CHAPTER 91
SENATE BILL No. 152
An Act relating to insurance; concerning licensing
requirements for insurance agents;
amending K.S.A. 40-241c, 40-241j, 40-3707 and 40-3711 and K.S.A.
1998 Supp. 40-240,
40-240f, 40-241, 40-241i, 40-246 and 40-3706 and repealing
the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 1998 Supp. 40-240
is hereby amended to read as
follows: 40-240. (a) Any person desiring as agent to engage in the
insur-
ance business, as herein set out, shall apply to the commissioner
of in-
surance of this state, in the manner hereinafter prescribed, for an
insur-
ance agent's license, authorizing such agent to engage in and
transact
such business. The applicant for such license shall file with the
commis-
sioner of insurance such applicant's written application for a
license au-
thorizing the applicant to engage in the insurance business and the
ap-
plicant shall make sworn answers to such interrogatories as the
commissioner of insurance may require on uniform forms and
supple-
ments prepared by the commissioner. A nonrefundable fee in the
amount
of $30 shall accompany such application. Such applicant, if an
individual,
shall establish:
(1) That the applicant certifies, by
evidence satisfactory to the com-
missioner, that the applicant is a graduate of an accredited
four-year high
school or its equivalent. This requirement shall not apply to any
person
holding a valid agent's license as of July 1, 1971, or a full-time
student
enrolled in an accredited high school in this state while and to
the extent
such student is participating in an insurance project sponsored by
a bona
fide junior achievement program; and
(2) that the applicant is of good
business reputation and is worthy of
a license.
(b) Corporations, associations,
partnerships, sole proprietorships and
other legal entities acting as insurance agents and holding a
direct agency
appointment from an insurance company or companies or health
main-
tenance organization are required to obtain an insurance agent's
license.
Application for such license shall be made to the commissioner on a
form
prescribed by such commissioner. Before granting the license, the
com-
missioner shall determine that:
(1) Each officer, director, partner and
employee of the applicant who
is acting as an insurance agent is licensed as an insurance
agent;
(2) the applicant has disclosed to the
insurance department all offi-
cers, directors and partners whether or not they are licensed as
insurance
agents;
(3) the applicant has disclosed to the
insurance department all offi-
cers, directors, partners and employees who are licensed as
insurance
agents; and
(4) the applicant has designated a
licensed officer, employee, partner
or other person to be responsible for the organization's compliance
with
the insurance laws and rules and regulations of this state.
(c) The insurance department may require
any documents reasonably
necessary to verify the information contained in the
application.
(d) (1) Agents licensed pursuant to
subsection (b) shall advise the
commissioner of any officers, directors, partners or employees who
are
licensed as individual insurance agents and are not disclosed at
the time
application is made for a license within 30 working days of their
affiliation
with the licensee. Failure to provide the commissioner with such
infor-
mation shall subject the licensee to a monetary penalty of $10 per
day for
each working day the required information is late subject to a
maximum
of $50 per person per licensing year.
(2) Officers, directors, partners or
employees disclosed at the time of
the original application or reported thereafter whose affiliation
with the
licensee is terminated shall be reported to the commissioner within
30
days of the effective date of termination. Failure to report such
termi-
nation shall subject the licensee to the penalty prescribed in
paragraph
(1) of this subsection.
Sec. 2. K.S.A. 1998 Supp. 40-240f
is hereby amended to read as fol-
lows: 40-240f. (a) For purposes of this section:
(1) ``Biennial due date'' means March 31,
1991, and March 31 of each
odd-numbered year thereafter. Effective January 1, 1997, the term
shall
mean the date of birth of the licensed agent who is required to
complete
C.E.C.'s and report the completion of such C.E.C.'s to the
commissioner
pursuant to this section, except that such due date shall not be
earlier
than two years from the date of the agent's initial licensure.
(2) ``Approved subject'' or ``approved
course'' means any educational
presentation involving insurance fundamentals, insurance law,
insurance
policies and coverage, insurance needs, insurance risk management,
in-
surance agency management or other areas, which is offered in a
class,
seminar, computer based training, interactive internet
training or other
similar form of instruction, and which has been approved by the
com-
missioner or the commissioner's designee under this section as
expanding
skills and knowledge obtained prior to initial licensure or
developing new
and relevant skills and knowledge.
