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2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3214 Construction and relationship to other laws.

40-3214.
Construction and relationship to other laws.
Except as otherwise provided in this act, health maintenance organizations and medicare provider organizations certificated under the provisions of this act shall not be subject to regulation under articles 18, 19 and 19a of chapter 40 of the Kansas Statutes Annotated or acts amendatory thereof or supplemental thereto.
Solicitation of enrollees by a duly certificated health maintenance organization or medicare provider organization or its representatives shall not be construed to be a violation of any provisions of law relating to solicitation or advertising by health professionals. A list of locations of services and a list of providers who have current agreements with the health maintenance organization may be made available to prospective enrollees, and shall be made available to prospective enrollees upon request.
Nothing in any professional practices act of any provider shall be construed to prohibit a provider from being employed by or under contract to provide health care services for a health maintenance organization or medicare provider organization granted a certificate of authority under the provisions of this act.
Any health maintenance organization authorized under this act shall not be deemed to be practicing any act for which a provider is licensed and shall be exempt from laws relating to the practice of any act for which a provider is licensed.
History:
L. 1974, ch. 181, § 14; L. 1980, ch. 141, § 1; L. 1998, ch. 174, § 22; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3215 Rules and regulations.

40-3215.
Rules and regulations.
The commissioner shall promulgate rules and regulations necessary to carry out the provisions of this act.
History:
L. 1974, ch. 181, § 15; L. 1998, ch. 174, § 23; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3216 Penalty.

40-3216.
Penalty.
Any person who violates any provision of this act or any rule or regulation issued pursuant thereto shall be guilty of a class C misdemeanor.
History:
L. 1974, ch. 181, § 16; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3217 Operational health maintenance organizations; issuance of certificate.

40-3217.
Operational health maintenance organizations; issuance of certificate.
Any health maintenance organization in existence and operating on the effective date of this act in this state shall apply for and be entitled to the issuance of a certificate. Such organization shall apply for said certificate within one hundred twenty (120) days after the effective date of this act, submitting with such application the information required under K.S.A. 40-3203, together with a filing fee in the amount of one hundred fifty dollars ($150). Any such health maintenance organization shall be in compliance with the provisions of this act within one year after the issuance of such certificate.
History:
L. 1974, ch. 181, § 17; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3218 Contractual designation of persons to make recommended findings to commissioner.

40-3218.
Contractual designation of persons to make recommended findings to commissioner.
The commissioner in carrying out his obligations under the provisions of this act may by agreement or by contract designate qualified persons to make recommendations concerning the findings and determinations required to be made by him. Recommendations received pursuant to this section may be rejected or accepted in full or in part by the commissioner.
History:
L. 1974, ch. 181, § 18; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3219 Effect of act on federal assistance.

40-3219.
Effect of act on federal assistance.
Nothing in this act shall prohibit any health maintenance organization or medicare provider organization from meeting the requirements of any federal law which would authorize the health maintenance organization or medicare provider organization to receive federal financial assistance or to enroll beneficiaries assisted by federal funds.
History:
L. 1974, ch. 181, § 19; L. 1998, ch. 174, § 24; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3220 Annual report.

40-3220.
Annual report.
Every health maintenance organization and medicare provider organization authorized under this act shall annually on or before the first day of March, file a verified report with the commissioner, showing its condition on the last day of the preceding calendar year, on forms prescribed by the commissioner. Such report shall include:
(a) A financial statement of the organization, including its balance sheet and receipts and disbursements for the preceding year; and
(b) such other information relating to the performance of health maintenance organizations as shall be required by the commissioner. Every health maintenance organization and medicare provider organization authorized under this act shall be subject to the provisions of K.S.A. 40-225 and amendments thereto.
History:
L. 1974, ch. 181, § 20; L. 1998, ch. 174, § 25; L. 2000, ch. 147, § 39; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3221 Liability of officers.

40-3221.
Liability of officers.
Any person who is an officer or principal managing director of the affairs of a health maintenance organization or medicare provider organization shall be fully and personally liable and accountable for any willful and intentional violations of the provisions of this act, by such person or by persons under such person's control. It is not intended through this legislation to modify the existing law of Kansas regarding personal or corporate liability for negligence or malpractice.
History:
L. 1974, ch. 181, § 21; L. 1998, ch. 174, § 26; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3222 Use of certain words and initials prohibited.

