Chapter 40 — INSURANCE

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 …

40-3907. Application to all covered claims. This act shall apply to all covered claims arising from damage to all buildings or structures. History: L. 1982, ch. 192, § 8; L. 2016, ch. 72, § 7; July 1. Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived…

40-3908. Cities and counties not parties to insurance contract. This act does not make any city or county a party to any insurance contract nor is the insurer liable to any party for any amount in excess of the proceeds otherwise payable under its insurance policy. History: L. 19…

40-3909. Insurers immune. Insurers complying with this act, or attempting in good faith to comply with this act, shall be immune from civil and criminal liability and such actions shall not be deemed in violation of K.S.A. 40-2404 and any amendments thereto, including withholding…

40-3910. Commissioner; rules and regulations. The commissioner of insurance is hereby authorized to promulgate rules and regulations necessary to carry out the provisions of this act. History: L. 1982, ch. 192, § 11; July 1. Previous | Next LEGISLATIVE COORDINATING COUNCIL Genera…

40-4001. Conversion authority; review by commissioner; act to be liberally construed. A domestic mutual insurer issuing nonassessable policies may be converted into a domestic stock insurer. To that end, it may provide and carry out a plan for such conversion by complying with th…

40-4002. Resolution by board of directors; plan of conversion; approval by commissioner and policyholders; withdrawal or amendment of plan. (a) A resolution shall be adopted by a ⅔ majority of the entire board of directors of the insurer which shall state the reasons such convers…

40-4003. History: L. 1985, ch. 154, § 3; L. 1987, ch. 181, § 1; Repealed, L. 1997, ch. 107, § 17; July 1. Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Session Documents Archived Sc…

40-4003a. Plan of conversion; terms and conditions. The plan of conversion shall comply with the terms and conditions set forth in subsection (a), (b), (c) or (d) as follows: (a) Plan of conversion in which policyholders exchange their membership interests for cash, securities, p…

40-4003b. Same; establishment of closed block for policyholder dividends. The commissioner may require that the conversion plan of a mutual life insurer provide for the establishment, for policyholder dividend purposes only, of a closed block. In the event that the commissioner r…

40-4003c. Continuation in force of policies; extinguishment of policyholder rights. (a) All policies in force on the effective date of conversion remain in force under the terms of the policies, except that the following rights, to the extent they existed in the mutual company, s…

40-4004. Consideration and approval or disapproval of plan by commissioner; hearings. (a) The commissioner shall examine the plan submitted pursuant to subsection (b) or (c) of K.S.A. 40-4002, and amendments thereto. As a part of such examination, the commissioner shall order a h…

40-4005. Same; meeting for approval by policyholders. The meeting called for approval of the plan by the policyholders prescribed by K.S.A. 40-4002 and amendments thereto shall be called by a majority of the board of directors, the chairperson of the board or the president. A cop…

40-4006. Limitation on ownership of voting stock of converted insurer; violations; remedies. (a) For five years from the conversion date, no person (including any individual, corporation, firm or affiliated group of individuals, corporations or firms), other than a parent corpora…

40-4007. Prohibition on certain persons benefiting from assistance in conversion. (a) No director, officer, agent or employee of the insurer shall secure any unfair advantage through a plan of conversion by reducing the volume of new business written, by cancellation or by reduci…

40-4008. Issuance of certificate of authority as final act of conversion; conversion not to affect rights of insurer. Within 30 days of receipt of the filing of the approved plan in accordance with subsection (f) of K.S.A. 40-4002 and the amended articles of incorporation, the co…

40-4009. Directors and officers of mutual insurer, service. The directors and officers of the mutual insurer shall serve until new directors and officers have been duly elected and qualified pursuant to the plan and articles of incorporation or bylaws of the converted insurer or …

40-4010. Securities issued under plan exempt from securities laws. The offer or sale of securities issued under the plan developed and approved in accordance with the provisions of this act shall be exempt from the Kansas securities laws. History: L. 1985, ch. 154, § 10; L. 1997,…

40-4011. Actions challenging validity of conversion; security required. No action challenging the validity of a conversion, or any aspect of such conversion under this act, may be commenced more than 30 days after the final act of conversion. In any action challenging the plan of…

40-4012. Rules and regulations. The commissioner may adopt rules and regulations to carry out the provisions of this act. History: L. 1985, ch. 154, § 12; L. 1997, ch. 107, § 14; July 1. Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents…

40-4013. Commissioner to charge insurer for expenses. The commissioner shall also have the authority to retain experts and may charge and collect from the insurer the actual amount of expenses, including the expenses of retaining experts, reasonably incurred by the state in disch…

40-4014. Filing amended articles of incorporation with secretary of state. Not later than 24 hours after issuance of the certificate of authority to the converted stock insurer, a certified copy of the amended articles of incorporation of the insurer shall be filed with the secre…

[Repealed or reserved.]

[Repealed or reserved.]

40-4101. Definitions. As used in this act: (a) "Commissioner" means the insurance commissioner of this state or the commissioner, director or superintendent of insurance in any other state. (b) "Completed operations liability" means liability arising out of the installation, main…

40-4102. Kansas charter; must be licensed insurance company; submission of plan of operation or feasibility study; information required to be provided to national association of insurance commissioners. A risk retention group seeking to be chartered in this state must be chartere…

40-4103. Requirements of risk retention groups chartered in foreign states; authorization of commissioner to set and publish fees. Risk retention groups chartered in states other than this state seeking to do business as a risk retention group in this state shall observe and abid…

40-4108. Risk retention group prohibited from joining insolvency guaranty fund. No risk retention group shall be permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall any risk retention group, or its …

40-4109. Policy issued to risk retention group not required to be countersigned. A policy of insurance issued to a risk retention group or any member of that group shall not be required to be countersigned as otherwise provided by K.S.A. 40-246, and amendments thereto. History: L…

40-4113. History: L. 1986, ch. 166, § 13; L. 1987, ch. 172, § 10; Repealed, L. 1997, ch. 24, § 7; July 1. Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Session Documents Archived Sc…

40-4114. Rules and regulations. The commissioner is hereby authorized to adopt such rules and regulations relating to risk retention groups as may be necessary to carry out the provisions of this act. History: L. 1986, ch. 166, § 14; L. 1987, ch. 172, § 13; April 30. Previous | N…

40-4115. Purchasing groups satisfying criteria of federal law exempt from certain state laws; insurers doing business with purchasing groups exempt from certain state laws. Any purchasing group meeting the criteria established under the provisions of the federal liability risk re…

40-4116. Requirements of purchasing group doing business in state; authorization of commissioner to set and publish notification fee; consent to service of process on commissioner of insurance; provisions not applicable to certain purchasing groups. (a) (1) A purchasing group tha…

40-4117. Purchase of insurance through surplus lines agent or broker required, when. A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located, u…