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2023 Kansas Statutes › Chapter 40 - Insurance › Article 51 - Insurance Score Act › 40-5103 Definitions.

40-5103.
Definitions.
As used in this act:
(a) "Adverse action" means any of the following in connection with the underwriting of personal insurance:
(1) A denial or cancellation of coverage; or
(2) a reduction or other adverse or unfavorable change in the terms of coverage of any insurance regardless of whether such insurance is in existence or has been applied for.
(b) "Affiliate" means any company that controls, is controlled by, or is under common control with another company.
(c) "Agent" shall have the meaning ascribed to it in subsection (k) of K.S.A. 40-4902, and amendments thereto, unless the context requires otherwise.
(d) "Applicant" means an individual who has applied to an insurer to be covered by a personal insurance policy.
(e) "Commissioner" means the commissioner of insurance and any authorized designee of the commissioner.
(f) "Consumer" means an insured whose credit information is used or whose insurance score is calculated in the underwriting or rating of a personal insurance policy. "Consumer" also includes an applicant for a personal insurance policy.
(g) "Consumer reporting agency" means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages, in whole or in part, in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties.
(h) "Credit information" means any credit related information derived from a credit report, found on a credit report itself, or provided on an application for personal insurance. Credit information shall not include any information which is not credit related, regardless of whether such information is contained in a credit report or in an application or is used to calculate an insurance score.
(i) "Credit report" means any written, oral, or other communication of information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing or credit capacity which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor to determine personal insurance premiums, eligibility for coverage, or tier placement.
(j) "Department" means the insurance department established by K.S.A. 40-102, and amendments thereto.
(k) "Insurance score" means a number or rating that is derived from an algorithm, computer application, model, or other process that is based, in whole or in part, on credit information for the purposes of predicting the future insurance loss exposure of an individual applicant or insured.
(l) "Personal insurance" means private passenger automobile, homeowners, motorcycle, mobile homeowners and non-commercial dwelling fire insurance policies and boat, personal water craft, snowmobile and recreational vehicle policies. For the strict purposes of this act, personal insurance shall also include individually underwritten policies of farmowners.
History:
L. 2003, ch. 88, § 4; L. 2010, ch. 108, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 51 - Insurance Score Act › 40-5105 Re-underwriting or re-rating consumer, when; overpayment of premium.

40-5105.
Re-underwriting or re-rating consumer, when; overpayment of premium.
(a) If it is determined through the dispute resolution process set forth in the federal fair credit reporting act, 15 U.S.C. § 1681i(a)(5), that the credit information of a current insured was incorrect or incomplete and if the insurer receives notice of such determination from either the consumer reporting agency or from the insured, the insurer shall re-underwrite and re-rate the consumer within 30 days of receiving the notice. After re-underwriting or re-rating the insured, the insurer shall make any adjustments necessary, consistent with such insurer's underwriting and rating guidelines.
(b) If an insurer determines that the insured has overpaid the premium, the insurer shall refund to the insured the amount of overpayment calculated back to the shorter of either the last 12 months of coverage or the actual policy period.
History:
L. 2003, ch. 88, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 51 - Insurance Score Act › 40-5106 Disclosure requirements.

40-5106.
Disclosure requirements.
If an insurer writing personal insurance uses credit information in underwriting or rating a consumer, the insurer or its agent shall disclose that it may obtain credit information in connection with such application. The insurer shall further notify such consumer that an internal appeal process exists as provided by paragraph (b) of K.S.A. 40-5107, and amendments thereto. The disclosure shall be made either on the insurance application or at the time the insurance application is taken. Such disclosure shall be either written or provided to an applicant in the same medium as the application for insurance. The insurer need not provide the disclosure statement required under this section to any insured on a renewal policy if such consumer has previously been provided a disclosure statement.
History:
L. 2003, ch. 88, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 51 - Insurance Score Act › 40-5107 Adverse action; notice to consumer, contents.

40-5107.
Adverse action; notice to consumer, contents.
(a) If an insurer takes an adverse action based upon credit information, the insurer shall provide written notification to the consumer a notice that:
(1) An adverse action has been taken, in accordance with the requirements of the federal fair credit reporting act as set forth in, 15 U.S.C. § 1681m(a); and
(2) explains the reason for such adverse action.
(b) Each reason must be provided in sufficiently clear and specific language so that a person can identify the basis for the insurer's decision to take such adverse action. An insurer shall provide a procedure whereby a consumer may review an adverse action based on credit information. Such procedure shall be consistent with the provisions of K.S.A. 40-2,112, and amendments thereto. The insurer and the insurer's agent shall be immune from any action arising from information provided to the insured through such process. The insurer shall not be found in violation of rate filings by adjusting an insured's rate in such a manner.
(c) The use of generalized terms such as "poor credit history," "poor credit rating," or "poor insurance score" shall be deemed not to comply with requirements of this section.
History:
L. 2003, ch. 88, § 8; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 51 - Insurance Score Act › 40-5108 Insurance score models, filing required; trade secret.