(3) ``C.E.C.'' means continuing education
credit. One C.E.C. is at
least 50 minutes of each clock hour of instruction or the C.E.C.
value
assigned by the commissioner or the commissioner's designee.
The
C.E.C. values shall be assigned in whole units. The commissioner or
the
commissioner's designee shall assign a C.E.C. value to each
approved
subject on a case-by-case basis.
(4) ``Biennium'' means the period
beginning on the effective date of
this section and ending on March 31, 1991, and each two-year
period
thereafter. Effective January 1, 1997, for those agents who were
born in
an odd-numbered year, the term shall mean the period starting with
the
agent's biennial due date in 1997 and each two-year period
thereafter,
for those agents who were born in an even-numbered year, the term
shall
mean the period starting with the agent's biennial due date in 1998
and
each two-year period thereafter.
(5) ``Inactive agent'' means a licensed
agent who presents evidence
satisfactory to the commissioner which demonstrates that such agent
will
not do any act toward transacting the business of insurance for not
less
than two but not more than six years from the date such evidence
is
received by the commissioner. Such additional periods may be
granted
by the commissioner upon further presentation of evidence
satisfactory
to the commissioner.
(b) (1) Every licensed agent who is
an individual and holds a property
or casualty qualification, or both, shall biennially obtain a
minimum of
twelve C.E.C.'s in courses certified as property and casualty
which, on
and after April 1, 1995, shall include at least one hour of
instruction in
insurance ethics. No more than three C.E.C.'s shall be in
insurance
agency management.
(2) Every licensed agent who is an
individual and holds a life, accident
and health, or variable contracts qualification, or any combination
thereof,
shall biennially complete twelve C.E.C.'s in courses certified as
life, ac-
cident and health, or variable contracts which, on and after April
1, 1995,
shall include at least one hour of instruction in insurance ethics.
No more
than three C.E.C.'s shall be in insurance agency management.
(3) Every licensed agent who is an
individual and holds a crop only
qualification shall biennially obtain a minimum of two C.E.C.'s in
courses
certified as crop under the property and casualty category.
(4) Every licensed agent who is an
individual and is licensed only for
title insurance shall biennially obtain a minimum of four C.E.C.'s
in
courses certified by the board of abstract examiners as title under
the
property and casualty category.
(5) Every licensed agent who is an
individual and holds a life insur-
ance license solely for the purpose of selling life insurance or
annuity
products used to fund a prearranged funeral program and whose
report
of compliance required by subsection (f) of this section is
accompanied
by a certification from an officer of each insurance company
represented
that the agent transacted no other insurance business during the
period
covered by the report shall biennially obtain a minimum of two
C.E.C.'s
in courses certified as life or variable contracts under the life,
accident
and health, or variable contracts category.
(c) Individual agents who hold licenses
with both a property or ca-
sualty qualification, or both, and a life, accident and health, or
variable
contracts qualification, or any combination thereof, and who earn
C.E.C.'s
from courses certified by the commissioner or the commissioner's
des-
ignee as qualifying for credit in any class, may apply those
C.E.C.'s toward
either the property or casualty continuing education requirement or
to
the life, accident and health, or variable contracts continuing
education
requirement. However, a C.E.C. shall not be applied to satisfy both
the
biennial property or casualty requirement, or both, and the
biennial re-
quirement for life, accident and health, or variable contracts, or
any com-
bination thereof.
(d) An instructor of an approved subject
shall be entitled to the same
credit as a student completing the study.
(e) (1) An individual agent who has
been licensed for more than one
year shall, on or before the biennial due date, file a report with
the com-
missioner that such agent has met the continuing education
requirements
for the previous biennium ending on such biennial due date. Every
in-
dividual agent shall maintain a record of all courses attended
together
with a certificate of attendance for the remainder of the biennium
in
which the courses were attended and the entire biennium
immediately
following.
