files for 
examination, and makes its officers available to give information with 
respect to its affairs, as often as reasonably required by the commissioner.
(e) The commissioner may refuse to issue a license if the 
commissioner determines that the applicant or any individual responsible 
for the conduct of affairs of the applicant is not competent, trustworthy, 
financially responsible or of good personal and business reputation, or has 
had an insurance or an administrator certificate of authority or license 
denied or revoked for cause by any jurisdiction, or if the commissioner 
determines that any of the grounds set forth in K.S.A. 40-3810, and 
amendments thereto, exist with respect to the applicant.
(f) A license issued under this section shall remain valid, unless 
surrendered, suspended or revoked by the commissioner, for so long as the 
administrator continues in business in this state and remains in compliance 
with the provisions of this act and any applicable rules and regulations.
(g) An administrator licensed or applying for licensure under the 
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provisions of this section shall immediately notify the commissioner of 
any material change in its ownership, control or other fact or circumstance 
affecting its qualification for a license in this state.
(h) An administrator licensed or applying for a home state license that 
administers or will administer governmental or church self-insured plans 
in this state or any other state shall maintain a surety bond for the use and 
benefit of the commissioner to be held in trust for the benefit and 
protection of covered persons and any payor or self-funded plan against 
loss by reason of acts of fraud or dishonesty. The bond shall be in the 
greater of the following amounts:
(1) $100,000; or
(2) an amount equal to 10% of the aggregate total amount of self-
funded coverage under church plans or governmental plans handled in this 
state and all additional states in which the administrator is authorized to do 
business.
(i) Not later than December 1 of each year, the commissioner shall 
set and cause to be published in the Kansas register the fee required 
pursuant to this section for the next calendar year.
Sec. 13. K.S.A. 40-3813 is hereby amended to read as follows: 40-
3813. (a) Unless an administrator has obtained a home state license in this 
state, any administrator who performs duties as an administrator in this 
state shall obtain a nonresident administrator license in accordance with 
the provisions of this section by filing with the commissioner the uniform 
application, accompanied by a letter of certification. In lieu of requiring an 
administrator to file a letter of certification with the uniform application, 
the commissioner may verify the nonresident administrator's home state 
certificate of authority or license status through an electronic database 
maintained by the NAIC, its affiliates or subsidiaries.
(b) An administrator shall not be eligible for a nonresident 
administrator license under the provisions of this section if it such 
administrator does not hold a license in a home state that has adopted a 
substantially similar law governing administrators.
(c) Except as provided in subsections (b) and (h), the commissioner 
shall issue to the administrator a nonresident administrator license 
promptly upon receipt of a complete application.
(d) Each nonresident administrator shall file biennially, as a part of its 
application for renewal of its license, a statement that its home state 
administrator license remains in force and has not been revoked or 
suspended by its home state during the preceding years. Each nonresident 
administrator renewal application shall be accompanied by a renewal 
application fee in the amount of  not to exceed $200.
(e) At the time of filing the application for licensing required under 
the provisions of this section, the nonresident administrator shall pay a 
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license application fee in the amount of not to exceed $400.
(f) An administrator licensed or applying for licensure under the 
provisions of this section shall produce its accounts, records and files for 
examination, and make its officers available to give information with 
respect to its affairs, as often as reasonably required by the commissioner.
(g) A nonresident administrator is not required to hold a nonresident 
administrator license in this state if the administrator is licensed in its 
home state and the administrator's duties in this state are limited to:
(1) The administration of a group policy or plan and no not more than 
a total of 20% of covered persons, for all plans the administrator services, 
reside in this state; and
(2) the total number of covered persons residing in this state is less 
fewer than 100.
(h) The commissioner may refuse to issue a nonresident administrator 
license, or delay the issuance of a nonresident administrator license, if the 
commissioner determines that, due to events or information obtained 
subsequent to the home state's licensure of the administrator, the 
nonresident administrator cannot satisfy the requirements of this act or that 
grounds exist for the home state's revocation or suspension of the 
administrator's home state certificate of authority or license.
(i) Not later than December 1 of each year, the commissioner shall 
set and cause to be published in the Kansas register the fees required 
pursuant to this section for the next calendar year.
Sec. 14. K.S.A. 40-3814 is hereby amended to read as follows: 40-
3814. (a) Each administrator licensed under the provisions of this act shall 
file an annual report for the preceding calendar year with the 
commissioner on or before July 1 of each year, or within such extension of 
time as the commissioner may grant for good cause, accompanied by an 
annual report fee in the amount of not to exceed $100. Not later than 
December 1 of each year, the commissioner shall set and cause to be 
published in the Kansas register such fee for the next calendar year. 
(b) The annual report shall include:
(1) The complete names and addresses of all payors, and for self-
funded plans, all employers and trusts with which the administrator had 
agreements during the preceding fiscal year.
(2) the number of Kansas residents covered by each of the plans; and
(3) (A) an audited financial statement attested to by an independent 
certified public accountant. An audited annual financial report prepared on 
a consolidated basis shall include a columnar consolidating or combining 
worksheet that shall be filed with the report and. Such worksheet shall 
include the following:
(A)(i) Amounts shown on the consolidated audited financial report 
shown on the worksheet;
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(B)(ii) amounts for each entity stated separately; and
(C)(iii) explanations of consolidating and eliminating entries 
included.
(2)(B) In lieu of submitting an audited financial statement, and upon 
written application by an administrator and good cause shown, the 
commissioner may grant a hardship exemption from filing audited 
financial statements and allow the submission of unaudited financial 
statements. Acceptable formats for unaudited financial statements, that 
which shall include notes, are:
(A)(i) Reports compiled or reviewed by a certified public accountant; 
or
(B)(ii) internal financial reports prepared in accordance with GAAP, 
certified by at least two officers, owners or directors of the administrator.
(C) If unaudited financial statements are submitted, the administrator 
must shall secure and maintain a surety bond in a form prescribed by the 
commissioner for the use and benefit of the commissioner to be held in 
trust for the benefit and protection of covered persons and any payor or 
self-funded plan against loss by reason of acts of fraud or dishonesty, for 
the greater of 10% of funds handled for the benefit of Kansas residents or 
$20,000.
(b)(c) The annual report shall be in the form and contain such matters 
as the commissioner prescribes and shall be verified by at least two 
officers, owners or directors of the administrator.
(c) The annual report shall include the complete names and addresses 
of all payors and for self-funded plans, all employers and trusts, with 
which the administrator had agreements during the preceding fiscal year. 
The report shall also include the number of Kansas residents covered by 
each of the plans.
Sec. 15. K.S.A. 2024 Supp. 40-3823 is hereby amended to read as 
follows: 40-3823. (a) No person shall act or operate as a pharmacy benefits 
manager without first obtaining a valid license issued by the 
commissioner.