40-5108.
Insurance score models, filing required; trade secret.
(a) Each insurer that uses insurance scores to underwrite and rate risks shall file the procedure required by paragraph (b) of K.S.A. 40-5107, and amendments thereto, and such insurer's insurance scoring models or other insurance scoring processes with the insurance department. A third party may file with the insurance department such third party's scoring models or other scoring processes used on behalf of an insurer. Any filing that includes insurance scoring may include loss experience justifying the use of credit information.
(b) Except for the procedure required by paragraph (b) of K.S.A. 40-5107, and amendments thereto, any filing relating to insurance scoring models or other insurance scoring processes shall be considered to be a trade secret and confidential under the open records act.
History:
L. 2003, ch. 88, § 9; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 51 - Insurance Score Act › 40-5109 Studies; report to legislature.

40-5109.
Studies; report to legislature.
(a) The commissioner of insurance shall gather data, hold public hearings, make inquiries and publish studies relating to the purpose of this act.
(b) The commissioner shall report to the president and minority leader of the senate and the speaker and minority leader of the house of representatives by January 26, 2005, on issues relating to the use of credit history in the underwriting and rating of personal insurance and the implementation of this act.
History:
L. 2003, ch. 88, § 10; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 51 - Insurance Score Act › 40-5110 Indemnification, when required.

40-5110.
Indemnification, when required.
(a) An insurer shall indemnify, defend, and hold agents harmless from and against all liability, fees, and costs arising out of or relating to the actions, errors, or omissions of an agent who obtains or uses credit information or insurance scores, or both, for an insurer.
(b) The provisions of subsection (a) shall not be available whenever the agent fails to:
(1) Follow the instructions of or procedures established by the insurer; and
(2) comply with any applicable law or regulation.
(c) Nothing in this section shall be construed to provide a consumer or other insured with a cause of action that does not exist in the absence of this section.
History:
L. 2003, ch. 88, § 11; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 51 - Insurance Score Act › 40-5111 Prohibition against use of certain information; exceptions.

40-5111.
Prohibition against use of certain information; exceptions.
(a) No consumer reporting agency shall provide or sell data or lists that include any information, in whole or in part, which was submitted in conjunction with an insurance inquiry about a consumer's credit information or a request for a credit report or insurance score. Such information includes, but is not limited to:
(1) The expiration date of an insurance policy or any other information that may identify any time period during which a consumer's insurance may expire; and
(2) the terms and conditions of the consumer's insurance coverage.
(b) The restrictions provided in subsection (a) of this section do not apply to:
(1) Any data or list the consumer reporting agency supplies to the insurance agent from whom information was received;
(2) the insurer for whom such agent acted; or
(3) such insurer's affiliates or holding companies.
(c) Nothing in this section shall be construed to prohibit or restrict any insurer from obtaining a claims history report or a motor vehicle report.
History:
L. 2003, ch. 88, § 12; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 51 - Insurance Score Act › 40-5112 Powers of commissioner.

40-5112.
Powers of commissioner.
Whenever an insurer is found to be in violation of any provision of this act, the commissioner shall proceed under K.S.A. 40-2,125, and amendments thereto.
History:
L. 2003, ch. 88, § 13; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 51 - Insurance Score Act › 40-5114 Severability.

40-5114.
Severability.
(a) If any provision of this act is declared invalid due to an interpretation of or a future change in the federal fair credit reporting act, the remaining portions of the act shall be deemed to be severable and shall remain in full force and effect.
(b) If any provision of this act or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
History:
L. 2003, ch. 88, § 15; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 51 - Insurance Score Act › 40-5115 Credit information; use by insurers; extraordinary life circumstances; limitations.

