Continuing in existence certain exceptions to the disclosure of public records under the Kansas open records act.

HOUSE BILL No. 2519
AN A CT concerning the Kansas open records act (KORA); relating to public records;
continuing in existence certain exceptions to the disclosure thereof; amending K.S.A.
8-2,158, 40-221b and 41-353 and K.S.A. 2025 Supp. 22a-243, 45-229 and 75-782
and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 8-2,158 is hereby amended to read as follows:
8-2,158. (a) Not later than July 1, 2022, the division of vehicles shall
maintain in its files a record of the name, address and telephone number
of each individual that the holder of a valid driver's license, instruction
permit or non-driver's identification card, as provided in K.S.A. 8-1324,
and amendments thereto, authorizes to be contacted in the event that
the holder is injured or dies in a vehicular accident or another
emergency situation.
(b) (1) A record maintained by the division under subsection (a)
shall be confidential and shall not be subject to the provisions of the
Kansas open records act, K.S.A. 45-215 et seq., and amendments
thereto. The provisions of this subsection shall expire on July 1, 2026,
unless the legislature reviews and reenacts this provision pursuant to
K.S.A. 45-229, and amendments thereto, prior to July 1, 2026.
(2) Upon request, such record may be disclosed only:
(A) To a law enforcement officer, as defined by K.S.A. 74-5602,
and amendments thereto, in this or another state; and
(B) for the purpose, as applicable, of making contact with a named
individual to report the injury to or death of the holder of the driver's
license, instruction permit or non-driver's identification card.
(c) An application for an original, renewal or duplicate driver's
license, instruction permit or non-driver's identification card shall:
(1) Be designed to allow, but not require, the applicant to provide
the name, address and telephone number of not more than two
individuals to be contacted if the applicant is injured or dies in a
circumstance described by subsection (a); and
(2) include a statement that describes the confidential nature of the
information and states that, by providing the division with the
information, the applicant consents to the limited disclosure and use of
the information.
(d) The division shall establish and maintain on the division's
website forms and procedures that the holder of a driver's license,
instruction permit or non-driver's identification card may use to request
that the division:
(1) Add specific emergency contact information described in
subsection (a) to the appropriate file maintained by the division; or
(2) amend or delete emergency contact information the holder
previously provided to the division.
(e) The forms and procedures established and maintained under
subsection (d) shall:
(1) Comply with the requirements of subsection (c); and
(2) allow the holder of a driver's license, instruction permit or non-
driver's identification card, or an authorized agent of such holder, to
add, amend or delete information described by subsection (d) by either:
(A) Submitting an electronic form on the division's website; or
(B) delivering or mailing a paper form to the division.
(f) Subsection (b) shall not prohibit the division from disclosing
information to the holder of a driver's license, instruction permit or
non-driver's identification card, or such holder's authorized agent, or as
otherwise provided in K.S.A. 74-2012, and amendments thereto.
Sec. 2. K.S.A. 2025 Supp. 22a-243 is hereby amended to read as
follows: 22a-243. (a) There is hereby established a state child death
review board, which shall be composed of:
(1) One member appointed by each of the following officers to
represent the officer's agency: The attorney general, the director of the
Kansas bureau of investigation, the secretary for children and families,
the secretary of health and environment and the commissioner of
education;
HOUSE BILL No. 2519—page 2
(2) four members appointed by the state board of healing arts, one
of whom shall be a district coroner and three of whom shall be
physicians licensed to practice medicine and surgery, one specializing
in pathology and two specializing in pediatrics;
(3) one person appointed by the attorney general to represent
advocacy groups that focus attention on child abuse awareness and
prevention; and
(4) one county or district attorney appointed by the Kansas county
and district attorneys association.
(b) The chairperson of the state review board shall be the member
appointed by the attorney general to represent the office of the attorney
general.
(c) The state child death review board shall be within the office of
the attorney general as a part thereof. All budgeting, purchasing and
related management functions of the board shall be administered under
the direction and supervision of the attorney general. All vouchers for
expenditures and all payrolls of the board shall be approved by the
chairperson of the board and by the attorney general. The state review
board shall establish and maintain an office in Topeka.
(d) The state review board shall meet at least annually to review
all reports submitted to the board. The chairperson of the state review
board may call a special meeting of the board at any time to review any
report of a child death.
(e) When informed of a child death, the state review board shall
review all child deaths of:
(1) Kansas residents who are less than 18 years of age, regardless
of where such death occurred; and
(2) non-Kansas residents who are less than 18 years of age if such
death occurred in Kansas.
(f) Within the limits of appropriations therefor, the state review
board shall appoint an executive director who shall be in the
unclassified service of the Kansas civil service act and shall receive an
annual salary fixed by the state review board.
(g) Within the limits of appropriations therefor, the state review
board may employ other persons who shall be in the classified service
of the Kansas civil service act.
(h) Members of the state review board may receive compensation,
subsistence allowances, mileage and expenses as provided by K.S.A.
75-3223, and amendments thereto, for attending meetings or
subcommittee meetings of the board. Compensation, subsistence
allowances, mileage and expenses shall be approved by the chairperson
of the state review board and the attorney general.
(i) The state review board shall develop a protocol to be used by
the state review board. The protocol shall include written guidelines for
coroners to use in identifying any suspicious deaths, procedures to be
used by the board in investigating child deaths, methods to ensure
coordination and cooperation among all agencies involved in child
deaths and procedures for facilitating prosecution of perpetrators when
it appears the cause of a child's death was from abuse or neglect. The
protocol shall be adopted by the state review board by rules and
regulations.
(j) The state review board shall submit an annual report to the
governor and the legislature on or before October 1 of each year,
commencing October 1993. Such report shall include the findings of
the board regarding reports of child deaths, the board's analysis and the
board's recommendations for improving child protection, including
recommendations for modifying statutes, rules and regulations, policies
and procedures.
(k) Information acquired by, and records of, the state review board
shall be confidential, shall not be disclosed and shall not be subject to
subpoena, discovery or introduction into evidence in any civil or
criminal proceeding, except that the state review board or the board's
designee may disclose such information and records to:
HOUSE BILL No. 2519—page 3
(1) Any member of the legislature or a legislative committee that
has legislative responsibility of the enabling or appropriating
legislation, if such member or committee is carrying out the official
functions of such member or committee, and if any such committee
recesses into a closed or executive meeting pursuant to K.S.A. 75-
4319(a), and amendments thereto, and has taken appropriate steps to
preserve its privacy;
(2) any person or entity contracting with the state review board, if
the board has determined that disclosure of such information and
records is essential for completion of the contract, and the board has
taken appropriate steps to preserve confidentiality;
(3) any person or entity, if the information and records being
disclosed are statistics or conclusions of the state review board of the
same type included in its annual report pursuant to subsection (j);
(4) any law enforcement agency of the state or any political
subdivision thereof, if the state review board determines that the
information and records being disclosed were not previously available
to such law enforcement agency for the investigation of the cause of the
child's death; and:
(A) The board determines that the cause of the child's death was
from abuse or neglect; or
(B) the board does not determine that the child's death was from
abuse or neglect and has knowledge of a law enforcement investigation
based on an official offense report as required in K.S.A. 21-2501a, and
amendments thereto, of abuse or neglect involving the death of a child;
(5) any county or district attorney, if the state review board
determines that the information and records being disclosed were not
previously available to such county or district attorney for the
prosecution of any crimes related to the cause of the child's death; and:
(A) The board determines that the cause of the child's death was
from abuse or neglect; or
(B) the board does not determine that the child's death was from
abuse or neglect and has knowledge of a law enforcement investigation
based on an official offense report as required in K.S.A. 21-2501a, and
amendments thereto, of abuse or neglect involving the death of a child;
(6) (A) any entity established by a city or county for the express
purpose of providing a local review of child deaths if the information
and records being disclosed are related to a child's death in an instance
when:
(i) Such death occurred in such city or county; or
(ii) such child was a resident of such city or county; and
(B) the provisions of this paragraph shall expire on July 1, 2026,
unless the legislature reviews and reenacts such provisions prior to July
1, 2026; and
(C) the joint committee on child welfare system oversight shall
review the provisions of this paragraph pursuant to K.S.A. 46-3901,
and amendments thereto;
(7) any licensing body as defined by K.S.A. 74-146, and
amendments thereto, if:
(A) The information and records being disclosed are related to a
disciplinary complaint against a person licensed by such licensing
body;
(B) any member of the state review board is under a professional
obligation to make a disciplinary complaint against a person licensed
by such licensing body; or
(C) a person licensed by such licensing body may have caused or
contributed to the child's death;
(8) a governmental agency or an organization that has a
federalwide assurance (FWA) for the protection of human subjects in
good standing with the United States department of health and human
services officer for human research protections, if:
(A) The agency or organization provides documentation that an
institutional review board designated in the FWA has reviewed the
organization's research proposal;
HOUSE BILL No. 2519—page 4
(B) personally identifiable information is redacted from the
disclosure;
(C) the disclosure is only for the purpose of health or education;
and
(D) the agency or organization requires all persons granted access
to the disclosed information and records to sign a confidentiality
agreement prior to receipt of the disclosed information and records;
(9) any person or entity, if the information and records being
disclosed are statistics or conclusions of the state review board and
provided for the purpose of procuring and maintaining financial grants;
and
(10) the governor and legislature, if the information and records
being disclosed are statistics or conclusions of the state review board
and provided for the purpose of supplementing the state review board's
annual report.
(l) The state review board may adopt rules and regulations as
necessary to carry out the provisions of K.S.A. 22a-241 through 22a-
244, and amendments thereto.
Sec. 3. K.S.A. 40-221b is hereby amended to read as follows: 40-
221b. (a) Purpose. The actions and information required by this section
are declared to be necessary and appropriate in the public interest and
for the protection of the ceding insurers in this state.
(b) Severability. If any provision of this section, or the application
of the provision to any person or circumstance, is held invalid, the
remainder of the act, and the application of the provision to persons or
circumstances other than those to which it is held invalid, shall not be
affected.
(c) Credit for reinsurance – reinsurer licensed in this state.
Pursuant to K.S.A. 40-221a(a), and amendments thereto, the
commissioner shall allow credit for reinsurance ceded by a domestic
insurer to an assuming insurer that was licensed in this state as of any
date on which statutory financial statement credit for reinsurance is
claimed.
(d) Credit for reinsurance – accredited reinsurers. (1) Pursuant to
K.S.A. 40-221a(a)(2), and amendments thereto, the commissioner shall
allow credit for reinsurance ceded by a domestic insurer to an assuming
insurer that is accredited as a reinsurer in this state as of the date on
which statutory financial statement credit for reinsurance is claimed.
An accredited reinsurer shall:
(A) File a properly executed form ar-1 in accordance with the
instructions and as prescribed and adopted by the national association
of insurance commissioners and the commissioner of insurance as
evidence of its submission to this state's jurisdiction and to this state's
authority to examine its books and records;
(B) file with the commissioner a certified copy of a certificate of
authority or other acceptable evidence that it is licensed to transact
insurance or reinsurance in at least one state, or, in the case of a United
States branch of an alien assuming insurer, is entered through and
licensed to transact insurance or reinsurance in at least one state;
(C) file annually with the commissioner a copy of its annual
statement filed with the insurance department of its state of domicile or,
in the case of an alien assuming insurer, with the state through which it
is entered and in which it is licensed to transact insurance or
reinsurance, and a copy of its most recent audited financial statement;
and
(D) maintain a surplus as regards policyholders in an amount not
less than $20,000,000, or obtain the affirmative approval of the
commissioner upon a finding that it has adequate financial capacity to
meet its reinsurance obligations and is otherwise qualified to assume
reinsurance from domestic insurers.
(2) If the commissioner determines that the assuming insurer has
failed to meet or maintain any of these qualifications, the commissioner
may, upon written notice and opportunity for hearing, suspend or
revoke the accreditation. Credit shall not be allowed a domestic ceding
HOUSE BILL No. 2519—page 5
insurer under this section if the assuming insurer's accreditation has
been revoked by the commissioner, or if the reinsurance was ceded
while the assuming insurer's accreditation was under suspension by the
commissioner.
(e) Credit for reinsurance – reinsurer domiciled in another state.
(1) Pursuant to K.S.A. 40-221a(a)(3), and amendments thereto, the
commissioner shall allow credit for reinsurance ceded by a domestic
insurer to an assuming insurer that, as of any date on which statutory
financial statement credit for reinsurance is claimed:
(A) Is domiciled in or, in the case of a United States branch of an
alien assuming insurer, is entered through, a state that employs
standards regarding credit for reinsurance substantially similar to those
applicable under K.S.A. 40-221a, and amendments thereto, and this
section;
(B) maintains a surplus as regards policyholders in an amount not
less than $20,000,000; and
(C) files a properly executed form ar-1, in accordance with the
instructions and as prescribed and adopted by the national association
of insurance commissioners and the commissioner of insurance, with
the commissioner as evidence of its submission to this state's authority
to examine its books and records.
