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SENATE BILL No. 23
AN A CT concerning insurance; relating to the regulation thereof; reorganizing certain
provisions that apply to foreign insurance companies seeking authorization to do
business in Kansas; authorizing the suspension or revocation of a nonresident agent's
license without notice and opportunity for a hearing after 30 days following
notification to the commissioner that such nonresident agent no longer holds a home
state license; requiring the commissioner of insurance to notify certain nonresident
agents in writing of the revocation of such nonresident's license; requiring agents and
public adjusters to respond to inquiries from the commissioner of insurance within 14
calendar days ; amending K.S.A. 40-209 and K.S.A. 2025 Supp. 40-4906, 40-4909
and 40-5510 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 40-209 is hereby amended to read as follows:
40-209. (a) Any insurance company organized under the laws of any
other country, state or territory, upon application, may be authorized to
transact business in this state, when possessed of the required amount
of paid-up capital and surplus, or surplus only if a mutual company,
and:
(1) Has made the deposit required by this code with the
department of insurance of this or any other state in the United States;
(2) participates to the extent possible in the insurance regulatory
information system administered by the national association of
insurance commissioners;
(3) has submitted an examination report of its financial condition
and affairs which that has been conducted by the insurance department
of the state of domicile within five years of the date of application
unless the commissioner determines that an earlier report will satisfy
the purpose of this provision;
(4) demonstrates that any majority ownership interests are in
sound financial condition;
(5) is not owned, managed or controlled by persons previously
convicted of criminal activity involving fraud or embezzlement or
offenses of a similar nature;
(6) has been in operation for at least three years and has been the
subject of an examination of its affairs and financial condition other
than its organizational examination. This requirement does not apply to
subsidiary or affiliate companies with substantially the same
management of an admitted company, a continuing corporation
resulting from merger or consolidation or a company whose admission
is determined by the commissioner to be in the best public interest;
(7) the company will not require immediate regulatory attention
by the department upon admission pursuant to K.S.A. 40-222b, and
amendments thereto.
(b) The requirements of subsection (a)(3) and (6) shall not apply
to subsidiary or affiliate companies with substantially the same
management as an admitted company, a continuing corporation
resulting from a merger or consolidation or a company whose
admission is determined by the commissioner to be in the best public
interest.
(c) The authority shall not be granted, continued or renewed to
any insurance company which that is controlled, as such word is
defined in subsection (c) of K.S.A. 40-3302, and amendments thereto,
by another state of the United States or by, a foreign government, or by
any political subdivision of either.
(c)(d) Every such company shall file a certified copy of its charter
or deed of settlement with the commissioner of insurance, together with
a statement, under oath of the president, vice-president or other chief
officer and the secretary of the company for which they act, stating the
name of the company, the place where located, and the amount of its
capital, with a detailed statement of the facts and items required from
companies organized under the laws of this state and a copy of the last
SENATE BILL No. 23—page 2
annual report, if any was made, under any law of the state or country in
which such company was incorporated.
(d)(e) Upon the application of any such insurance company for a
certificate of authority to transact business in this state, the
commissioner of insurance shall be satisfied that the company is
possessed of money and other admitted assets in excess of its liabilities,
as herein provided, and that it has otherwise complied with all the other
requirements of this code. The commissioner shall thereupon issue a
certificate of authority to such company authorizing it to transact the
classes of insurance permitted under its articles of incorporation and by
the provisions of this code.
(e)(f) The funds of any such insurance company, in excess of the
minimum paid-up capital required by this code, may at all times be
invested in such securities as are or may be authorized by the laws of
the state in which such company is organized or in which it has and
maintains its United States deposit.
(f)(g) (1) Except as provided in paragraph (2), the commissioner
of insurance may, upon renewal of a certificate of authority waive any
of the above requirements except those relating to assets, capital and
surplus.
(2) The commissioner of insurance may, at the commissioner's
discretion, waive any of the above requirements for prescription drug
plan sponsors as defined by 42 U.S.C. § 1395w-151, as in effect on
January 1, 2006.