40-5115.
Credit information; use by insurers; extraordinary life circumstances; limitations.
(a) (1) Notwithstanding any other law, rule or regulation, an insurer that uses credit information shall, upon written request from an applicant for insurance coverage or an insured, provide reasonable exceptions to the insurer's rates, rating classifications, company or tier placement, or underwriting rules or guidelines for a consumer who has experienced and whose credit information has been directly influenced by an extraordinary life circumstance.
(2) As used in this section "extraordinary life circumstance" means:
(A) Catastrophic event, as declared by the federal or any state government;
(B) serious illness or injury to the consumer or such consumer's immediate family member;
(C) the death of a spouse, child or parent of the insured;
(D) divorce or involuntary interruption of legally-owed alimony or support payments;
(E) identity theft;
(F) temporary loss of employment for a period of three months or more, if it results from involuntary termination;
(G) overseas military deployment; or
(H) other events as determined by the insurer.
(b) If a consumer submits a request for an exception under subsection (a), an insurer may, in its sole discretion:
(1) Require the consumer to provide reasonable written and independently verifiable documentation of the event;
(2) require the consumer to demonstrate that the event had a direct and meaningful impact on the consumer's credit information; and
(3) require such request be made no more than 60 days from the date of the application for insurance or the policy renewal.
(c) An insurer shall not be deemed to be out of compliance with any law, rule or regulation relating to underwriting, rating or rate filing as a result of granting an exception under this section. Nothing in this section shall be construed to provide a consumer or other insured with a cause of action that does not exist in the absence of this section.
(d) The insurer shall provide notice to consumers that reasonable exceptions are available and information about how the consumer may inquire further.
(e) (1) Within 30 days of the insurer's receipt of sufficient documentation of an extraordinary life circumstance as the insurer may request under subsection (b), the insurer shall inform the consumer of the outcome of their request for a reasonable exception.
(2) The insurer may grant an exception despite the consumer not providing the initial request for an exception in writing or grant an exception where the consumer asks for consideration of repeated circumstances or the insurer has considered this circumstance previously.
(3) The insurer shall inform the consumer of the outcome of their request in writing.
(f) This section shall be part of and supplemental to the Kansas insurance score act.
History:
L. 2010, ch. 108, § 5; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 52 - Assumption Reinsurance Agreements › 40-5201 Assumption reinsurance agreement act; applicability; waiver of requirements, when allowed; exceptions.

40-5201.
Assumption reinsurance agreement act; applicability; waiver of requirements, when allowed; exceptions.
(a) (1) This act applies to any insurer authorized in this state which either assumes or transfers the obligations or risks, or both, on contracts of insurance pursuant to an assumption reinsurance agreement.
(2) At the commissioner's discretion, the commissioner may waive any requirement of this act when the transfer of obligations or risks, or both, results from the discontinuance of business pursuant to K.S.A. 40-248, and amendments thereto, by the transferring insurer.
(b) This act does not apply to: (1) Any reinsurance agreement or transaction in which the ceding insurer continues to remain directly liable for its insurance obligations or risks, or both, under the contracts of insurance subject to the reinsurance agreement;
(2) the substitution of one insurer for another upon the expiration of insurance coverage pursuant to statutory or contractual requirements and the issuance of a new contract of insurance by another insurer;
(3) the transfer of contracts of insurance pursuant to mergers or consolidations of two or more insurers to the extent that those transactions are regulated by statute;
(4) any insurer subject to a judicial order of liquidation or rehabilitation;
(5) any reinsurance agreement or transaction to which a state insurance guaranty association is a party, provided that policyholders do not lose any rights or claims afforded under their original policies pursuant to K.S.A. 40-2901 et seq., and amendments thereto, or K.S.A. 40-3001 et seq., and amendments thereto; or
(6) the transfer of liabilities from one insurer to another under a single group policy upon the request of the group policyholder.
History:
L. 2004, ch. 128, § 6; L. 2008, ch. 83, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 52 - Assumption Reinsurance Agreements › 40-5202 Same; definitions.