(2) If the required report showing proof
of continuing education
completion is not received by the commissioner by the biennial due
date,
the individual agent's qualification and corresponding license or
licenses
shall be automatically suspended for a period of 90 calendar days
or until
such time as the agent satisfactorily demonstrates completion of
the con-
tinuing education requirement whichever is sooner and a penalty of
$100
shall be assessed for each license suspended. If the required proof
of
continuing education completion and the monetary penalty is not
fur-
nished within 90 calendar days of the biennial due date, the
individual
agent's qualification and corresponding license or licenses will
expire. The
commissioner may waive the penalties of this subsection upon
written
application by the agent in cases of extreme hardship.
(3) An applicant for an individual
agent's license who previously held
a license which expires on or after May 1, 1989, because of failure
to meet
continuing education requirements and who seeks to be relicensed
shall
pass the examination required for issuance of the new qualification
and
license and provide evidence that appropriate C.E.C.'s have been
com-
pleted for the prior biennium.
(4) An applicant for an individual
agent's license who previously held
a license which expired on or before April 30, 1989, for failure to
meet
the minimum educational requirements contained in K.S.A. 40-240b,
and
amendments thereto, as it existed prior to the passage of this act
and who
seeks to be relicensed shall pass the examination required for
issuance of
the new license.
(5) Upon written application by an
individual agent, the commis-
sioner may, in cases involving medical hardship or military
service, extend
the time within which to fulfill the minimum continuing
educational
requirements for a period of not to exceed 180 days.
(6) This section shall not apply to
inactive agents as herein defined
during the period of such inactivity. Upon return to active status
or ex-
piration of the maximum inactive period, the agent shall have the
re-
mainder of the current calendar year plus the next calendar year to
com-
ply with the continuing education requirement.
(f) (1) A course, program of study,
or subject shall be submitted to
and certified by the commissioner or the commissioner's designee in
or-
der to qualify for purposes of continuing education.
(2) The following information shall be
furnished with each request
for certification:
(A) Name of provider or provider
organization;
(B) course title;
(C) date course will be offered;
(D) location where course will be
offered;
(E) outline of the course including a
schedule of times when subjects
will be presented;
(F) names and qualifications of
instructors;
(G) number of C.E.C.'s requested; and
(H) a nonrefundable course fee in the
amount of $50 per course or
$250 per year for all courses, and a nonrefundable annual provider
fee of
$100.
(3) Upon receipt of such information, the
commissioner or commis-
sioner's designee shall grant or deny certification as an approved
subject
and indicate the number of C.E.C.'s that will be recognized for the
sub-
ject. Each approved subject or course shall be assigned by the
commis-
sioner or commissioner's designee to one or both of the following
classes:
(A) Property and casualty or
(B) life insurance (including annuity and
variable contracts) and ac-
cident and health insurance.
(4) A course or subject shall have a
value of at least one C.E.C.
(5) A provider seeking approval of a
course for continuing education
credit shall provide for the issuance of a certificate of
attendance to each
person who attends a course offered by it. The certificate shall be
signed
by either the course instructor or the provider's authorized
representa-
tive. Providers shall also maintain a list of all persons who
attend courses
offered by them for continuing education credit for the remainder
of the
biennium in which the courses are offered and the entire biennium
im-
mediately following.
The commissioner shall accept, without
substantive review, courses
submitted by a provider which have been approved by the
insurance
supervisory authority of any state or territory accredited by
the national
association of insurance commissioners. The commissioner may
disap-
prove individual instructors or providers who have been the
subject of
disciplinary proceedings or who have otherwise failed to comply
with any
state's laws or regulations.
(6) The commissioner may grant approval
to specific programs of
study that have appropriate merit, such as programs with broad
national
or regional recognition, notwithstanding the lack of a request for
certifi-
cation. The fee prescribed by subsection (f)(2)(H) of this section
shall not
apply to approvals granted hereunder.
(7) The C.E.C. value assigned to any
course, program of study or
subject, other than a correspondence course, computer based
training,
interactive internet study training or other course pursued
by independ-
ent study, shall in no way be contingent upon passage or
satisfactory
completion of any examination given in connection with such
course,
program of study or subject. The commissioner shall establish
criteria for
determining acceptability of any method used for on line
verification of
the completion of each stage of any computer based or
interactive internet
study training. Completion of any computer based training or
interactive
internet study training shall be verified on line in accordance
with a
method approved by the commissioner.
(g) The commissioner shall provide, upon
request, a list of all ap-
proved continuing education courses currently available to the
public.
