Brief⁽¹⁾

S.B. 152, as amended, makes several changes in the licensing requirements for insurance agents. Generally, the bill streamlines the operation of the Insurance Department as it relates to agent licensure, addresses the issue of continuing education, and makes Kansas agent licensing law reciprocal with licensing and continuing education laws of other states.

The bill:

• allows the Commissioner to accept the continuing education courses submitted by a provider who has been approved by the insurance supervisor in another state, thereby allowing an agent in good standing in another state to become licensed in Kansas;



• directs the Commissioner to establish criteria for computer based or interactive Internet study training for continuing education credit;



• allows companies to make annual appointments of their agents in Kansas and to pay a fee at the same time the company files its annual tax return based on the number of agents appointed during the calendar year preceding the return;



• as amended by House Committee, requires agents to "be covered by" rather than "to maintain" errors and omissions policies covering the individual agent in the amount of $100,000 per occurrence and removes the requirement that brokers maintain a dishonesty bond in the amount of $5,000; and



• allows insurance brokers, in meeting their 15 credit hour post-licensing education requirement, to count college insurance courses and any portion of a professional designation as equal to or the equivalent of 15 college level credit hours in insurance courses.

Finally, the bill extends the Commissioner's licensing authority over rental car agencies when they offer insurance products incidental to the rental of a car. The license requirement is upon the agencies, not the counter staff, although counter staff are to be trained on the kinds of insurance products being sold by the agency. The House amendment regarding rental car agencies deletes from the sale of motor vehicle liability insurance provision, the phrase "with or without the sale of uninsured, underinsured motorist coverage."

Background

S.B. 152, as amended, was recommended by the Insurance Commissioner whose spokesperson, the Assistant Commissioner, explained that the bill accomplishes full reciprocity for insurance agents licensed in Kansas, completes some needed streamlining and modernization of the state's licensing statutes, and resolves the issue of insurance licensure for car rental agencies.

The bill was supported by representatives of the Kansas Association of Insurance Agents, the Kansas Association of Life Underwriters, and Enterprise Car Rental Company.

The Insurance Commissioner indicates that she could implement S.B. 152 within the agency's current operating budget.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.