40-5202.
Same; definitions.
For the purposes of this act:
(a) "Assuming insurer" means the insurer that acquires an insurance obligation or risk, or both, from the transferring insurer pursuant to an assumption reinsurance agreement.
(b) "Assumption reinsurance agreement" means any contract that both:
(1) Transfers insurance obligations or risks, or both, of existing or in-force contracts of insurance from a transferring insurer to an assuming insurer; and
(2) is intended to effect a novation of the transferred contract of insurance with the result that the assuming insurer becomes directly liable to the policyholders of the transferring insurer and the transferring insurer's insurance obligations or risks, or both, under the contracts are extinguished.
(c) "Commissioner" means the commissioner of insurance as defined by K.S.A. 40-102, and amendments thereto, unless the context requires otherwise.
(d) "Contract of insurance" means any written agreement between an insurer and policyholder pursuant to which the insurer, in exchange for premium or other consideration, agrees to assume an obligation or risk, or both, of the policyholder or to make payments on behalf of, or to, the policyholder or its beneficiaries. Contract of insurance includes all property, casualty, life, health, accident, surety, title and annuity business authorized to be written pursuant to the insurance laws of this state.
(e) "Home service business" means insurance business on which premiums are collected on a weekly or monthly basis by an agent of the insurer.
(f) "Notice of transfer" means the written notice to policyholders required by K.S.A. 40-5203, and amendments thereto.
(g) "Policyholder" means any individual or entity which has the right to terminate or otherwise alter the terms of a contract of insurance.
Policyholder includes any certificateholder whose certificate is in force on the proposed effective date of the assumption, if the certificateholder has the right to keep the certificate in force without change in benefit following termination of the group policy.
The right to keep the certificate in force shall not include the right to elect individual coverage under the consolidated omnibus budget reconciliation act ("COBRA") section 601 et seq., of the employee retirement income security act of 1974, as amended, 29 U.S.C. §§ 1161 et seq.
(h) "Transferring insurer" means the insurer which transfers an insurance obligation or risk, or both, to an assuming insurer pursuant to an assumption reinsurance agreement.
(i) This section shall take effect on and after July 1, 2004.
History:
L. 2004, ch. 128, § 7; May 20.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 52 - Assumption Reinsurance Agreements › 40-5204 Same; prior approval by commissioner required; duties of licensed foreign insurer.

40-5204.
Same; prior approval by commissioner required; duties of licensed foreign insurer.
(a) Prior approval by the commissioner is required for any transaction where an insurer domiciled in this state assumes or transfers obligations or risks, or both, on contracts of insurance under an assumption reinsurance agreement. No insurer licensed in this state shall transfer obligations and/or risks on contracts of insurance issued to or owned by residents of this state to any insurer that is not licensed in this state. An insurer domiciled in this state shall not assume obligations or risks, or both, on contracts of insurance issued to or owned by policyholders residing in any other state unless it is licensed in the other state, or the insurance regulatory official of that state has approved the assumption.
(b) Any licensed foreign insurer that enters into an assumption reinsurance agreement which transfers the obligations or risks, or both, on contracts of insurance issued to or owned by residents of this state, shall file or cause to be filed with the commissioner of insurance of this state the assumption certificate, a copy of the notice of transfer and an affidavit that the transaction is subject to substantially similar requirements in the state of domicile of both the transferring and assuming insurer. If no such requirements exist in the domicile of either the transferring or assuming insurers, then the requirements of this act shall apply.
(c) Any licensed foreign insurer that enters into an assumption reinsurance agreement which transfers the obligations or risks, or both, on contracts of insurance issued to or owned by residents of this state, shall obtain prior approval of the commissioner of insurance of this state and be subject to all other requirements of this act with respect to residents of this state, unless the transferring and assuming insurers are subject to assumption reinsurance requirements adopted by statute or regulation in the jurisdiction of their domicile which are substantially similar to those contained herein.
(d) The following factors, along with such other factors as the commissioner deems appropriate under the circumstances, shall be considered by the commissioner in reviewing a request for approval:
(1) The financial condition of the transferring and assuming insurers and the effect the transaction will have on the financial condition of each company;
(2) the competence, experience and integrity of those persons who control the operation of the assuming insurer;
(3) the plans or proposals the assuming party has with respect to the administration of the policies subject to the proposed transfer;
(4) whether the transfer is fair and reasonable to the policyholders of both companies; and
(5) whether the notice of transfer to be provided by the insurer is fair, adequate and not misleading.
(e) This section shall take effect on and after July 1, 2004.
History:
L. 2004, ch. 128, § 9; May 20.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 52 - Assumption Reinsurance Agreements › 40-5205 Same; rights of policyholders.