(h) An individual agent who studies an
insurance subject indepen-
dently, other than an agent's examination, approved by the
commissioner
or commissioner's designee, and who passes an independently
monitored
examination, shall receive credit for the C.E.C.'s assigned by the
com-
missioner or commissioner's designee as recognition for the
approved
subject. No other credit shall be given for independent study.
(i) The commissioner may waive the
continuing education require-
ments imposed by this act for nonresident agents who provide
evidence
of compliance with continuing education requirements imposed by
their
state of domicile.
Sec. 3. K.S.A. 1998 Supp. 40-241 is
hereby amended to read as fol-
lows: 40-241. Any applicant or prospective applicant for an agent's
license,
if an individual, shall be given an examination by the commissioner
or the
commissioner's designee to determine whether such applicant
possesses
the competence and knowledge of the kinds of insurance and
transactions
under the license applied for, or to be applied for, of the duties
and
responsibilities of such a license and of the pertinent provisions
of the
laws of this state. The applicant shall be tested on each class or
subclas-
sification of insurance which may be written. An examination fee
pre-
scribed in rules and regulations adopted by the commissioner shall
be
paid by the applicant and shall be required for each class of
insurance for
each attempt to pass the examination. Such examination fee shall be
in
addition to the certification fee required under K.S.A. 40-252,
and
amendments thereto. There shall be four classes of insurance for
the
purposes of this act:
(1) Life;
(2) accident and health;
(3) casualty and allied lines; and
(4) property and allied lines.
An insurance license may be issued as a
subclassification of casualty
and allied lines to any auto rental agency. An auto rental
agency may
offer or sell insurance only in connection with and incidental
to the rental
of motor vehicles, whether at the rental office, at the point of
delivery of
a vehicle, or by preselection of coverage in a master, corporate
or group
rental agreement, in any of the following general categories:
(1) Personal
accident insurance covering risks of travel, (2) motor vehicle
liability in-
surance, (3) personal effects insurance providing coverage to
renters and
other occupants of the motor vehicle, (4) roadside assistance
and emer-
gency sickness protection programs, and (5) any other travel or
auto-
related coverage an auto rental company may offer in connection
with
and incidental to rental of motor vehicles. No insurance may be
issued by
an auto rental agency unless the rental period of the rental
agreement
does not exceed 90 consecutive days and brochures and other
written
material clearly and correctly explaining insurance coverages
offered by
the agency are available for prospective renters and clear and
complete
disclosures are provided to prospective renters that such
coverage may
be duplicative of other insurance owned by the renter, that
purchase of
insurance coverage is not a condition for renting a motor
vehicle and
describing the process for filing a claim.
Auto rental agencies employing
representatives shall conduct a training
program for each representative, providing instruction on the
kinds of
insurance coverage offered by the agency.
No auto rental agency shall offer or
solicit any insurance other than
the coverages described in this section without an insurance
license. No
auto rental employee or auto rental agency shall advertise or
otherwise
hold themselves out as licensed insurers, insurance agents or
insurance
brokers.