(b) Each person seeking a license to act as a pharmacy benefits 
manager shall file with the commissioner an application for a license upon 
a form to be furnished by the commissioner. At a minimum, the 
application form shall include the following information:
(1) The name, address and telephone number of the pharmacy 
benefits manager.;
(2) the name, address, official position and professional qualifications 
of each individual who is responsible for the conduct of the affairs of the 
pharmacy benefits manager, including all members of the board of 
directors, board of trustees, executive committee, other governing board or 
committee, the principal officers in the case of a corporation, the partners 
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or members in the case of a partnership or association.;
(3) the name and address of the applicant's agent for service of 
process in the state.;
(4) the name, address, phone number, email address and official 
position of the employee who will serve as the primary contact for the 
department.;
(5) a copy of the pharmacy benefits manager's corporate charter, 
articles of incorporation or other charter document.;
(6) a template contract, which shall include including a dispute 
resolution process, that ultimately involves an independent fact finder 
between:
(A) The pharmacy benefits manager and the health insurer; or
(B) the pharmacy benefits manager and the pharmacy or a pharmacy's 
contracting agent.; and
(7) a network adequacy report on a form prescribed by the 
department through rules and regulations.
(c) A nonrefundable application fee of not to exceed $2,500. Not later 
than December 1 of each year, the commissioner shall set and cause to be 
published in the Kansas register such fee for the next calendar year.
(d) The licensee shall inform the commissioner, by any means 
acceptable to the commissioner, of any material change in the information 
required by this subsection within 90 days of such change. Failure to 
timely inform the commissioner of a material change may result in a 
penalty against the licensee in the amount of $500.
(e) Within 90 days after receipt of a completed application, the 
network adequacy report and the applicable license fee, the commissioner 
shall review the application and issue a license if the applicant is deemed 
qualified under this section. If the commissioner determines that the 
applicant is not qualified, the commissioner shall notify the applicant and 
shall specify the reason for the denial.
(f) (1) All documents, materials or other information and copies 
thereof in the possession or control of the department or any other 
governmental entity that are obtained by or disclosed to the commissioner 
or any other person in the course of an application, examination or 
investigation made pursuant to this act shall be confidential by law and 
privileged, shall not be subject to any open records, freedom of 
information, sunshine or other public record disclosure laws, and shall not 
be subject to subpoena or discovery.
(2) The provisions of paragraph (1) shall only apply to the disclosure 
of the confidential documents described in paragraph (1) by the 
department or any other governmental entity and shall not be construed to 
create any privilege in favor of any other party.
(3) The provisions of this subsection shall expire on July 1, 2027, 
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unless the legislature reviews and reenacts this provision pursuant to 
K.S.A. 45-229, and amendments thereto, prior to July 1, 2027.
Sec. 16. K.S.A. 2024 Supp. 40-3824 is hereby amended to read as 
follows: 40-3824. (a) Each pharmacy benefits manager license shall expire 
on March 31 of each year and may be renewed annually on the request of 
the licensee. The application for renewal shall be submitted on a form 
furnished by the commissioner and accompanied by a renewal fee of  not 
to exceed $2,500. The application for renewal shall be in such form and 
contain such matters as the commissioner prescribes.
(b) If a license renewal fee is not paid by the prescribed date, the 
amount of the fee, plus a penalty fee of  not to exceed $2,500 shall be paid. 
The pharmacy benefits manager's license may be revoked or suspended by 
the commissioner until the renewal fee and any penalty assessed has been 
paid.
(c) Any person who performs or is performing any pharmacy benefits 
management service shall be required to obtain a license as a pharmacy 
benefits manager from the commissioner not later than January 1, 2023, in 
order to continue to do business in Kansas.
(d) Not later than December 1 of each year, the commissioner shall 
set and cause to be  published in the Kansas register the fees required 
pursuant to this section for the next calendar year.
Sec. 17. K.S.A. 40-4103 is hereby amended to read as follows: 40-
4103. Risk retention groups chartered in states other than this state seeking 
to do business as a risk retention group in this state shall observe and abide 
by the laws of this state as follows:
(a) Notice of operations and designation of commissioner as agent. 
Before offering insurance in this state, a risk retention group shall submit 
to the commissioner:
(1) A statement identifying the state or states in which the risk 
retention group is chartered and licensed as a liability insurance company, 
date of chartering, its principal place of business and such other 
information, including information on its membership, as the 
commissioner of this state may require to verify that the risk retention 
group is qualified under K.S.A. 40-4101(k), and amendments thereto;
(2) a copy of its plan of operations or a feasibility study and revisions 
of such plan or study submitted to its state of domicile, except that the 
provision relating to the submission of a plan of operation or a feasibility 
study shall not apply with respect to any line or classification of liability 
insurance that was:
(A) Was Defined in the product liability risk retention act of 1981 
before October 27, 1986; and
(B) was offered before such date by any risk retention group that had 
been chartered and operating for not less than three years before such date;
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(3) a statement of registration that designates the commissioner as its 
agent for the purpose of receiving service of legal documents or process; 
and
(4) a notification fee in the amount of not to exceed $250. Not later 
than December 1 of each year, the commissioner shall set and cause to be 
published in the Kansas register such fee for the next calendar year.
(b) Financial condition. Any risk retention group doing business in 
this state shall submit to the commissioner:
(1) A copy of the group's financial statement submitted to its state of 
domicile that contains a statement of opinion on loss and loss adjustment 
expense reserves made by a member of the American academy of actuaries 
or a qualified loss reserve specialist under criteria established by the 
national association of insurance commissioners;
(2) a copy of each examination of the risk retention group as certified 
by the commissioner or public official conducting the examination;
(3) upon request by the commissioner, a copy of any audit performed 
with respect to the risk retention group; and
(4) such information as may be required to verify its continuing 
qualification as a risk retention group under K.S.A. 40-4101(k), and 
amendments thereto.
(c) Taxation. (1) All premiums paid for coverages within this state to 
risk retention groups chartered outside this state shall be subject to taxation 
at the same rate and subject to the same interest, fines and penalties for 
nonpayment as that provided by K.S.A. 40-246c, and amendments thereto. 
Risk retention groups chartered or licensed in this state shall be taxed in 
accordance with K.S.A. 40-252, and amendments thereto.
(2) To the extent agents or brokers are utilized, they shall report and 
pay the taxes for the premiums for risks that they have placed with or on 
behalf of a risk retention group not chartered in this state.
(3) To the extent agents or brokers are not utilized or fail to pay the 
tax, each risk retention group shall pay the tax for risks insured within the 
state. Each risk retention group shall report all premiums paid to it for 
risks insured within the state.
(d) Compliance with unfair claims settlement practices law. Any risk 
retention group, its agents and representatives, shall comply with K.S.A. 
40-2404(9), and amendments thereto.
(e) Deceptive, false or fraudulent practices. Any risk retention group 
shall comply with the laws of this state regarding deceptive, false or 
fraudulent acts or practices, except that if the commissioner seeks an 
injunction regarding such conduct, the injunction shall be obtained from a 
court of competent jurisdiction.
(f) Examination regarding financial condition. Any risk retention 
group shall submit to an examination in accordance with K.S.A. 40-222 
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and 40-223, and amendments thereto, by the commissioner to determine 
its financial condition if the commissioner of the jurisdiction in which the 
group is chartered has not initiated an examination or does not initiate an 
examination within 60 days after a request by the commissioner of this 
state.