40-5205.
Same; rights of policyholders.
(a) Policyholders shall have the right to reject the transfer and novation of their contracts of insurance. Policyholders electing to reject the assumption transaction shall return to the transferring insurer the pre-addressed, postage-paid response card or other written notice and indicate thereon that the assumption is rejected (collectively referred to as the "response card").
(b) Payment of any premium to the assuming company during the 24-month period after notice is received shall be deemed to indicate the policyholder's acceptance of the transfer to the assuming insurer and a novation shall be deemed to have been effected, provided that the premium notice clearly states that payment of the premium to the assuming insurer shall constitute acceptance of the transfer. However, the premium notice shall also provide a method for the policyholder to pay the premium while reserving the right to reject the transfer. With respect to any home service business or any other business not using premium notices, the disclosures and procedural requirements of this subsection are to be set forth in the notice of transfer required by K.S.A. 40-5202, and amendments thereto, and in the assumption certificate.
(c) After no fewer than 24 months from the mailing of the initial notice of transfer required under K.S.A. 40-5202, and amendments thereto, if positive consent to, or rejection of, the transfer and assumption has not been received or consent has not been deemed to have occurred under subsection (b) of this section, the transferring company shall send to the policyholder a second and final notice of transfer as specified in K.S.A. 40-5202, and amendments thereto. If the policyholder does not accept or reject the transfer during the one-month period immediately following the date on which the transferring insurer mails the second and final notice of transfer, the policyholder's consent will be deemed to have occurred and novation of the contract will be effected. With respect to the home service business, or any other business not using premium notices, the 24-month and one-month periods shall be measured from the date of delivery of the notice of transfer pursuant to subsection (a) of K.S.A. 40-5203, and amendments thereto.
(d) The transferring insurer will be deemed to have received the response card on the date it is postmarked. A policyholder may also send its response card by facsimile or other electronic transmission or by registered mail, express delivery or courier service, in which case the response card shall be deemed to have been received by the assuming insurer on the date of actual receipt by the transferring insurer.
(e) This section shall take effect on and after July 1, 2004.
History:
L. 2004, ch. 128, § 10; May 20.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 52 - Assumption Reinsurance Agreements › 40-5206 Same; novation of insurance contract, when.

40-5206.
Same; novation of insurance contract, when.
If a policyholder consents to the transfer pursuant to K.S.A.  40-5205, and amendments thereto, or if the transfer is effected under K.S.A. 40-5207, and amendments thereto, there shall be a novation of the contract of insurance subject to the assumption reinsurance agreement with the result that the transferring insurer shall thereby be relieved of all insurance obligations or risks, or both, transferred under the assumption reinsurance agreement and the assuming insurer shall become directly and solely liable to the policyholder for those insurance obligations or risks, or both.
This section shall take effect on and after July 1, 2004.
History:
L. 2004, ch. 128, § 11; May 20.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 52 - Assumption Reinsurance Agreements › 40-5207 Same; effect of similar law in another state.

40-5207.
Same; effect of similar law in another state.
If an insurer domiciled in this state or in a jurisdiction having a substantially similar law is deemed by the domiciliary commissioner to be in hazardous financial condition or an administrative proceeding has been instituted against it for the purpose of reorganizing or conserving the insurer, and the transfer of the contracts of insurance is in the best interest of the policyholders, as determined by the domiciliary commissioner, a transfer and novation may be effected notwithstanding the provisions of this act. This may include a form of implied consent and adequate notification to the policyholder of the circumstances requiring the transfer as approved by the commissioner.
This section shall take effect on and after July 1, 2004.
History:
L. 2004, ch. 128, § 12; May 20.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 52 - Assumption Reinsurance Agreements › 40-5208 Same; continuation of certain protections.

40-5208.
Same; continuation of certain protections.
Residents of this state whose policies were previously subject to the protections set forth in K.S.A. 40-2901 et seq., and amendments thereto, or K.S.A. 40-3001 et seq., and amendments thereto, and whose policies are transferred to an unlicensed insurer pursuant to this section are entitled to continued protection thereunder.
This section shall take effect on and after July 1, 2004.
History:
L. 2004, ch. 128, § 13; May 20.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 52 - Assumption Reinsurance Agreements › 40-5210 Same; citation of act; duties of commissioner; rules and regulations.

40-5210.
Same; citation of act; duties of commissioner; rules and regulations.
(a) K.S.A. 40-5201 through 40-5210, and amendments thereto, shall be known and may be cited as the assumption reinsurance agreement act.
(b) This act shall be administered by the commissioner.
(c) The commissioner is hereby authorized to adopt such rules and regulations as may be necessary to carry out the provisions of this act.
History:
L. 2004, ch. 128, § 15; L. 2008, ch. 83, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 53 - Interstate Insurance Compacts › 40-5303 Same; alternate representative.

40-5303.
Same; alternate representative.
The member representing this state on the interstate insurance product regulation compact may be represented thereon by an alternate designated by the commissioner of insurance. Any such alternate shall be an assistant commissioner or a division director of the insurance department.
History:
L. 2005, ch. 102, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 54 - Controlled Insurance Programs Act › 40-5401 Short title.

40-5401.
Short title.
The provisions of K.S.A. 40-5401 through 40-5405, and amendments thereto, shall be known and may be cited as the controlled insurance programs act.
History:
L. 2009, ch. 136, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 54 - Controlled Insurance Programs Act › 40-5402 Definitions.

