Chapter 40, INSURANCE

40-3649. Same; liquidation of assets; order of court; grounds; notice; liquidator appointed in another state; petition to federal district court; payment of claims to residents. (a) If no domiciliary receiver has been appointed, the commissioner may apply to the district court of…

40-3650. Same; authority of domiciliary liquidator; authority of commissioner if insurer not domiciled in reciprocal state; filing of claims. (a) The domiciliary liquidator of an insurer domiciled in a reciprocal state shall, except as to special deposits and security on secured …

40-3651. Same; appointment of ancillary receiver; order of court; authority of ancillary receiver. (a) If a domiciliary liquidator has been appointed for an insurer not domiciled in this state, the commissioner may file a petition with the district court of Shawnee county request…

40-3652. Same; supervision or seizure proceedings, authority of commissioner. The commissioner in the commissioner's sole discretion may institute proceedings under K.S.A. 40-3613 through 40-3615 at the request of the commissioner or other appropriate insurance officials of the d…

40-3653. Liquidation proceedings; begun in state against insurer domiciled in state; claimants residing outside state; filing, proving and allowance of claims. (a) In a liquidation proceeding begun in this state against an insurer domiciled in this state, claimants residing in fo…

40-3654. Same; begun in reciprocal state against insurer domiciled in that state; claimants residing in this state; filing, proving and allowance of claims. (a) In a liquidation proceeding in a reciprocal state against an insurer domiciled in that state, claimants against the ins…

40-3655. Same; no attachment, garnishment or levy of execution during pendency of liquidation proceedings. During the pendency in this or any other state of a liquidation proceeding, whether called by that name or not, no action or proceeding in the nature of an attachment, garni…

40-3656. Same; proceeding in this state involving reciprocal states; order of distribution; equal priority of payment of claims from general assets; special deposit claims; secured claims. (a) In a liquidation proceeding in this state involving one or more reciprocal states, the …

40-3657. Same; ancillary receiver in another state or foreign country failing to transfer assets; priority of claims filed in such ancillary receivership; exceptions. If an ancillary receiver in another state or foreign country, whether called by that name or not, fails to transf…

40-3658. Severability of act. If any provision of this act or the application thereof to any person or circumstance is for any reason held to be invalid, the remainder of this act and the application of such provision to other persons or circumstances shall not be affected thereb…

40-3659. Qualified financial contracts; procedures; duties of receiver. Qualified financial contracts. (a) (1) No person shall be stayed, enjoined or prohibited from exercising any of the following: (A) A contractual right to terminate, liquidate, accelerate or close out, or caus…

40-37a01. Citation of act. This act may be cited as the business transacted with producer controlled insurer act. History: L. 1992, ch. 14, § 1; L. 2005, ch. 163, § 2; July 1.

40-37a02. Definitions. As used in this act: (a) "Accredited state" means a state in which the insurance department or regulatory agency has qualified as meeting the minimum financial regulatory standards promulgated and established from time to time by the national association of…

40-37a03. Application of act; application of insurance holding company act. This act shall apply to licensed insurers as defined in K.S.A. 40-37a02, either domiciled in this state or domiciled in a state that is not an accredited state having in effect a substantially similar law…

40-37a04. Written contract between controlling producer and controlled insurer required, minimum provisions; directors' audit committee, review of insurer's loss reserves; loss and commissions information report to commissioner; application of requirements. (a) (1) The provisions…

40-37a05. Disclosure of producer-insurer relationship to insured. The producer, prior to the effective date of the policy, shall deliver written notice to the prospective insured disclosing the relationship between the producer and the controlled insurer; except that, if the busi…

40-37a06. Failure to comply with law, remedies for benefit of insurer; rights of policyholders, claimants, creditors and other third parties unaffected. (a) (1) If the commissioner believes the controlling producer or any other person has not complied with this act, or any regula…

40-3801. Regulation and registration of administrators; definitions. As used in this act: (a) "Administrator" or "third party administrator" or "TPA" means any person who directly or indirectly underwrites, collects charges or premiums from, or who adjusts or settles claims on, r…

40-3802. Same; written agreements required; contents. (a) No administrator shall act as such without a written agreement between the administrator and the insurer, and such written agreement shall be retained as part of the official records of both the insurer and the administrat…

40-3804. Same; payment to administrator of premiums or charges; effect. If an insurer utilizes the services of an administrator, the payment to the administrator of any premiums or charges for insurance by or on behalf of the insured shall be deemed to have been received by the i…

40-3805. Regulation and registration of administrators; maintenance of information; confidentiality of examination, audit and inspection documents and information. (a) Every administrator shall maintain and make available to the payor complete books and records of all transaction…

40-3806. Same; advertising; prior approval required. An administrator may use only such advertising pertaining to the business underwritten by an insurer as has been approved by such insurer in advance of its use. An administrator that mentions any current or former client in its…

40-3807. Administrators premium collection separate fiduciary account required to be maintained for each payor; payment of claims. (a) All insurance charges, premiums, collateral and loss reimbursements collected by an administrator on behalf of or for a payor, and the return of …

40-3808. Same; compensation to administrator. (a) An administrator shall not enter into an agreement or understanding with a payor in which the effect is to make the amount of the administrator's commissions, fees or charges contingent upon savings effected by the adjustment, set…

40-3809. Written notice disclosures required of administrator. (a) Where the services of an administrator are utilized, the administrator shall provide a written notice, approved by the payor, to covered individuals advising them of the identity of and relationship among the admi…

40-3810. Same; registration requirement. A person who is not required to be licensed as an administrator under this act and who directly or indirectly underwrites, collects charges or premiums from or adjusts or settles claims on residents of this state only in connection with li…