(g) Notice to purchasers. Any policy issued by a risk retention group 
shall contain in 10 point type on the front page and the declaration page, 
the following notice:
NOTICE
This policy is issued by your risk retention group. Your risk retention 
group may not be subject to all of the insurance laws and regulations of 
your state. State insurance insolvency guaranty funds are not available for 
your risk retention group.
(h) Prohibited acts regarding solicitation or sale. The following acts 
by a risk retention group are hereby prohibited:
(1) The solicitation or sale of insurance by a risk retention group to 
any person who is not eligible for membership in such group; and
(2) the solicitation or sale of insurance by, or operation of, a risk 
retention group that is in a hazardous financial condition or is financially 
impaired.
(i) Prohibition on ownership by an insurance company. No risk 
retention group shall be allowed to do business in this state if an insurance 
company is directly or indirectly a retention group all of whose members 
are insurance companies.
(j) Prohibited coverage. No risk retention group may offer insurance 
policy coverage prohibited by the laws of this state or declared unlawful 
by the supreme court of the state of Kansas.
(k) Delinquency proceedings. A risk retention group not chartered in 
this state and doing business in this state must comply with a lawful order 
issued in a voluntary dissolution proceeding or in a delinquency 
proceeding commenced by a state insurance commissioner if there has 
been a finding of financial impairment after an examination under 
subsection (f).
Sec. 18. K.S.A. 40-4116 is hereby amended to read as follows: 40-
4116. (a) (1) A purchasing group which that intends to do business in this 
state shall furnish notice to the commissioner which shall:
(1)(A) IdentifyIdentifying the state in which the group is domiciled;
(2)(B) specifyspecifying the lines and classifications of liability 
insurance which that the purchasing group intends to purchase;
(3)(C) identifyidentifying the insurance company from which the 
group intends to purchase its insurance and the domicile of such company;
(4)(D) identifyidentifying the principal place of business of the group; 
and
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(5)(E) provideproviding such other information as may be required by 
the commissioner to verify that the purchasing group is qualified under 
subsection (j) of K.S.A. 40-4101(j), and amendments thereto.
(2) The notice submitted to the commissioner shall be accompanied 
by a notification fee of  not to exceed $250.
(b) The purchasing group shall file with the insurance department its 
written consent, irrevocable, that any action or garnishment proceeding 
may be commenced against such group in the proper court of any county 
in this state in which the cause of action shall arise or in which the plaintiff 
may reside by the service of process on the commissioner of insurance of 
this state and stipulating and agreeing that such service shall be taken and 
held in all courts to be as valid and binding as if due service had been 
made upon the president or chief officer of such corporation. Such consent 
shall be executed by the president of the company and shall be 
accompanied by a certified copy of the order or resolution of the board of 
directors, trustees or managers authorizing the president to execute the 
same. The summons, accompanied by a fee of not to exceed $25, shall be 
directed to the commissioner of insurance and shall require the defendant 
to answer not less than 40 days from its date. Such summons, and a 
certified copy of the petition shall be forthwith immediately forwarded by 
the clerk of the court to the commissioner of insurance, who shall 
immediately forward a copy of the summons and the certified copy of the 
petition, to the president of the group sued, and thereupon the 
commissioner of insurance shall make return of the summons to the court 
from which it issued, showing the date of the receipt by the commissioner, 
the date of forwarding of such copies and the name and address of the 
person to whom the commissioner forwarded the copy. Such return shall 
be made under the commissioner's hand and seal of office, and shall have 
the same force and effect as a due and sufficient return made by the sheriff 
on process directed to the sheriff. The foregoing shall not apply in the case 
of a purchasing group which that:
(1) (A) Was domiciled before April 2, 1986; and
(B) is domiciled on and after October 27, 1986, in any state of the 
United States;
(2) (A) before October 27, 1986, purchased insurance from an 
insurance carrier licensed in any state; and
(B) since October 27, 1986, purchased its insurance from an 
insurance carrier licensed in any state;
(3) was a purchasing group under the requirements of the product 
liability retention act of 1981 before October 27, 1986; and
(4) does not purchase insurance that was not authorized for purposes 
of an exemption under that act, as in effect before October 27, 1986.
(c) Not later than December 1 of each year, the commissioner shall 
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set and cause to be published in the Kansas register the fees required 
pursuant to this section for the next calendar year.
Sec. 19. K.S.A. 2024 Supp. 40-4209 is hereby amended to read as 
follows: 40-4209. (a) (1) No person shall act as or hold such person out to 
be a prepaid service plan in this state unless such person holds a certificate 
of registration as a prepaid service plan issued by the commissioner of 
insurance. An application for such certificate may be made to the 
commissioner of insurance on forms prescribed by the commissioner and 
shall include: 
(A) The completed application form;
(B) a list of each individual who solicits memberships on behalf of 
such prepaid service plan; and
(C) a filing fee of not to exceed $100.
(2) The certificate of registration may be continued for successive 
annual periods by notifying the commissioner of such intent, paying an 
annual continuation fee of not to exceed $50 and advising the 
commissioner of insurance of any additions to or deletions from the list of 
individuals who solicit memberships on behalf of such prepaid service 
plan since the last reporting date.
(b) The certificate of registration shall be issued to or continued for a 
prepaid service plan by the commissioner of insurance unless the 
commissioner of insurance, after due notice and hearing, determines that 
the prepaid service plan is not competent, trustworthy, financially 
responsible or of good personal and business reputation, or has had a 
previous application for a certificate of registration denied for cause since 
January 1, 1988, or within five years of the date of application, whichever 
is later.
(c) Not later than December 1 of each year, the commissioner shall 
set and cause to be published in the Kansas register the fees required 
pursuant to this section for the next calendar year.
Sec. 20. K.S.A. 2024 Supp. 40-4302 is hereby amended to read as 
follows: 40-4302. (a) Any captive insurance company, when permitted by 
its organizational documents, may apply to the commissioner for a 
certificate of authority to do any and all insurance comprised in K.S.A. 40-
901 et seq., 40-1102(1)(a), and (1)(c) through (1)(n), and amendments 
thereto, and to issue life, accident and health insurance policies provided 
that:
(1) No pure captive insurance company shall insure any risks other 
than those of its parent and affiliated companies and, upon prior approval 
of the commissioner, any controlled unaffiliated business up to 5% of total 
direct written premium;
(2) no association captive insurance company shall insure any risks 
other than those of its association and those of the member organizations 
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of its association. No association captive insurance company shall expose 
itself to loss on any one risk or hazard in an amount exceeding 10% of its 
paid-up capital and surplus;
(3) no captive insurance company shall provide personal lines of 
insurance, workers' compensation, employers' liability insurance coverage, 
long-term care coverage, critical care coverage, surety, title insurance, 
credit insurance or any component thereof, except that a technology-
enabled fiduciary financial institution insurance company shall be 
permitted to provide contracts of suretyship and credit insurance in 
accordance with K.S.A. 2024 Supp. 40-4354, and amendments thereto;
(4) no captive insurance company shall accept or cede reinsurance 
except as provided in K.S.A. 40-4311, and amendments thereto;
(5) no captive insurance company shall provide accident and health, 
life insurance or annuities on a direct basis;
(6) no captive insurance company authorized as a life insurance 
company shall transact business other than life insurance; and
(7) no captive insurance company authorized to transact business 
under article 9 or 11 of chapter 40 of the Kansas Statutes Annotated, and 
amendments thereto, shall engage in the business of life insurance.