40-5402.
Definitions.
As used in the controlled insurance programs act:
(a) "Commissioner" means the commissioner of insurance.
(b) "Completed operations liability" has the meaning ascribed thereto in K.S.A. 40-4101, and amendments thereto.
(c) The terms "construction," "contract," "contractor," "owner," "person" and "subcontractor" have the meanings ascribed thereto in K.S.A. 16-1802, and amendments thereto.
(d) "Controlled insurance program" means a program of liability or workers compensation insurance coverage, or both, that is established by an owner or contractor who contractually requires participation by contractors or subcontractors who are engaged in work required by a construction contract. Controlled insurance programs shall include, but not be limited to, coverage programs that are for a fixed term of coverage on a single construction site or project or multiple projects, and a consolidated or wrap-up insurance program as the term is used in subsection (b)(3) of K.S.A. 16-1803, and amendments thereto. A controlled insurance program subject to this act shall not include surety or builders risk.
(e) "Participant" means any contractor or subcontractor whose participation in a controlled insurance program is required by a construction contract.
(f) "Sponsoring participant" means the owner or contractor who establishes the controlled insurance program.
(g) "Substantial completion" shall have the meaning ascribed to it in K.S.A. 16-1902, and amendments thereto.
History:
L. 2009, ch. 136, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 54 - Controlled Insurance Programs Act › 40-5404 Additional rules and regulations.

40-5404.
Additional rules and regulations.
In addition to such other rules and regulations adopted pursuant to this act, the commissioner is hereby authorized to adopt such rules and regulations relating to controlled insurance programs as may be necessary to carry out the provisions of the controlled insurance programs act.
History:
L. 2009, ch. 136, § 4; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 55 - Public Adjusters Licensing Act › 40-5501 Short title.

40-5501.
Short title.
K.S.A. 40-5501 through 40-5519, and amendments thereto, shall be known and may be cited as the public adjusters licensing act, and it shall govern the qualifications and procedures for the licensing of public adjusters, on and after July 1, 2009. It specifies the duties of and restrictions on public adjusters, which include limiting their licensure to assisting insureds in first party claims.
History: L. 2009, ch. 83, § 1; April 23.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 55 - Public Adjusters Licensing Act › 40-5503 License required; limitations; exceptions.

40-5503.
License required; limitations; exceptions.
(a) A person shall not act as or represent that such person is a public adjuster in this state unless the person is an individual licensed as a public adjuster in accordance with this act.
(b) A licensed public adjuster shall not misrepresent to a claimant that the individual is an adjuster representing an insurer in any capacity, including acting as an employee of the insurer or acting as an independent adjuster, unless so appointed by an insurer in writing to act on the insurer's behalf for that specific claim or purpose. A licensed public adjuster is prohibited from charging that specific claimant a fee when appointed by the insurer and the appointment is accepted by the licensed public adjuster.
(c) Notwithstanding the provisions of this section, a license as a public adjuster shall not be required of the following:
(1) An attorney-at-law admitted to practice in this state, when acting in such person's professional capacity as an attorney;
(2) a person who negotiates or settles claims arising under a life or health insurance policy or an annuity contract;
(3) a person employed only for the purpose of obtaining facts surrounding a loss or furnishing technical assistance to a licensed public adjuster, including photographers, estimators, private investigators, engineers and handwriting experts;
(4) a licensed health care provider, or employee of a licensed health care provider, who prepares or files a health claim form on behalf of a patient; or
(5) a person who settles subrogation claims between insurers.
History: L. 2009, ch. 83, § 3; April 23.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 55 - Public Adjusters Licensing Act › 40-5504 Application for license.

40-5504.
Application for license.
(a) An individual applying for a public adjuster license shall make application to the commissioner on the appropriate uniform application or other application prescribed by the commissioner.
(b) The applicant shall declare under penalty of perjury and under penalty of refusal, suspension or revocation of the license, that the statements made in the application are true, correct and complete to the best of the applicant's knowledge and belief.
(c) In order to make a determination of license eligibility, the commissioner shall require a criminal history record check on each applicant who is not exempt from pre-licensing examination pursuant to K.S.A. 40-5507, and amendments thereto.
History: L. 2009, ch. 83, § 4; April 23.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 55 - Public Adjusters Licensing Act › 40-5505 Requirements for licensure.

