SESSION OF 2024
SUPPLEMENTAL NOTE ON SENATE BILL NO. 398
As Amended by House Committee on Insurance

Brief*
SB 398, as amended, would authorize the
Commissioner of Insurance (Commissioner) to set the
amounts of fees and fines for applications, licenses, license
renewals, certificates of authority, and other required filings
by certain insurance entities and public adjusters under the
jurisdiction of the Commissioner. The bill would set the fees
and fines for insurance-related entities and public adjusters
currently established in statute as the fee and fine ceilings for
the services outlined in the table that follows.
The bill would also require the Commissioner to set the
fees and fines for the next succeeding calendar year and
publish those in the Kansas Register no later than December
1 of each calendar year.
The bill would be in effect upon publication in the
Kansas Register.


____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 Modification of Fees and Fines for Certain Insurance Entities and Public Adjusters
Bill Statute Affected Fee or Fine
Section
1 KSA 40-205a Application fee for license to engage in business of selling stock
2 KSA 40-218 Fee for insurance companies or fraternal benefit societies to file a summons or
order of garnishment
3 KSA 40-252 Admission and annual fees for the following entities organized under Kansas law or
under the laws of any other state, territory, or country: capital stock insurance
companies and mutual legal reserve life insurance companies; mutual life,
accident, and health associations; mutual fire, hail, casualty, and multiple line
insurers and reciprocal or interinsurance exchanges; fraternal benefit societies;
mutual nonprofit hospital service corporations; nonprofit medical service
corporations; nonprofit dental service corporations; nonprofit optometric service
corporations; and nonprofit pharmacy service corporations
4 KSA 40-2,133 Notification fee for utilizing the services of managing general agents
5 KSA 40-504 Application fee for certificate of authority for life insurance companies
6 KSA 40-956 Application fee for license as a rating organization
7 KSA 40-22a04 Application fee for certificate of authority for utilization review organizations
8 KSA 40-2604 Continuation fee for license as a premium finance company
 Modification of Fees and Fines for Certain Insurance Entities and Public Adjusters (continued)
Bill Statute Affected Fee or Fine
Section
9 KSA 4-2702 Annual registration fee for certificate of authority to transact life, accident, and
health insurance business in the state
10 KSA 40-3213 Fees for filing an application for a certificate of authority, filing an annual report, and
for filing an amendment to the certificate of authority for health maintenance
organizations and Medicare provider organizations
11 KSA 40-3304 Filing fee for transactions affecting control of domestic insurers
12 KSA 40-3812 Application fee for licensure as a home state third party administrator (TPA)
13 KSA 40-3813 Application fee for licensure as a nonresident TPA
14 KSA 40-3814 Fee to file an annual report by a TPA
15 KSA 2023 Supp. Application fee for licensure as a pharmacy benefit manager (PBM) and penalty fee
40-3823 for failure to timely inform the Commissioner of a material change in the application
information
16 KSA 2023 Supp. PBM license renewal fee and penalty fee for late license renewal
40-3824
17 KSA 40-4103 Notification fee for risk retention groups to do business in the state
 Modification of Fees and Fines for Certain Insurance Entities and Public Adjusters (continued)
Bill Statute Affected Fee or Fine
Section
18 KSA 40-4116 Notification fee to do business in the state as a purchasing group
19 KSA 2023 Supp. Annual continuation fee for certificate of registration as a prepaid service plan
40-4209
20 KSA 2023 Supp. Fees for certificate of authority and annual renewal for captive insurance
40-4302 companies
21 KSA 40-4323 License renewal fee for dormant captive insurance companies
22 KSA 40-4334 Fees for application for certificate of authority and annual renewal for special
purpose insurance captive insurance companies
23 KSA 40-4503 Fees for application for licensure and annual continuation as a reinsurance
intermediary
24 KSA 2023 Supp. Continuing education credit qualification fee for all courses, programs of study, or
40-4903 subjects submitted by a specific provider or provider organization and an annual
provider fee
25 KSA 40-5003 Fees for application for licensure and annual renewal to operate as a viatical
settlement provider or a viatical settlement broker
26 KSA 40-5509 Public adjuster license renewal fee
Background
The bill was introduced by the Senate Committee on
Financial Institutions and Insurance at the request of a
representative of the Kansas Insurance Department
(Department).
[Note: The bill was modeled after 2023 HB 2090, which
as enacted authorized the Commissioner to lower licensure
fees for insurance agents and insurance agencies in Kansas.]

Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, proponent testimony
was provided by a representative of the Department, who
stated the bill would grant the Commissioner the flexibility to
set more than 100 statutorily set fees and fines, in an amount
not to exceed that currently established in statute. The
representative noted publishing the fees and fines for the next
year in the Kansas Register would provide the regulated
entities time to plan their budgets for the next calendar year.
The representative noted similar legislation enacted in 2023
allowed the Commissioner to reduce fees for insurance
agents and insurance agencies, with anticipated savings to
the insurance industry of $1.2 million annually as a result of
that change.
No other testimony was provided.

House Committee on Insurance
In the House Committee hearing, proponent testimony
was provided by a representative of the Department, who
stated the bill would authorize the Commissioner to lower
fees and fines, and the bill passed the Senate unanimously.
No other testimony was provided.

5- 398
 The House Committee amended the bill to change the
effective date to be upon publication in the Kansas Register.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department states
the bill could change agency revenues, which would depend
on the rates the Commissioner sets each year. The agency
cannot estimate the changes in revenue; however, any
change would allow the agency to continue efficient agency
operations. Any fiscal effect associated with enactment of the
bill is not reflected in The FY 2025 Governor’s Budget Report.
Insurance; Commissioner of Insurance; duties and powers; fees


6- 398


Statutes affected:
As introduced: 40-205a, 40-218, 40-252, 40-2, 40-504, 40-956, 40-22a04, 40-2604, 40-2702, 40-3213, 40-3304, 40-3812, 40-3813, 40-3814, 40-3823, 40-3824, 40-4103, 40-4116, 40-4209, 40-4302, 40-4323, 40-4334, 40-4503, 40-4903, 40-5003, 40-5509
As Amended by House Committee: 40-205a, 40-218, 40-252, 40-2, 40-504, 40-956, 40-22a04, 40-2604, 40-2702, 40-3213, 40-3304, 40-3812, 40-3813, 40-3814, 40-3823, 40-3824, 40-4103, 40-4116, 40-4209, 40-4302, 40-4323, 40-4334, 40-4503, 40-4903, 40-5003, 40-5509