Session of 2000
         
HOUSE BILL No. 2651
         
By Committee on Insurance
         
1-19
         

  9             AN  ACT concerning insurance; relating to examination related expenses;
10             amending K.S.A. 40-223 and repealing the existing section.
11      
12       Be it enacted by the Legislature of the State of Kansas:
13             Section  1. K.S.A. 40-223 is hereby amended to read as follows: 40-
14       223. Any person who makes any examination under the provisions of this
15       act, except as provided in K.S.A. 40-110 and 40-253 and amendments
16       thereto, may receive, as full compensation for such person's services, on
17       a per diem basis an amount fixed by the commissioner, which shall not
18       exceed the amount recommended by the national association of insurance
19       commissioners, for such time necessarily and actually occupied in going
20       to and returning from the place of such examination and for such time
21       the examiner is necessarily and actually engaged in making such exami-
22       nation including any day within the regular workweek when the examiner
23       would have been so engaged had the company or society been open for
24       business, together with such necessary and actual expenses for traveling
25       and subsistence as the examiner shall incur because of the performance
26       of such services. For the purposes of this act, "necessary and actual ex-
27       penses" shall be limited, whether for travel within the state or travel
28       outside the state, to those limitations expressed in K.S.A. 75-3207 and
29       amendments thereto which pertain to official travel outside the state. The
30       daily charge shall be calculated by dividing the amount the examiner is
31       authorized by the commissioner of insurance to charge per week by the
32       number of days in the regular workweek of the company or society being
33       examined.
34             All of such compensation, expenses, the employer's share of the federal
35       insurance contributions act taxes, the employer's contribution to the Kan-
36       sas public employees retirement system as provided in K.S.A. 74-4920
37       and amendments thereto, the self-insurance assessment for the work-
38       men's compensation act as provided in K.S.A. 44-576 and amendments
39       thereto, the employer's cost of the state health care benefits program
40       under K.S.A. 75-6507 and amendments thereto, a pro rata amount de-
41       termined by the commissioner to provide vacation and sick leave for the
42       examiner not to exceed the number of days allowed state officers and
43       employees in the classified service pursuant to regulations promulgated


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  1       in accordance with the Kansas civil service act, all outside consulting and
  2       data processing fees necessary to perform any examination, and a pro rata
  3       amount determined by the commissioner not to exceed an annual aggre-
  4       gate of $18,000 $75,000 to fund the purchase, maintenance and enhance-
  5       ment of examination equipment and computer software shall be paid to
  6       the commissioner of insurance by the insurance company or society so
  7       examined, on demand of the commissioner. The amount paid for all out-
  8       side consulting and data processing fees necessary to perform any ex-
  9       amination, and the pro rata amount to fund the purchase of examination
10       equipment and computer software shall not collectively total more than
11       $25,000 at any one company examination including examination of its
12       subsidiaries or combination thereof. Such demand shall be accompanied
13       by the sworn statement of the person making such examination, setting
14       forth in separate items the number of days necessarily and actually oc-
15       cupied in going to and returning from the place of such examination, the
16       number of days the examiners were necessarily and actually engaged in
17       making such examination including those days within the regular work-
18       week while the examination was in progress and the company or society
19       had closed for business, and the necessary and actual expenses for trav-
20       eling and subsistence, incurred in and on account of such services. A
21       duplicate of every such sworn statement shall be kept on file in the office
22       of the commissioner of insurance. All moneys so paid to the commissioner
23       of insurance shall be remitted to the state treasurer and the state treasurer
24       shall issue duplicate receipts therefor, one to be delivered to the com-
25       missioner of insurance and the other to be filed with the director of
26       accounts and reports. 
27       Sec.  2. K.S.A. 40-223 is hereby repealed.
28        Sec.  3. This act shall take effect and be in force from and after its
29       publication in the statute book.