40-3222.
Use of certain words and initials prohibited.
No person shall use in its name, contracts or literature the phrase "health maintenance organization" or the initials HMO unless such person is certified under the provisions of this act.
History:
L. 1974, ch. 181, § 22; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3223 Open enrollment.

40-3223.
Open enrollment.
(a) After a health maintenance organization has been in operation twenty-four (24) months, it may have an annual open enrollment period of at least one month during which it accepts enrollees up to the limits of its capacity, as determined by the health maintenance organization, in the order in which they apply for enrollment. A health maintenance organization shall apply to the commissioner for authorization to impose such underwriting restrictions upon enrollment as may be deemed necessary by the health maintenance organization and the commissioner to preserve its financial stability, to prevent excessive adverse selection by prospective enrollees, or to avoid unreasonably high charges for enrollee coverage for health care services. The commissioner shall approve or deny such application within thirty (30) days of the receipt thereof from the health maintenance organization.
(b) Health maintenance organizations providing or arranging for services exclusively on a group contract basis may limit the open enrollment provided for in subsection (a) to all members of the group or groups covered by such contracts.
History:
L. 1974, ch. 181, § 23; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3224 Investments.

40-3224.
Investments.
With the exception of investments made in accordance with other provisions of this act, the investable funds of a health maintenance organization shall be invested only in securities or other instruments permitted by article 2a of chapter 40 of the Kansas Statutes Annotated, or acts amendatory thereof of supplemental thereto, or such other securities or investments as the commissioner may permit.
History:
L. 1974, ch. 181, § 24; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3225 Fiduciary responsibilities; fidelity bond or insurance.

40-3225.
Fiduciary responsibilities; fidelity bond or insurance.
(a) Any director, officer or partner of a health maintenance organization or medicare provider organization who receives, collects, disburses or invests funds in connection with the activities of such organization shall be responsible for such funds in a fiduciary relationship to the health maintenance organization or medicare provider organization.
(b) A health maintenance organization shall maintain in force a fidelity bond or fidelity insurance on such employees and officers, directors and partners in the amount not less than $250,000 for each health maintenance organization or a maximum of $5,000,000 in aggregate maintained on behalf of health maintenance organizations owned by a common parent corporation, or such sum as may be prescribed by the commissioner.
History:
L. 1974, ch. 181, § 25; L. 1996, ch. 169, § 10; L. 1998, ch. 174, § 27; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3226 Confidentiality of medical information.

40-3226.
Confidentiality of medical information.
(a) Notwithstanding the provisions of K.S.A. 40-3212, and amendments thereto, any data or information pertaining to the diagnosis, treatment or health of any enrollee or applicant obtained from such person or from any provider by any health maintenance organization shall be held in confidence and shall not be disclosed to any person except to the extent that it may be necessary to carry out the purposes of this act, or upon the express consent of the enrollee or applicant or as otherwise provided by law, except that in no case shall the name of an enrollee or applicant be disclosed in any data pertaining to the diagnosis, treatment or health of such enrollee or applicant in any medical review procedure or in any report required under the provisions of this act or the rules and regulations issued pursuant thereto unless such enrollee or applicant has expressly consented thereto. A health maintenance organization shall be entitled to claim any statutory privileges against such disclosure which the provider who furnished such information to the health maintenance organization is entitled to claim.
(b) Upon the express request of the enrollee, a complete record of any data or information pertaining to the diagnosis, treatment or health of such enrollee obtained from such person or from any provider by any health maintenance organization shall be provided to another health care provider designated by such enrollee when such enrollee is no longer an enrollee of such health maintenance organization.
History:
L. 1974, ch. 181, § 26; L. 1994, ch. 81, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3228 Grievance procedures; minimum requirements.

