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 or deposited in the designated fiduciary accounts. Additionally, the bill stipulates that the administrator must provide periodic accounting to the payor and keep detailed records of all transactions related to each payor.

Furthermore, the bill modifies the disclosure requirements for administrators regarding bankruptcy filings. It changes the timing of the disclosure to the commissioner of insurance from "immediately" to "at the time such filing is made." The bill also repeals the existing sections of K.S.A. 40-3807 and 40-3809, and it will take effect upon publication in the Kansas register.

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