(b) No captive insurance company organized under the laws of this 
state shall do any insurance business in this state unless:
(1) It first obtains from the commissioner a certificate of authority 
authorizing it to do insurance business in this state;
(2) its board of directors, members, partners, managers, committee of 
managers or other governing body holds at least one meeting each year in 
this state;
(3) it maintains its principal place of business in this state; and
(4) it authorizes the commissioner to accept service of process on its 
behalf in accordance with K.S.A. 40-218, and amendments thereto.
(c) Before receiving a certificate of authority, an applicant captive 
insurance company shall file with the commissioner:
(1) A copy of the applicant captive insurance company's 
organizational documents; and
(2) a plan of operation or a feasibility study describing the anticipated 
activities and results of the applicant captive insurance company that shall 
include:
(A) The company's loss prevention program of its parent and 
insureds, as applicable;
(B) historical and expected loss experience of the risks to be insured 
or reinsured by the applicant captive insurance company;
(C) pro forma financial statements and projections of the proposed 
business operations of the applicant captive insurance company;
(D) an analysis of the adequacy of the applicant captive insurance 
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company's proposed premiums, assets and capital and surplus levels 
relative to the risks to be insured or reinsured by the captive insurance 
company;
(E) a statement of the applicant captive insurance company's net 
retained limited liability on any contract of insurance or reinsurance it 
intends to issue and the nature of any reinsurance it intends to cede;
(F) a statement certifying that the applicant captive insurance 
company's investment policy is in compliance with this act and specifying 
the type of investments to be made;
(G) a statement identifying the geographic areas in which the 
applicant captive insurance company intends to operate;
(H) a statement identifying the persons or organizations that will 
perform the applicant captive insurance company's major operational 
functions, including management, underwriting, accounting, asset 
investment, claims adjusting and loss control and the adequacy of the 
expertise, experience and character of such persons or organizations; and
(I) whenever required by the commissioner, an appropriate opinion 
by a qualified independent actuary regarding the adequacy of the applicant 
captive insurance company's proposed capital, surplus and premium levels;
(3) a description of the coverages, deductibles, coverage limits, rates 
and forms, together with any additional information that the commissioner 
may require;
(4) such other items deemed relevant by the commissioner in 
ascertaining whether the proposed captive insurance company will be able 
to meet its obligations; and
(5) any modification or change in the items required under this 
subsection that shall require the prior approval of the commissioner.
(d) Each captive insurance company not in existence on January 1, 
2018, shall pay to the commissioner a nonrefundable fee of not to exceed 
$10,000 for examining, investigating and processing its application for a 
certificate of authority. The commissioner is authorized to retain legal, 
financial, actuarial, analysis and examination services from outside the 
department, the reasonable costs of which shall be charged against the 
applicant. In addition, it shall pay a renewal fee for each year thereafter of 
not to exceed $10,000. Not later than December 1 of each year, the 
commissioner shall set and cause to be published in the Kansas register 
the fee required by this subsection for the next calendar year.
(e) Each captive insurance company already in existence on January 
1, 2018, shall pay an annual renewal fee of $110 until January 1, 2028, 
after which date the provisions of subsection (d) shall apply.
(f) If the commissioner is satisfied that the documents and statements 
that such captive insurance company has filed comply with the provisions 
of this act, the commissioner may grant a certificate of authority 
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authorizing a:
(1) Captive insurance company other than a technology-enabled 
fiduciary financial institution to do insurance business in this state until 
March 1 thereafter, which certificate of authority may be renewed; and
(2) technology-enabled fiduciary financial institution insurance 
company to do insurance business in this state until the later of March 1 
thereafter or the maturity date of the last payment-in-kind asset held by 
such technology-enabled fiduciary financial institution insurance company 
pursuant to this act.
(g)(f) Information submitted under this section shall be and remain 
confidential, and shall not be made public by the commissioner or any 
employee or agent of the commissioner without the written consent of the 
company, except that:
(1) Such information may be discoverable by a party in a civil action 
or contested case to which the captive insurance company that submitted 
such information is a party, upon a showing by the party seeking to 
discover such information that:
(A) The information sought is relevant to and necessary for the 
furtherance of such action or case;
(B) the information sought is unavailable from other non-confidential 
sources;
(C) a subpoena issued by a judicial or administrative officer or 
competent jurisdiction has been submitted to the commissioner; and
(D) the privacy of a qualified policyholder shall be protected in any 
court proceeding concerning such qualified policyholder if the technology-
enabled fiduciary financial institution insurance company so petitions the 
court. Upon the filing of such petition, any information, including, but not 
limited to, an instrument, inventory, statement or verified report produced 
by the technology-enabled fiduciary financial institution insurance 
company regarding a policy issued to a qualified policyholder or payment-
in-kind assets held by the technology-enabled fiduciary financial 
institution insurance company to satisfy claims of such qualified 
policyholder, all payment-in-kind policies, all petitions relevant to such 
information and all court orders thereon, shall be sealed upon filing and 
shall not be made a part of the public record of the proceeding, except that 
such petition shall be available to the court, the commissioner, the 
technology-enabled fiduciary financial institution insurance company, their 
attorneys and to such other interested persons as the court may order upon 
a showing of good cause;
(2) the commissioner may disclose such information to a public 
officer having jurisdiction over the regulation of insurance in another state, 
provided that if:
(A) Such public official shall agree in writing to maintain the 
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confidentiality of such information; and
(B) the laws of the state in which such public official serves requires 
such information to be and to remain confidential;
(3) access may also be granted to the national association of 
insurance commissioners and its affiliates, and the international 
association of supervisors and its affiliates. Such parties must shall agree 
in writing prior to receiving the information to provide to it the same 
confidential treatment as required by this section, unless the company 
gives prior written consent; and
(4) the privacy of those who have established an affiliated fidfin trust 
or alternative asset custody account shall be protected in any court 
proceeding concerning such trust or custody account if the acting trustee, 
custodian, trustor or any beneficiary so petition the court. Upon the filing 
of such a petition, the instrument, inventory, statement filed by any trustee 
or custodian, annual verified report of the trustee or custodian and all 
petitions relevant to trust administration and all court orders thereon shall 
be sealed upon filing and shall not be made a part of the public record of 
the proceeding, except that such petition shall be available to the court, the 
trustor, the trustee, the custodian, any beneficiary, their attorneys and to 
such other interested persons as the court may order upon a showing of 
good cause.
Sec. 21. K.S.A. 40-4323 is hereby amended to read as follows: 40-
4323. (a) As used in this section, unless the context requires otherwise, 
"dormant captive insurance company" means a captive insurance company 
that has:
(1) Ceased transacting the business of insurance, including the 
issuance of insurance policies; and
(2) no remaining liabilities associated with insurance business 
transactions or insurance policies issued prior to the filing of its 
application for a certificate of dormancy under this section.