(2) The provisions of this section relating to surplus as regards
policyholders shall not apply to reinsurance ceded and assumed
pursuant to pooling arrangements among insurers in the same holding
company system. As used in this section, "substantially similar"
standards means credit for reinsurance standards that the commissioner
determines are equal to or exceed the standards of K.S.A. 40-221a, and
amendments thereto, and this section.
(f) Credit for reinsurance – reinsurers maintaining trust funds. (1)
Pursuant to K.S.A. 40-221a(a)(4), and amendments thereto, the
commissioner shall allow credit for reinsurance ceded by a domestic
insurer to an assuming insurer that, as of any date on which statutory
financial statement credit for reinsurance is claimed, and thereafter for
so long as credit for reinsurance is claimed, maintains a trust fund in an
amount prescribed below in a qualified United States financial
institution, as defined in K.S.A. 40-221a(c)(2), and amendments
thereto, for the payment of the valid claims of its United States-
domiciled ceding insurers, their assigns and successors in interest. The
assuming insurer shall report annually to the commissioner
substantially the same information as that required to be reported on the
national association of insurance commissioners annual statement form
by licensed insurers, to enable the commissioner to determine the
sufficiency of the trust fund.
(2) The following requirements apply to the following categories
of assuming insurer:
(A) The trust fund for a single assuming insurer shall consist of
funds in trust in an amount not less than the assuming insurer's
liabilities attributable to reinsurance ceded by United States-domiciled
insurers and, in addition, the assuming insurer shall maintain a trusteed
surplus of not less than $20,000,000, except as provided in
subparagraph (B).
(B) At any time after the assuming insurer has permanently
discontinued underwriting new business secured by the trust for at least
three full years, the commissioner with principal regulatory oversight
of the trust may authorize a reduction in the required trusteed surplus,
but only after a finding, based on an assessment of the risk, that the
new required surplus level is adequate for the protection of United
States ceding insurers, policyholders and claimants in light of
reasonably foreseeable adverse loss development. The risk assessment
may involve an actuarial review, including an independent analysis of
reserves and cash flows, and shall consider all material risk factors,
including, when applicable, the lines of business involved, the stability
of the incurred loss estimates and the effect of the surplus requirements
on the assuming insurer's liquidity or solvency. The minimum required
HOUSE BILL No. 2519—page 6
trusteed surplus may not be reduced to an amount less than 30% of the
assuming insurer's liabilities attributable to reinsurance ceded by
United States ceding insurers covered by the trust.
(C) (i) The trust fund for a group including incorporated and
individual unincorporated underwriters shall consist of:
(a) For reinsurance ceded under reinsurance agreements with an
inception date, amendment or renewal date on or after January 1, 1993,
funds in trust in an amount not less than the respective underwriters'
several liabilities attributable to business ceded by United States-
domiciled ceding insurers to any underwriter of the group;
(b) for reinsurance ceded under reinsurance agreements with an
inception date on or before December 31, 1992, and not amended or
renewed after that date, notwithstanding the other provisions of this
section, funds in trust in an amount not less than the respective
underwriters' several insurance and reinsurance liabilities attributable to
business written in the United States; and
(c) in addition to these trusts, the group shall maintain a trusteed
surplus of which $100,000,000 shall be held jointly for the benefit of
the United States-domiciled ceding insurers of any member of the
group for all the years of account.
(ii) The incorporated members of the group shall not be engaged
in any business other than underwriting as a member of the group and
shall be subject to the same level of regulation and solvency control by
the group's domiciliary regulator as are the unincorporated members.
The group shall, within 90 days after its financial statements are due to
be filed with the group's domiciliary regulator, provide to the
commissioner:
(a) An annual certification by the group's domiciliary regulator of
the solvency of each underwriter member of the group; or
(b) if a certification is unavailable, a financial statement, prepared
by independent public accountants, of each underwriter member of the
group.
(D) (i) The trust fund for a group of incorporated insurers under
common administration, whose members possess aggregate
policyholders surplus of $10,000,000,000 as calculated and reported in
substantially the same manner as prescribed by the annual statement
instructions and accounting practices and procedures manual of the
national association of insurance commissioners and that has
continuously transacted an insurance business outside the United States
for at least three years immediately prior to making application for
accreditation, shall:
(a) Consist of funds in trust in an amount not less than the
assuming insurers' several liabilities attributable to business ceded by
United States-domiciled ceding insurers to any members of the group
pursuant to reinsurance contracts issued in the name of such group;
(b) maintain a joint trusteed surplus of which $100,000,000 shall
be held jointly for the benefit of United States-domiciled ceding
insurers of any member of the group; and
(c) file a properly executed form ar-1, in accordance with the
instructions and as prescribed and adopted by the national association
of insurance commissioners and the commissioner of insurance, as
evidence of the submission to this state's authority to examine the
books and records of any of its members and shall certify that any
member examined will bear the expense of any such examination.
(ii) Within 90 days after the statements are due to be filed with the
group's domiciliary regulator, the group shall file with the
commissioner an annual certification of each underwriter member's
solvency by the member's domiciliary regulators and financial
statements, prepared by independent public accountants, of each
underwriter member of the group.
(3) (A) Credit for reinsurance shall not be granted unless the form
of the trust and any amendments to the trust have been approved by
either the commissioner of the state where the trust is domiciled or the
commissioner of another state who, pursuant to the terms of the trust
HOUSE BILL No. 2519—page 7
instrument, has accepted responsibility for regulatory oversight of the
trust. The form of the trust and any trust amendments also shall be filed
with the commissioner of every state in which the ceding insurer
beneficiaries of the trust are domiciled. The trust instrument shall
provide that:
(i) Contested claims shall be valid and enforceable out of funds in
trust to the extent remaining unsatisfied 30 days after entry of the final
order of any court of competent jurisdiction in the United States;
(ii) legal title to the assets of the trust shall be vested in the trustee
for the benefit of the grantor's United States ceding insurers, their
assigns and successors in interest;
(iii) the trust shall be subject to examination as determined by the
commissioner;
(iv) the trust shall remain in effect for as long as the assuming
insurer, or any member or former member of a group of insurers, shall
have outstanding obligations under reinsurance agreements subject to
the trust; and
(v) not later than February 28 of each year, the trustee of the trust
shall report to the commissioner in writing setting forth the balance in
the trust and listing the trust's investments at the preceding year-end,
and shall certify the date of termination of the trust, if so planned, or
certify that the trust shall not expire prior to the following December
31.
(B) (i) Notwithstanding any other provisions in the trust
instrument, if the trust fund is inadequate because it contains an amount
less than the amount required by this subsection or if the grantor of the
trust has been declared insolvent or placed into receivership,
rehabilitation, liquidation or similar proceedings under the laws of its
state or country of domicile, the trustee shall comply with an order of
the commissioner with regulatory oversight over the trust or with an
order of a court of competent jurisdiction directing the trustee to
transfer to the commissioner with regulatory oversight over the trust or
other designated receiver all of the assets of the trust fund.
(ii) The assets shall be distributed by and claims shall be filed with
and valued by the commissioner with regulatory oversight over the
trust in accordance with the laws of the state in which the trust is
domiciled applicable to the liquidation of domestic insurance
companies.
(iii) If the commissioner with regulatory oversight over the trust
determines that the assets of the trust fund or any part thereof are not
necessary to satisfy the claims of the United States beneficiaries of the
trust, the commissioner with regulatory oversight over the trust shall
return the assets, or any part thereof, to the trustee for distribution in
accordance with the trust agreement.
(iv) The grantor shall waive any right otherwise available to it
under United States law that is inconsistent with this provision.
(4) For purposes of this section, the term "liabilities" means the
assuming insurer's gross liabilities attributable to reinsurance ceded by
United States-domiciled insurers, excluding liabilities that are
otherwise secured by acceptable means, and includes:
(A) For business ceded by domestic insurers authorized to write
accident and health and property and casualty insurance:
(i) Losses and allocated loss expenses paid by the ceding insurer,
recoverable from the assuming insurer;
(ii) reserves for losses reported and outstanding;
(iii) reserves for losses incurred but not reported;
(iv) reserves for allocated loss expenses; and
(v) unearned premiums.
(B) For business ceded by domestic insurers authorized to write
life, health and annuity insurance:
(i) Aggregate reserves for life policies and contracts net of policy
loans and net due and deferred premiums;
(ii) aggregate reserves for accident and health policies;
(iii) deposit funds and other liabilities without life or disability
HOUSE BILL No. 2519—page 8
contingencies; and
(iv) liabilities for policy and contract claims.
(5) Assets deposited in trusts established pursuant to K.S.A. 40-
221a(a), and amendments thereto, and this subsection shall be valued
according to their current fair market value and shall consist only of
cash in United States dollars, certificates of deposit issued by a United
States financial institution, as defined in K.S.A. 40-221a(c), and
amendments thereto, clean, irrevocable, unconditional and "evergreen"
letters of credit issued or confirmed by a qualified United States
financial institution, as defined in K.S.A. 40-221a(c), and amendments
thereto, and investments of the type specified in this subsection, but
investments in or issued by an entity controlling, controlled by or under
common control with either the grantor or beneficiary of the trust shall
not exceed 5% of total investments. Not more than 20% of the total of
the investments in the trust may be foreign investments authorized
under subparagraph (A)(v), (C), (F)(ii) or (G), and not more than 10%
of the total of the investments in the trust may be securities
denominated in foreign currencies. For purposes of applying the
preceding sentence, a depository receipt denominated in United States
dollars and representing rights conferred by a foreign security shall be
classified as a foreign investment denominated in a foreign currency.
The assets of a trust established to satisfy the requirements of K.S.A.
40-221a(a), and amendments thereto, shall be invested only as follows:
(A) Government obligations that are not in default as to principal
or interest, that are valid and legally authorized and that are issued,
assumed or guaranteed by:
(i) The United States or by any agency or instrumentality of the
United States;
(ii) a state of the United States;
(iii) a territory, possession or other governmental unit of the
United States;
(iv) an agency or instrumentality of a governmental unit referred
to in clauses (ii) and (iii) if the obligations shall be by law, statutory or
otherwise, payable, as to both principal and interest, from taxes levied
or by law required to be levied or from adequate special revenues
pledged or otherwise appropriated or by law required to be provided for
making these payments, but shall not be obligations eligible for
investment under this paragraph if payable solely out of special
assessments on properties benefited by local improvements; or
(v) the government of any other country that is a member of the
organization for economic cooperation and development and whose
government obligations are rated "A" or higher, or the equivalent, by a
rating agency recognized by the securities valuation office of the
national association of insurance commissioners.
(B) Obligations that are issued in the United States, or that are
dollar denominated and issued in a non-U.S. market, by a solvent
United States institution, other than an insurance company, or that are
assumed or guaranteed by a solvent United States institution, other than
an insurance company and that are not in default as to principal or
interest if the obligations:
(i) Are rated "A" or higher, or the equivalent, by a securities rating
agency recognized by the securities valuation office of the national
association of insurance commissioners, or if not so rated, are similar in
structure and other material respects to other obligations of the same
institution that are so rated;
(ii) are insured by at least one authorized insurer, other than the
investing insurer or a parent, subsidiary or affiliate of the investing
insurer, licensed to insure obligations in this state and, after considering
the insurance, are rated "AAA," or the equivalent, by a securities rating
agency recognized by the securities valuation office of the national
association of insurance commissioners; or
(iii) have been designated as class one or class two by the
securities valuation office of the national association of insurance
commissioners.
HOUSE BILL No. 2519—page 9
(C) Obligations issued, assumed or guaranteed by a solvent non-
U.S. institution chartered in a country that is a member of the
organization for economic cooperation and development or obligations
of United States corporations issued in a non-U.S. currency, provided
that in either case the obligations are rated "A" or higher, or the
equivalent, by a rating agency recognized by the securities valuation
office of the national association of insurance commissioners.
(D) An investment made pursuant to the provisions of
subparagraph (A), (B) or (C) shall be subject to the following
additional limitations:
(i) An investment in or loan upon the obligations of an institution
other than an institution that issues mortgage-related securities shall not
exceed 5% of the assets of the trust;
(ii) an investment in any one mortgage-related security shall not
exceed 5% of the assets of the trust;
(iii) the aggregate total investment in mortgage-related securities
shall not exceed 25% of the assets of the trust; and
(iv) preferred or guaranteed shares issued or guaranteed by a
solvent United States institution are permissible investments if all of
the institution's obligations are eligible as investments under
subparagraphs (B)(i) and (B)(iii), but shall not exceed 2% of the assets
of the trust.
