SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2089
As Amended by Senate Committee on Financial
Institutions and Insurance

Brief*
HB 2089, as amended, would modify requirements for
reporting individuals who solicit memberships on behalf of
prepaid service plans from semi-annually to annually. The bill
would also discontinue payment of annual registration fees.
Under current law, each prepaid service plan authorized
to do business in the state is required to register each
individual who solicits memberships on their behalf, pay an
annual registration fee of $2 per individual, and provide a list
of those individuals to the Kansas Insurance Department
(Department) biannually, on January and July 1 of each year.
The bill would:
● Discontinue the annual registration fee of $2 per
individual who solicits memberships on behalf of
the prepaid service plan;
● Change the list reporting requirements from a
biannual to an annual basis at the time the prepaid
service plan files to continue its certificate of
registration;
● Include the amendments to the registration
requirements into KSA 40-4209; and
● Repeal the former location of the reporting
requirements in KSA 40-4203.
____________________
*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
 The bill would be in effect upon publication in the
Kansas Register.

Background
The bill was introduced by the House Committee on
Insurance at the request of the Department. [Note: A
companion bill, SB 17, 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. The
conferee stated prepaid service plans were established in
Kansas in 1987, and no new prepaid plans have been
registered with the Department since 2016. As of 2023, there
are seven prepaid legal plans and four prepaid dental plans
registered with the Department. The Department has
determined the fee is not necessary to complete the duties
outlined in statute.
No other testimony was provided.
The House Committee recommended the bill be placed
on the Consent Calendar.

Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, an overview of the bill
was provided and proponent testimony submitted by the
Department was made available.
The Senate Committee amended the bill to change its
effective date to upon publication in the Kansas Register.


2- 2089
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department
indicates that enactment of the bill would reduce revenues
into its Insurance Department Service Regulation Fund
because the bill would no longer require individuals to pay an
annual fee of $2 to solicit memberships. The Department
estimates the reduction would be approximately $128 per
year starting in FY 2024. Any fiscal effect associated with
enactment of the bill is not reflected in The FY 2024
Governor’s Budget Report.
Insurance; prepaid service plans; fees; Kansas Insurance Department


3- 2089


Statutes affected:
As introduced: 40-4209, 40-4203
As Amended by Senate Committee: 40-4209, 40-4203