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Insurance Compliance News: Kansas has Revised Third Party Administrator Life and Health Licensing

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Kansas Insurance Department (KID) has passed Senate Bill No. 22, updating statutes relating to the regulation of third party administrators. It amended K.S.A. 40-3801 et seq., regarding the licensure of third party administrators in Kansas. The law became effective March 9, 2017. (See Bulletin 2017-2 http://www.ksinsurance.org/department/LegalIssues/bulletins/Bulletin-2017-2.pdf)

An individual or business entity that performs the duties of an administrator in Kansas must hold a resident or non-resident license. A non-resident third party administrator must be licensed as a resident in a home state that has a law or regulation substantially similar to Kansas.

KID conducted a study to determine which states have administrator laws substantially similar to those in Kansas. The following list of states were determined to meet the requirements:

Alaska, Delaware, Florida, Idaho, Indiana, Missouri, New Hampshire, and West Virginia.

As of June 1, 2017, KID will only renew non-resident licenses where a resident license is held in the eight states listed above.

Effective January 1, 2018; all licensees holding a third party administrator license in Kansas will be required to renew by December 31, 2018, for a period of two years.

If you currently hold a non-resident license in Kansas and are not a resident in one of the eight states listed above, you will have two options to continue as a third party administrator in Kansas:

  1. Designate KS as your resident state and apply for resident licensure.

-or-

  1. Designate one of the eight states listed above as your home state, apply for a resident license in that state, and then apply for non-resident licensure in Kansas.

The link below will take you to the home page for the Kansas Insurance Department Accident/Health and Life Insurance for more information.

http://www.ksinsurance.org/company/accident-health-life.php



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