(b) A captive insurance company domiciled in Kansas that meets the 
criteria of subsection (a) may apply to the commissioner for a certificate of 
dormancy. The certificate of dormancy shall be subject to renewal every 
five years and shall be forfeited if not renewed within such time.
(c) A dormant captive insurance company that has been issued a 
certificate of dormancy shall:
(1) Possess and thereafter maintain unimpaired, paid-in capital and 
surplus of not less than $25,000;
(2) prior to March 15 of each year, submit to the commissioner a 
report of its financial condition, verified by oath by two of its executive 
officers, in a form as may be prescribed by the commissioner; and
(3) pay a license renewal fee of not to exceed $500. Not later than 
December 1 of each year, the commissioner shall set and cause to be 
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published in the Kansas register such fee required pursuant to this 
paragraph.
(d) A dormant captive insurance company shall not be subject to or 
liable for the payment of any tax under K.S.A. 40-4314, and amendments 
thereto, or as provided in article 28 of chapter 40 of the Kansas Statutes 
Annotated, and amendments thereto.
(e) A dormant captive insurance company shall apply to the 
commissioner for approval to surrender its certificate of dormancy and 
resume conducting the business of insurance prior to issuing any insurance 
policies.
(f) A certificate of dormancy shall be revoked if a dormant captive 
insurance company no longer meets the criteria of subsection (a).
(g) The commissioner may promulgate rules and regulations as 
necessary to carry out the provisions of this section.
Sec. 22. K.S.A. 40-4334 is hereby amended to read as follows: 40-
4334. (a) To transact business in Kansas, a special purpose insurance 
captive shall:
(1) Obtain from the commissioner a certificate of authority 
authorizing it to conduct reinsurance business in Kansas;
(2) hold at least one meeting of its board of directors each year within 
Kansas;
(3) maintain its principal place of business in Kansas;
(4) authorize the commissioner to accept service of process on its 
behalf in accordance with K.S.A. 40-218, and amendments thereto;
(5) maintain unimpaired paid-in capital and surplus of not less than 
$5,000,000;
(6) maintain a risk-based capital of at least 200%; and
(7) pay all applicable fees as required by this act.
(b) A special purpose insurance captive, when permitted by its 
organizational documents, may apply to the commissioner for a certificate 
of authority to conduct reinsurance in Kansas as authorized by this section.
(1) An authorized special purpose insurance captive may only 
reinsure the risks of its ceding company. A special purpose insurance 
captive may reinsure risks of more than one ceding company, provided if 
all ceding companies from which a special purpose insurance captive 
assumes risks shall be are affiliated with one another.
(2) An authorized special purpose insurance captive may cede all or a 
portion of its assumed risks under ceded reinsurance agreements.
(3) An authorized special purpose insurance captive may take credit 
or a reduction from liability for the reinsurance of risks or portions of risks 
ceded to a reinsurer in accordance with K.S.A. 40-221a, and amendments 
thereto, or as otherwise approved by the commissioner.
(c) To obtain a certificate of authority to transact business as a special 
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purpose insurance captive in Kansas, the special purpose insurance captive 
shall:
(1) File an application, which that shall include the following:
(A) Certified copies of its organizational documents;
(B) a statement under oath from any of the applicant's officers as to 
the financial condition of the applicant as of the time the application is 
filed;
(C) evidence of the applicant's assets as of the time of the application;
(D) complete biographical sketches for each officer and director on 
forms created by the NAIC;
(E) a plan of operation as described in K.S.A. 40-4335, and 
amendments thereto;
(F) an affidavit signed by the applicant that the special purpose 
insurance captive will operate only in accordance with the provisions of 
this section and its plan of operation;
(G) a description of the investment strategy the special purpose 
insurance captive will follow; and
(H) a description of the source and form of the initial minimum 
capital proposed in the plan of operation; and
(2) have deposited with the commissioner of insurance pursuant to 
K.S.A. 40-229a, and amendments thereto, securities authorized by K.S.A. 
40-2a01 et seq., and amendments thereto, in an amount equal to not less 
than the minimum capital stock required of such company for the 
protection of its policyholders or creditors, or both;
(3) demonstrate that the minimum surplus required is established and 
held in Kansas; and
(4) provide copies of any filings made by the ceding company with 
the ceding company's domiciliary insurance regulator to obtain approval 
for the ceding company to enter into the special purpose insurance captive 
contract and copies of any filings made by any affiliate of the special 
purpose insurance captive to obtain regulatory approval to contribute 
capital to the special purpose insurance captive or to acquire direct or 
indirect ownership of the special purpose insurance captive. The special 
purpose insurance captive shall provide copies of any letters of approval or 
disapproval received from the insurance regulator responding to such 
filing.
(d) The commissioner may require the special purpose insurance 
captive to revise its plan of operation under K.S.A. 40-4335, and 
amendments thereto, and meet all requirements imposed by a revised plan 
of operation as approved by the commissioner thereunder.
(e) The department shall act upon a complete application within 30 
days of its filing. Upon good cause shown, the commissioner may extend 
the time to act on the application by 30 days.
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(f) In the event that the ceding company is not required to make 
filings with its domiciliary insurance regulator as described in subsection 
(c)(4), no such filing shall be required under subsection (c)(4) in Kansas, 
provided if the applicant provides the commissioner with a certification 
signed by one of its officers attesting that no such filing is required with 
the ceding company's domiciliary regulator.
(g) Once granted, a certificate of authority under this section shall 
continue until March 1 of each year. At such time, the certificate of 
authority may be renewed at the discretion of the commissioner.
(h) A special purpose insurance captive shall pay to the commissioner 
a nonrefundable application fee of not to exceed $10,000 for examining, 
investigating and processing its application for certificate of authority, and 
the commissioner is authorized to retain legal, financial, actuarial and 
examination services from outside the department, the reasonable costs of 
which may be additionally charged against the applicant. In addition, each 
special purpose insurance captive shall pay a renewal fee for each year 
thereafter of not to exceed $10,000 for each subsequent year. Not later 
than December 1 of each year, the commissioner shall set and cause to be 
published in the Kansas register the fee required pursuant to this 
subsection for the next calendar year.
Sec. 23. K.S.A. 40-4503 is hereby amended to read as follows: 40-
4503. (a) No person, firm, association or corporation shall act as a 
reinsurance broker in this state if the reinsurance broker maintains an 
office either directly or as a member or employee of a firm or association, 
or as an officer, director or employee of a corporation:
(1) In this state, unless such reinsurance broker is a licensed producer 
in this state; or
(2) in another state, unless such reinsurance broker is a licensed 
producer in this state or another state having a law substantially similar to 
this act or such reinsurance broker is licensed in this state as a nonresident 
reinsurance intermediary.
(b) No person, firm, association or corporation shall act as a 
reinsurance manager:
(1) For a reinsurer domiciled in this state, unless such reinsurance 
manager is a licensed producer in this state;
(2) in this state, if the reinsurance manager maintains an office either 
directly or as a member or employee of a firm or association, or an officer, 
director or employee of a corporation in this state, unless such reinsurance 
manager is a licensed producer in this state;
(3) in another state for a nondomestic insurer, unless such reinsurance 
manager is a licensed producer in this state or another state having a law 
substantially similar to this act or such person is licensed in this state as a 
nonresident reinsurance intermediary.
