SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2715
As Amended by Senate Committee on Financial
Institutions and Insurance
Brief*
HB 2715, as amended, would authorize the
Commissioner of Insurance (Commissioner) to set the
amount 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 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 in the House Committee on
Insurance at the request of a representative of the Kansas
Insurance Department (Department).
[Note: The bill was modeled after 2023 HB 2090, which
was enacted to allow the Commissioner to lower licensure
fees for insurance agents and insurance agencies in Kansas.
A companion bill, SB 398, has been introduced in the
Senate.]
House Committee on Insurance
In the House Committee hearing, proponent testimony
was provided by a representative of the Department, who
stated the bill would grant the Commissioner the flexibility to
lower 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.
Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, a representative of
the Department provided proponent testimony similar to the
testimony that was provided to the House Committee.
5- 2715
No other testimony was provided.
The Senate Committee amended the bill to change the
enactment date to 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 the bill is not
reflected in The FY 2025 Governor’s Budget Report.
Insurance; Commissioner of Insurance; duties and powers; fees
6- 2715
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 Senate 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