| FROM THE COMMISSIONER |
KID Operational Changes
The importance of honesty, integrity and accuracy.
Vicki Schmidt
Kansas Insurance Commissioner
A
t the writing of my last column, I had been in
office for just a couple of weeks and I shared
with you a few of my guiding principles and
priorities. There has been a lot of activity in
the Department since then, and I am proud of the
Department staff for their hard work and patience
with me during the transition. Change is never easy
but there are times when it is necessary. After the first
30 days of transition and the necessary organizational
changes, I was able to turn my attention to more of
the details of the Department’s operations.
During review of current practices by the Department,
I learned that when a license applicant failed to
accurately respond to questions on an application, it
was common for a consent order to be entered into
between the applicant and the Department in lieu of
denial of the license. The applicant was assessed costs
of $100 in connection with issuance of the order. In
my view, it is critical that insurance agents in Kansas
operate with the highest levels of integrity.
If a prospective agent is not forthcoming on an
application when they know their background will
be checked, how forthcoming will that person be
with a client if they become an agent? It is important
to me to send a clear message to prospective agents
that honesty, integrity and accuracy are critical in the
insurance industry and the Department under my
leadership will accept nothing less.
In a letter I shared with the association at the end
of February, I announced changes to better align
with my priorities and better reflect the cost to
the Department. Effective March 1, 2019, when
an applicant enters into a consent order in lieu of
denial of a license, the costs assessed will be $300.
In situations where the application is denied and
the applicant requests an administrative hearing,
the Department will assess costs in the amount
of $500. These costs must be paid prior to the
issuance of a consent agreement or the scheduling
of an administrative hearing. In the case of an
administrative hearing, where the hearing officer
overturns the denial, the $500 will be returned to the
applicant or company that paid it.
As agents, I know you understand how much
your clients rely on you to help them through the
insurance process and why honesty is such a vital part
of the job. I appreciate the work you do on behalf of
Kansas consumers and should you have questions on
this change or anything else you would like to discuss
please do not hesitate to reach out.
| March - April 2019 | KANSAS INSURANCE AGENT & BROKER
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