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(c) The commissioner may require a reinsurance manager subject to 
subsection (b) to file a bond in an amount from an insurer acceptable to the 
commissioner for the protection of each reinsurer represented.
(d) (1) The commissioner may issue a reinsurance intermediary 
license to any person, firm, association or corporation who has complied 
with the requirements of this act. Before any such license may be issued, 
the applicant shall submit proper application therefor on a form prescribed 
by the commissioner which that shall be accompanied by an initial fee of 
not to exceed  $150. Any license so issued shall remain in effect until 
suspended, revoked, voluntarily surrendered or otherwise terminated by 
the commissioner or licensee subject to payment of an annual continuation 
fee of not to exceed $100 on or before May 1 of each year. Any such 
license issued to a firm or association will authorize all the members of 
such firm or association and any designated employees to act as 
reinsurance intermediaries under the license, and all such persons shall be 
named in the application and any supplements thereto. Any such license 
issued to a corporation shall authorize all of the officers, and any 
designated employees and directors thereof, to act as reinsurance 
intermediaries on behalf of such corporation, and all such persons shall be 
named in the application and any supplements thereto.
(2) If the applicant for a reinsurance intermediary license is a 
nonresident, such applicant, as a condition precedent to receiving or 
holding a license, shall designate the commissioner as agent for service of 
process in the manner, and with the same legal effect, as is provided for by 
this act for designation of service of process upon insurers holding a 
Kansas certificate of authority. Such applicant shall furnish the 
commissioner with the name and address of a resident of this state upon 
whom notices or orders of the commissioner or process affecting such 
nonresident reinsurance intermediary may be served. Such licensee shall 
promptly notify the commissioner in writing of every change in its 
designated agent for service of process, and such change shall not become 
effective until acknowledged by the commissioner.
(3) Not later than December 1 of each year, the commissioner shall 
set and cause to be  published in the Kansas register the fee required 
pursuant to this subsection for the next calendar year.
(e) The commissioner may, after a hearing conducted in accordance 
with the provisions of the Kansas administrative procedure act, and held 
on not less than 20 days' notice, refuse to issue a reinsurance intermediary 
license if, in the judgment of the commissioner,: (1) The applicant, any 
one named on the application, or any member, principal, officer or director 
of the applicant, is not trustworthy, or; (2) any controlling person of such 
applicant is not trustworthy to act as a reinsurance intermediary,; or (3) 
any of the foregoing has given cause for revocation or suspension of such 
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license, or has failed to comply with any prerequisite for the issuance of 
such license.
(f) Licensed attorneys at law in this state when acting in their 
professional capacity as such shall be exempt from this section.
Sec. 24. K.S.A. 2024 Supp. 40-4903 is hereby amended to read as 
follows: 40-4903. (a) Unless denied licensure pursuant to K.S.A. 40-4909, 
and amendments thereto, any person who meets the requirements of 
K.S.A. 40-4905, and amendments thereto, shall be issued an insurance 
agent license. An insurance agent may receive qualifications for a license 
in one or more of the following lines of authority:
(1) Life: Insurance coverage on human lives including benefits of 
endowment and annuities, and may include benefits in the event of death 
or dismemberment by accident and benefits for disability income.
(2) Accident and health or sickness: Insurance coverage for sickness, 
bodily injury or accidental death, and may include benefits for disability 
income.
(3) Property: Insurance coverage for the direct or consequential loss 
or damage to property of every kind.
(4) Casualty: Insurance coverage against legal liability, including that 
for death, injury or disability or damage to real or personal property.
(5) Variable life and variable annuity products: Insurance coverage 
provided under variable life insurance contracts, variable annuities or any 
other life insurance or annuity product that reflects the investment 
experience of a separate account.
(6) Personal lines: Property and casualty insurance coverage sold 
primarily to an individual or family for noncommercial purposes.
(7) Credit: Limited line credit insurance.
(8) Crop insurance: Limited line insurance for damage to crops from 
unfavorable weather conditions, fire, lightning, flood, hail, insect 
infestation, disease or other yield-reducing conditions or any other peril 
subsidized by the federal crop insurance corporation, including multi-peril 
crop insurance.
(9) Title insurance: Limited line insurance that insures titles to 
property against loss by reason of defective titles or encumbrances.
(10) (A) Travel insurance: Limited line insurance for personal risks 
incidental to planned travel, including, but not limited to:
(i) Interruption or cancellation of trip or event;
(ii) loss of baggage or personal effects;
(iii) damages to accommodations or rental vehicles;
(iv) sickness, accident, disability or death occurring during travel.;
(v) emergency evacuation;
(vi) repatriation of remains; or
(vii) any other contractual obligations to indemnify or pay a specified 
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amount to the traveler upon determinable contingencies related to travel as 
approved by the commissioner.
(B) Travel insurance does not include major medical plans that 
provide comprehensive medical protection for travelers with trips lasting 
six months or longer, for example, persons working overseas, including 
military personnel deployed overseas.
(11) Pre-need funeral insurance: Limited line insurance that allows 
for the purchase of a life insurance or annuity contract by or on behalf of 
the insured solely to fund a pre-need contract or arrangement with a 
funeral home for specific services.
(12) Bail bond insurance: Limited line insurance that provides surety 
for a monetary guarantee that an individual released from jail will be 
present in court at an appointed time.
(13) Self-service storage unit insurance: Limited line insurance 
relating to the rental of self-service storage units, including:
(A) Personal effects insurance that provides coverage to renters of 
storage units at the same facility for the loss of, or damage to, personal 
effects that occurs at the same facility during the rental period; and
(B) any other coverage that the commissioner may approve as 
meaningful and appropriate in connection with the rental of storage units. 
Such insurance may only be issued in accordance with K.S.A. 40-241, and 
amendments thereto.
(14) Any other line of insurance permitted under the provisions of 
chapter 40 of the Kansas Statutes Annotated, and amendments thereto, and 
any rules and regulations promulgated thereunder.
(b) Unless suspended, revoked or refused renewal pursuant to K.S.A. 
40-4909, and amendments thereto, an insurance agent license shall remain 
in effect as long as:
(1) Education requirements for resident individual agents are met by 
such insurance agent's biennial due date;
(2) such insurance agent submits an application for renewal on a form 
prescribed by the commissioner; and
(3) such insurance agent pays a biennial renewal application fee of 
not to exceed $4.
(c) Except as provided in paragraphs (1) through (4), each licensed 
insurance agent shall biennially obtain a minimum of 18 C.E.C.s that 
include at least three hours of instruction in insurance ethics that also may 
include regulatory compliance.
(1) Each licensed insurance agent who is an individual and holds only 
a crop qualification shall biennially obtain a minimum of two C.E.C.s in 
courses certified as crop C.E.C.s under the property and casualty category.
