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, changing the timing of such disclosures to occur "at the time such filing is made" instead of "immediately." It also repeals the existing sections of K.S.A. 40-3807 and 40-3809, consolidating the new provisions into the updated legal framework. The act will take effect upon its publication in the Kansas register.

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