(E) As used in this section:
(i) "Mortgage-related security" means an obligation that is rated
"AA" or higher, or the equivalent, by a securities rating agency
recognized by the securities valuation office of the national association
of insurance commissioners and that either:
(a) Represents ownership of one or more promissory notes or
certificates of interest or participation in the notes, including any rights
designed to assure servicing of, or the receipt or timeliness of receipt by
the holders of the notes, certificates, or participation of amounts
payable under, the notes, certificates or participation, that:
(1) Are directly secured by a first lien on a single parcel of real
estate, including stock allocated to a dwelling unit in a residential
cooperative housing corporation, upon which is located a dwelling or
mixed residential and commercial structure, or on a residential
manufactured home, as defined in 42 U.S.C. § 5402(6), whether the
manufactured home is considered real or personal property under the
laws of the state in which it is located; and
(2) were originated by a savings and loan association, savings
bank, commercial bank, credit union, insurance company, or similar
institution that is supervised and examined by a federal or state housing
authority, or by a mortgagee approved by the United States secretary of
housing and urban development pursuant to 12 U.S.C. §§ 1709 and
1715b, or, where the notes involve a lien on the manufactured home, by
an institution or by a financial institution approved for insurance by the
United States secretary of housing and urban development pursuant to
12 U.S.C. § 1703; or
(b) is secured by one or more promissory notes or certificates of
deposit or participations in the notes, with or without recourse to the
insurer of the notes, and, by its terms, provides for payments of
principal in relation to payments, or reasonable projections of
payments, or notes meeting the requirements of subclauses (a)(1) and
(a)(2);
(ii) "promissory note," when used in connection with a
manufactured home, shall also include a loan, advance or credit sale as
evidenced by a retail installment sales contract or other instrument.
(F) Equity interests. (i) Investments in common shares or
partnership interests of a solvent United States institution are
permissible if:
(a) Its obligations and preferred shares, if any, are eligible as
investments under this subsection; and
(b) the equity interests of the institution, except an insurance
company, are registered on a national securities exchange as provided
HOUSE BILL No. 2519—page 10
in the federal securities exchange act of 1934, 15 U.S.C. §§ 78a to
78kk, or otherwise registered pursuant to that act, and if otherwise
registered, price quotations for them are furnished through a nationwide
automated quotations system approved by the financial industry
regulatory authority, or its successor organization. A trust shall not
invest in equity interests under this subparagraph an amount exceeding
1% of the assets of the trust even though the equity interests are not so
registered and are not issued by an insurance company;
(ii) investments in common shares of a solvent institution
organized under the laws of a country that is a member of the
organization for economic cooperation and development, if:
(a) All its obligations are rated "A" or higher, or the equivalent, by
a rating agency recognized by the securities valuation office of the
national association of insurance commissioners; and
(b) the equity interests of the institution are registered on a
securities exchange regulated by the government of a country that is a
member of the organization for economic cooperation and
development;
(iii) an investment in or loan upon any one institution's
outstanding equity interests shall not exceed 1% of the assets of the
trust. The cost of an investment in equity interests made pursuant to this
subparagraph, when added to the aggregate cost of other investments in
equity interests held pursuant to this paragraph, shall not exceed 10%
of the assets in the trust.
(G) Obligations issued, assumed or guaranteed by a multinational
development bank, provided the obligations are rated "A," or higher, or
the equivalent, by a rating agency recognized by the securities
valuation office of the national association of insurance commissioners.
(H) Investment companies. (i) Securities of an investment
company registered pursuant to the investment company act of 1940,
15 U.S.C. § 80a, are permissible investments if the investment
company:
(a) Invests at least 90% of its assets in the types of securities that
qualify as an investment under subparagraph (A), (B) or (C) or invests
in securities that are determined by the commissioner to be
substantively similar to the types of securities set forth in subparagraph
(A), (B) or (C); or
(b) invests at least 90% of its assets in the types of equity interests
that qualify as an investment under subparagraph (F)(i).
(ii) investments made by a trust in investment companies under
this paragraph shall not exceed the following limitations:
(a) An investment in an investment company qualifying under
clause (i)(a) shall not exceed 10% of the assets in the trust and the
aggregate amount of investment in qualifying investment companies
shall not exceed 25% of the assets in the trust; and
(b) investments in an investment company qualifying under clause
(i)(b) shall not exceed 5% of the assets in the trust and the aggregate
amount of investment in qualifying investment companies shall be
included when calculating the permissible aggregate value of equity
interests pursuant to subparagraph (F)(i);
(I) Letters of credit. (i) In order for a letter of credit to qualify as
an asset of the trust, the trustee shall have the right and the obligation
pursuant to the deed of trust or some other binding agreement, as duly
approved by the commissioner, to immediately draw down the full
amount of the letter of credit and hold the proceeds in trust for the
beneficiaries of the trust if the letter of credit will otherwise expire
without being renewed or replaced; and
(ii) the trust agreement shall provide that the trustee shall be liable
for its negligence, willful misconduct or lack of good faith. The failure
of the trustee to draw against the letter of credit in circumstances where
such draw would be required shall be deemed to be negligence or
willful misconduct.
(6) A specific security provided to a ceding insurer by an
assuming insurer pursuant to subsection (k) shall be applied, until
HOUSE BILL No. 2519—page 11
exhausted, to the payment of liabilities of the assuming insurer to the
ceding insurer holding the specific security prior to, and as a condition
precedent for, presentation of a claim by the ceding insurer for payment
by a trustee of a trust established by the assuming insurer pursuant to
this section.
(g) Credit for reinsurance – certified reinsurers. (1) Pursuant to
K.S.A. 40-221a(a)(5), and amendments thereto, the commissioner shall
allow credit for reinsurance ceded by a domestic insurer to an assuming
insurer that has been certified as a reinsurer in this state at all times for
which statutory financial statement credit for reinsurance is claimed
under this section. The credit allowed shall be based upon the security
held by or on behalf of the ceding insurer in accordance with a rating
assigned to the certified reinsurer by the commissioner. The security
shall be in a form consistent with the provisions of K.S.A. 40-221a(a)
(5) and 40-221a(b), and amendments thereto, and subsection (k), (l) or
(m). The amount of security required in order for full credit to be
allowed shall correspond with the following requirements:
(A) Ratings Security Required
Secure - 1 0%
Secure - 2 10%
Secure - 3 20%
Secure - 4 50%
Secure - 5 75%
Secure - 6 100%
(B) Affiliated reinsurance transactions shall receive the same
opportunity for reduced security requirements as all other reinsurance
transactions.
(C) The commissioner shall require the certified reinsurer to post
for the benefit of the ceding insurer or its estate, 100% security upon
the entry of an order of rehabilitation, liquidation or conservation
against the ceding insurer.
(D) In order to facilitate the prompt payment of claims, a certified
reinsurer shall not be required to post security for catastrophe
recoverables for a period of one year from the date of the first instance
of a liability reserve entry by the ceding company as a result of a loss
from a catastrophic occurrence as recognized by the commissioner. The
one-year deferral period shall be contingent upon the certified reinsurer
continuing to pay claims in a timely manner. Reinsurance recoverables
for only the following lines of business as reported on the national
association of insurance commissioners annual financial statement
related specifically to the catastrophic occurrence shall be included in
the deferral:
(i) Line 1: Fire.
(ii) Line 2: Allied lines.
(iii) Line 3: Farmowners multiple peril.
(iv) Line 4: Homeowners multiple peril.
(v) Line 5: Commercial multiple peril.
(vi) Line 9: Inland marine.
(vii) Line 12: Earthquake.
(viii) Line 21: Auto physical damage.
(E) Credit for reinsurance under this section shall apply only to
reinsurance contracts entered into or renewed on or after the effective
date of the certification of the assuming insurer. Any reinsurance
contract entered into prior to the effective date of the certification of the
assuming insurer that is subsequently amended after the effective date
of the certification of the assuming insurer, or a new reinsurance
contract, covering any risk for which collateral was provided
previously, shall only be subject to this section with respect to losses
incurred and reserves reported from and after the effective date of the
amendment or new contract.
(F) Nothing in this section shall prohibit the parties to a
reinsurance agreement from agreeing to provisions establishing security
requirements that exceed the minimum security requirements
established for certified reinsurers under this section.
HOUSE BILL No. 2519—page 12
(2) Certification procedure. (A) The commissioner shall post
notice on the insurance department's website promptly upon receipt of
any application for certification, including instructions on how
members of the public may respond to the application. The
commissioner shall not take final action on the application until at least
30 days after posting the notice required by this paragraph.
(B) The commissioner shall issue written notice to an assuming
insurer that has made application and been approved as a certified
reinsurer. Included in such notice shall be the rating assigned the
certified reinsurer in accordance with subsection (g)(2)(A). The
commissioner shall publish a list of all certified reinsurers and their
ratings.
(C) In order to be eligible for certification, the assuming insurer
shall meet the following requirements:
(i) The assuming insurer must be domiciled and licensed to
transact insurance or reinsurance in a qualified jurisdiction, as
determined by the commissioner pursuant to subsection (g)(3);
(ii) the assuming insurer shall maintain capital and surplus, or its
equivalent, of no less than $250,000,000 calculated in accordance with
subsection (g)(2)(D)(viii). This requirement may also be satisfied by an
association including incorporated and individual unincorporated
underwriters having minimum capital and surplus equivalents, net of
liabilities, of at least $250,000,000 and a central fund containing a
balance of at least $250,000,000;
(iii) the assuming insurer shall maintain financial strength ratings
from two or more rating agencies deemed acceptable by the
commissioner. These ratings shall be based on interactive
communication between the rating agency and the assuming insurer
and shall not be based solely on publicly available information. These
financial strength ratings shall be one factor used by the commissioner
in determining the rating that is assigned to the assuming insurer.
Acceptable rating agencies include the following:
(a) Standard & poor's;
(b) Moody's investors service;
(c) Fitch ratings;
(d) a.m. best company; or
(e) any other nationally recognized statistical rating organization;
and
(iv) the certified reinsurer shall comply with any other
requirements reasonably imposed by the commissioner.
(D) Each certified reinsurer shall be rated on a legal entity basis,
with due consideration being given to the group rating where
appropriate, except that an association including incorporated and
individual unincorporated underwriters that has been approved to do
business as a single certified reinsurer may be evaluated on the basis of
its group rating. Factors that may be considered as part of the
evaluation process include, but are not limited to, the following:
(i) The certified reinsurer's financial strength rating from an
acceptable rating agency. The maximum rating that a certified reinsurer
may be assigned shall correspond to its financial strength rating as
outlined in the table below. The commissioner shall use the lowest
financial strength rating received from an approved rating agency in
establishing the maximum rating of a certified reinsurer. A failure to
obtain or maintain at least two financial strength ratings from
acceptable rating agencies shall result in loss of eligibility for
certification;
(ii) the business practices of the certified reinsurer in dealing with
its ceding insurers, including its record of compliance with reinsurance
contractual terms and obligations;
Ratings Best S&P Moody's Fitch
Secure - 1 A++ AAA Aaa AAA
Secure - 2 A+ AA+, AA* Aa1, Aa2, Aa3 AA+, AA,
AA- AA-
Secure - 3 A A+, A A1, A2 A+, A
HOUSE BILL No. 2519—page 13
Secure - 4 A- A- A3 A-
Secure - 5 B++, B+ BBB+, BBB* Baa1, Baa2, BBB+,
BBB,
BBB- Baa3 BBB-
Vulnerable
- 6 B, B-, BB+, BB, Ba1, Ba2, BB+, BB,
C++, C+* BB-, B+, Ba3, B1, BB-, B+,B*
B,
C, C-, D* B**, CCC, B2, B3, Caa, B-, CCC+,
CC, CC,
E, F C, D, R Ca, C CCC-, DD
(iii) for certified reinsurers domiciled in the United States, a
review of the most recent applicable national association of insurance
commissioners annual statement blank, either schedule f, for property
and casualty reinsurers, or schedule s, for life and health reinsurers, in
accordance with the instructions and as prescribed and adopted by the
national association of insurance commissioners and the commissioner
of insurance;
(iv) for certified reinsurers not domiciled in the United States, a
review annually of form cr-f, for property and casualty reinsurers, in
accordance with the instructions and as prescribed and adopted by the
national association of insurance commissioners and the commissioner
of insurance or form cr-s, for life and health reinsurers, in accordance
with the instructions and as prescribed and adopted by the national
association of insurance commissioners and the commissioner of
insurance;
(v) the reputation of the certified reinsurer for prompt payment of
claims under reinsurance agreements, based on an analysis of ceding
insurers' schedule f reporting of overdue reinsurance recoverables,
including the proportion of obligations that are more than 90 days past
due or are in dispute, with specific attention given to obligations
payable to companies that are in administrative supervision or
receivership;
(vi) regulatory actions against the certified reinsurer;
(vii) the report of the independent auditor on the financial
statements of the insurance enterprise, on the basis described in clause
(viii);
(viii) for certified reinsurers not domiciled in the United States,
audited financial statements, regulatory filings, and actuarial opinion,
as filed with the non-U.S. jurisdiction supervisor, with a translation into
English. Upon the initial application for certification, the commissioner
will consider audited financial statements for the last two years filed
with its non-U.S. jurisdiction supervisor;
(ix) the liquidation priority of obligations to a ceding insurer in the
certified reinsuer's domicilily jurisdiction in the context of an
insolvency proceeding;
(x) A certified reinsurer's participation in any solvent scheme of
arrangement, or similar procedure, that involves United States ceding
insurers. The commissioner shall receive prior notice from a certified
reinsurer that proposes participation by the certified reinsurer in a
solvent scheme of arrangement; and
(xi) any other information deemed relevant by the commissioner.