(2) Each licensed insurance agent who is an individual and is licensed 
only for title insurance shall biennially obtain a minimum of four C.E.C.s 
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in courses certified by the board of abstract examiners as title C.E.C.s 
under the property and casualty category.
(3) Each licensed insurance agent who is an individual and holds a 
life insurance license solely for the purpose of selling pre-need funeral 
insurance or annuity products shall file a report on or before such agent's 
biennial due date affirming that such agent transacted no other insurance 
business during the period covered by the report and shall provide 
certification from an officer of each insurance company that has appointed 
such agent that the agent transacted no other insurance business during the 
period covered by the report. Agents who have offered to sell or sold only 
pre-need funeral insurance are exempt from the requirement to obtain 
C.E.C.s.
(4) Each licensed insurance agent who is an individual and holds only 
a bail bond, self-service storage unit or travel insurance qualification is 
exempt from the requirement to obtain C.E.C.s.
(5) (A) A licensed insurance agent who is a member of the national 
guard or any reserve component of the armed services of the United States 
who serves on active duty for at least 90 consecutive days shall be exempt 
from the requirement to obtain C.E.C.s during the time that such insurance 
agent is on active duty.
(B) The commissioner shall grant an extension to any licensed 
insurance agent described in subparagraph (A) until the biennial due date 
that occurs in the year next succeeding the year in which such active duty 
ceases.
(d) An instructor of an approved subject shall be entitled to the same 
C.E.C. as a student completing the study.
(e) (1) An individual insurance agent who has been licensed for more 
than one year, on or before such insurance agent's biennial due date, shall 
file a report with the commissioner certifying that such insurance agent has 
met the continuing education requirements for the previous biennium 
ending on such insurance agent's biennial due date. Each individual 
insurance agent shall maintain a record of all courses attended together 
with a certificate of attendance for the remainder of the biennium in which 
the courses were attended and the entire next succeeding biennium.
(2) If the required report showing proof of continuing education 
completion is not received by the commissioner by the individual 
insurance agent's biennial due date, such individual insurance agent's 
qualification and each and every corresponding license shall be suspended 
automatically for a period of 90 calendar days or until such time as the 
producer satisfactorily demonstrates completion of the continuing 
education requirement, whichever is sooner. In addition, the commissioner 
shall assess a penalty of $100 for each license suspended. If such insurance 
agent fails to furnish to the commissioner the required proof of continuing 
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education completion and the monetary penalty within 90 calendar days of 
such insurance agent's biennial due date, such individual insurance agent's 
qualification and each and every corresponding license shall expire on 
such insurance agent's biennial due date. If after more than three but less 
than 12 months from the date the license expired, the insurance agent 
wants to reinstate such insurance agent's license, such individual shall 
provide the required proof of continuing education completion and pay a 
reinstatement fee in the amount of $100 for each license suspended. If 
after more than 12 months from the date an insurance agent's license has 
expired, such insurance agent wants to reinstate such insurance agent's 
license, such individual shall apply for an insurance agent's license, 
provide the required proof of continuing education completion and pay a 
reinstatement fee in the amount of $100 for each license suspended. Upon 
receipt of a written application from such insurance agent claiming 
extreme hardship, the commissioner may waive any penalty imposed 
under this subsection.
(3) On and after the effective date of this act, any applicant for an 
individual insurance agent's license who previously held a license that 
expires on or after June 30, 2001, because of failure to meet continuing 
education requirements and who seeks to be relicensed shall provide 
evidence that appropriate C.E.C.s have been completed for the prior 
biennium.
(4) Upon receipt of a written application from an individual insurance 
agent, the commissioner, in cases involving medical hardship or military 
service, may extend the time within which to fulfill the minimum 
continuing educational requirements for a period of not to exceed 180 
days.
(5) This section shall not apply to any inactive insurance agent during 
the period of such inactivity. For the purposes of this paragraph, "inactive 
period" or "period of inactivity" means a continuous period of time of not 
more than four years starting from the date inactive status is granted by the 
commissioner. Before returning to active status, such inactive insurance 
agent shall:
(A) File a report with the commissioner certifying that such agent has 
met the continuing education requirement; and
(B) pay the renewal fee. If the required proof of continuing education 
completion and the renewal fee is not furnished at the end of the inactive 
period, such individual insurance agent's qualification and each and every 
corresponding license shall expire at the end of the period of inactivity. For 
issuance of a new license, the individual shall apply for a license and pass 
the required examination.
(6) Any individual who allows such individual's insurance agent 
license in this state and in all other states in which where such individual is 
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licensed as an insurance agent to expire for a period of four or more 
consecutive years, shall apply for a new insurance agent license and pass 
the required examination.
(f) (1) Each course, program of study, or subject shall be submitted to 
and certified by the commissioner in order to qualify for purposes of 
continuing education.
(2) Each request for certification of any course, program of study or 
subject shall contain the following information:
(A) The name of the provider or provider organization;
(B) the title of such course, program of study or subject;
(C) the date the course, program of study or subject will be offered;
(D) the location where the course, program of study or subject will be 
offered;
(E) an outline of each course, program of study or subject, including 
a schedule of times when such material will be presented;
(F) the names and qualifications of instructors;
(G) the number of C.E.C.s requested;
(H) a nonrefundable C.E.C. qualification fee in the amount of not to 
exceed $50 per course, program of study or subject or not to exceed $250 
per year for all courses, programs of study or subjects submitted by a 
specific provider or provider organization; and
(I) a nonrefundable annual provider fee of not to exceed $100.
(3) Upon receipt of such information, the commissioner shall grant or 
deny certification of any submitted course, program of study or subject as 
an approved subject, program of study or course and indicate the number 
of C.E.C.s that will be recognized for each approved course, program of 
study or subject. Each approved course, program of study or subject shall 
be assigned by the commissioner to one or both of the following classes:
(A) Property and casualty; or
(B) life insurance, including annuity and variable contracts, and 
accident and health insurance.
(4) Each course, program of study or subject shall have a value of at 
least one C.E.C.
(5) (A) Each provider seeking approval of a course, program of study 
or subject for continuing education credit shall issue or cause to be issued 
to each person who attends a course, program of study or subject offered 
by such provider a certificate of attendance. The certificate shall be signed 
by either the instructor who presents the course, program of study or 
course or such provider's authorized representative. Each provider shall 
maintain a list of all individuals who attend courses offered by such 
provider for continuing education credit for the remainder of the biennium 
in which the courses are offered and the entire next succeeding biennium.
(B) The commissioner shall accept, without substantive review, any 
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course, program of study or subject submitted by a provider that has been 
approved by the insurance supervisory authority of any other state or 
territory accredited by the NAIC. The commissioner may disapprove any 
individual instructor or provider who has been the subject of disciplinary 
proceedings or who has otherwise failed to comply with any other state's 
or territory's laws or regulations.
(6) The commissioner may grant or approve any specific course, 
program of study or course that has appropriate merit, such as any course, 
programs of study or course with broad national or regional recognition, 
without receiving any request for certification. The fee prescribed by 
subsection (f)(2) shall not apply to any approval granted pursuant to this 
provision.