40-3228.
Grievance procedures; minimum requirements.
A health maintenance organization shall provide in its certificate of coverage the procedures for resolving enrollee grievances. At a minimum, the certificate of coverage shall include the following provisions:
(a) The definition of a grievance;
(b) how, where and to whom the enrollee should file such enrollee's grievance; and
(c) that upon receiving notification of a grievance related for payment of a bill for medical services, the health maintenance organization shall:
(1) Acknowledge receipt of the grievance in writing within 10 working days unless it is resolved within that period of time;
(2) conduct a complete investigation of the grievance within 20 working days after receipt of a grievance, unless the investigation cannot be completed within this period of time. If the investigation cannot be completed within 20 working days after receipt of a grievance, the enrollee shall be notified in writing within 30 working days time, and every 30 working days after that, until the investigation is completed. The notice shall state the reasons for which additional time is needed for the investigation;
(3) have within five working days after the investigation is completed, someone not involved in the circumstances giving rise to the grievance or its investigation decide upon the appropriate resolution of the grievance and notify the enrollee in writing of the decision of the health maintenance organization regarding the grievance and of any right to appeal. The notice shall explain the resolution of the grievance and any right to appeal. The notice shall explain the resolution of the grievance in terms which are clear and specific; and
(4) notify, if the health maintenance organization has established a grievance advisory panel, the enrollee of the enrollee's right to request the grievance advisory panel to review the decision of the health maintenance organization. This notice shall indicate that the grievance advisory panel is not obligated to conduct the review. This provision shall also state how, where and when the enrollee should make such enrollee's request for this review.
History:
L. 1996, ch. 169, § 12; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3229 Prior authorization requirements for emergency medical treatment; duties and responsibilities of organization, enrollees and participating providers; resolution of disputes.

40-3229.
Prior authorization requirements for emergency medical treatment; duties and responsibilities of organization, enrollees and participating providers; resolution of disputes.
(a) A health maintenance organization that requires prior authorization before making payment for the treatment of medical emergency conditions, as defined by the health maintenance organization, shall provide enrollees with a toll-free telephone number answered 24 hours per day, seven days a week. At least one person with medical training who is authorized to determine whether an emergency condition exists shall be available 24 hours per day, seven days a week to make these determinations.
(b) A health maintenance organization shall not base its denial of payment for emergency medical services solely on the failure of the enrollee to receive authorization prior to receiving the emergency medical service. The enrollee must notify the health maintenance organization of receipt of medical services for emergency conditions within 24 hours or as soon after that as is reasonably possible. Nothing shall require the health maintenance organization to authorize payment for any services provided during that 24 hour period, regardless of medical necessity, if those services do not otherwise constitute benefits under the certificate of coverage approved by the commissioner.
(c) If the participating provider is responsible for seeking prior authorization from the health maintenance organization before receiving payment for the treatment of emergency medical conditions and the enrollee is eligible at the time when covered services are provided, then the enrollee will not be held financially responsible for payment for covered services if the prior authorization for emergency medical services has not been sought and received, other than for what the enrollee would otherwise be responsible, such as copayments and deductibles.
(d) All disputes between an enrollee and a health maintenance organization arising under the provisions of this section shall be resolved by means of the grievance procedures established by the health maintenance organization.
History:
L. 1996, ch. 169, § 13; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3230 Continuity of treatment upon termination of provider from plan.

40-3230.
Continuity of treatment upon termination of provider from plan.
A health maintenance organization shall establish reasonable procedures for assuring a transition of enrollees to physicians or health care providers and for continuity of treatment, including providing immediate notice to the enrollee and making available to the enrollee a current listing of preferred providers, in the event a provider's participation in the plan is terminated for any reason. The plan shall include provisions for the continuation of care to enrollees for a period up to 90 days by a provider who is terminated from a network in those cases where the continuation of such care is medically necessary and in accordance with the dictates of medical prudence and where the enrollee has special circumstances such as a disability, a life threatening illness or is in the third trimester of pregnancy. The provisions for the continuation of care shall include guarantees that the enrollee will not be liable to the provider for any amounts owed for medical care other than any deductibles or copayment amounts specified in the certificate of coverage or other contract between the enrollee and the health maintenance organization. In the event the terminated provider is authorized to continue treating the enrollee pursuant to this subsection, the health maintenance organization shall have an obligation to pay the terminated provider at the previously contracted rate for services provided to the enrollee.
History:
L. 1996, ch. 169, § 14; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3232 Insolvent health maintenance organization; allocation of insureds to other health maintenance organizations, when; eligibility for Kansas uninsurable health insurance plan act, when.