40-5505. Requirements for licensure.
(a) Before issuing a public adjuster license to an applicant under the public adjusters licensing act, the commissioner shall find that the applicant:
(1) Is eligible to designate this state as the applicant's home state or is a nonresident who is not eligible for a license under K.S.A. 40-5508, and amendments thereto;
(2) has not committed any act that is a ground for denial, suspension or revocation of a license as set forth in K.S.A. 40-5510, and amendments thereto;
(3) is trustworthy, reliable and of good reputation, evidence of which may be determined by the commissioner;
(4) is financially responsible to exercise the rights and privileges under the license and has provided proof of financial responsibility as required in K.S.A. 40-5511, and amendments thereto;
(5) has paid an application fee not to exceed $100; and
(6) maintains an office in the home state with public access during regular business hours or by reasonable appointment.
(b) In addition to satisfying the requirements of subsection (a), an applicant shall:
(1) Be at least 18 years of age; and
(2) have successfully passed the public adjuster examination.
(c) The commissioner may require any documents reasonably necessary to verify the information contained in the application.
(d) (1) The commissioner may require a person applying for a public adjuster license to be fingerprinted and submit to a state and national criminal history record check or to submit to a background check, or both.
(A) The fingerprints shall be used to identify the applicant and to determine whether the applicant has a record of criminal history in this state or another jurisdiction. The commissioner shall submit the fingerprints to the Kansas bureau of investigation and the federal bureau of investigation for a state and national criminal history record check. Local and state law enforcement officers and agencies shall assist the commissioner in the taking and processing of fingerprints of applicants and shall release all records of an applicant's arrests and convictions to the commissioner.
(B) The commissioner may conduct or have a third party conduct a background check on a person applying for a public adjuster license.
(2) Whenever the commissioner requires fingerprinting or a background check, or both, any associated costs shall be paid by the applicant.
(3) The commissioner may use the information obtained from a background check, fingerprinting and the applicant's criminal history only for purposes of verifying the identity of the applicant and in the official determination of the fitness of the applicant to be issued a license as a public adjuster in accordance with the public adjusters licensing act.
(e) Not later than December 1 of each year, the commissioner shall set and publish in the Kansas register the application fees required pursuant to subsection (a) for the next calendar year.
History:
L. 2009, ch. 83, § 5; L. 2021, ch. 23, § 8; L. 2023, ch. 49, § 5; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 55 - Public Adjusters Licensing Act › 40-5506 Examination; retaking examination; when.

40-5506.
Examination; retaking examination; when.
(a) An applicant for a public adjuster license under this act shall pass a written examination, unless exempt from this requirement pursuant to K.S.A. 40-5507, and amendments thereto. The examination shall test the knowledge of the individual concerning the duties and responsibilities of a public adjuster and the insurance laws and regulations of this state. Examinations required by this section shall be developed and conducted under rules and regulations prescribed by the commissioner.
(b) The commissioner may make arrangements, including contracting with an outside testing service, for administering examinations.
(c) An applicant who fails to appear for the examination as scheduled or fails to pass the examination may retake the examination following a waiting period of not less than seven days following the date of the first examination. If the applicant again fails to satisfactorily complete the examination, the applicant may retake the examination following a waiting period of not less than seven days following the date of the second examination. If the applicant again fails to satisfactorily complete the examination, the applicant may retake the examination following a waiting period of not less than six months following the date of the third examination, except that following a waiting period of not less than two years following the date of the third examination, the applicant will be treated as a new applicant and new examination and waiting periods shall apply.
History: L. 2009, ch. 83, § 6; April 23.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 55 - Public Adjusters Licensing Act › 40-5507 Pre-licensing examination not required; when.

40-5507.
Pre-licensing examination not required; when.
(a) An applicant who applies for a public adjuster license in this state, who is currently licensed as a public adjuster in another state based on the individual's passage of a public adjuster examination, shall not be required to complete any pre-licensing examination.
(b) An individual licensed as a public adjuster in another state, based on the individual's passage of a public adjuster examination, who moves to this state shall make application within 90 days of establishing legal residence in this state to become a resident licensee pursuant to K.S.A. 40-5505, and amendments thereto. No pre-licensing examination shall be required of that individual to obtain a public adjuster license.
(c) An individual who applies for a public adjuster license in this state and who was previously licensed as a public adjuster in this state, shall not be required to complete any pre-licensing examination, if the individual's application for licensure as a public adjuster is received within 12 months of the cancellation of the applicant's previous license in this state and if, at the time of cancellation, the applicant was in good standing in this state.
History: L. 2009, ch. 83, § 7; April 23.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 55 - Public Adjusters Licensing Act › 40-5508 Nonresident public adjuster license, when; requirements.

