Kansas 2025 2025-2026 Regular Session

Kansas Senate Bill SB24 Comm Sub / Analysis

Filed 02/27/2025

                    SESSION OF 2025
SUPPLEMENTAL NOTE ON SENATE BILL NO. 24
As Amended by House Committee on Insurance
Brief*
SB 24, as amended, would authorize the Commissioner 
of Insurance (Commissioner) to set the amount of fees and 
fines for applications, licenses, license renewals, certificates 
of authority, and other required filings by certain insurance 
entities and public adjusters under the jurisdiction of the 
Commissioner. The bill would set the fees and fines for 
insurance entities and public adjusters currently established 
in statute as the fee and fine ceilings for the services outlined 
below.
The bill would require the Commissioner to set the fees 
and fines for the next succeeding calendar year and publish 
those in the Kansas Register no later than December 1 of 
each calendar year.
The bill would also eliminate the annual appointment 
renewal fee insurance companies pay per insurance agent 
selling policies on their behalf in Kansas. The fee would be 
applied for new appointments only.
The bill would be in effect upon publication in the 
Kansas Register.
____________________
*Supplemental notes are prepared by the Legislative Research 
Department and do not express legislative intent. The supplemental 
note and fiscal note for this bill may be accessed on the Internet at 
https://klrd.gov/ Modification of Fees and Fines
The bill would set the current fee amount in statute as 
the maximum amount that could be assessed for the 
following fees and fines:
●Application fee for license to engage in the 
business of selling stock;
●Fee for insurance companies or fraternal benefit 
societies to file a summons or order of 
garnishment;
●Admission and annual fees for the following entities 
organized under Kansas law or under the laws of 
any other state, territory, or country: capital stock 
insurance companies and mutual legal reserve life 
insurance companies; mutual life, accident, and 
health associations; mutual fire, hail, casualty, and 
multiple line insurers and reciprocal or 
interinsurance exchanges; fraternal benefit 
societies; mutual nonprofit hospital service 
corporations; nonprofit medical service 
corporations; nonprofit dental service corporations; 
nonprofit optometric service corporations; and 
nonprofit pharmacy service corporations;
●Notification fee for utilizing the services of 
managing general agents;
●Application fee for certificate of authority for life 
insurance companies;
●Application fee for license as a rating organization;
●Application fee for certificate of authority for 
utilization review organizations;
●Continuation fee for license as a premium finance 
company;
2- 24 ●Annual registration fee for certificate of authority to 
transact life, accident, and health insurance 
business in the state;
●Fees for filing an application for a certificate of 
authority, filing an annual report, and for filing an 
amendment to the certificate of authority for health 
maintenance organizations and Medicare provider 
organizations;
●Filing fee for transactions affecting control of 
domestic insurers;
●Application fee for licensure as a home state third-
party administrator (TPA);
●Application fee for licensure as a nonresident TPA;
●Fee to file an annual report by a TPA;
●Application fee for licensure as a pharmacy benefit 
manager (PBM) and penalty fee for failure to timely 
inform the Commissioner of a material change in 
the application information;
●PBM license renewal fee and penalty fee for late 
license renewal;
●Notification fee for risk retention groups to do 
business in the state;
●Notification fee to do business in the state as a 
purchasing group;
●Annual continuation fee for certificate of 
registration as a prepaid service plan;
●Fees for certificate of authority and annual renewal 
for captive insurance companies;
3- 24 ●License renewal fee for dormant captive insurance 
companies;
●Fees for application for certificate of authority and 
annual renewal for special purpose insurance 
captive insurance companies;
●Fees for application for licensure and annual 
continuation as a reinsurance intermediary;
●Continuing education credit qualification fee for all 
courses, programs of study, or subjects submitted 
by a specific provider or provider organization and 
an annual provider fee;
●Fees for application for licensure and annual 
renewal to operate as a viatical settlement provider 
or a viatical settlement broker; and
●Public adjuster license renewal fee.
Background
The bill was introduced by the Senate Committee on 
Financial Institutions and Insurance at the request of a 
representative of the Kansas Insurance Department 
(Department).
[Note: The bill was modeled after 2023 HB 2090, which 
was enacted to allow the Commissioner to lower licensure 
fees for insurance agents and insurance agencies in Kansas. 
A companion bill, HB 2050, has been introduced in the 
House.]
4- 24 Senate Committee on Financial Institutions and 
Insurance
In the Senate Committee hearing, proponent testimony 
was provided by a representative of the Department, who 
stated that the bill grants the Commissioner flexibility to lower 
more than 100 statutorily set fees and eliminates an annual 
appointment renewal fee for insurance agents, saving money 
for entities doing business in Kansas. 
Written-only proponent testimony was provided by a 
representative of the Kansas Association of Insurance 
Agents. 
No other testimony was provided.
House Committee on Insurance
In the House Committee hearing, no testimony was 
provided.
The House Committee amended the bill to change the 
effective date to be upon publication in the Kansas Register.
Fiscal Information
According to the fiscal note prepared by the Division of 
the Budget on the bill, as introduced, the Department states 
that the bill could change agency revenues, which would 
depend on the rates the Commissioner sets each year. The 
agency cannot estimate the changes in revenues. 
Any fiscal effect associated with the bill is not reflected 
in The FY 2026 Governor’s Budget Report.
Insurance; Commissioner of Insurance; duties and powers; fees
5- 24