40-3232.
Insolvent health maintenance organization; allocation of insureds to other health maintenance organizations, when; eligibility for Kansas uninsurable health insurance plan act, when.
(a) In the event of an insolvency of a health maintenance organization, the commissioner may order that all other carriers that participated in the enrollment process with the insolvent health maintenance organization at a group's last regular enrollment period shall offer the group's enrollees of the insolvent health maintenance organization a 30-day enrollment period commencing upon the date of insolvency. Under such order each carrier shall offer to each enrollee of the insolvent health maintenance organization the same coverages that such insolvent health maintenance organization had offered to each enrollee of the group at such group's last regular enrollment period at rates determined in accordance with the successor health maintenance organization's existing rating methodology.
(b) Any individual or enrollee who has health insurance coverage involuntarily terminated because of the insolvency of such individual's or enrollee's health maintenance organization shall be treated as the equivalent of a federally defined eligible individual for the purposes of the Kansas uninsurable health insurance plan act, K.S.A. 40-2117 et seq. and amendments thereto.
History:
L. 2000, ch. 147, § 33; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3233 Rehabilitation, liquidation or conservation of health maintenance organization; commissioner's powers; priority of enrollee; distribution of assets.

40-3233.
Rehabilitation, liquidation or conservation of health maintenance organization; commissioner's powers; priority of enrollee; distribution of assets.
(a) A rehabilitation liquidation or conservation of a health maintenance organization shall be deemed to be the rehabilitation, liquidation or conservation of an insurance company and shall be conducted under the supervision of the commissioner pursuant to the law governing the rehabilitation, liquidation or conservation of insurance companies. The commissioner may apply for an order directing the commissioner to rehabilitate, liquidate or conserve a health maintenance organization upon any one or more grounds set out in the insurers supervision, rehabilitation and liquidation act, K.S.A. 40-3605 et seq., and amendments thereto, or when in the commissioner's discretion the continued operation of such health maintenance organization would be hazardous either to the enrollees of such health maintenance organization or to the people of this state. Each enrollee of such health maintenance organization shall have the same priority in the event of liquidation or rehabilitation as the law provides to policy holders of an health organization.
(b) For purpose of determining the priority of distribution of general assets, any claim of any enrollee or enrollees' beneficiary shall have the same priority as established by K.S.A. 40-3641, and amendments thereto, for policyholders and beneficiaries of insureds of insurance companies. If an enrollee is liable to a nonparticipating provider for services provided pursuant to and covered by the health maintenance organization, such liability shall have the status of such enrollee's claim for distribution of general assets. A provider who is obligated by statute or agreement to hold any enrollee harmless from liability for services provided pursuant to and covered by a health maintenance organization shall have a priority of distribution of the general assets immediately following that of enrollees and enrollees' beneficiaries as described herein, and immediately preceding the priority of distribution described in subsection (d) of K.S.A. 40-3641 and amendments thereto.
History:
L. 2000, ch. 147, § 34; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3234 Health maintenance organization; financial condition; hearing; commissioner's powers.

40-3234.
Health maintenance organization; financial condition; hearing; commissioner's powers.
(a) Whenever the commissioner determines that the financial condition of a health maintenance organization is such that its continued operation might be hazardous to its enrollees, creditors or the general public, or that such health maintenance organization has violated any provisions of this act, the commissioner, after notice and hearing, may order such health maintenance organization to take action reasonably necessary to rectify the condition or violation. Such action may include, but not limited to one or more of the following:
(1) Reduce the total amount of present and potential liability for benefits by reinsurance or other method acceptable to the commissioner;
(2) reduce the volume of any new business being accepted;
(3) reduce expenses by specified methods acceptable to the commissioner;
(4) suspend or limit the writing of any new business for a period of time;
(5) increase the health maintenance organization's capital and surplus by contribution; or
(6) take such other steps the commissioner may deem appropriate under the circumstances.
(b) The commissioner may adopt rules and regulations which set uniform standards and criteria for early warning that the continued operation of any health maintenance organization might be hazardous to its enrollees, creditors or the general public and set standards for evaluating the financial condition of any health maintenance organization.
History:
L. 2000, ch. 147, § 35; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 32 - Health Maintenance Organizations And Medicare Provider Organizations › 40-3235 Health maintenance organization act; provisions supplemental to.