(E) Based on the analysis conducted under subparagraph (D)(v) of a
certified reinsurer's reputation for prompt payment of claims, the
commissioner may make appropriate adjustments in the security the
certified reinsurer is required to post to protect its liablities to United
States ceding insurers, provided that the commissioner shall, at a
minimum, increase the security the certified reinsurer is required to
post by one rating level under subparagraph (D)( i) if the commissioner
finds that:
(i) More than 15% of the certified reinsurer's ceding insurance
clients have overdue reinsurance recoverables on paid losses of 90 days
or more that are not in dispute and that exceed $100,000 for each
HOUSE BILL No. 2519—page 14
cedent; or
(ii) the aggregate amount of reinsurance recoverables on paid
losses that are not in dispute that are overdue by 90 days or more
exceeds $50,000,000.
(F) The assuming insurer shall submit a properly executed form
cr-1 in accordance with the instructions and as prescribed and adopted
by the national association of insurance commissioners and the
commissioner of insurance as evidence of its submission to the
jurisdiction of this state, appointment of the commissioner as an agent
for service of process in this state, and agreement to provide security
for 100% of the assuming insurer's liabilities attributable to reinsurance
ceded by United States ceding insurers if it resists enforcement of a
final United States judgment. The commissioner shall not certify any
assuming insurer that is domiciled in a jurisdiction that the
commissioner has determined does not adequately and promptly
enforce final United States judgments or arbitration awards.
(G) The certified reinsurer shall agree to meet applicable
information filing requirements as determined by the commissioner,
both with respect to an initial application for certification and on an
ongoing basis. All information submitted by certified reinsurers that is
not otherwise public information subject to disclosure shall be
exempted from disclosure under the open records act, K.S.A. 45-215, et
seq., and amendments thereto, and shall be withheld from public
disclosure. The provisions of this subparagraph providing for the
confidentiality of public records shall expire on July 1, 2026, unless the
legislature reviews and continues such provisions in accordance with
K.S.A. 45-229, and amendments thereto. The applicable information
filing requirements are, as follows:
(i) Notification within 10 days of any regulatory actions taken
against the certified reinsurer, any change in the provisions of its
domiciliary license or any change in rating by an approved rating
agency, including a statement describing such changes and the reasons
therefor;
(ii) annually, form cr-f or cr-s, in accordance with the instructions
and as prescribed and adopted by the national association of insurance
commissioners and the commissioner of insurance as applicable;
(iii) annually, the report of the independent auditor on the financial
statements of the insurance enterprise, on the basis described in clause
(iv);
(iv) annually, the most recent audited financial statements,
regulatory filings and actuarial opinion, as filed with the certified
reinsurer's supervisor, with a translation into English. Upon the initial
certification, audited financial statements for the last two years filed
with the certified reinsurer's supervisor;
(v) at least annually, an updated list of all disputed and overdue
reinsurance claims regarding reinsurance assumed from United States
domestic ceding insurers;
(vi) a certification from the certified reinsurer's domestic regulator
that the certified reinsurer is in good standing and maintains capital in
excess of the jurisdiction's highest regulatory action level; and
(vii) any other information that the commissioner may reasonably
require.
(H) Change in rating or revocation of certification. (i) In the case
of a downgrade by a rating agency or other disqualifying circumstance,
the commissioner upon written notice shall assign a new rating to the
certified reinsurer in accordance with the requirements of subsection
(g)(2)(D)(i).
(ii) The commissioner shall have the authority to suspend, revoke
or otherwise modify a certified reinsurer's certification at any time if
the certified reinsurer fails to meet its obligations or security
requirements under this section, or if other financial or operating results
of the certified reinsurer, or documented significant delays in payment
by the certified reinsurer lead the commissioner to reconsider the
certified reinsurer's ability or willingness to meet its contractual
HOUSE BILL No. 2519—page 15
obligations.
(iii) If the rating of a certified reinsurer is upgraded by the
commissioner, the certified reinsurer may meet the security
requirements applicable to its new rating on a prospective basis, but the
commissioner shall require the certified reinsurer to post security under
the previously applicable security requirements as to all contracts in
force on or before the effective date of the upgraded rating. If the rating
of a certified reinsurer is downgraded by the commissioner, the
commissioner shall require the certified reinsurer to meet the security
requirements applicable to its new rating for all business it has assumed
as a certified reinsurer.
(iv) Upon revocation of the certification of a certified reinsurer by
the commissioner, the assuming insurer shall be required to post
security in accordance with subsection (k) in order for the ceding
insurer to continue to take credit for reinsurance ceded to the assuming
insurer. If funds continue to be held in trust in accordance with
subsection (f), the commissioner may allow additional credit equal to
the ceding insurer's pro rata share of such funds, discounted to reflect
the risk of uncollectibility and anticipated expenses of trust
administration. Notwithstanding the change of a certified reinsurer's
rating or revocation of its certification, a domestic insurer that has
ceded reinsurance to that certified reinsurer may not be denied credit
for reinsurance for a period of three months for all reinsurance ceded to
that certified reinsurer, unless the reinsurance is found by the
commissioner to be at high risk of uncollectibility.
(3) Qualified jurisdictions. (A) If, upon conducting an evaluation
under this section with respect to the reinsurance supervisory system of
any non-U.S. assuming insurer, the commissioner determines that the
jurisdiction qualifies to be recognized as a qualified jurisdiction, the
commissioner shall publish notice and evidence of such recognition in
an appropriate manner. The commissioner may establish a procedure to
withdraw recognition of those jurisdictions that are no longer qualified.
(B) In order to determine whether the domiciliary jurisdiction of a
non-U.S. assuming insurer is eligible to be recognized as a qualified
jurisdiction, the commissioner shall evaluate the reinsurance
supervisory system of the non-U.S. jurisdiction, both initially and on an
ongoing basis, and consider the rights, benefits and the extent of
reciprocal recognition afforded by the non-U.S. jurisdiction to
reinsurers licensed and domiciled in the United States. The
commissioner shall determine the appropriate approach for evaluating
the qualifications of such jurisdictions, and create and publish a list of
jurisdictions whose reinsurers may be approved by the commissioner as
eligible for certification. A qualified jurisdiction shall agree to share
information and cooperate with the commissioner with respect to all
certified reinsurers domiciled within that jurisdiction. Additional
factors to be considered in determining whether to recognize a qualified
jurisdiction, in the discretion of the commissioner, include, but are not
limited to, the following:
(i) The framework under which the assuming insurer is regulated;
(ii) the structure and authority of the domiciliary regulator with
regard to solvency regulation requirements and financial surveillance;
(iii) the substance of financial and operating standards for
assuming insurers in the domiciliary jurisdiction;
(iv) the form and substance of financial reports required to be filed
or made publicly available by reinsurers in the domiciliary jurisdiction
and the accounting principles used;
(v) the domiciliary regulator's willingness to cooperate with
United States regulators in general and the commissioner in particular;
(vi) the history of performance by assuming insurers in the
domiciliary jurisdiction;
(vii) any documented evidence of substantial problems with the
enforcement of final judgments in the domiciliary jurisdiction. A
jurisdiction shall not be considered to be a qualified jurisdiction if the
commissioner has determined that it does not adequately and promptly
HOUSE BILL No. 2519—page 16
enforce final United States judgments or arbitration awards;
(viii) any relevant international standards or guidance with respect
to mutual recognition of reinsurance supervision adopted by the
international association of insurance supervisors or successor
organization; and
(ix) any other matters deemed relevant by the commissioner.
(C) A list of qualified jurisdictions shall be published through the
national association of insurance commissioners committee process.
The commissioner shall consider this list in determining qualified
jurisdictions. If the commissioner approves a jurisdiction as qualified
that does not appear on the list of qualified jurisdictions, the
commissioner shall provide thoroughly documented justification with
respect to the criteria provided under paragraphs (3)(B)(i) through (ix).
(D) United States jurisdictions that meet the requirements for
accreditation under the national association of insurance commissioners
financial standards and accreditation program shall be recognized as
qualified jurisdictions.
(4) Recognition of certification issued by a national association of
insurance commissioners accredited jurisdiction. (A) If an applicant for
certification has been certified as a reinsurer in a national association of
insurance commissioners-accredited jurisdiction, the commissioner has
the discretion to defer to that jurisdiction's certification and to defer to
the rating assigned by that jurisdiction, if the assuming insurer submits
a properly executed form cr-1 in accordance with the instructions and
as prescribed and adopted by the national association of insurance
commissioners and the commissioner of insurance and such additional
information as the commissioner requires. The assuming insurer shall
be considered to be a certified reinsurer in this state.
(B) Any change in the certified reinsurer's status or rating in the
other jurisdiction shall apply automatically in this state as of the date it
takes effect in the other jurisdiction. The certified reinsurer shall notify
the commissioner of any change in its status or rating within 10 days
after receiving notice of the change.
(C) The commissioner may withdraw recognition of the other
jurisdiction's rating at any time and assign a new rating in accordance
with subsection (g)(2)(H).
(D) The commissioner may withdraw recognition of the other
jurisdiction's certification at any time, with written notice to the
certified reinsurer. Unless the commissioner suspends or revokes the
certified reinsurer's certification in accordance with subsection (g)(2)
(H), the certified reinsurer's certification shall remain in good standing
in this state for a period of three months, and such period shall be
extended if additional time is necessary to consider the assuming
insurer's application for certification in this state.
(5) Mandatory funding clause. In addition to the clauses required
under subsection (n) reinsurance contracts entered into or renewed
under this section shall include a proper funding clause, that requires
the certified reinsurer to provide and maintain security in an amount
sufficient to avoid the imposition of any financial statement penalty on
the ceding insurer under this section for reinsurance ceded to the
certified reinsurer.
(6) The commissioner shall comply with all reporting and
notification requirements that may be established by the national
association of insurance commissioners with respect to certified
reinsurers and qualified jurisdictions.
(h) Credit for reinsurance – reciprocal jurisdictions. (1) Pursuant
to K.S.A. 40-221a(a)(6), and amendments thereto, the commissioner
shall allow credit for reinsurance ceded by a domestic insurer to an
assuming insurer that is licensed to write reinsurance by, and has its
head office or is domiciled in, a reciprocal jurisdiction, and that meets
the other requirements of this section.
(2) A "reciprocal jurisdiction" is a jurisdiction, as designated by
the commissioner pursuant to subsection (h)(4), that meets one of the
following:
HOUSE BILL No. 2519—page 17
(A) A non-U.S. jurisdiction that is subject to an in-force covered
agreement with the United States, each within its legal authority, or, in
the case of a covered agreement between the United States and the
European union, is a member state of the European union. For purposes
of this subsection, a "covered agreement" is an agreement entered into
pursuant to the dodd-frank wall street reform and consumer protection
act, 31 U.S.C. §§ 313 and 314, that is currently in effect or in a period
of provisional application and addresses the elimination, under
specified conditions, of collateral requirements as a condition for
entering into any reinsurance agreement with a ceding insurer
domiciled in this state or for allowing the ceding insurer to recognize
credit for reinsurance;
(B) a United States jurisdiction that meets the requirements for
accreditation under the national association of insurance commissioners
financial standards and accreditation program; or
(C) a qualified jurisdiction, as determined by the commissioner
pursuant to K.S.A. 40-221a(a)(5)(C), and amendments thereto, and
subsection (g)(3), that is not otherwise described in subparagraph (A)
or (B) and that the commissioner determines meets all of the following
additional requirements:
(i) Provides that an insurer that has its head office or is domiciled
in such qualified jurisdiction shall receive credit for reinsurance ceded
to a United States-domiciled assuming insurer in the same manner as
credit for reinsurance is received for reinsurance assumed by insurers
domiciled in such qualified jurisdiction;
(ii) does not require a United States-domiciled assuming insurer to
establish or maintain a local presence as a condition for entering into a
reinsurance agreement with any ceding insurer subject to regulation by
the non-U.S. jurisdiction or as a condition for allowing the ceding
insurer to recognize credit for such reinsurance;
(iii) recognizes the United States state regulatory approach to
group supervision and group capital, by providing written confirmation
by a competent regulatory authority, in such qualified jurisdiction, that
insurers and insurance groups that are domiciled or maintain their
headquarters in this state or another jurisdiction accredited by the
national association of insurance commissioners shall be subject only to
worldwide prudential insurance group supervision including worldwide
group governance, solvency and capital and reporting, as applicable, by
the commissioner or the commissioner of the domiciliary state and
shall not be subject to group supervision at the level of the worldwide
parent undertaking of the insurance or reinsurance group by the
qualified jurisdiction; and
(iv) provides written confirmation by a competent regulatory
authority in such qualified jurisdiction that information regarding
insurers and their parent, subsidiary or affiliated entities, if applicable,
shall be provided to the commissioner in accordance with a
memorandum of understanding or similar document between the
commissioner and such qualified jurisdiction, including, but not limited
to, the international association of insurance supervisors multilateral
memorandum of understanding or other multilateral memoranda of
understanding coordinated by the national association of insurance
commissioners.
