SESSION OF 2025
SUPPLEMENTAL NOTE ON SENATE BILL NO. 28
As Amended by Senate Committee on Financial
Institutions and Insurance
Brief*
SB 28, as amended, would amend the Uniform
Insurance Agents Licensing Act and the Public Adjusters
Licensing Act to provide the Commissioner of Insurance
(Commissioner) with the authority to consult the status of
certain licenses or registrations in reviewing applications or
renewals for insurance agents and public adjusters.
The Commissioner would also have the authority to
suspend, revoke, or refuse to issue or renew a public
adjuster’s license for failing to respond to an inquiry from the
Commissioner within 14 calendar days.
Additionally, the bill would establish criteria for the
Commissioner to review when considering whether to deny,
suspend, revoke, or refuse to renew the application for a
public adjuster’s license of an individual who has been
convicted of a misdemeanor or felony.
Review of Licenses and Registrations
The bill would provide the Commissioner the authority to
evaluate the status of public adjuster’s licenses and securities
registrations when reviewing insurance agent licenses or
applications for insurance agent licenses. Similarly, the bill
would provide the Commissioner the authority to evaluate the
status of public adjuster’s licenses and securities registrations
____________________
*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/ when reviewing public adjuster’s licenses or applications for
public adjuster’s licenses.
The Commissioner would also have the authority to
suspend, revoke, or refuse to issue or renew a public
adjuster’s license for failing to respond to an inquiry from the
Commissioner within 15 business days.
Criteria for Review for Public Adjuster’s License
Applicants Convicted of a Misdemeanor or Felony
The bill would establish criteria for the Commissioner to
review when considering whether to deny, suspend, revoke,
or refuse to renew the application for public adjuster licensure
of an individual who has been convicted of a misdemeanor or
felony:
●Applicant’s age at the time of conduct;
●Recency of the conduct;
●Reliability of the information concerning the
conduct;
●Seriousness of the conduct;
●Factors underlying the conduct;
●Cumulative effect of the conduct or the information;
●Evidence of rehabilitation;
●Applicant’s social contributions since the conduct;
●Applicant’s candor in the application process; and
●Materiality of any omissions or misrepresentations.
The bill would require the Commissioner to consider the
following when determining whether to reinstate or grant to an
applicant a public adjuster’s license that has been revoked:
●Present moral fitness of the applicant;
●Demonstrated consciousness by the applicant of
the wrongful conduct and disrepute that the
conduct has brought to the insurance profession;
2- 28 ●Extent of the applicant’s rehabilitation;
●Seriousness of the original conduct;
●Applicant’s conduct subsequent to discipline;
●Amount of time that has elapsed since the original
discipline;
●Applicant’s character, maturity, and experience at
the time of revocation; and
●Applicant’s present competence and skills in the
insurance industry.
[Note: These criteria are the same as current law for the
Commissioner’s review of insurance agent licensure or
application for licensure (KSA 40-4909).]
The bill would state that any action taken as a result of
such review that affects any license or imposes any
administrative penalty would be taken only after notice and an
opportunity for a hearing conducted in accordance with the
Kansas Administrative Procedure Act.
The bill would specify that any costs incurred as a result
of conducting an administrative hearing would be assessed
against the person who is the subject of the hearing or any
business entity represented by such person who is the party
to the matters giving rise to the hearing. “Costs” would mean
witness fees, mileage allowances, any costs associated with
the reproduction of documents that become a part of the
hearing record, and the expense of making a record of the
hearing.
Suspensions, Revocations, and Reapplication for Public
Adjuster Licensure
Under the bill, no person whose license as a public
adjuster had been suspended or revoked could be employed
by any insurance company doing business in the state either
directly, indirectly, as an independent contractor, or otherwise
to negotiate or effect contracts of insurance, suretyship, or
3- 28 indemnity or perform any act toward the solicitation or
transaction of any business of insurance during the period of
suspension or revocation.
An applicant to whom a public adjuster’s license is
denied after a hearing would be prohibited from applying
again for a public adjuster’s license until after a period of one
year from the date of the Commissioner’s order. A public
adjuster licensee whose license was revoked could not apply
again for a public adjuster’s license for two years after the
Commissioner’s order.
[Note: These terms are the same as current law for
insurance agent licensure (KSA 40-4909).]
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: A companion bill, HB 2049, was
introduced in the House.]
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 brings parity between the statutes that
govern insurance agents and public adjusters and allows the
Commissioner discretion when reviewing their licensure.
Written-only proponent testimony was provided by a
representative of the National Insurance Crime Bureau.
The Committee amended the bill to specify that public
adjuster licensees must respond to an inquiry from the
Commissioner within 15 business days.
4- 28 Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department states
the bill would increase agency operating expenditures by an
unknown amount; however, any increase would be absorbed
by existing resources.
Insurance; licensing; insurance agents; public adjusters; Commissioner of Insurance;
duties and powers
5- 28