The bill amends existing Kansas insurance laws to require third-party administrators to maintain separate fiduciary accounts for each individual payor, ensuring that funds collected or held on behalf of multiple payors are not commingled. It mandates that all insurance charges, premiums, and reimbursements collected by the administrator be held in a fiduciary capacity and remitted promptly to the entitled parties. Additionally, the bill stipulates that the administrator must provide periodic accounting to the payor and maintain detailed records of all transactions related to each payor's account.

Furthermore, the bill modifies the disclosure requirements for administrators regarding bankruptcy filings. It specifies that administrators must disclose any bankruptcy petition filed on their behalf to the commissioner of insurance at the time of filing, rather than immediately as previously required. The bill repeals the existing sections of K.S.A. 40-3807 and 40-3809, consolidating and updating the regulations governing the fiduciary responsibilities of third-party administrators in Kansas.

Statutes affected:
As introduced: 40-3807, 40-3809
As Amended by Senate Committee: 40-3807, 40-3809