(3) Credit shall be allowed when the reinsurance is ceded from an
insurer domiciled in this state to an assuming insurer meeting each of
the conditions set forth below.
(A) The assuming insurer shall be licensed to transact reinsurance
by, and have its head office or be domiciled in, a reciprocal jurisdiction.
(B) The assuming insurer shall have and maintain on an ongoing
basis minimum capital and surplus, or its equivalent, calculated on at
least an annual basis as of the preceding December 31 or at the annual
date otherwise statutorily required to be reported to the reciprocal
jurisdiction, and confirmed as set forth in paragraph (3)(G) according
to the methodology of its domiciliary jurisdiction, in the following
amounts:
HOUSE BILL No. 2519—page 18
(i) Not less than $250,000,000; or
(ii) if the assuming insurer is an association, including
incorporated and individual unincorporated underwriters:
(a) Minimum capital and surplus equivalent, net of liabilities, or
own funds of the equivalent of at least $250,000,000; and
(b) a central fund containing a balance of the equivalent of at least
$250,000,000.
(C) The assuming insurer shall have and maintain on an ongoing
basis a minimum solvency or capital ratio, as applicable, as follows:
(i) If the assuming insurer has its head office or is domiciled in a
reciprocal jurisdiction, as defined in subsection (h)(2)(A), the ratio
specified in the applicable covered agreement;
(ii) if the assuming insurer is domiciled in a reciprocal
jurisdiction, as defined in subsection (h)(2)(B), a risk-based capital
ratio of 300% of the authorized control level, calculated in accordance
with the formula developed by the national association of insurance
commissioners; or
(iii) if the assuming insurer is domiciled in a reciprocal
jurisdiction, as defined in subsection (h)(2)(C), after consultation with
the reciprocal jurisdiction and considering any recommendations
published through the national association of insurance commissioners
committee process, such solvency or capital ratio as the commissioner
determines to be an effective measure of solvency.
(D) The assuming insurer shall agree to and provide adequate
assurance, in the form of a properly executed form rj-1 in accordance
with the instructions and as prescribed and adopted by the national
association of insurance commissioners and the commissioner of
insurance, of its agreement to the following:
(i) The assuming insurer shall agree to provide prompt written
notice and explanation to the commissioner if it falls below the
minimum requirements set forth in subparagraph (B) or (C) or if any
regulatory action is taken against it for serious noncompliance with
applicable law; and
(ii) the assuming insurer shall consent in writing to the jurisdiction
of the courts of this state and to the appointment of the commissioner as
agent for service of process.
(a) The commissioner may also require that such consent be
provided and included in each reinsurance agreement under the
commissioner's jurisdiction.
(b) Nothing in this provision shall limit or in any way alter the
capacity of parties to a reinsurance agreement to agree to alternative
dispute resolution mechanisms, except to the extent such agreements
are unenforceable under applicable insolvency or delinquency laws.
(iii) The assuming insurer shall consent in writing to pay all final
judgments, wherever enforcement is sought, obtained by a ceding
insurer, that have been declared enforceable in the territory where the
judgment was obtained.
(iv) Each reinsurance agreement shall include a provision
requiring the assuming insurer to provide security in an amount equal
to 100% of the assuming insurer's liabilities attributable to reinsurance
ceded pursuant to that agreement if the assuming insurer resists
enforcement of a final judgment that is enforceable under the law of the
jurisdiction in which it was obtained or a properly enforceable
arbitration award, whether obtained by the ceding insurer or by its legal
successor on behalf of its estate, if applicable, assuming insurer resists
enforcement of a final judgment that is enforceable under the law of the
jurisdiction in which it was obtained or a properly enforceable
arbitration award, whether obtained by the ceding insurer or by its legal
successor on behalf of its estate, if applicable.
(v) The assuming insurer shall confirm that it is not presently
participating in any solvent scheme of arrangement that involves this
state's ceding insurers and agree to notify the ceding insurer and the
commissioner and to provide 100% security to the ceding insurer
consistent with the terms of the scheme, if the assuming insurer enters
HOUSE BILL No. 2519—page 19
into such a solvent scheme of arrangement. Such security shall be in a
form consistent with the provisions of K.S.A. 40-221a(a)(5) and (b),
and amendments thereto, and subsections (k), (l) and (m). For purposes
of this section, the term "solvent scheme of arrangement" means a
foreign or alien statutory or regulatory compromise procedure subject
to requisite majority creditor approval and judicial sanction in the
assuming insurer's home jurisdiction either to finally commute
liabilities of duly noticed classed members or creditors of a solvent
debtor, or to reorganize or restructure the debts and obligations of a
solvent debtor on a final basis, and that may be subject to judicial
recognition and enforcement of the arrangement by a governing
authority outside the ceding insurer's home jurisdiction.
(vi) The assuming insurer shall agree in writing to meet the
applicable information filing requirements as set forth in subparagraph
(E).
(E) The assuming insurer or its legal successor shall provide, if
requested by the commissioner, on behalf of itself and any legal
predecessors, the following documentation to the commissioner:
(i) For the two years preceding entry into the reinsurance
agreement and annually thereafter, the assuming insurer's annual
audited financial statements, in accordance with the applicable law of
the jurisdiction of its head office or domiciliary jurisdiction, as
applicable, including the external audit report;
(ii) for the two years preceding entry into the reinsurance
agreement, the solvency and financial condition report or actuarial
opinion, if filed with the assuming insurer's supervisor;
(iii) prior to entry into the reinsurance agreement and not more
than semi-annually thereafter, an updated list of all disputed and
overdue reinsurance claims outstanding for 90 days or more, regarding
reinsurance assumed from ceding insurers domiciled in the United
States; and
(iv) prior to entry into the reinsurance agreement and not more
than semi-annually thereafter, information regarding the assuming
insurer's assumed reinsurance by the ceding insurer, ceded reinsurance
by the assuming insurer, and reinsurance recoverable on paid and
unpaid losses by the assuming insurer to allow for the evaluation of the
criteria set forth in subparagraph (F).
(F) The assuming insurer shall maintain a practice of prompt
payment of claims under reinsurance agreements. The lack of prompt
payment will be evidenced if any of the following criteria is met:
(i) More than 15% of the reinsurance recoverables from the
assuming insurer are overdue and in dispute as reported to the
commissioner;
(ii) more than 15% of the assuming insurer's ceding insurers or
reinsurers have overdue reinsurance recoverable on paid losses of 90
days or more that are not in dispute and that exceed $100,000 for each
ceding insurer, or as otherwise specified in a covered agreement; or
(iii) the aggregate amount of reinsurance recoverable on paid
losses that are not in dispute, but are overdue by 90 days or more,
exceeds $50,000,000, or as otherwise specified in a covered agreement.
(G) The assuming insurer's supervisory authority shall confirm to
the commissioner on an annual basis that the assuming insurer
complies with the requirements set forth in subparagraphs (B) and (C).
(H) Nothing in this provision precludes an assuming insurer from
providing the commissioner with information on a voluntary basis.
(4) The commissioner shall timely create and publish a list of
reciprocal jurisdictions.
(A) A list of reciprocal jurisdictions is published through the
national association of insurance commissioners' committee process.
The commissioner's list shall include any reciprocal jurisdiction, as
defined under subsections (h)(2)(A) and (B), and shall consider any
other reciprocal jurisdiction included on the NAIC list. The
commissioner may approve a jurisdiction that does not appear on the
national association of insurance commissioners' list of reciprocal
HOUSE BILL No. 2519—page 20
jurisdictions as provided by applicable law, regulation, or in accordance
with criteria published through the national association of insurance
commissioner committee process.
(B) The commissioner may remove a jurisdiction from the list of
reciprocal jurisdictions upon a determination that the jurisdiction no
longer meets one or more of the requirements of a reciprocal
jurisdiction, as provided by applicable law, regulation, or in accordance
with a process published through the national association of insurance
commissioner committee process, except that the commissioner shall
not remove from the list a reciprocal jurisdiction, as defined under
subsections (h)(2)(A) and (B). Upon removal of a reciprocal
jurisdiction from this list credit for reinsurance ceded to an assuming
insurer domiciled in that jurisdiction shall be allowed, if otherwise
allowed pursuant to K.S.A. 40-221a, and amendments thereto, or this
section.
(5) The commissioner shall timely create and publish a list of
assuming insurers that have satisfied the conditions set forth in this
section and to which cessions shall be granted credit in accordance with
this section.
(A) If a national association of insurance commissioners
accredited jurisdiction has determined that the conditions set forth in
paragraph (3) have been met, the commissioner has the discretion to
defer to that jurisdiction's determination, and add such assuming insurer
to the list of assuming insurers to which cessions shall be granted credit
in accordance with this subsection. The commissioner may accept
financial documentation filed with another national association of
insurance commissioners accredited jurisdiction or with the national
association of insurance commissioners in satisfaction of the
requirements of paragraph (3).
(B) When requesting that the commissioner defer to another
national association of insurance commissioners accredited
jurisdiction's determination, an assuming insurer shall submit a
properly executed form rj-1 in accordance with the instructions and as
prescribed and adopted by the national association of insurance
commissioners and the commissioner of insurance and additional
information as the commissioner may require. A state that has received
such a request shall notify other states through the national association
of insurance commissioners committee process and provide relevant
information with respect to the determination of eligibility.
(6) If the commissioner determines that an assuming insurer no
longer meets one or more of the requirements under this section, the
commissioner may revoke or suspend the eligibility of the assuming
insurer for recognition under this section.
(A) While an assuming insurer's eligibility is suspended, no
reinsurance agreement issued, amended or renewed after the effective
date of the suspension qualifies for credit except to the extent that the
assuming insurer's obligations under the contract are secured in
accordance with subsection (j).
(B) If an assuming insurer's eligibility is revoked, no credit for
reinsurance may be granted after the effective date of the revocation
with respect to any reinsurance agreements entered into by the
assuming insurer, including reinsurance agreements entered into prior
to the date of revocation, except to the extent that the assuming
insurer's obligations under the contract are secured in a form acceptable
to the commissioner and consistent with the provisions of subsection
(j).
(7) Before denying statement credit or imposing a requirement to
post security with respect to subsection (h)(6) or adopting any similar
requirement that will have substantially the same regulatory impact as
security, the commissioner shall:
(A) Communicate with the ceding insurer, the assuming insurer,
and the assuming insurer's supervisory authority that the assuming
insurer no longer satisfies one of the conditions listed in paragraph (3);
(B) provide the assuming insurer with 30 days from the initial
HOUSE BILL No. 2519—page 21
communication to submit a plan to remedy the defect, and 90 days from
the initial communication to remedy the defect, except in exceptional
circumstances in which a shorter period is necessary for policyholder
and other consumer protection;
(C) after the expiration of 90 days or less, as set out in
subparagraph (B), if the commissioner determines that no or
insufficient action was taken by the assuming insurer, the commissioner
may impose any of the requirements as set out in this subsection; and
(D) provide a written explanation to the assuming insurer of any
of the requirements set out in this subsection.
(8) If subject to a legal process of rehabilitation, liquidation or
conservation, as applicable, the ceding insurer, or its representative,
may seek and, if determined appropriate by the court in which the
proceedings are pending, may obtain an order requiring that the
assuming insurer post security for all outstanding liabilities.
(i) Credit for reinsurance required by law. Pursuant to K.S.A. 40-
221a(a)(7), and amendments thereto, the commissioner shall allow
credit for reinsurance ceded by a domestic insurer to an assuming
insurer not meeting the requirements of K.S.A. 40-221a(a)(1) through
(6), and amendments thereto, but only as to the insurance of risks
located in jurisdictions where the reinsurance is required by the
applicable law or regulation of that jurisdiction. As used in this section,
"jurisdiction" means state, district or territory of the United States and
any lawful national government.
(j) Asset or reduction from liability for reinsurance ceded to an
unauthorized assuming insurer not meeting the requirements of
subsections (c) through (i).