40-5508.
Nonresident public adjuster license, when; requirements.
(a) Unless denied licensure pursuant to K.S.A. 40-5510, and amendments thereto, a nonresident individual shall receive a nonresident public adjuster license, if:
(1) The individual is currently licensed and in good standing as a resident public adjuster in that individual's home state;
(2) the individual has submitted the proper request for licensure, has paid the appropriate fee required by K.S.A. 40-5505, and amendments thereto, and, if required by the commissioner to do so, has provided proof of financial responsibility in accordance with K.S.A. 40-5511, and amendments thereto;
(3) the individual has submitted to the commissioner the appropriate completed application for licensure; and
(4) the individual's home state awards nonresident public adjuster licenses to residents of this state on the same basis.
(b) The commissioner may verify the public adjuster's licensing status through the producer database maintained by the NAIC.
(c) As a condition to continuation of a public adjuster license issued under this section, the licensee shall maintain a resident public adjuster license in the licensee's home state. The nonresident public adjuster license issued under this section shall terminate and be surrendered immediately to the commissioner, if the home state public adjuster license terminates for any reason, unless the public adjuster has a new home state and has been issued a license as a resident public adjuster in the new home state. Notification to the state or states where the nonresident license is issued must be made as soon as practicable, but no later than 30 days of a change in the new home state resident license. The licensee shall include in such notification the licensee's new and old addresses. A new home state resident license is required for a nonresident license to remain valid, and the new home state must have reciprocity with this state, in order for the nonresident license to remain valid.
History: L. 2009, ch. 83, § 8; April 23.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 55 - Public Adjusters Licensing Act › 40-5509 Issuance of license; fee; renewal.

40-5509.
Issuance of license; fee; renewal.
(a) An individual who has met the requirements for licensure under this act shall be issued a public adjuster license. A public adjuster license shall remain in effect, unless revoked, terminated or suspended, as long as the request for renewal is timely submitted and a license renewal fee of $100 is paid and any other requirements for license renewal are met by the due date. The licensee shall inform the commissioner by any means acceptable to the commissioner of a change of address, change of legal name or change of information submitted on the application within 30 days of the change.
(b) A public adjuster shall be subject to the provisions of subsection (9) of K.S.A. 40-2404, and amendments thereto.
(c) A public adjuster who allows such person's license to lapse may, within 12 months from the due date of the renewal, be issued a new public adjuster license upon the commissioner's receipt of proof that the licensee has satisfactorily completed the renewal process and the licensee's payment of a reinstatement fee of $100. The new public adjuster license shall be effective the date the commissioner receives such proof and the reinstatement fee.
(d) A licensed public adjuster that is unable to comply with license renewal procedures due to military service, a long-term medical disability or some other extenuating circumstance, may request an extension of time to comply with those procedures.
(e) The public adjuster license shall contain the licensee's name, city and state of business address, personal identification number, the date of issuance, the expiration date and any other information the commissioner deems necessary.
(f) In order to assist in the performance of the commissioner's duties, the commissioner may contract with non-governmental entities, including the NAIC, to perform any ministerial functions, including the collection of fees and data related to licensing that the commissioner may deem appropriate.
History: L. 2009, ch. 83, § 9; April 23.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 55 - Public Adjusters Licensing Act › 40-5511 Evidence of financial responsibility.

40-5511.
Evidence of financial responsibility.
(a) Prior to issuance of a public adjuster license and for the duration of the license, the commissioner may require the applicant to furnish evidence of financial responsibility, in a format prescribed by the commissioner, by means of:
(1) A surety bond executed and issued by an insurer authorized to issue surety bonds in this state, which bond:
(A) Shall be in such reasonable amount as the commissioner may require;
(B) shall be in favor of the commissioner and shall specifically authorize recovery by the commissioner on behalf of any person in this state who sustains damages as the result of erroneous acts, failure to act, conviction of fraud or conviction of unfair practices in the applicant's capacity as a public adjuster; and
(C) shall not be terminated unless at least 30-days prior written notice has been filed by the insurer with the commissioner and given to the licensee.
(2) An irrevocable letter of credit issued by a qualified financial institution, which letter of credit:
(A) Shall be in such reasonable amount as the commissioner may require;
(B) shall be to an account of the commissioner and subject to lawful levy of execution on behalf of any person to whom the public adjuster has been found to be legally liable as the result of erroneous acts, failure to act, fraudulent acts or unfair practices in the applicant's capacity as a public adjuster; and
(C) shall not be terminated unless at least 30-days prior written notice has been filed by the issuer with the commissioner and given to the licensee.
(b) Where the commissioner has required an applicant to furnish evidence of financial responsibility pursuant to subsection (a):
(1) The issuer of the evidence of financial responsibility shall notify the commissioner upon termination of the bond or letter of credit, unless otherwise directed by the commissioner;
(2) the commissioner may ask for the evidence of the public adjuster's financial responsibility at any time the commissioner deems relevant; and
(3) the authority to act as a public adjuster shall terminate automatically if the evidence of financial responsibility terminates or becomes impaired.
History: L. 2009, ch. 83, § 11; April 23.