40-3235.
Health maintenance organization act; provisions supplemental to.
K.S.A. 40-3231 through 40-3234, and amendments thereto, shall be part of and supplemental to the health maintenance organization act cited at K.S.A. 40-3201 et seq., and amendments thereto.
History:
L. 2000, ch. 147, § 36; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 33 - Insurance Holding Companies › 40-3301 Declaration of public interest and policy.

40-3301.
Declaration of public interest and policy.
(a) It is hereby found and declared that it may not be inconsistent with the public interest and the interest of policyholders to permit insurers to:
(1) Engage in activities which would enable them to make better use of management skills and facilities;
(2) diversify into new lines of business through acquisition or organization of subsidiaries;
(3) have free access to capital markets which could provide funds for insurers to use in diversification programs;
(4) implement sound tax planning conclusions; and
(5) serve the changing needs of the public and adapt to changing conditions of the social, economic and political environment, so that insurers are able to compete effectively and to meet the growing public demand for institutions capable of providing a comprehensive range of financial services.
(b) It is further found and declared that the public interest and the interests of policyholders are or may be adversely affected when:
(1) Control of an insurer is sought by persons who would utilize such control adversely to the interests of policyholders;
(2) acquisition of control of an insurer would substantially lessen competition or create a monopoly in the insurance business in this state;
(3) an insurer which is part of a holding company system is caused to enter into transactions or relationships with affiliated companies on terms which are not fair and reasonable; or
(4) an insurer pays dividends which jeopardize the financial condition of such insurer.
(c) It is hereby declared that the policies and purposes of this act are to promote the public interest by:
(1) Facilitating the achievement of the objectives enumerated in subsection (a) of this section;
(2) requiring disclosure of pertinent information relating to changes in control of an insurer;
(3) requiring disclosure by an insurer of material transactions and relationships between the insurer and its affiliates, including certain dividends paid by the insurer; and
(4) providing standards governing material transactions between the insurer and its affiliates.
(d) It is further declared that it is desirable to prevent unnecessary multiple and conflicting regulation of insurers. Therefore, this state shall exercise regulatory authority over domestic insurers and, unless otherwise provided in this act, not over nondomestic insurers, with respect to the matters contained herein.
History:
L. 1974, ch. 183, § 1; L. 1990, ch. 173, § 1; April 12.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 33 - Insurance Holding Companies › 40-3309 Rules, regulations and orders of commissioner; hearings.

40-3309. Rules, regulations and orders of commissioner; hearings.
The commissioner of insurance, upon notice and opportunity for all interested persons to be heard, may issue such rules and regulations and orders as shall be necessary to carry out the provisions of this act. Hearings on orders, as defined in subsection (d) of K.S.A. 77-502, and amendments thereto, shall be conducted in accordance with the provisions of the Kansas administrative procedure act.
History:
L. 1974, ch. 183, § 9; L. 1988, ch. 356, § 122; L. 2013, ch. 15, § 9; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 33 - Insurance Holding Companies › 40-3311a Same; suspension, revocation or refusal to renew certificate of authority.

40-3311a. Same; suspension, revocation or refusal to renew certificate of authority.
On and after July 1, 1993, when it appears to the commissioner of insurance that any person has committed a violation of this act which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the commissioner of insurance may, after giving notice and an opportunity to be heard, determine to suspend, revoke or refuse to renew such insurer's license or authority to do business in this state for such period as the commissioner of insurance finds is required for the protection of policyholders or the public. Any such determination shall be accompanied by specific findings of fact and conclusions of law.
History:
L. 1992, ch. 288, § 8; L. 2013, ch. 15, § 11; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 33 - Insurance Holding Companies › 40-3315 Liquidation or rehabilitation of insurer; what is recoverable by receiver.