The commissioner of insurance shall adopt
rules and regulations with
respect to the scope, subclassification, type and conduct of such
exami-
nation. Examinations shall be given to applicants at least twice a
month
in Topeka, Kansas, and at least quarterly in other convenient
locations in
the state of Kansas. The commissioner shall publish or arrange for
the
publication of information and material which applicants can use to
pre-
pare for such examination. One or more rating organizations,
advisory
organizations or other associations may be designated by the
commis-
sioner to assist in, or assume responsibility for, distribution of
the study
manuals to applicants and other interested parties. Persons
purchasing
the study manual shall be charged a reasonable fee established or
ap-
proved by the commissioner. In the event the publication and
distribution
of the study material or the development and conduct of
examinations is
delegated to private firms, organizations or associations and the
state in-
curs no expense or obligation, the provisions of K.S.A. 75-3738 to
75-
3744, inclusive, and amendments thereto, shall not apply. If the
commis-
sioner of insurance finds that the individual applicant is
trustworthy,
competent and has satisfactorily completed the examination, the
com-
missioner shall forthwith issue to the applicant a license as an
insurance
agent but the issuance of such license shall confer no authority to
transact
business in this state until the agent has been certified by a
company
pursuant to K.S.A. 40-241i, and amendments thereto and submitted
proof
that the agent is covered by an errors and omissions policy
required by
this section. If such applicant fails to satisfactorily
complete the exami-
nation, the examination may be retaken following a waiting period
of not
less than seven days from the date of the last attempt. If the
applicant
again fails to satisfactorily complete the examination, it may be
retaken
following another waiting period of not less than seven days from
the date
of the most recent attempt. Thereafter, the examination may be
retaken
following a waiting period of not less than six months from the
date of
the most recent attempt, except that following a waiting period of
two
years from the date of the applicant's last examination attempt an
appli-
cant will be treated as a new applicant and new examination and
waiting
periods shall apply. The certification fee shall not be
returned for any
reason. The commissioner of insurance shall keep a
permanent record of
all agents' licenses issued and the insurance companies
that the respective
agents were certified to represent under such licenses for
a period of 10
years. While licensed every agent shall be
covered by an errors and
omissions policy covering the individual agent in an amount of
not less
than $100,000 total liability limit per occurrence, subject to
not less than
$100,000 annual aggregate for all claims made during the policy
period;
or, covering the agent under blanket liability policy or
policies, which
policy or policies can include other coverage on an excess basis
over
$100,000 primary, insuring other insurance agents or brokers in
an
amount of not less than $500,000 total liability limit per
occurrence sub-
ject to not less than $500,000 annual aggregate for all claims
made during
the policy period. Such policy shall be issued by an authorized
insurance
company or as authorized by K.S.A. 40-246b or 40-246c, and
amendments
thereto, for errors and omissions of the agent. Self-retention
shall be per-
mitted on liability policies covering the agent.
Sec. 4. K.S.A. 40-241c is hereby
amended to read as follows: 40-241c.
The commissioner of insurance, under appropriate rules and
regulations,
shall waive examinations when the applicant establishes
that:
(a) The applicant has been engaged in
an active career as an insur-
ance agent in a specified class or classes of insurance in some
other state,
territory or the District of Columbia
district accredited by the national
association of insurance commissioners and that the
license held in such
other state, territory or the District of Columbia : (1)
Was based upon a
written examination; (2) that the state, territory or
District of Columbia
from which the applicant comes has standards equal to those
maintained
in Kansas; (3) that the applicant's license has never been
suspended or
revoked; and (4) the applicant shall
file has filed a certificate from
such
licensing authority which shall provide the class or
classes of insurance
which the agent was authorized to write the
insurance supervisory official
for that state, territory or district certifying the agency is
authorized to
transact insurance business in those lines of insurance in which
the agent
seeks licensure, is in good standing in that jurisdiction
and such further
information as the commissioner may require; or
(b) the applicant seeks a license as
travel insurance agent to persons
selling transportation tickets of common carriers, who shall act as
such
agent only as to transportation ticket policies, or health or
accident in-
surance, or baggage insurance on personal effects in connection
with such
transportation tickets of common carriers; or
(c) the applicant has been licensed
and certified in Kansas for the
class of insurance the applicant is applying for and where the
license and
certifications have has been permitted to
lapse for not more than two
years prior to the date of the application and where the
commissioner of
insurance is satisfied that the applicant is trustworthy and
competent; or
(d) the applicant is an applicant for a
license to write insurance on
growing crops in this state and has been continuously
certified licensed
to write such coverage in this state on and after April 30, 1986;
or
(e) the applicant has qualified by
examination, but due to clerical
error by an insurance company, the applicant was not certified
pursuant
to K.S.A. 40-241i, and amendments thereto. Such insurance
company
shall pay all certification appointment
fees that would have been paid had
the applicant been properly certified
appointed plus the penalty pre-
scribed by K.S.A. 40-241i, and amendments thereto, for each
violation.
