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Minutes for SB21 - Committee on Financial Institutions and Insurance
Short Title
Requiring that third party administrators maintain separate fiduciary accounts for individual payors and not contain funds collected or held on behalf of multiple payors and requiring that third party administrators disclose to the commissioner of insurance any bankruptcy petition filed by or on behalf of such administrator pursuant to chapter 9 or chapter 11 of the United States bankruptcy code.
Minutes Content for Tue, Jan 28, 2025
Chairperson Dietrich opened the hearing on SB 21. Revisor Eileen Ma briefed the Committee on the bill. (Attachment 1)
Eric Turek of the Kansas Department of Insurance spoke in favor of the bill. (Attachment 2) This bill stems from a third-party administrator bankruptcy that was in state but in which the Department of Insurance had not been notified of such until well after the fact. This bill would require third-party administrators to maintain separate fiduciary accounts for individual payers to avoid commingling of funds and to receive timely notifications of any bankruptcy filings.
Mr. Turek answered questions from the Committee.
Chairperson Dietrich closed the hearing on SB 21.