40-3315.
Liquidation or rehabilitation of insurer; what is recoverable by receiver.
(a) If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under such order shall have a right to recover on behalf of the insurer:
(1) From any parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions, other than distributions of shares of the same class of stock, paid by the insurer on its capital stock; or
(2) any payment in the form of a bonus, termination settlement or extraordinary lump-sum salary adjustment made by the insurer or its subsidiary or subsidiaries to a director, officer or employee, where the distribution or payment pursuant to paragraph (1) or this paragraph (2) is made at any time during the one year preceding the petition for liquidation, conservation or rehabilitation, as the case may be, subject to the limitations of subsections (b), (c) and (d).
(b) No such distribution shall be recoverable if the parent or affiliate shows that when paid such distribution was lawful and reasonable, and that the insurer did not know and could not reasonably have known that such distribution might adversely affect the ability of the insurer to fulfill such insurer's contractual obligations.
(c) Any person who was a parent corporation or holding company or a person who otherwise controlled the insurer or affiliate at the time such distributions were paid shall be liable up to the amount of distributions or payments under subsection (a) such person received. Any person who otherwise controlled the insurer at the time such distributions were declared shall be liable up to the amount of distributions such person would have received if they had been paid immediately. If two or more persons are liable with respect to the same distributions, they shall be jointly and severally liable.
(d) The maximum amount recoverable under this subsection shall be the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse any guaranty funds.
(e) To the extent that any person liable under subsection (c) is insolvent or otherwise fails to pay claims due from such person pursuant to such paragraph, such person's parent corporation or holding company or person who otherwise controlled it at the time the distribution was paid, shall be jointly and severally liable for any resulting deficiency in the amount recovered from such parent corporation or holding company or person who otherwise controlled such person.
History:
L. 1991, ch. 138, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 33 - Insurance Holding Companies › 40-3316 Supervisory college; powers of commissioner.

40-3316. Supervisory college; powers of commissioner.
(a) With respect to any insurer registered under K.S.A. 40-3305, and amendments thereto, and in accordance with subsection (d), the commissioner of insurance shall have the power to participate in a supervisory college for any domestic insurer that is part of an insurance holding company system with international operations in order to determine compliance by the insurer with this act.
(b) The powers of the commissioner of insurance with respect to supervisory colleges include, but are not limited to, the following:
(1) Initiating the establishment of a supervisory college;
(2) clarifying the membership and participation of other supervisors in the supervisory college;
(3) clarifying the functions of the supervisory college and the role of other regulators, including the establishment of a group-wide supervisor;
(4) coordinating the ongoing activities of the supervisory college, including planning meetings, supervisory activities and processes for information sharing;
(5) establishing a crisis management plan; and
(6) establishing a regular assessment to the insurer for the payment of expenses incurred pursuant to subsection (c).
(c) Each registered insurer subject to this section shall be liable for and shall pay the expenses, including reasonable expenses for necessary travel, the commissioner of insurance reasonably incurred with respect to the participation in a supervisory college in accordance with subsection (d). A supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with the supervision of the insurer or its affiliates.
(d) In order to assess the business strategy, financial position, legal and regulatory position, risk exposure, risk management and governance processes, and as part of the examination of individual insurers in accordance with K.S.A. 40-3307, and amendments thereto, the commissioner of insurance may participate in a supervisory college with other regulators charged with supervision of the insurer or its affiliates, including other state, federal and international regulatory agencies. The commissioner of insurance may enter into agreements in accordance with K.S.A. 40-3308, and amendments thereto, providing the basis for cooperation between the commissioner of insurance and the other regulatory agencies, and the activities of the supervisory college. Nothing in this section shall delegate to the supervisory college the authority of the commissioner of insurance to regulate or supervise the insurer or its affiliates within the jurisdiction of the supervisory college.
History:
L. 2013, ch. 15, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 33 - Insurance Holding Companies › 40-3317 Citation of act.

40-3317. Citation of act.
K.S.A. 40-3301 through 40-3315, and K.S.A. 40-3316 and 40-3317, and amendments thereto, shall be known and may be cited as the insurance holding company act.
History:
L. 2013, ch. 15, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3403a Termination of fund coverage; equivalent insurance required.

40-3403a. Termination of fund coverage; equivalent insurance required.
Any health care provider whose fund coverage has been terminated under subsection (i) of K.S.A. 40-3403, and amendments thereto, shall, as a condition of licensure, maintain continuous professional liability insurance coverage equivalent to that provided by the fund and shall submit to the board of governors satisfactory proof of such coverage, as required by the board.
History:
L. 1986, ch. 229, § 21; L. 1995, ch. 145, § 3; L. 2014, ch. 56, § 8; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3406 Investment of health care stabilization fund moneys.

