| FROM THE COMMISSIONER |
Senate Bills - Highlights
2017 KID Legislative Review
T
he Kansas Insurance Department secured
many legislative proposals with the 2017 Kansas
Legislature. A couple of those were highlighted
in the May-June issue of KAI&B, but I want to
touch on three other bills that Clark Shultz, our new
Assistant Commissioner and head of Government and
Public Affairs (GPA), guided through the legislative
process.
Senate Bill 23—Consolidation of the Office of the
Securities Commissioner with the Kansas Insurance
Department
SB 23 established the Office of the Securities
Commissioner, which had been a stand-alone agency
under the governor’s administration, as a division of the
Kansas Insurance Department, with the Commissioner of
Insurance having jurisdiction.
Under the Kansas Statutes rewrite, the Insurance
Commissioner appoints the Securities Commissioner,
subject to confirmation by the Kansas Senate. The
bill also stipulates that the two agencies consolidate
administrative functions and cross-appoint employees as
necessary to provide efficiencies.
For that purpose I have appointed John Wine, former KID
Assistant Commissioner, as the Securities Commissioner,
with his term ending January 14, 2019. This will be John’s
second stint as securities commissioner; he filled that
capacity in the 1990s as part of his longtime continuing
service to the state.
KEN SELZER
Kansas Insurance Commissioner
developed into the Kansas version of a nationwide
program that provides basic insurance to Kansans when
they have been unable to obtain insurance on the
open market. Each insurer in the pool is assessed its
proportionate share of losses.
This legislation updates the language to reflect the
practice of the Plan issuing policies on behalf of the Plan
itself, rather than an individual company. This change
makes it clear that the insurance commissioner has
the authority and the duty to approve the forms used.
In practice this is how the Plan has operated, with the
approval of the commissioner.
This program has been a success for decades, and with
this modest change in statute, will continue to serve
Kansans.
Senate Bill 22—Third Party Administrators Act
This legislation updates statutes related to Third Party
Administrators (TPAs), who underwrite, collect premium,
adjust claims or other functions on behalf of insurance
companies. These businesses have changed greatly in the
40 years since the former statute was adopted.
With the restructuring of the agencies comes an increased
emphasis on finding ways to consolidate functions and
be fiscally prudent. We are working closely with our
securities colleagues in the areas of consumer education,
licensing and investigations as we begin that consolidation
effort. Many TPAs now conduct business in multiple states, with
some of them in all 50 states. Because of the need to
oversee the far reach of these companies, states began
to draft laws that would assure consistent financial
oversight. This legislation assures other states that a TPA,
domiciled in Kansas, is a properly regulated business. This
is important both for Kansas consumers and for Kansas
businesses seeking to do business in other states.
Clark is stepping into John’s old position as Assistant
Commissioner, in addition to his duties as Director of
Licensing & Market Regulation and GPA. If you have any questions regarding any of the KID bills
that passed into law during the 2017 session, contact
Clark for more information at (785) 296-7803.
Senate Bill 17—Fair Access to Insurance Requirements
Senate Bill 17 updates the statute related to the Fair
Access to Insurance Requirements, more commonly
known as the FAIR Plan. The original 1951 statute We appreciate continuing KAIA and agent input as we
ready the department for the 2018 legislative session.
| July - August 2017 | KANSAS INSURANCE AGENT & BROKER
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