Eliminating the requirement that the commissioner submit certain reports to the governor and removing certain specific entities from the definition of person for the purpose of enforcing insurance law.

As Amended by House Committee
As Amended by Senate Committee
Session of 2025
SENATE BILL No. 27
By Committee on Financial Institutions and Insurance
1-16
AN ACT concerning insurance; relating to the powers, duties and
responsibilities of the commissioner; eliminating the requirement that
the commissioner submit certain reports to the governor; removing
certain specific entities from the definition of person for the purpose of
enforcing insurance law; amending K.S.A. 40-108 and 40-2253 and
K.S.A. 2024 Supp. 40-2,125 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 40-108 is hereby amended to read as follows: 40-
108. The commissioner of insurance shall make an annual report to the
governor of the general conduct and condition of the insurance companies,
including fraternal benefit societies, doing business in this state. The
commissioner of insurance shall make an annual report of the general
conduct and condition of the insurance companies, including fraternal
benefit societies, doing business in this state and shall publish such
report on the department's website. The commissioner of insurance shall
keep and preserve in a permanent form a full record of the commissioner's
proceedings, including a concise statement of the condition of each
company reported, visited or examined by the commissioner.
Sec. 2. K.S.A. 2024 Supp. 40-2,125 is hereby amended to read as
follows: 40-2,125. (a) If the commissioner determines after notice and
opportunity for a hearing that any person has engaged or is engaging in
any act or practice constituting a violation of any provision of Kansas
insurance statutes or any rule and regulation or order thereunder, the
commissioner may, in the exercise of discretion, order any one or more of
the following:
(1) Payment of a monetary penalty of not more than $1,000 for each
and every act or violation, unless the person knew or reasonably should
have known that such person was in violation of the Kansas insurance
statutes or any rule and regulation or order thereunder, in which case the
penalty shall be not more than $2,000 for each and every act or violation;
(2) suspension or revocation of the person's license or certificate if
such person knew or reasonably should have known that such person was
in violation of the Kansas insurance statutes or any rule and regulation or
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SB 27—Am. by HC 2
order thereunder; or
(3) that such person cease and desist from the unlawful act or practice
and take such affirmative action as that, in the judgment of the
commissioner, will carry out the purposes of the violated or potentially
violated provision.
(b) If any person fails to file any report or other information with the
commissioner as required by statute or fails to respond to any proper
inquiry of the commissioner, the commissioner, after notice and
opportunity for hearing, may impose a civil penalty of up to $1,000, for
each violation or act, along with an additional penalty of up to $500 for
each week thereafter that such report or other information is not provided
to the commissioner.
(c) If the commissioner makes written findings of fact that there is a
situation involving an immediate danger to the public health, safety or
welfare or the public interest will be irreparably harmed by delay in
issuing an order under subsection (a)(3), the commissioner may issue an
emergency temporary cease and desist order. Such order, even when not an
order within the meaning of K.S.A. 77-502, and amendments thereto, shall
be subject to the same procedures as an emergency order issued under
K.S.A. 77-536, and amendments thereto. Upon the entry of such an order,
the commissioner shall promptly notify the person subject to the order
that: (1) It Such order has been entered; (2) the reasons therefor; and (3)
that upon written request within 15 days after service of the order , the
matter will be set for a hearing , which shall be conducted in accordance
with the provisions of the Kansas administrative procedure act. If no
hearing is requested and none is ordered by the commissioner, the order
will remain in effect until it is modified or vacated by the commissioner. If
a hearing is requested or ordered, the commissioner, after notice of and
opportunity for hearing to the person subject to the order, shall , by written
findings of fact and conclusions of law vacate, modify or make permanent
the order.
(d) For purposes of this section:
(1) "Person" means any individual, corporation, association,
partnership, reciprocal exchange, inter-insurer, Lloyd's insurer, fraternal
benefit society and any other legal entity engaged in the business of
insurance, rating organization, third party administrator, nonprofit dental
service corporation, nonprofit medical and hospital service corporation,
automobile club, premium financing company, health maintenance
organization, insurance holding company, mortgage guaranty insurance
company, risk retention or purchasing group, prepaid legal and dental
service plan, captive insurance company, automobile self-insurer or
reinsurance intermediary and any other legal entity under the jurisdiction
of the commissioner. The term "person" does not include insurance agents
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SB 27—Am. by HC 3
and brokers as such terms are defined in K.S.A. 40-4902, and amendments
thereto.
(2) "Commissioner" means the commissioner of insurance of this
state.
Sec. 3. K.S.A. 40-2253 is hereby amended to read as follows: 40-
2253. (a) The commissioner of insurance shall devise universal forms to be
utilized by every insurance company, including health maintenance
organizations where applicable, offering any type of accident and sickness
policy covering individuals residing in this state for the purpose of
receiving every claim under such policy by persons covered thereunder. In
the preparation of such forms, the commissioner may confer with
representatives of insurance companies, health maintenance organizations,
trade associations and other interested parties. Upon completion and final
adoption of such forms by the commissioner, the commissioner shall
notify those companies affected by sending them a copy of such forms and
an explanation of the requirements of this section. Every such company
shall implement utilization of such forms not later than six months
following the date of the commissioner's notification.
(b) An accident and sickness insurer may not refuse to accept a claim
submitted on duly promulgated uniform claim forms. An insurer may
accept claims submitted on any other form.
(c) An accident and sickness insurer does not violate subsection (a)
by using a document that the accident and sickness insurer has been
required to use by the federal government or the state.
(d) The commissioner of insurance shall report to the governor and to
the legislature, no later than the commencement of the 1993 regular
session of the Kansas legislature, regarding the development of uniform
electronic data interchange formats and standards, along with a proposed
plan, including an analysis of the cost impact thereof.
Sec. 4. K.S.A. 40-108 and 40-2253 and K.S.A. 2024 Supp. 40-2,125
are hereby repealed.
Sec. 5. This act shall take effect and be in force from and after its
publication in the statute book Kansas register.
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