Insurance Compliance News: Kansas has Revised Third Party Administrator Life and Health Licensing
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 substantiallysimilar 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:
Designate KS as your resident state and apply for resident licensure.
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.