The bill amends K.S.A. 40-209 and K.S.A. 40-4906 to modernize the regulatory framework for insurance companies and agents in Kansas. Key changes include the removal of the requirement for a financial examination report to be conducted within five years of application, as well as the elimination of conditions related to majority ownership interests and operational history. New provisions allow for the immediate revocation of nonresident licenses if the licensee no longer holds a license in their home state, with a requirement for the commissioner to notify the nonresident within 30 days of such revocation. The bill also enhances the framework for the denial, suspension, or revocation of licenses for insurance agents and public adjusters, detailing grounds for disciplinary action and establishing criteria for evaluating the moral fitness of applicants with prior convictions.

Additionally, the bill grants the commissioner authority to impose administrative penalties for violations, with fines up to $500 per violation and a maximum of $2,500 for repeated violations within six months. If the violator is aware that their actions could lead to disciplinary action, penalties can increase to $1,000 per violation, capped at $5,000 for repeated offenses. The bill ensures due process for any actions affecting licenses, mandates that fines be remitted to the state treasury, and prohibits individuals with suspended or revoked licenses from being employed by insurance companies during the suspension period. It also establishes waiting periods for reapplication after denial or revocation, specifically one year for denied applications and two years for revoked licenses, while repealing certain existing statutes. The bill will take effect upon publication in the statute book.

Statutes affected:
As introduced: 40-209, 40-4906, 40-4909, 40-5510
As Amended by Senate Committee: 40-209, 40-4906, 40-4909, 40-5510