40-3406.
Investment of health care stabilization fund moneys.
After consultation with the board of governors the director of investments may invest and reinvest moneys in the fund in accordance with investment policies established by the pooled money investment board under K.S.A. 75-4232, and amendments thereto, in the following:
(a) Direct obligations of, or obligations that are insured as to principal and interest by, the United States of America or any agency thereof and obligations and securities of the United States sponsored enterprises which under federal law may be accepted as security for public funds, including investments in mortgage-backed securities;
(b) repurchase agreements with a Kansas bank or primary government securities dealer which reports to the market reports division of the federal reserve bank of New York for direct obligations of, or obligations that are insured as to principal and interest by, the United States government or any agency thereof and obligations and securities of United States government sponsored enterprises which under federal law may be accepted as security for public funds;
(c) commercial paper that does not exceed 270 days to maturity and which has received one of the two highest commercial paper credit ratings by a nationally recognized investment rating firm;
(d) interest-bearing time deposits in any commercial bank located in Kansas;
(e) the municipal investment pool fund, under K.S.A. 12-1677a, and amendments thereto; or
(f) corporate bonds that are rated in one of the two highest credit rating categories by a nationally recognized investment rating firm.
History:
L. 1976, ch. 231, § 6; L. 1987, ch. 295, § 4; L. 1989, ch. 48, § 85; L. 1996, ch. 254, § 9; L. 2005, ch. 205, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3407 Payments from fund; claim payments.

40-3407. Payments from fund; claim payments.
(a) Except for investment purposes, all payments from the fund shall be upon warrants of the state of Kansas issued pursuant to vouchers approved by the executive director or the executive director's designee, and, with respect to claim payments, accompanied by: (1) A file stamped copy of a final judgment against a healthcare provider or inactive healthcare provider for which the fund is liable; or (2) a file stamped copy of a court approved settlement against a healthcare provider or inactive healthcare provider for which the fund is liable.
(b) For investment purposes amounts shall be paid from the fund upon vouchers approved by the chairperson of the pooled money investment board.
(c) Payments from the fund for attorney fees, expert witness fees, and other costs related to claims, including invoices, statements and other documentation thereof, shall not be subject to K.S.A. 45-218, and amendments thereto.
History:
L. 1976, ch. 231, § 7; L. 1994, ch. 155, § 5; L. 2014, ch. 56, § 11; L. 2019, ch. 62, § 8; May 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3407a Same; expenditures irrespective of time liability incurred or judgment or settlement made.

40-3407a.
Same; expenditures irrespective of time liability incurred or judgment or settlement made.
(a) Expenditures may be made from the health care stabilization fund for attorney fees, expenses and other costs incurred in defending the fund against claims and for judgments and settlements for which the fund is liable pursuant to subsection (c) of K.S.A. 40-3403, and amendments thereto, regardless of when such attorney fees, expenses or other costs were incurred or when any such judgment or settlement was made.
(b) This section shall be part of and supplemental to the health care provider insurance availability act.
History:
L. 2005, ch. 205, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3410 Negotiation of amount of claim to be paid from fund; settlement; procedure for court approval.

40-3410.
Negotiation of amount of claim to be paid from fund; settlement; procedure for court approval.
When the insurer of a health care provider or inactive health care provider covered by the fund has agreed to settle its liability on a claim against its insured or when the self-insurer has agreed to settle liability on a claim and the claimant's demand is in an amount in excess of such settlement, or where a claim is against an inactive health care provider covered by the fund who does not have liability insurance in effect which is applicable to the claim, or where it would otherwise be in the best interest of the fund, the claimant and the board of governors may negotiate on an amount to be paid from the fund. The board of governors may employ independent counsel to represent the interest of the fund in any such negotiations. In the event the claimant and the board of governors agree upon an amount the following procedure shall be followed:
(a) A petition shall be filed by the claimant with the court in which the action is pending against the health care provider or the inactive health care provider, or if none is pending, in a court of appropriate jurisdiction, for approval of the agreement between the claimant and the board of governors.
(b) The court shall set such petition for hearing as soon as the court's calendar permits, and notice of the time, date and place of hearing shall be given to the claimant, the health care provider or inactive health care provider, and to the board of governors.
(c) At such hearing the court shall approve the proposed settlement if the court finds it to be valid, just and equitable.
(d) In the event the settlement is not approved, the procedure set forth in K.S.A. 40-3411 and amendments thereto shall be followed.
History: L. 1976, ch. 231, § 10; L. 1994, ch. 155, § 7; January 1, 1995.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3412 Actions against health care providers or inactive health care providers; no direct action against fund or insurer; inadmissible evidence; fund not liable for certain damages.