(g)(h) Whenever any insurance company organized under the laws
of any other country, state or territory is issued a certificate of authority
to transact insurance in this state by the commissioner of insurance
pursuant to this section, such company shall not be required to comply
with the provisions of the general corporation code relating to foreign
corporations, nor shall any such company be required to file with the
secretary of state its articles of incorporation, charter, bylaws or other
documents, or any amendments thereof, unless specifically required to
do so by law.
Sec. 2. K.S.A. 2025 Supp. 40-4906 is hereby amended to read as
follows: 40-4906. (a) Unless denied licensure pursuant to K.S.A. 40-
4909, and amendments thereto, a nonresident person shall receive a
nonresident agent license if:
(1) Such person is currently licensed as a resident and in good
standing in such person's home state;
(2) such person has submitted the proper request for licensure and
has paid to the commissioner a nonrefundable application fee not to
exceed $30 and a biennial fee not to exceed $50;
(3) such person has submitted or transmitted to the commissioner
of insurance a copy of the application for licensure that such person
submitted to such person's home state, or in lieu of the same, a
completed application on a form prescribed by the commissioner; and
(4) such person's home state awards a nonresident agent license to
residents of this state on the same basis.
(b) The commissioner may verify the insurance agent's licensing
status through the producer database maintained by the NAIC, its
affiliates or subsidiaries.
(c) (1) Any nonresident agent who is licensed in this state and who
moves from one state to another state or a resident agent who moves
from this state to another state shall file with the commissioner within
30 days a change of address and provide certification from the new
resident state.
(2) Any insurance agent who resides in this state and who moves
from this state to another state shall file with the commissioner within
30 days a change of address and provide certification from the new
SENATE BILL No. 23—page 3
resident state.
(3) No fee or license application shall be required for any filing
required by this subsection.
(d) Subject to the provisions of subsection (a), any person licensed
as a surplus lines agent in such person's home state shall receive a
nonresident surplus lines agent license. Except as provided in
subsection (a), nothing in this section shall be construed to amend or
supersede any provision of K.S.A. 40-246b, and amendments thereto.
(e) Subject to the provisions of subsection (a), any person licensed
as a limited line credit insurance or other type of limited lines agent in
such person's home state shall receive a nonresident limited lines agent
license in this state granting the same scope of authority as granted
under the license issued by such insurance agent's home state.
(f) (1) Notwithstanding any other provision of the uniform
insurance agents licensing act, a nonresident license issued pursuant to
the act may be revoked without notice and a hearing 30 days after the
commissioner receives notification that a nonresident licensee no
longer holds a license in such nonresident licensee's home state.
(2) Not later than 30 days following the date of revocation of such
nonresident's license, the commissioner shall inform the nonresident of
such revocation.
(3) Nothing in this subsection shall be deemed to confer the right
of a hearing for any nonresident whose license has been revoked.
(g) Not later than December 1 of each year, the commissioner
shall set and publish in the Kansas register the application fee required
pursuant to subsection (a) for the next calendar year.
Sec. 3. K.S.A. 2025 Supp. 40-4909 is hereby amended to read as
follows: 40-4909. (a) The commissioner may deny, suspend, revoke or
refuse renewal of any license issued under this act if the commissioner
finds that the applicant or license holder has:
(1) Provided incorrect, misleading, incomplete or untrue
information in the license application.;
(2) violated any:
(A) Any Provision of chapter 40 of the Kansas Statutes Annotated,
and amendments thereto, or any rules and regulations promulgated
thereunder;
(B) any subpoena or order of the commissioner;
(C) any insurance law or regulation of another state; or
(D) any subpoena or order issued by the regulatory official for
insurance in another state.;
(3) obtained or attempted to obtain a license under this act through
misrepresentation or fraud.;
(4) improperly withheld, misappropriated or converted any
moneys or properties received in the course of doing insurance
business.;
(5) intentionally misrepresented the provisions, terms and
conditions of an actual or proposed insurance contract or application
for insurance.;
(6) been convicted of a misdemeanor or felony.;
(7) admitted to or been found to have committed any insurance
unfair trade practice or fraud in violation of K.S.A. 40-2404, and
amendments thereto.;
(8) used any fraudulent, coercive, or dishonest practice, or
demonstrated any incompetence, untrustworthiness or financial
irresponsibility in the conduct of business in this state or elsewhere.;
(9) had an insurance agent license, public adjuster license,
securities registration, or their equivalent, denied, suspended or revoked
in any state, district or territory.;
(10) forged another person's name to an application for insurance
SENATE BILL No. 23—page 4
or to any document related to an insurance transaction.;
(11) improperly used notes or any other reference material to
complete an examination for an insurance license issued under this
act.;
(12) knowingly accepted insurance business from an individual
who is not licensed.;
(13) failed to comply with any administrative or court order
imposing a child support obligation upon the applicant or license
holder.;
(14) failed to pay any state income tax or comply with any
administrative or court order directing payment of state income tax.;
(15) except as otherwise permitted by law, rebated the whole or
any part of any insurance premium or offered in connection with the
presentation of any contract of insurance any other inducement not
contained in the contract of insurance.;
(16) made any misleading representation or incomplete
comparison of policies to any person for the purposes of inducing or
tending to induce such person to lapse, forfeit or surrender such
person's insurance then in force.; or
(17) failed to respond to an inquiry from the commissioner within
15 business days or failed to respond to an inquiry from the
commissioner within 14 calendar days concerning a complaint as
defined in K.S.A. 40-2404, and amendments thereto, or an inquiry
related to a particular matter.