Sec. 5. K.S.A. 1998 Supp. 40-241i
is hereby amended to read as fol-
lows: 40-241i. (a) Any company authorized to transact business in
this
state may, upon determining that the agent is of good business
reputation
and, if an individual, has had experience in insurance or will
immediately
receive a course of instruction in insurance and on the policies
and policy
forms of such company, certify appoint such
agent as the agent of the
company under the license in effect for the agent. The
certification ap-
pointment shall be made to the commissioner annually
on a form pre-
scribed by the commissioner within 30 days of appointment
of the agent
by the company. Such appointment shall be effective
immediately and
shall remain in effect until May 1, unless the commissioner
is notified to
the contrary or the license of the certified agent is
terminated at the same
time the company files its returns under K.S.A. 40-252, and
amendments
thereto. A nonrefundable appointment or certification
fee set forth in
K.S.A. 40-252, and amendments thereto, shall be paid in accordance
with
the billing procedures established by the commissioner. Such
procedures
shall require payment of the fees annually, based on the number
of agents
appointed during the calendar year preceding the return. The
certification
fees required by K.S.A. 40-252, and amendments thereto, shall be
due for
all agents appointed by the company during the preceding
calendar year,
irrespective of the number of months the agent was appointed for
that
year. The certification fee shall not be returned for any
reason, and failure
of the company to certify an agent within 30 working days
of such agent's
appointment shall subject the company to a penalty
of not more than $25
per calendar day from the date of appointment
the appropriate return
was required to the date proper certification is recorded by
the insurance
department.
(b) Certification of other than an
individual agent will automatically
include each licensed insurance agent who is an officer, director,
partner,
employee or otherwise legally associated with the corporation,
association,
partnership or other legal entity appointed by the company. The
required
annual certification fee shall be paid for each licensed agent
certified by
the company at the time of the original certification of
the agency and
any continuation thereof and the prescribed
reporting form shall be re-
turned at the same time the company files its tax returns as
required by
K.S.A. 40-252, and amendments thereto.
(c) With respect to insurance on growing
crops, evidence satisfactory
to the commissioner that the agent is qualified to transact
insurance in
accordance with standards or procedures established by any branch
of
the federal government shall be deemed to be the equivalent of
certifi-
cation by a company.
(d) Duly licensed insurance agents
transacting business in accordance
with the provisions of article 41 of chapter 40 of the Kansas
Statutes
Annotated, and amendments thereto, shall be deemed to be certified
by
a company for the kinds of insurance permitted under the license in
effect
for the agent.
Sec. 6. K.S.A. 40-241j is hereby
amended to read as follows: 40-241j.
On or before May 1 each year the commissioner shall
recertify all agents
certified by the company as of the close of business on
April 30 for the
ensuing calendar year and shall collect for each agent
recertified the cer-
tification fees set forth in K.S.A. 40-252, and any
amendments thereto.
Each company admitted to this state shall report annually to the
com-
missioner all agents the company has contracted with during the
prior
calendar year and shall pay the certification fees set forth in
K.S.A. 50-
252, and amendments thereto. The commissioner may audit agent or
rep-
resentative certification forms and fees to ensure proper
reporting and
receipt of fees. Any costs associated with auditing such forms
shall be
borne by the company or auto rental agency audited.
Sec. 7. K.S.A. 1998 Supp. 40-246 is
hereby amended to read as fol-
lows: 40-246. The commissioner of insurance is prohibited from
issuing
any license or authority to write policies of insurance, or to
solicit and
obtain such policies, to any person, agent or corporation, unless
such
person, agent or corporation is a legal resident of this state at
the time
such license or authority is issued. Under such regulations and
restrictions
deemed necessary by the commissioner of insurance, licenses may
be
issued to nonresident agents, who are licensed by the state in
which they
reside, upon the payment of an annual
biennial fee of $25 $50.
Sec. 8. K.S.A. 1998 Supp. 40-3706
is hereby amended to read as
follows: 40-3706. (a) No person shall be eligible to apply for a
license as
a life insurance broker unless such person has been licensed as a
life and
accident and health insurance agent or broker in this or another
state, a
United States territory or a province of Canada for the five years
imme-
diately preceding the date of application. This requirement shall
not in-
clude variable life or variable annuity licenses.
(b) No person shall be eligible to apply
for a license as a casualty
insurance broker unless such person has been licensed as an all
lines fire
and casualty insurance agent or broker in this or another state, a
United
States territory or a province of Canada for the five years
immediately
preceding the date of application. This requirement shall not
include title
insurance. Agents licensed for at least one line of fire insurance
and at
least one line of casualty insurance during said five-year period
may qual-
ify under this section by successfully passing the insurance
department
examinations for the remaining lines.