(1) Pursuant to K.S.A. 40-221a(b), and amendments thereto, the
commissioner shall allow a reduction from liability for reinsurance
ceded by a domestic insurer to an assuming insurer not meeting the
requirements of K.S.A. 40-221a(a), and amendments thereto, in an
amount not exceeding the liabilities carried by the ceding insurer. The
reduction shall be in the amount of funds held by or on behalf of the
ceding insurer, including funds held in trust for the exclusive benefit of
the ceding insurer, under a reinsurance contract with such assuming
insurer as security for the payment of obligations under the reinsurance
contract. The security shall be held in the United States subject to
withdrawal solely by, and under the exclusive control of, the ceding
insurer or, in the case of a trust, held in a qualified United States
financial institution, as defined in K.S.A. 40-221a(c)(2), and
amendments thereto. This security may be in the form of any of the
following:
(A) Cash;
(B) securities listed by the securities valuation office of the
national association of insurance commissioners, including those
deemed exempt from filing, as defined by the purposes and procedures
manual of the securities valuation office and qualifying as admitted
assets;
(C) clean, irrevocable, unconditional and "evergreen" letters of
credit issued or confirmed by a qualified United States institution, as
defined in K.S.A. 40-221a(c), and amendments thereto, effective no
later than December 31 of the year for which filing is being made, and
in the possession of, or in trust for, the ceding insurer on or before the
filing date of its annual statement. Letters of credit meeting applicable
standards of issuer acceptability as of the dates of their issuance, or
confirmation, shall, notwithstanding the issuing, or confirming,
institution's subsequent failure to meet applicable standards of issuer
acceptability, continue to be acceptable as security until their
expiration, extension, renewal, modification or amendment, whichever
occurs first; or
(D) any other form of security acceptable to the commissioner.
(2) An admitted asset or a reduction from liability for reinsurance
ceded to an unauthorized assuming insurer pursuant to this section shall
be allowed only when the requirements of subsection (n) and the
HOUSE BILL No. 2519—page 22
applicable portions of subsection (k), (l) or (m) have been satisfied.
(k) Trust agreements qualified under subsection (j).
(1) As used in this subsection:
(A) "Beneficiary" means the entity for whose sole benefit the trust
has been established and any successor of the beneficiary by operation
of law. If a court of law appoints a successor in interest to the named
beneficiary, then the named beneficiary includes and is limited to the
court appointed domiciliary receiver, including conservator,
rehabilitator or liquidator.
(B) "Grantor" means the entity that has established a trust for the
sole benefit of the beneficiary. When established in conjunction with a
reinsurance agreement, the grantor is the unlicensed, unaccredited
assuming insurer.
(C) "Obligations" means:
(i) Reinsured losses and allocated loss expenses paid by the ceding
company, but not recovered from the assuming insurer;
(ii) reserves for reinsured losses reported and outstanding;
(iii) reserves for reinsured losses incurred but not reported; and
(iv) reserves for allocated reinsured loss expenses and unearned
premiums.
(2) Required conditions. (A) The trust agreement shall be entered
into between the beneficiary, the grantor and a trustee, that shall be a
qualified United States financial institution, as defined in K.S.A. 40-
221a(c)(2), and amendments thereto.
(B) The trust agreement shall create a trust account into which
assets shall be deposited.
(C) All assets in the trust account shall be held by the trustee at the
trustee's office in the United States.
(D) The trust agreement shall provide that:
(i) The beneficiary shall have the right to withdraw assets from the
trust account at any time, without notice to the grantor, subject only to
written notice from the beneficiary to the trustee;
(ii) no other statement or document shall be required to be
presented to withdraw assets, except that the beneficiary may be
required to acknowledge receipt of withdrawn assets;
(iii) it is not subject to any conditions or qualifications outside of
the trust agreement; and
(iv) it shall not contain references to any other agreements or
documents except as provided for in subparagraphs (K) and (L).
(E) The trust agreement shall be established for the sole benefit of
the beneficiary.
(F) The trust agreement shall require the trustee to:
(i) Receive assets and hold all assets in a safe place;
(ii) determine that all assets are in such form that the beneficiary,
or the trustee upon direction by the beneficiary, may whenever
necessary negotiate any such assets, without consent or signature from
the grantor or any other person or entity;
(iii) furnish to the grantor and the beneficiary a statement of all
assets in the trust account upon its inception and at intervals no less
frequent than the end of each calendar quarter;
(iv) notify the grantor and the beneficiary within 10 days, of any
deposits to or withdrawals from the trust account;
(v) upon written demand of the beneficiary, immediately take any
and all steps necessary to transfer absolutely and unequivocally all
right, title and interest in the assets held in the trust account to the
beneficiary and deliver physical custody of the assets to the
beneficiary; and
(vi) allow no substitutions or withdrawals of assets from the trust
account, except on written instructions from the beneficiary, except that
the trustee may, without the consent of but with notice to the
beneficiary, upon call or maturity of any trust asset, withdraw such
asset upon condition that the proceeds are paid into the trust account.
(G) The trust agreement shall provide that at least 30 days, but not
more than 45 days, prior to termination of the trust account, written
HOUSE BILL No. 2519—page 23
notification of termination shall be delivered by the trustee to the
beneficiary.
(H) The trust agreement shall be made subject to, and governed
by, the laws of the state in which the trust is domiciled.
(I) The trust agreement shall prohibit invasion of the trust corpus
for the purpose of paying a commission to, or reimbursing the expenses
of, the trustee. In order for a letter of credit to qualify as an asset of the
trust, the trustee shall have the right and the obligation pursuant to the
deed of trust or some other binding agreement, as duly approved by the
commissioner, to immediately draw down the full amount of the letter
of credit and hold the proceeds in trust for the beneficiaries of the trust
if the letter of credit will otherwise expire without being renewed or
replaced.
(J) The trust agreement shall provide that the trustee shall be liable
for its negligence, willful misconduct or lack of good faith. The failure
of the trustee to draw against the letter of credit in circumstances where
such draw would be required shall be deemed to be negligence or
willful misconduct.
(K) Notwithstanding other provisions of this section, when a trust
agreement is established in conjunction with a reinsurance agreement
covering risks other than life, annuities and accident and health, where
it is customary practice to provide a trust agreement for a specific
purpose, the trust agreement may provide that the ceding insurer shall
undertake to use and apply amounts drawn upon the trust account,
without diminution because of the insolvency of the ceding insurer or
the assuming insurer, only for the following purposes:
(i) To pay or reimburse the ceding insurer for the assuming
insurer's share under the specific reinsurance agreement regarding any
losses and allocated loss expenses paid by the ceding insurer, but not
recovered from the assuming insurer, or for unearned premiums due to
the ceding insurer if not otherwise paid by the assuming insurer;
(ii) to make payment to the assuming insurer of any amounts held
in the trust account that exceed 102% of the actual amount required to
fund the assuming insurer's obligations under the specific reinsurance
agreement; or
(iii) where the ceding insurer has received notification of
termination of the trust account and where the assuming insurer's entire
obligations under the specific reinsurance agreement remain
unliquidated and undischarged 10 days prior to the termination date, to
withdraw amounts equal to the obligations and deposit those amounts
in a separate account, in the name of the ceding insurer in any qualified
United States financial institution, as defined in K.S.A. 40-221a(c)(2),
and amendments thereto, apart from its general assets, in trust for such
uses and purposes specified in clauses (i) and (ii) as may remain
executory after such withdrawal and for any period after the
termination date.
(L) Notwithstanding other provisions of this subsection, when a
trust agreement is established to meet the requirements of subjection (j)
in conjunction with a reinsurance agreement covering life, annuities or
accident and health risks, where it is customary to provide a trust
agreement for a specific purpose, the trust agreement may provide that
the ceding insurer shall undertake to use and apply amounts drawn
upon the trust account, without diminution because of the insolvency of
the ceding insurer or the assuming insurer, only for the following
purposes:
(i) To pay or reimburse the ceding insurer for:
(a) The assuming insurer's share under the specific reinsurance
agreement of premiums returned, but not yet recovered from the
assuming insurer, to the owners of policies reinsured under the
reinsurance agreement on account of cancellations of the policies; and
(b) the assuming insurer's share under the specific reinsurance
agreement of surrenders and benefits or losses paid by the ceding
insurer, but not yet recovered from the assuming insurer, under the
terms and provisions of the policies reinsured under the reinsurance
HOUSE BILL No. 2519—page 24
agreement;
(ii) to pay to the assuming insurer amounts held in the trust
account in excess of the amount necessary to secure the credit or
reduction from liability for reinsurance taken by the ceding insurer; or
(iii) where the ceding insurer has received notification of
termination of the trust and where the assuming insurer's entire
obligations under the specific reinsurance agreement remain
unliquidated and undischarged 10 days prior to the termination date, to
withdraw amounts equal to the assuming insurer's share of liabilities, to
the extent that the liabilities have not yet been funded by the assuming
insurer, and deposit those amounts in a separate account, in the name of
the ceding insurer in any qualified United States financial institution
apart from its general assets, in trust for the uses and purposes specified
in clauses (i) and (ii) as may remain executory after withdrawal and for
any period after the termination date.
(M) Either the reinsurance agreement or the trust agreement shall
stipulate that assets deposited in the trust account shall be valued
according to their current fair market value and shall consist only of
cash in United States dollars, certificates of deposit issued by a United
States bank and payable in United States dollars, and investments
permitted by the insurance code or any combination of the above,
provided investments in or issued by an entity controlling, controlled
by or under common control with either the grantor or the beneficiary
of the trust shall not exceed 5% of total investments. The agreement
may further specify the types of investments to be deposited. If the
reinsurance agreement covers life, annuities or accident and health
risks, then the provisions required by this paragraph shall be included
in the reinsurance agreement.
(3) Permitted conditions. (A) The trust agreement may provide
that the trustee may resign upon delivery of a written notice of
resignation, effective not less than 90 days after the beneficiary and
grantor receive the notice and that the trustee may be removed by the
grantor by delivery to the trustee and the beneficiary of a written notice
of removal, effective not less than 90 days after the trustee and the
beneficiary receive the notice, provided that no such resignation or
removal shall be effective until a successor trustee has been duly
appointed and approved by the beneficiary and the grantor and all
assets in the trust have been duly transferred to the new trustee.
(B) The grantor may have the full and unqualified right to vote
any shares of stock in the trust account and to receive from time to time
payments of any dividends or interest upon any shares of stock or
obligations included in the trust account. Any interest or dividends shall
be either forwarded promptly upon receipt to the grantor or deposited in
a separate account established in the grantor's name.
(C) The trustee may be given authority to invest, and accept
substitutions of, any funds in the account, provided that no investment
or substitution shall be made without prior approval of the beneficiary,
unless the trust agreement specifies categories of investments
acceptable to the beneficiary and authorizes the trustee to invest funds
and to accept substitutions that the trustee determines are at least equal
in current fair market value to the assets withdrawn and that are
consistent with the restrictions in paragraph (4)(A)(ii).
(D) The trust agreement may provide that the beneficiary may at
any time designate a party to which all or part of the trust assets are to
be transferred. Transfer may be conditioned upon the trustee receiving,
prior to or simultaneously, other specified assets.
(E) The trust agreement may provide that, upon termination of the
trust account, all assets not previously withdrawn by the beneficiary
shall, with written approval by the beneficiary, be delivered over to the
grantor.
(4) Additional conditions applicable to reinsurance agreements.
(A) A reinsurance agreement may contain provisions that:
(i) Require the assuming insurer to enter into a trust agreement
and to establish a trust account for the benefit of the ceding insurer, and
HOUSE BILL No. 2519—page 25
specifying what the agreement is to cover;
(ii) require the assuming insurer, prior to depositing assets with
the trustee, to execute assignments or endorsements in blank, or to
transfer legal title to the trustee of all shares, obligations or any other
assets requiring assignments, in order that the ceding insurer, or the
trustee upon the direction of the ceding insurer, may whenever
necessary negotiate these assets without consent or signature from the
assuming insurer or any other entity;
(iii) require that all settlements of account between the ceding
insurer and the assuming insurer be made in cash or its equivalent; and
(iv) stipulate that the assuming insurer and the ceding insurer
agree that the assets in the trust account, established pursuant to the
provisions of the reinsurance agreement, may be withdrawn by the
ceding insurer at any time, notwithstanding any other provisions in the
reinsurance agreement, and shall be utilized and applied by the ceding
insurer or its successors in interest by operation of law, including
without limitation any liquidator, rehabilitator, receiver or conservator
of such company, without diminution because of insolvency on the part
of the ceding insurer or the assuming insurer, only for the following
purposes:
(a) To pay or reimburse the ceding insurer for:
(1) The assuming insurer's share under the specific reinsurance
agreement of premiums returned, but not yet recovered from the
assuming insurer, to the owners of policies reinsured under the
reinsurance agreement because of cancellations of such policies;
(2) the assuming insurer's share of surrenders and benefits or
losses paid by the ceding insurer pursuant to the provisions of the
policies reinsured under the reinsurance agreement; and
(3) any other amounts necessary to secure the credit or reduction
from liability for reinsurance taken by the ceding insurer;
(b) to make payment to the assuming insurer of amounts held in
the trust account in excess of the amount necessary to secure the credit
or reduction from liability for reinsurance taken by the ceding insurer.