(b) In addition, the commissioner may deny, suspend, revoke or
refuse renewal of any license issued under this act if the commissioner
finds that the interests of the insurer or the insurable interests of the
public are not properly served under such license.
(c) (1) When considering whether to deny, suspend, revoke or
refuse to renew the application of an individual who has been convicted
of a misdemeanor or felony, the commissioner shall consider the:
(A) Applicant's age at the time of the conduct;
(B) recency of the conduct;
(C) reliability of the information concerning the conduct;
(D) seriousness of the conduct;
(E) factors underlying the conduct;
(F) cumulative effect of the conduct or information;
(G) evidence of rehabilitation;
(H) applicant's social contributions since the conduct;
(I) applicant's candor in the application process; and
(J) materiality of any omissions or misrepresentations.
(2) In determining whether to reinstate or grant to an applicant a
license that has been revoked, the commissioner shall consider the:
(A) Present moral fitness of the applicant;
(B) demonstrated consciousness by the applicant of the wrongful
conduct and disrepute that the conduct has brought to the insurance
profession;
(C) extent of the applicant's rehabilitation;
(D) seriousness of the original conduct;
(E) applicant's conduct subsequent to discipline;
(F) amount of time that has elapsed since the original discipline;
(G) applicant's character, maturity and experience at the time of
revocation; and
(H) applicant's present competence and skills in the insurance
industry.
(d) Any action taken under this section that affects any license or
imposes any administrative penalty shall be taken only after notice and
an opportunity for a hearing conducted in accordance with the
provisions of the Kansas administrative procedure act.
SENATE BILL No. 23—page 5
(e) The license of any business entity may be suspended, revoked
or refused renewal if the insurance commissioner finds that any
violation committed by an individual licensee employed by or acting on
behalf of such business entity was known by or should have been
known by one or more of the partners, officers or managers acting on
behalf of the business entity and:
(1) Such violation was not reported to the insurance commissioner
by such business entity; or
(2) such business entity failed to take any corrective action.
(f) None of the following actions shall deprive the commissioner
of any jurisdiction or right to institute or proceed with any disciplinary
proceeding against such license, to render a decision suspending,
revoking or refusing to renew such license , or to establish and make a
record of the facts of any violation of law for any of the following
lawful purpose purposes:
(1) The imposition of an administrative penalty under this section;
(2) the lapse or suspension of any license issued under this act by
operation of law;
(3) the licensee's failure to renew any license issued under this act;
or
(4) the licensee's voluntary surrender of any license issued under
this act. No such disciplinary proceeding shall be instituted against any
licensee after the expiration of two years from the termination of the
license.
(g) Whenever the commissioner imposes any administrative
penalty or denies, suspends, revokes or refuses renewal of any license
pursuant to subsection (a), any costs incurred as a result of conducting
an administrative hearing authorized under the provisions of this
section shall be assessed against the person who is the subject of the
hearing or any business entity represented by such person who is the
party to the matters giving rise to the hearing. As used in this
subsection, "costs" includes witness fees, mileage allowances, any costs
associated with the reproduction of documents that become a part of the
hearing record and the expense of making a record of the hearing.
