SB 56--
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SENATE BILL No. 56
By Committee on Financial Institutions and Insurance
1-17
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AN ACT relating to insurance; payment for outside consulting services
for department of insurance; amending K.S.A. 40-223 and repealing
the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 40-223 is hereby amended to read as follows: 40-
223. Any person who makes any examination under the provisions of this
act, except as provided in K.S.A. 40-110 and 40-253 and amendments
thereto, may receive, as full compensation for such person's services, on
a per diem basis an amount fixed by the commissioner, which shall not
exceed the amount recommended by the national association of insurance
commissioners, for such time necessarily and actually occupied in going
to and returning from the place of such examination and for such time
the examiner is necessarily and actually engaged in making such exami-
nation including any day within the regular workweek when the examiner
would have been so engaged had the company or society been open for
business, together with such necessary and actual expenses for traveling
and subsistence as the examiner shall incur because of the performance
of such services. For the purposes of this act, ``necessary and actual ex-
penses'' shall be limited, whether for travel within the state or travel
outside the state, to those limitations expressed in K.S.A. 75-3207 and
amendments thereto which pertain to official travel outside the state. The
daily charge shall be calculated by dividing the amount the examiner is
authorized by the commissioner of insurance to charge per week by the
number of days in the regular workweek of the company or society being
examined.
All of such compensation, expenses, the employer's share of the federal
insurance contributions act taxes, the employer's contribution to the Kan-
sas public employees retirement system as provided in K.S.A. 74-4920
and amendments thereto, the self-insurance assessment for the work-
men's compensation act as provided in K.S.A. 44-576 and amendments
thereto, the employer's cost of the state health care benefits program
under K.S.A. 75-6507 and amendments thereto, a pro rata amount de-
termined by the commissioner to provide vacation and sick leave for the
examiner not to exceed the number of days allowed state officers and
employees in the classified service pursuant to regulations promulgated
in accordance with the Kansas civil service act, all outside consulting and
data processing fees necessary to perform any examination, and a pro rata
amount determined by the commissioner not to exceed an annual aggre-
gate of $18,000 to fund the purchase, maintenance and enhancement of
examination equipment and computer software shall be paid to the com-
missioner of insurance by the insurance company or society so examined,
on demand of the commissioner. The amount paid for all outside con-
sulting and data processing fees necessary to perform any examination,
and the pro rata amount to fund the purchase of examination equipment
and computer software shall not collectively total more than $25,000 at
any one company examination including examination of its subsidiaries or
combination thereof. Such demand shall be accompanied by the sworn
statement of the person making such examination, setting forth in sepa-
rate items the number of days necessarily and actually occupied in going
to and returning from the place of such examination, the number of days
the examiners were necessarily and actually engaged in making such ex-
amination including those days within the regular workweek while the
examination was in progress and the company or society had closed for
business, and the necessary and actual expenses for traveling and subsis-
tence, incurred in and on account of such services. A duplicate of every
such sworn statement shall be kept on file in the office of the commis-
sioner of insurance. All moneys so paid to the commissioner of insurance
shall be remitted to the state treasurer and the state treasurer shall issue
duplicate receipts therefor, one to be delivered to the commissioner of
insurance and the other to be filed with the director of accounts and
reports.
Sec. 2. K.S.A. 40-223 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.