(c) Except as otherwise provided by this
subsection, no person shall
be eligible for licensure under this act unless such person is a
resident of
the state of Kansas and a citizen of the United States. Evidence of
such
facts shall be submitted to the commissioner. A broker's license
may be
issued to a nonresident of this state who is licensed as a broker
or its
equivalent by the state in which such person resides if such
nonresident:
(1) Has been licensed as a nonresident agent in this state
for the five years
immediately preceding the date of application; (2) submits
evidence of
completion of 15 credit hours, or the equivalent thereof,
of business or
accounting courses taught by an accredited college,
university or com-
munity college, or, a professional designation determined
equivalent by
the commissioner; (3) Satisfactorily demonstrates
to the commissioner
that such person is otherwise qualified in the lines of insurance
to be
transacted under the broker's license for which application is
made; and
(4) (2) pays the fee prescribed by K.S.A.
40-3704, and amendments
thereto. The annual renewal fee for any such broker's license shall
be in
the amount prescribed by K.S.A. 40-3708, and amendments thereto.
In
addition to the foregoing requirements, such nonresident applicant
shall
comply with the provisions of K.S.A. 40-3711, and amendments
thereto.
Whenever any other state imposes on Kansas brokers
additional or greater
fees, obligations or prohibitions, the same shall be
imposed on similar
brokers of such other state.
(d) Nothing in this act shall be
construed as preventing a person from
being simultaneously licensed hereunder as a life insurance broker
and a
casualty insurance broker.
Sec. 9. K.S.A. 40-3707 is hereby
amended to read as follows: 40-
3707. (a) Each life insurance broker, within five
years from the date of
original licensure hereunder, shall submit evidence of completion
of 15
credit hours, or the equivalent thereof, of business or
life/health insurance
courses provided through an accredited college, university
or community
college; or, a professional designation college
insurance courses, or any
portion of or all of a professional designation or any
combination thereof,
determined equivalent by the commissioner to be
equal to or the equiv-
alent of 15 hours of college level credit in insurance
courses.
(b) Each casualty insurance
broker, within five years from the date
of original licensure hereunder, shall submit evidence of
completion of
15 credit hours, or the equivalent thereof, of business or
property/casualty
insurance courses provided through an accredited college,
university or
community college; or, a professional designation
determined equivalent
by the commissioner. Accreditation of any
portion of a national recog-
nized professional designation by any widely recognized council
or ac-
crediting body for colleges, universities and community colleges
shall be
sufficient evidence of college level credit.
Sec. 10. K.S.A. 40-3711 is hereby
amended to read as follows: 40-
3711. Every applicant for a broker's license shall maintain in
force while
licensed an errors and omissions policy covering the individual
applicant
in an amount of not less than $100,000 total liability limit per
occurrence,
subject to not less than $100,000 annual aggregate for all claims
made
during the policy period; or, covering the applicant under blanket
liability
policy or policies, which policy or policies can include other
coverage on
an excess basis over $100,000 primary, insuring other insurance
agents or
brokers in an amount of not less than $500,000 total liability
limit per
occurrence subject to not less than $500,000 annual aggregate for
all
claims made during the policy period. Such policy shall be issued
by an
authorized insurance company or as authorized by K.S.A. 40-246b or
40-
246c, and amendments thereto, for errors and omissions of the
broker.
Self-retention shall be permitted on liability policies covering
the appli-
cant. The applicant shall file with the commissioner a
dishonesty bond in
the amount of $5,000 executed by an authorized surety
company in favor
of the people of Kansas. Such bond shall be issued in a
form prescribed
by the commissioner and shall be continuous in nature. The
surety may
cancel the bond upon 30 days' written notice to the
commissioner.
Sec. 11. K.S.A. 40-241c, 40-241j,
40-3707 and 40-3711 and K.S.A.
1998 Supp. 40-240, 40-240f, 40-241, 40-241i, 40-246, and 40-3706
are
hereby repealed.
Sec. 12. This act shall take effect
and be in force from and after its
publication in the statute book.
Approved April 13, 1999.
__________