(h) No person whose license as an agent or broker had been
suspended or revoked shall be employed by any insurance company
doing business in this state either directly, indirectly, as an independent
contractor or otherwise to negotiate or effect contracts of insurance,
suretyship or indemnity or perform any act toward the solicitation or
transaction of any business of insurance during the period of such
suspension or revocation.
(i) In lieu of taking any action under subsection (a), the
commissioner may:
(1) Censure the person; or
(2) issue an order imposing an administrative penalty of up to a
maximum of $500 for each violation but not to exceed $2,500 for the
same violation occurring within any six consecutive calendar months
from the date of the original violation unless such person knew or
should have known that the violative act could give rise to disciplinary
action under subsection (a). If such person knew or reasonably should
have known the violative act could give rise to any disciplinary
proceeding authorized by subsection (a), the commissioner may impose
a penalty of up to a maximum of $1,000 for each violation but not to
exceed $5,000 for the same violation occurring within any six
consecutive calendar months from the date of the imposition of the
original administrative penalty.
(j) (1) An applicant to whom a license has been denied after a
hearing shall not apply again for a license until after the expiration of a
period of one year from the date of the commissioner's order.
SENATE BILL No. 23—page 6
(2) A licensee whose license was revoked shall not apply again for
a license until after the expiration of a period of two years from the date
of the commissioner's order. The commissioner may waive this
requirement for a nonresident licensee whose license was revoked
pursuant to K.S.A. 40-4906(f), and amendments thereto.
Sec. 4. K.S.A. 2025 Supp. 40-5510 is hereby amended to read as
follows: 40-5510. (a) The commissioner may suspend, revoke or refuse
to issue or renew a public adjuster's license for any of the following
causes:
(1) Providing incorrect, misleading, incomplete or materially
untrue information in the license application;
(2) violating any:
(A) Any Provision of chapter 40 of the Kansas Statutes Annotated,
and amendments thereto, or any rule and regulation promulgated
thereunder;
(B) any subpoena or order of the commissioner;
(C) any insurance law or regulation of another state; or
(D) any subpoena or order issued by the regulatory official for
insurance in another state;
(3) obtaining or attempting to obtain a license through
misrepresentation or fraud;
(4) misappropriating, converting or improperly withholding any
monies or properties received in the course of doing insurance
business;
(5) intentionally misrepresenting the terms of an actual or
proposed insurance contract or application for insurance;
(6) having been convicted of a misdemeanor or felony;
(7) having admitted or committed any insurance unfair trade
practice or insurance fraud;
(8) using fraudulent, coercive or dishonest practices or
demonstrating incompetence, untrustworthiness or financial
irresponsibility in the conduct of business in this state or elsewhere;
(9) having an insurance agent license, public adjuster license,
securities registration or their equivalent, denied, suspended or revoked
in any other state, province, district or territory;
(10) forging another's name to an application for insurance or to
any document related to an insurance transaction;
(11) cheating, including improperly using notes or any other
reference material, to complete an examination for an insurance
license;
(12) knowingly accepting insurance business from an individual
who is not licensed but who is required to be licensed by the
commissioner;
(13) failing to comply with an administrative or court order
imposing a child support obligation upon the applicant or license
holder;
(14) failing to pay state income tax or comply with any
administrative or court order directing payment of state income tax; or
(15) failing to respond to an inquiry from the commissioner within
15 business days or failing to respond to an inquiry from the
commissioner within 14 calendar days concerning a complaint as
defined in K.S.A. 40-2404, and amendments thereto, or an inquiry
related to a particular matter.
(b) In addition, the commissioner may deny, suspend, revoke or
refuse renewal of a public adjuster's license if the commissioner finds
that the interests of the public are not properly served under such
license. Any action taken under this section which that affects any
license or imposes any administrative penalty shall be taken only after
notice and an opportunity for a hearing conducted in accordance with
SENATE BILL No. 23—page 7
the Kansas administrative procedure act.