40-3412. Actions against health care providers or inactive health care providers; no direct action against fund or insurer; inadmissible evidence; fund not liable for certain damages.
(a) Any action for personal injury or death arising out of the rendering of or the failure to render professional services by any health care provider or inactive health care provider shall be maintained against such health care provider or inactive health care provider. No claimant shall have any right of action directly against the fund. No claimant shall have any right of action under this act directly against an insurer.
(b) Evidence that a portion of any verdict would be payable from insurance or the fund shall be inadmissible in any such action.
(c) Nothing in this act shall be construed to impose any liability in the fund in excess of that specifically provided for in this act for negligent failure to settle a claim or for failure to settle a claim in good faith.
(d) The fund shall have no obligations whatsoever for payment for punitive damages.
(e) The fund shall not be liable to pay amounts due from a judgment against an inactive health care provider arising from the rendering of professional services as a health care provider contrary to the provisions of this act.
(f) Any action for damages or for approval of a settlement as set forth in K.S.A. 40-3409, 40-3410 or 40-3411, and amendments thereto, shall be brought in a court of appropriate jurisdiction and venue.
History:
L. 1976, ch. 231, § 12; L. 2014, ch. 56, § 14; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3415 Consultation and assistance in maintaining compliance with act.

40-3415.
Consultation and assistance in maintaining compliance with act.
The board of governors, the commissioner, the attorney general, the health care stabilization fund oversight committee and the officers and employees of the state agencies which license, register, certify or otherwise regulate health care providers are authorized and directed to consult with and assist each other in maintaining compliance with the provisions of this act.
History:
L. 1976, ch. 231, § 15; L. 1984, ch. 238, § 6; L. 1989, ch. 143, § 5; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3416 Report of suspected violations to regulatory agencies; investigation; report to attorney general; injunctive relief.

40-3416. Report of suspected violations to regulatory agencies; investigation; report to attorney general; injunctive relief.
When the board of governors is informed or reasonably suspects that a health care provider licensed to render professional services is in violation of K.S.A. 40-3402, and amendments thereto, such board shall report the suspected violation to the state agency which licenses, registers or certifies such health care provider. Upon receipt of such report or other evidence of a violation of K.S.A. 40-3402, and amendments thereto, the state agency shall make such investigation as it deems necessary and take such other official action as deemed appropriate. If a violation is found to exist, the state agency shall promptly notify the attorney general of this state. Upon such notice the attorney general or county attorney of the proper county shall, in the name of the state, institute and maintain an action to enjoin the health care provider from rendering professional services in this state in the district court of the district in which such health care provider is rendering professional services.
History:
L. 1976, ch. 231, § 16; L. 1995, ch. 145, § 7; L. 2014, ch. 56, § 17; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3417 Rules and regulations.

40-3417.
Rules and regulations.
(a) Except as otherwise provided by subsection (b), the commissioner may adopt such rules and regulations as may be deemed necessary to carry out the purposes of this act.
(b) The board of governors may adopt such rules and regulations as may be deemed necessary for the administration of the fund and the powers, duties and functions of the board of governors under the health care provider insurance availability act.
History: L. 1976, ch. 231, § 17; L. 1994, ch. 155, § 9; January 1, 1995.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3418 Severability of act.

40-3418.
Severability of act.
If any clause, paragraph, subsection or section of this act shall be held invalid or unconstitutional, it shall be conclusively presumed that the legislature would have enacted the remainder of this act without such invalid or unconstitutional clause, paragraph, subsection or section.
History: L. 1976, ch. 231, § 18; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3418a Severability of act.

40-3418a.
Severability of act.
If any provisions of this act or the application thereof to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provisions or application and, to this end, the provisions of this act are severable.
History:
L. 1989, ch. 143, § 9; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3419 Title of act.

40-3419. Title of act.
K.S.A. 40-3401 et seq., and amendments thereto, shall be known and may be cited as the health care provider insurance availability act.
History:
L. 1976, ch. 231, § 19; L. 2014, ch. 56, § 18; July 1.