(B) The reinsurance agreement also may contain provisions that:
(i) Give the assuming insurer the right to seek approval from the
ceding insurer, which shall not be unreasonably or arbitrarily withheld,
to withdraw from the trust account all or any part of the trust assets and
transfer those assets to the assuming insurer, provided:
(a) The assuming insurer shall, at the time of withdrawal, replace
the withdrawn assets with other qualified assets having a current fair
market value equal to the market value of the assets withdrawn so as to
maintain at all times the deposit in the required amount; or
(b) after withdrawal and transfer, the current fair market value of
the trust account is no less than 102% of the required amount;
(ii) provide for the return of any amount withdrawn in excess of
the actual amounts required for subsection (k)(4)(A)(iv), and for
interest payments at a rate not in excess of the prime rate of interest on
such amounts;
(iii) permit the award by any arbitration panel or court of
competent jurisdiction of:
(a) Interest at a rate different from that provided in subparagraph
(ii) of this paragraph;
(b) court or arbitration costs;
(c) attorney's fees; and
(d) any other reasonable expenses.
(5) Financial reporting. A trust agreement may be used to reduce
any liability for reinsurance ceded to an unauthorized assuming insurer
in financial statements required to be filed with this department in
compliance with the provisions of this section when established on or
before the date of filing of the financial statement of the ceding insurer.
Further, the reduction for the existence of an acceptable trust account
may be up to the current fair market value of acceptable assets
available to be withdrawn from the trust account at that time, but such
reduction shall be no greater than the specific obligations under the
HOUSE BILL No. 2519—page 26
reinsurance agreement that the trust account was established to secure.
(6) The failure of any trust agreement to specifically identify the
beneficiary, as defined in paragraph (1), shall not be construed to affect
any actions or rights that the commissioner may take or possess
pursuant to the provisions of the laws of this state.
(l) Letters of credit qualified under subsection (j)(1). (1) The letter
of credit shall be clean, irrevocable, unconditional and issued or
confirmed by a qualified United States financial institution, as defined
in K.S.A. 40-221a(c)(1), and amendments thereto. The letter of credit
shall contain an issue date and expiration date and shall stipulate that
the beneficiary need only draw a sight draft under the letter of credit
and present it to obtain funds and that no other document need be
presented. The letter of credit also shall indicate that it is not subject to
any condition or qualifications outside of the letter of credit. In
addition, the letter of credit itself shall not contain reference to any
other agreements, documents or entities, except as provided in
subsection (m)(8)(A). As used in this subsection, "beneficiary" means
the domestic insurer for whose benefit the letter of credit has been
established and any successor of the beneficiary by operation of law. If
a court of law appoints a successor in interest to the named beneficiary,
then the named beneficiary includes and is limited to the court
appointed domiciliary receiver, including conservator, rehabilitator or
liquidator.
(2) The heading of the letter of credit may include a boxed section
containing the name of the applicant and other appropriate notations to
provide a reference for the letter of credit. The boxed section shall be
clearly marked to indicate that such information is for internal
identification purposes only.
(3) The letter of credit shall contain a statement to the effect that
the obligation of the qualified United States financial institution under
the letter of credit is in no way contingent upon reimbursement with
respect thereto.
(4) The term of the letter of credit shall be for at least one year and
shall contain an "evergreen clause" that prevents the expiration of the
letter of credit without due notice from the issuer. The "evergreen
clause" shall provide for a period of no less than 30 days notice prior to
expiration date or nonrenewal.
(5) The letter of credit shall state whether it is subject to and
governed by the laws of this state or the uniform customs and practice
for documentary credits of the international chamber of commerce
publication 600, UCP 600, or international standby practices of the
international chamber of commerce publication 590, ISP98, or any
successor publication, and all drafts drawn thereunder shall be
presentable at an office in the United States of a qualified United States
financial institution.
(6) If the letter of credit is made subject to the uniform customs
and practice for documentary credits of the international chamber of
commerce publication 600, UCP 600, or international standby practices
of the international chamber of commerce publication 590, ISP98, or
any successor publication, then the letter of credit shall specifically
address and provide for an extension of time to draw against the letter
of credit in the event that one or more of the occurrences specified in
article 36 of publication 600 or any other successor publication, occur.
(7) If the letter of credit is issued by a financial institution
authorized to issue letters of credit, other than a qualified United States
financial institution as described in subsection (m)(1), then the
following additional requirements shall be met:
(A) The issuing financial institution shall formally designate the
confirming qualified United States financial institution as its agent for
the receipt and payment of the drafts; and
(B) the "evergreen clause" shall provide for 30 days' notice prior
to the expiration date for nonrenewal.
(8) Reinsurance agreement provisions. (A) The reinsurance
agreement in conjunction with which the letter of credit is obtained
HOUSE BILL No. 2519—page 27
may contain provisions that:
(i) Require the assuming insurer to provide letters of credit to the
ceding insurer and specify what they are to cover;
(ii) stipulate that the assuming insurer and ceding insurer agree
that the letter of credit provided by the assuming insurer pursuant to the
provisions of the reinsurance agreement may be drawn upon at any
time, notwithstanding any other provisions in the agreement, and shall
be utilized by the ceding insurer or its successors in interest only for
one or more of the following reasons:
(a) To pay or reimburse the ceding insurer for:
(1) The assuming insurer's share under the specific reinsurance
agreement of premiums returned, but not yet recovered from the
assuming insurers, to the owners of policies reinsured under the
reinsurance agreement on account of cancellations of such policies;
(2) the assuming insurer's share, under the specific reinsurance
agreement, of surrenders and benefits or losses paid by the ceding
insurer, but not yet recovered from the assuming insurers, under the
terms and provisions of the policies reinsured under the reinsurance
agreement; and
(3) any other amounts necessary to secure the credit or reduction
from liability for reinsurance taken by the ceding insurer;
(b) where the letter of credit will expire without renewal or be
reduced or replaced by a letter of credit for a reduced amount and
where the assuming insurer's entire obligations under the reinsurance
agreement remain unliquidated and undischarged 10 days prior to the
termination date, to withdraw amounts equal to the assuming insurer's
share of the liabilities, to the extent that the liabilities have not yet been
funded by the assuming insurer and exceed the amount of any reduced
or replacement letter of credit, and deposit those amounts in a separate
account in the name of the ceding insurer in a qualified United States
financial institution apart from its general assets, in trust for such uses
and purposes specified in paragraph (8)(A)(ii)(a) as may remain after
withdrawal and for any period after the termination date; and
(iii) all of the provisions of subparagraph (A) shall be applied
without diminution because of insolvency on the part of the ceding
insurer or assuming insurer.
(B) Nothing contained in subparagraph (A) shall preclude the
ceding insurer and assuming insurer from providing for:
(i) An interest payment, at a rate not in excess of the prime rate of
interest, on the amounts held pursuant to paragraph (8)(A)(ii); or
(ii) the return of any amounts drawn down on the letters of credit
in excess of the actual amounts required for the above or any amounts
that are subsequently determined not to be due.
(m) Other security. A ceding insurer may take credit for
unencumbered funds withheld by the ceding insurer in the United
States subject to withdrawal solely by the ceding insurer and under its
exclusive control.
(n) Reinsurance contract. Credit will not be granted, nor an asset
or reduction from liability allowed, to a ceding insurer for reinsurance
effected with assuming insurers meeting the requirements of subsection
(c), (d), (e), (f), (g), (h), or (j) or otherwise in compliance with K.S.A.
40-221a(a), and amendments thereto, after the adoption of this section
unless the reinsurance agreement:
(1) Includes a proper insolvency clause, that stipulates that
reinsurance is payable directly to the liquidator or successor without
diminution regardless of the status of the ceding company;
(2) includes a provision pursuant to K.S.A. 40-221a(a), and
amendments thereto, whereby the assuming insurer, if an unauthorized
assuming insurer, has submitted to the jurisdiction of an alternative
dispute resolution panel or court of competent jurisdiction within the
United States, has agreed to comply with all requirements necessary to
give the court or panel jurisdiction, has designated an agent upon whom
service of process may be effected, and has agreed to abide by the final
decision of the court or panel; and
HOUSE BILL No. 2519—page 28
(3) includes a proper reinsurance intermediary clause, if
applicable, that stipulates that the credit risk for the intermediary is
carried by the assuming insurer.
Sec. 4. K.S.A. 41-353 is hereby amended to read as follows: 41-
353. (a) Before making or causing any shipment of alcoholic liquor to
Kansas residents, a fulfillment house shall pay a $50 license fee and
obtain such license that will be applicable for each location that is
involved in the shipping process to Kansas residents. A fulfillment
house license shall commence on the date specified on the license and
expire two years after such date. The holder of a fulfillment house
license may only provide services for the warehousing, packaging and
shipping of alcoholic liquors produced by, and belonging to, a special
order shipping licensee in accordance with K.S.A. 41-350, and
amendments thereto. A fulfillment house licensee shall make
reasonable efforts to confirm that any winery that they ship alcoholic
liquor for holds a special order shipping license and may rely on the
representations of each such winery for such assurance.
(b) As part of a fulfillment house license application, the applicant
shall provide any information as required by rules and regulations
adopted by the director and contained in the fulfillment house license
application form established by the director.
(c) If the holder of the license is an out-of-state entity, the licensee
shall be deemed to have appointed the secretary of state as the resident
agent and representative of the licensee to accept service of process
from the secretary of revenue, the director and the courts of this state
concerning enforcement of this section, K.S.A. 41-501 et seq., and
amendments thereto, and any rules and regulations adopted thereunder
and to accept service of any notice or order provided for in the liquor
control act.
(d) (1) A fulfillment house licensee shall ensure all containers of
alcoholic liquors shipped directly to an individual in this state are
labeled with the name, address and license number of the fulfillment
house licensee. All such containers shall contain a conspicuously
printed statement of "SIGNATURE OF PERSON AGE 21 OR OLDER
REQUIRED FOR DELIVERY".
(2) All containers of alcoholic liquors shipped directly to a
resident of this state shall be shipped using a common carrier pursuant
to K.S.A. 41-725, and amendments thereto.
(e) (1) A fulfillment house licensee shall:
(A) Maintain records of all shipments for a minimum of three
years after the shipment date, that shall include the:
(i) Name, address and license number of the special order shipping
licensee;
(ii) name and license number of the express company or common
carrier;
(iii) date of each shipment;
(iv) carrier tracking number;
(v) name and address of the consignee of such alcoholic liquors;
and
(vi) weight of the package and product type of alcoholic liquors
shipped.
(B) Submit these records as an electronic report to the director
monthly in the form and format prescribed by the director.
(2) Reports submitted pursuant to this subsection shall be open
records available for public inspection in accordance with the open
records act. Any information relating to the name or address of a
consignee of any alcoholic liquors shall be redacted from the reports
that are made available for public inspection. The provisions of this
paragraph providing for the confidentiality of certain public records
shall expire on July 1, 2026, unless the legislature reviews and reenacts
such provisions in accordance with K.S.A. 45-229, and amendments
thereto, prior to July 1, 2026.
(f) A fulfillment house that willfully fails, neglects or refuses to
file any report pursuant to subsection (e) shall be subject to a civil
HOUSE BILL No. 2519—page 29
penalty of not more than $100. After notice and an opportunity for
hearing in accordance with the Kansas administrative procedure act, the
director may refuse to issue or renew or may revoke a fulfillment house
license upon a finding that the licensee has failed to comply with any
provision of this section.
(g) The secretary of revenue shall adopt rules and regulations to
implement, administer and enforce the provisions of this section.
(h) The provisions of this section shall be a part of and
supplemental to the Kansas liquor control act.
Sec. 5. K.S.A. 2025 Supp. 45-229 is hereby amended to read as
follows: 45-229. (a) It is the intent of the legislature that exceptions to
disclosure under the open records act shall be created or maintained
only if:
(1) The public record is of a sensitive or personal nature
concerning individuals;
(2) the public record is necessary for the effective and efficient
administration of a governmental program; or
(3) the public record affects confidential information.
The maintenance or creation of an exception to disclosure must be
compelled as measured by these criteria. Further, the legislature finds
that the public has a right to have access to public records unless the
criteria in this section for restricting such access to a public record are
met and the criteria are considered during legislative review in
connection with the particular exception to disclosure to be significant
enough to override the strong public policy of open government. To
strengthen the policy of open government, the legislature shall consider
the criteria in this section before enacting an exception to disclosure.
(b) Subject to the provisions of subsections (g) and (h), any new
exception to disclosure or substantial amendment of an existing
exception shall expire on July 1 of the fifth year after enactment of the
new exception or substantial amendment, unless the legislature acts to
continue the exception. A law that enacts a new exception or
substantially amends an existing exception shall state that the exception
expires at the end of five years and that the exception shall be reviewed
by the legislature before the scheduled date.
(c) For purposes of this section, an exception is substantially
amended if the amendment expands the scope of the exception to
include more records or information. An exception is not substantially
amended if the amendment narrows the scope of the exception.
(d) This section is not intended to repeal an exception that has
been amended following legislative review before the scheduled repeal
of the exception if the exception is not substantially amended as a result
of the review.