(c) In lieu of any action under subsection (a), the commissioner
may:
(1) Censure the individual; or
(2) issue an order imposing an administrative penalty of up to a
maximum of $500 for each violation , but not to exceed $2,500 for the
same violation occurring within any six consecutive calendar months
from the date of the original violation, unless such person knew or
should have known that the violative act could give rise to disciplinary
action under subsection (a). If such person knew or reasonably should
have known the violative act could give rise to any disciplinary
proceeding authorized by subsection (a), the commissioner may impose
a penalty of up to a maximum of $1,000 for each violation , but not to
exceed $5,000 for the same violation occurring within any six
consecutive calendar months from the date of the original violation.
(d) (1) When considering whether to deny, suspend, revoke or
refuse to renew the application of an individual who has been convicted
of a misdemeanor or felony, the commissioner shall consider the:
(A) Applicant's age at the time of the conduct;
(B) recency of the conduct;
(C) reliability of the information concerning the conduct;
(D) seriousness of the conduct;
(E) factors underlying the conduct;
(F) cumulative effect of the conduct or the information;
(G) evidence of rehabilitation;
(H) applicant's social contributions since the conduct;
(I) applicant's candor in the application process; and
(J) materiality of any omissions or misrepresentations.
(2) In determining whether to reinstate or grant to an applicant a
license that has been revoked, the commissioner shall consider the:
(A) Present moral fitness of the applicant;
(B) demonstrated consciousness by the applicant of the wrongful
conduct and disrepute that the conduct has brought to the insurance
profession;
(C) extent of the applicant's rehabilitation;
(D) seriousness of the original conduct;
(E) applicant's conduct subsequent to discipline;
(F) amount of time that has elapsed since the original discipline;
(G) applicant's character, maturity and experience at the time of
revocation; and
(H) applicant's present competence and skills in the insurance
industry.
(e) Any action taken under this section that affects any license or
imposes any administrative penalty shall be taken only after notice and
an opportunity for a hearing conducted in accordance with the
provisions of the Kansas administrative procedure act.
(f) The commissioner shall remit all such fines collected under
subsection (c) to the state treasurer in accordance with the provisions of
K.S.A. 75-4215, and amendments thereto. Upon receipt of each such
remittance, the state treasurer shall deposit the entire amount in the
state treasury to the credit of the state general fund.
(g) Whenever the commissioner imposes any administrative
penalty or denies, suspends, revokes or refuses renewal of any license
pursuant to subsection (a), any costs incurred as a result of conducting
an administrative hearing authorized under the provisions of this
section shall be assessed against the person who is the subject of the
hearing or any business entity represented by such person who is the
party to the matters giving rise to the hearing. As used in this
subsection, "costs" includes witness fees, mileage allowances, any costs
SENATE BILL No. 23—page 8
associated with the reproduction of documents that become a part of the
hearing record and the expense of making a record of the hearing.
(h) No person whose license as a public adjuster had been
suspended or revoked shall be employed by any insurance company
doing business in this state either directly, indirectly, as an independent
contractor or otherwise to negotiate or effect contracts of insurance,
suretyship or indemnity or perform any act toward the solicitation or
transaction of any business of insurance during the period of such
suspension or revocation.
(i) The commissioner shall retain the authority to enforce the
provisions of and impose any penalty or remedy authorized by this act
against any individual who is under investigation for or charged with a
violation of this act, even if the individual's license or registration has
been surrendered or has lapsed by operation of law.
(j) (1) An applicant to whom a license has been denied after a
hearing shall not apply again for a license until after the expiration of a
period of one year from the date of the commissioner's order.
(2) A licensee whose license was revoked shall not apply again for
a license until after the expiration of a period of two years from the date
of the commissioner's order.
Sec. 5. K.S.A. 40-209 and K.S.A. 2025 Supp. 40-4906, 40-4909
and 40-5510 are hereby repealed.
Sec. 6. 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
SENATE, and passed that body
__________________________
SENATE adopted
Conference Committee Report ________________
_________________________
President of the Senate.
_________________________
Secretary of the Senate.
Passed the HOUSE
as amended _________________________
HOUSE adopted
Conference Committee Report ________________
_________________________
Speaker of the House.
_________________________
Chief Clerk of the House.
APPROVED _____________________________
_________________________
Governor.