(7) The C.E.C. value assigned to any course, program of study or 
subject, other than a correspondence course, computer based training, 
interactive internet study training or other course pursued by independent 
study, shall in no way be contingent upon passage or satisfactory 
completion of any examination given in connection with such course, 
program of study or subject. The commissioner shall establish, by rules 
and regulations, the criteria for determining acceptability of any method 
used for verification of the completion of each stage of any computer 
based or interactive internet study training. Completion of any computer 
based training or interactive internet study training shall be verified in 
accordance with a method approved by the commissioner.
(g) Upon request, the commissioner shall provide a list of all 
approved continuing education courses currently available to the public.
(h) An individual insurance agent who independently studies an 
insurance course, program of study or subject that is not an agent's 
examination approved by the commissioner shall receive credit for the 
C.E.C.s assigned by the commissioner as recognition for the approved 
subject. No other credit shall be given for independent study.
(i) Any licensed individual insurance agent who is unable to comply 
with license renewal procedures due to military service or some other 
extenuating circumstances may request a waiver of those procedures from 
the commissioner. Such agent may also request from the commissioner a 
waiver of any examination requirement or any other fine or sanction 
imposed for failure to comply with renewal procedures.
(j) Not later than December 1 of each year, the commissioner shall 
set and cause to be  published in the Kansas register the fees required 
pursuant to this section for the next calendar year.
Sec. 25. K.S.A. 40-5003 is hereby amended to read as follows: 40-
5003. (a) No person shall operate as a viatical settlement provider or 
viatical settlement broker without first obtaining a license from the 
commissioner or the insurance regulatory official of the state of residence 
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of the viator. If there is more than one viator on a single policy and the 
viators are residents of different states, the viatical settlement shall be 
governed by the law of the state in which the viator having the largest 
percentage ownership resides or, if the viators hold equal ownership, the 
state of residence of one viator agreed upon in writing by all viators.
(b) Application for a viatical settlement provider license shall be 
made to the commissioner by the applicant on a form prescribed by the 
commissioner, and these applications shall be accompanied by a 
nonrefundable fee of  not to exceed $1,000.
(c) Licenses for viatical settlement providers may be renewed from 
year to year on the anniversary date upon payment of the annual renewal 
fee of not to exceed $500. Failure to pay the fees by the renewal date 
results in expiration of the license.
(d) Application for a viatical settlement broker license shall be made 
to the commissioner by the applicant on a form prescribed by the 
commissioner. Each application shall be accompanied by a nonrefundable 
application fee of not to exceed $100.
(e) Licenses for a viatical settlement broker license may be renewed 
from year to year on the anniversary date upon payment of the annual 
renewal fee of not to exceed $50. Failure to pay the fees by the renewal 
date results in expiration of such license.
(f) The applicant shall provide information on forms required by the 
commissioner. The commissioner shall have authority, at any time, to 
require the applicant to fully disclose the identity of all stockholders, 
partners, officers, members and employees, and the commissioner, in the 
exercise of the commissioner's discretion, may refuse to issue a license in 
the name of a legal entity if not satisfied that any officer, employee, 
stockholder, partner or member thereof who may materially influence the 
applicant's conduct meets the standards of this act.
(g) A license issued to a legal entity authorizes all partners, officers, 
members and designated employees to act as viatical settlement providers 
or viatical settlement brokers, as applicable, under the license, and all 
those persons shall be named in the application and any supplements to the 
application.
(h) Upon the filing of an application and the payment of the license 
fee, the commissioner shall make an investigation of each applicant and 
issue a license if the commissioner finds that the applicant:
(1) If a viatical settlement provider, has provided a detailed plan of 
operation;
(2) is competent and trustworthy and intends to act in good faith in 
the capacity involved by the license applied for;
(3) has a good business reputation and has had experience, training or 
education so as to be qualified in the business for which the license is 
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applied for;
(4) if a legal entity, provides a certificate of good standing from the 
state of its domicile; and
(5) if a viatical settlement provider or viatical settlement broker, has 
provided an anti-fraud plan that meets the requirements of paragraph (g) of 
K.S.A. 40-5012(g), and amendments thereto.
(i) The commissioner shall not issue a license to a nonresident 
applicant, unless a written designation of an agent for service of process is 
filed and maintained with the commissioner or the applicant has filed with 
the commissioner, the applicant's written irrevocable consent that any 
action against the applicant may be commenced against the applicant by 
service of process on the commissioner.
(j) A viatical settlement provider or viatical settlement broker shall 
provide to the commissioner new or revised information about officers, 
10% or more stockholders, partners, directors, members or designated 
employees within 30 days of the change.
(k) Not later than December 1 of each year, the commissioner shall 
set and cause to be published in the Kansas register the fees required 
pursuant to this section for the next calendar year.
Sec. 26. K.S.A. 40-5509 is hereby amended to read as follows: 40-
5509. (a) (1) An individual who has met the requirements for licensure 
under this act shall be issued a public adjuster license. A public adjuster 
license shall remain in effect, unless revoked, terminated or suspended, as 
long as the request for renewal is timely submitted and a license renewal 
fee of not to exceed $100 is paid and any other requirements for license 
renewal are met by the due date. The licensee shall inform the 
commissioner by any means acceptable to the commissioner of a change 
of address, change of legal name or change of information submitted on 
the application within 30 days of the change.
(2) Not later than December 1 of each year, the commissioner shall 
set and cause to be  published in the Kansas register the fees required 
pursuant to this subsection for the next calendar year.
(b) A public adjuster shall be subject to the provisions of subsection 
(9) of K.S.A. 40-2404(9), and amendments thereto.
(c) A public adjuster who allows such person's license to lapse may, 
within 12 months from the due date of the renewal, be issued a new public 
adjuster license upon the commissioner's receipt of proof that the licensee 
has satisfactorily completed the renewal process and the licensee's 
payment of a reinstatement fee of $100. The new public adjuster license 
shall be effective on the date that the commissioner receives such proof 
and the reinstatement fee.
(d) A licensed public adjuster that is unable to comply with license 
renewal procedures due to military service, a long-term medical disability 
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or some other extenuating circumstance, may request an extension of time 
to comply with those procedures.
(e) The public adjuster license shall contain the licensee's name, city 
and state of business address, personal identification number, the date of 
issuance, the expiration date and any other information the commissioner 
deems necessary.
(f) In order to assist in the performance of the commissioner's duties, 
the commissioner may contract with non-governmental entities, including 
the NAIC, to perform any ministerial functions, including the collection of 
fees and data related to licensing that the commissioner may deem 
appropriate.
Sec. 27. K.S.A. 40-205a, 40-218, 40-252, 40-2,133, 40-504, 40-956, 
40-22a04, 40-2604, 40-2702, 40-3213, 40-3217, 40-3304, 40-3812, 40-
3813, 40-3814, 40-4103, 40-4116, 40-4323, 40-4334, 40-4503, 40-5003 
and 40-5509 and K.S.A. 2024 Supp. 40-3823, 40-3824, 40-4209, 40-4302 
and 40-4903 are hereby repealed.
Sec. 28. This act shall take effect and be in force from and after its 
publication in the statute book.
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