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Session of 2000
          SENATE BILL No. 458           By Committee on Financial Institutions and Insurance           1-20          

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10             AN  ACT concerning insurance; relating to licensure of agents; amending
11             K.S.A. 1999 Supp. 40-240 and repealing the existing section.
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13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. K.S.A. 1999 Supp. 40-240 is hereby amended to read as
15       follows: 40-240. (a) Any person desiring as agent to engage in the insur-
16       ance business, as herein set out, shall apply to the commissioner of in-
17       surance of this state, in the manner hereinafter prescribed, for an insur-
18       ance agent's license, authorizing such agent to engage in and transact
19       such business. The applicant for such license shall file with the commis-
20       sioner of insurance such applicant's written application for a license au-
21       thorizing the applicant to engage in the insurance business and the ap-
22       plicant shall make sworn answers to such interrogatories as the
23       commissioner of insurance may require on uniform forms and supple-
24       ments prepared by the commissioner. A nonrefundable fee in the amount
25       of $30 shall accompany such application. Such applicant, if an individual,
26       shall establish:
27             (1) That the applicant certifies, by evidence satisfactory to the com-
28       missioner, that the applicant is a graduate of an accredited four-year high
29       school or its equivalent. This requirement shall not apply to any person
30       holding a valid agent's license as of July 1, 1971, or a full-time student
31       enrolled in an accredited high school in this state while and to the extent
32       such student is participating in an insurance project sponsored by a bona
33       fide junior achievement program; and
34             (2) that the applicant is of good business reputation and is worthy of
35       a license.
36             (b) Corporations, associations, partnerships, sole proprietorships and
37       other legal entities acting as insurance agents and holding a direct agency
38       appointment from an insurance company or companies or health main-
39       tenance organization are required to obtain an insurance agent's license.
40       Application for such license shall be made to the commissioner on a form
41       prescribed by such commissioner. Before granting the license, the com-
42       missioner shall determine that:
43             (1) Each officer, director, partner and employee of the applicant who

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  1       is acting as an insurance agent is licensed as an insurance agent;
  2             (2) the applicant has disclosed to the insurance department all offi-
  3       cers, directors and partners whether or not they are licensed as insurance
  4       agents;
  5             (3) the applicant has disclosed to the insurance department all offi-
  6       cers, directors, partners and employees who are licensed as insurance
  7       agents; and
  8             (4) the applicant has designated a licensed officer, employee, partner
  9       or other person to be responsible for the organization's compliance with
10       the insurance laws and rules and regulations of this state.
11             (c) The insurance department may require any documents reasonably
12       necessary to verify the information contained in the application.
13             (d)  (1) Agents licensed pursuant to subsection (b) shall advise the
14       commissioner of any officers, directors, partners or employees who are
15       licensed as individual insurance agents and are not disclosed at the time
16       application is made for a license within 30 working days of their affiliation
17       with the licensee. Failure to provide the commissioner with such infor-
18       mation shall subject the licensee to a monetary penalty of $10 per day for
19       each working day the required information is late subject to a maximum
20       of $50 per person per licensing year.
21             (2) Officers, directors, partners or employees disclosed at the time of
22       the original application or reported thereafter whose affiliation with the
23       licensee is terminated shall be reported to the commissioner within 30
24       days of the effective date of termination. Failure to report such termi-
25       nation shall subject the licensee to the penalty prescribed in paragraph
26       (1) of this subsection.
27             (e) An applicant whose application for a license is denied shall be
28       given an opportunity for a hearing in accordance with the provisions of
29       the Kansas administrative procedure act. 
30       Sec.  2. K.S.A. 1999 Supp. 40-240 is hereby repealed.
31        Sec.  3. This act shall take effect and be in force from and after its
32       publication in the statute book.