40-3812. Home state administrator license; authorization of commissioner to set and publish fees. (a) A person shall apply to be an administrator in its home state and shall receive a license from the regulatory authority of its home state prior to performing any function of an a…

40-3813. Nonresident administrator license; authorization of commissioner to set and publish fees. (a) Unless an administrator has obtained a home state license in this state, any administrator who performs duties as an administrator in this state shall obtain a nonresident admin…

40-3814. Annual report to be filed by administrator; contents; authorization of commissioner to set and publish fees. (a) Each administrator licensed under the provisions of this act shall file an annual report for the preceding calendar year with the commissioner on or before Ju…

40-3815. Same; denial, suspension or revocation of license. (a) The license of an administrator shall be denied, suspended or revoked if the commissioner finds that the administrator: (1) Is in an unsound financial condition; (2) is using such methods or practices in the conduct …

40-3816. Same; delivery of materials. Any policies, certificates, booklets, termination notices or other written communications delivered by the payor to the administrator for delivery to insured parties or covered individuals shall be delivered by the administrator promptly afte…

40-3817. Same; citation of act. K.S.A. 40-3801, 40-3802, 40-3804 through 40-3810 and K.S.A. 40-3812 through 40-3817, and amendments thereto, shall be known and may be cited as the third party administrators act. History: L. 2017, ch. 2, § 1; March 9.

40-3821. Citation and applicability of act; licensure required. (a) K.S.A. 40-3821 through 40-3828, and amendments thereto, and K.S.A. 2025 Supp. 40-3828a, and amendments thereto, shall be known and may be cited as the pharmacy benefits manager licensure act. (b) On and after Jan…

40-3822. Definitions. As used in this act: (a) "Act" means the pharmacy benefits manager licensure act. (b) "Commissioner" means the commissioner of insurance as defined by K.S.A. 40-102, and amendments thereto. (c) (1) "Covered entity" means: (A) A nonprofit hospital or medical …

40-3823. Licensure; application; required information; authorization of commissioner to set and publish fee; material changes in information; confidentiality of documents. (a) No person shall act or operate as a pharmacy benefits manager without first obtaining a valid license is…

40-3824. Renewal of license, application; authorization of commissioner to set and publish fees. (a) Each pharmacy benefits manager license shall expire on March 31 of each year and may be renewed annually on the request of the licensee. The application for renewal shall be submi…

40-3825. Rules and regulations. (a) In accordance with the provisions of the rules and regulations filing act, K.S.A. 77-415 et seq., and amendments thereto, the commissioner may adopt, amend and revoke rules and regulations governing the administration and enforcement of this ac…

40-3826. Statement of charges, hearing; violation; penalty. (a) If the commissioner has reason to believe that a pharmacy benefits manager has been engaged in this state or is engaging in this state in activity that violates the pharmacy benefits manager licensure act, the commis…

40-3827. Pharmacy benefits manager licensure fund. (a) There is hereby established in the state treasury the pharmacy benefits manager licensure fund. Such fund shall be administered by the commissioner for costs related to administering the pharmacy benefits manager licensing ac…

40-3828. Same; severability. If any provision of this act or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act which can be given effect without the invalid provision or application, a…

40-3828a. Denial, revocation or limitation of license. (a) A pharmacy benefits manager's license may be revoked, suspended or limited, the licensee may be censured or placed under probationary conditions or an application for a license or for reinstatement of a license may be den…

40-3829. Pharmacy benefits managers; maximum allowable cost pricing; definitions. As used in K.S.A. 40-3829 and 40-3830, and amendments thereto: (a) "List" means the list of drugs for which maximum allowable costs have been established; (b) "maximum allowable cost" or "MAC" means…

40-3830. Maximum allowable cost list requirements; frequency of updates; appeals process. A pharmacy benefits manager, including the pharmacy benefits manager for the state healthcare benefits program, shall: (a) Not place a drug on a MAC list unless there are at least two therap…

40-3831. Kansas pharmacy patients fair practices act; definitions; limitations on co-payments; no gag order; applicability. (a) This section shall be known and may be cited as the Kansas pharmacy patients fair practices act. (b) As used in this section: (1) "Covered person" means…

40-3901. Cities; payment of proceeds of insurance policies; procedure; release of proceeds. (a) The governing body of any city is hereby authorized to establish, by ordinance, a procedure for the payment of not to exceed 15% of the proceeds of any insurance policy based upon a co…

40-3902. Same; creating tax lien in proceeds of insurance policies. The governing body of any city is hereby authorized to create, by ordinance, a lien in favor of any such city in the proceeds of any insurance policy based upon a covered claim payment made for damage or loss to …

40-3903. Counties; payment of proceeds of insurance policies; procedure; release of proceeds. (a) The governing body of any county is hereby authorized to establish, by resolution, a procedure for the payment of not to exceed 15% of the proceeds of any insurance policy based upon…

40-3904. Same; creating tax lien in proceeds of insurance policies. The governing body of any county is hereby authorized to create, by resolution, a lien in favor of any such county in the proceeds of any insurance policy based upon a covered claim payment made for damage or los…

40-3905. Cities and counties; notice to commissioner and insurance companies. Every city or county which adopts an ordinance or resolution under the provisions of K.S.A. 40-3901 through 40-3904, and amendments thereto, shall notify the commissioner of insurance. At least once eac…

40-3906. Same; proof of repairing or rebuilding. Any city or county which has adopted an ordinance or resolution under K.S.A. 40-3901 to 40-3904, inclusive, is authorized to certify that in lieu of payment of all or part of the covered claim payment, it has obtained satisfactory …