(e) In the year before the expiration of an exception, the revisor of
statutes shall certify to the president of the senate and the speaker of the
house of representatives, by July 15, the language and statutory citation
of each exception that will expire in the following year that meets the
criteria of an exception as defined in this section. Any exception that is
not identified and certified to the president of the senate and the
speaker of the house of representatives is not subject to legislative
review and shall not expire. If the revisor of statutes fails to certify an
exception that the revisor subsequently determines should have been
certified, the revisor shall include the exception in the following year's
certification after that determination.
(f) "Exception" means any provision of law that creates an
exception to disclosure or limits disclosure under the open records act
pursuant to K.S.A. 45-221, and amendments thereto, or pursuant to any
other provision of law.
(g) A provision of law that creates or amends an exception to
disclosure under the open records law shall not be subject to review and
expiration under this act if such provision:
(1) Is required by federal law;
(2) applies solely to the legislature or to the state court system;
(3) has been reviewed and continued in existence twice by the
HOUSE BILL No. 2519—page 30
legislature;
(4) has been reviewed and continued in existence by the
legislature during the 2013 legislative session and thereafter; or
(5) is a report of the results of an audit conducted by the United
States cybersecurity and infrastructure security agency.
(h) (1) The legislature shall review the exception before its
scheduled expiration and consider as part of the review process the
following:
(A) What specific records are affected by the exception;
(B) whom does the exception uniquely affect, as opposed to the
general public;
(C) what is the identifiable public purpose or goal of the
exception;
(D) whether the information contained in the records may be
obtained readily by alternative means and how it may be obtained;
(2) an exception may be created or maintained only if it serves an
identifiable public purpose and may be no broader than is necessary to
meet the public purpose it serves. An identifiable public purpose is
served if the legislature finds that the purpose is sufficiently compelling
to override the strong public policy of open government and cannot be
accomplished without the exception and if the exception:
(A) Allows the effective and efficient administration of a
governmental program that would be significantly impaired without the
exception;
(B) protects information of a sensitive personal nature concerning
individuals, the release of such information would be defamatory to
such individuals or cause unwarranted damage to the good name or
reputation of such individuals or would jeopardize the safety of such
individuals. Only information that would identify the individuals may
be excepted under this paragraph; or
(C) protects information of a confidential nature concerning
entities, including, but not limited to, a formula, pattern, device,
combination of devices, or compilation of information that is used to
protect or further a business advantage over those who do not know or
use it, if the disclosure of such information would injure the affected
entity in the marketplace.
(3) Records made before the date of the expiration of an exception
shall be subject to disclosure as otherwise provided by law. In deciding
whether the records shall be made public, the legislature shall consider
whether the damage or loss to persons or entities uniquely affected by
the exception of the type specified in paragraph (2)(B) or (2)(C) would
occur if the records were made public.
(i) (1) Exceptions contained in the following statutes as continued
in existence in section 2 of chapter 126 of the 2005 Session Laws of
Kansas and that have been reviewed and continued in existence twice
by the legislature as provided in subsection (g) are hereby continued in
existence: 1-401, 2-1202, 5-512, 9-1137, 9-1712, 9-2217, 10-630, 12-
189, 12-1,108, 12-1694, 12-1698, 12-2819, 12-4516, 16-715, 16a-2-
304, 17-1312e, 17-2227, 17-5832, 17-7511, 17-76,139, 19-4321, 21-
2511, 22-3711, 22-4707, 22-4909, 22a-243, 22a-244, 23-605, 23-9,312,
25-4161, 25-4165, 31-405, 34-251, 38-2212, 39-709b, 39-719e, 39-
934, 39-1434, 39-1704, 40-222, 40-2,156, 40-2c20, 40-2c21, 40-2d20,
40-2d21, 40-409, 40-956, 40-1128, 40-2807, 40-3012, 40-3304, 40-
3308, 40-3403b, 40-3421, 40-3613, 40-3805, 40-4205, 44-510j, 44-
550b, 44-594, 44-635, 44-714, 44-817, 44-1005, 44-1019, 45-221(a)(1)
through (43), 46-256, 46-259, 46-2201, 47-839, 47-844, 47-849, 47-
1709, 48-1614, 49-406, 49-427, 55-1,102, 58-4114, 59-2135, 59-2802,
59-2979, 59-29b79, 60-3333, 60-3336, 65-102b, 65-118, 65-119, 65-
153f, 65-170g, 65-177, 65-1,106, 65-1,113, 65-1,116, 65-1,157a, 65-
1,163, 65-1,165, 65-1,168, 65-1,169, 65-1,171, 65-1,172, 65-436, 65-
445, 65-507, 65-525, 65-531, 65-657, 65-1135, 65-1467, 65-1627, 65-
1831, 65-2422d, 65-2438, 65-2836, 65-2839a, 65-2898a, 65-3015, 65-
3447, 65-34,108, 65-34,126, 65-4019, 65-4922, 65-4925, 65-5602, 65-
5603, 65-6002, 65-6003, 65-6004, 65-6010, 65-67a05, 65-6803, 65-
HOUSE BILL No. 2519—page 31
6804, 66-101c, 66-117, 66-151, 66-1,190, 66-1,203, 66-1220a, 66-
2010, 72-2232, 72-3438, 72-6116, 72-6267, 72-9934, 73-1228, 74-
2424, 74-2433f, 74-32,419, 74-4905, 74-4909, 74-50,131, 74-5515, 74-
7308, 74-7338, 74-8104, 74-8307, 74-8705, 74-8804, 74-9805, 75-104,
75-712, 75-7b15, 75-1267, 75-2943, 75-4332, 75-4362, 75-5133, 75-
5266, 75-5665, 75-5666, 75-7310, 76-355, 76-359, 76-493, 76-12b11,
76-12c03, 76-3305, 79-1119, 79-1437f, 79-3234, 79-3395, 79-3420,
79-3499, 79-34,113, 79-3614, 79-3657, 79-4301 and 79-5206.
(2) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) and that have
been reviewed during the 2015 legislative session and continued in
existence by the legislature as provided in subsection (g) are hereby
continued in existence: 17-2036, 40-5301, 45-221(a)(45), (46) and (49),
48-16a10, 58-4616, 60-3351, 72-3415, 74-50,217 and 75-53,105.
(j) (1) Exceptions contained in the following statutes as continued
in existence in section 1 of chapter 87 of the 2006 Session Laws of
Kansas and that have been reviewed and continued in existence twice
by the legislature as provided in subsection (g) are hereby continued in
existence: 1-501, 9-1303, 12-4516a, 39-970, 65-525, 65-5117, 65-6016,
65-6017 and 74-7508.
(2) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) during 2015 and
that have been reviewed during the 2016 legislative session are hereby
continued in existence: 12-5611, 22-4906, 22-4909, 38-2310, 38-2311,
38-2326, 40-955, 44-1132, 45-221(a)(10)(F) and (a)(50), 60-3333, 65-
4a05, 65-445(g), 65-6154, 71-218, 75-457, 75-712c, 75-723 and 75-
7c06.
(k) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) and that have
been reviewed during the 2014 legislative session and continued in
existence by the legislature as provided in subsection (g) are hereby
continued in existence: 1-205, 2-2204, 8-240, 8-247, 8-255c, 8-1324, 8-
1325, 12-17,150, 12-2001, 17-12a607, 38-1008, 38-2209, 40-5006, 40-
5108, 41-2905, 41-2906, 44-706, 44-1518, 45-221(a)(44), (45), (46),
(47) and (48), 50-6a11, 65-1,243, 65-16,104, 65-3239, 74-50,184, 74-
8134, 74-99b06, 77-503a and 82a-2210.
(l) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) during 2016 and
that have been reviewed during the 2017 legislative session are hereby
continued in existence: 12-5711, 21-2511, 22-4909, 38-2313, 45-221(a)
(51) and (52), 65-516, 65-1505, 74-2012, 74-5607, 74-8745, 74-8752,
74-8772, 75-7d01, 75-7d05, 75-5133, 75-7427 and 79-3234.
(m) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) during 2012 and
that have been reviewed during the 2013 legislative session and
continued in existence by the legislature as provided in subsection (g)
are hereby continued in existence: 12-5811, 40-222, 40-223j, 40-5007a,
40-5009a, 40-5012a, 65-1685, 65-1695, 65-2838a, 66-1251, 66-1805,
72-8268, 75-712 and 75-5366.
(n) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) and that have
been reviewed during the 2018 legislative session are hereby continued
in existence: 9-513c(c)(2), 39-709, 45-221(a)(26), (53) and (54), 65-
6832, 65-6834, 75-7c06 and 75-7c20.
(o) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) that have been
reviewed during the 2019 legislative session are hereby continued in
HOUSE BILL No. 2519—page 32
existence: 21-2511(h)(2), 21-5905(a)(7), 22-2302(b) and (c), 22-
2502(d) and (e), 40-222(k)(7), 44-714(e), 45-221(a)(55), 46-1106(g)
regarding 46-1106(i), 65-2836(i), 65-2839a(c), 65-2842(d), 65-
28a05(n), article 6(d) of 65-6230, 72-6314(a) and 74-7047(b).
(p) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) that have been
reviewed during the 2020 legislative session are hereby continued in
existence: 38-2310(c), 40-409(j)(2), 40-6007(a), 45-221(a)(52), 46-
1129, 59-29a22(b)(10) and 65-6747.
(q) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) that have been
reviewed during the 2021 legislative session are hereby continued in
existence: 22-2302(c)(4)(J) and (c)(6)(B), 22-2502(e)(4)(J) and (e)(6)
(B) and 65-6111(d)(4).
(r) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) that have been
reviewed during the 2023 legislative session are hereby continued in
existence: 2-3902 and 66-2020.
(s) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) that have been
reviewed during the 2024 legislative session are hereby continued in
existence: 2-3906, 2-3907, 41-511, 50-6,109a and 74-50,227.
(t) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) that have been
reviewed during the 2025 legislative session are hereby continued in
existence: 48-962 and 65-7616.
(u) Exceptions contained in the following statutes as certified by
the revisor of statutes to the president of the senate and the speaker of
the house of representatives pursuant to subsection (e) that have been
reviewed during the 2026 legislative session are hereby continued in
existence: 8-2,158, 22a-243, 40-221b, 41-353 and 75-782.
Sec. 6. K.S.A. 2025 Supp. 75-782 is hereby amended to read as
follows: 75-782. (a) The attorney general shall appoint a Kansas elder
and dependent adult abuse multidisciplinary team coordinator and,
within the limits of appropriations available therefor, such additional
staff as necessary to support the coordinator. The coordinator shall
facilitate the convening of an elder and dependent adult abuse
multidisciplinary team in each judicial district.
(b) (1) Such teams shall be composed of the following individuals,
or their designee:
(A) The sheriff of each county within the judicial district;
(B) the county or district attorney of each county within the
judicial district;
(C) the secretary for children and families;
(D) the secretary for aging and disability services; and
(E) the state long-term care ombudsman.
(2) Such teams may also include the following individuals:
(A) A representative from any law enforcement agency not
included in subsection (b)(1)(A);
(B) a medical provider;
(C) a legal services provider;
(D) a housing provider or representative of elder or dependent
adult housing facilities;
(E) the district coroner or a medical examiner;
(F) a representative of the financial services or banking industry;
(G) a representative of the area agencies on aging; or
(H) any other individual deemed necessary by the team.
(c) Such team:
(1) Shall coordinate investigations of elder and dependent adult
HOUSE BILL No. 2519—page 33
abuse as defined by K.S.A. 21-5417, 39-1401 et seq. and 39-1430 et
seq., and amendments thereto; and
(2) may identify opportunities within local jurisdictions to
improve policies and procedures in the notification and response to
abuse, neglect and exploitation of elder or dependent adults, within the
limits of local resources.
(d) Such team shall determine the the manner and frequency of
meetings, but shall not meet less than quarterly. The team may create
and enter into memorandums of understanding with any governmental
agency or private entity deemed necessary by the team.
(e) All documents, materials or other information obtained by or
discussed by the team shall be confidential and privileged and not be
subject to the provisions of the Kansas open records act as provided by
K.S.A. 45-215 et seq., and amendments thereto. The provisions of this
subsection shall expire on July 1, 2026, unless the legislature reviews
and reenacts this provision pursuant to K.S.A. 45-229, and amendments
thereto, prior to July 1, 2026.
(f) Meetings conducted pursuant to this section shall not be
subject to the provisions of the Kansas open meetings act as provided
by K.S.A. 75-4317 et seq., and amendments thereto.
(g) On or before the first day of each regular session of the
legislature, beginning with the 2022 regular session, the attorney
general shall submit a report to the legislature on the implementation
and use of the teams.
Sec. 7. K.S.A. 8-2,158, 40-221b and 41-353 and K.S.A. 2025
Supp. 22a-243, 45-229 and 75-782 are hereby repealed.
Sec. 8. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the HOUSE, and passed
that body
Speaker of the House.
Chief Clerk of the House.

Passed the SENATE ______________________________________________________________________________
President of the Senate.
Secretary of the Senate.
APPROVED __________________________________________________________________________________________________
Governor.