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Minutes for SB402 - Committee on Insurance
Short Title
Updating producer licensing statutes pertaining to appointment, fees, licensing, renewal dates, continuing education, suspension, revocation and denial of licensure and reinstatement.
Minutes Content for Mon, Mar 16, 2020
Chairperson Vickrey asked for approval of the February 3, 10, 12, 17, 19 and 24 minutes previously sent for review. Representative Neighbor moved to approve the minutes, Representative Dove seconded; and the motion passed.
The Chairperson opened the hearing on SB 402. Assistant Revisor of Statutes, Eileen Ma, provided an overview of the bill (Attachment 1).
Lee Modesitt testified in support of the bill. He said one part of the bill dealt with agency appointment. Currently, if an agency was appointed they had to appoint all agents within that company, even though only 1 or 2 agents sold that line of insurance. The bill would streamline the agent renewal process by moving to a singular license renewal. The bill also changed the continuing education (CE) requirement to 24 hours, 3 in ethics. He said the bill made it easier for an agent to do business in Kansas.The rest of the bill addressed codification into statute some regulations already in place (Attachment 2).
Scott Colby provided written testimony in support of the bill (Attachment 3).
Bob Shields provided written testimony in support of the bill (Attachment 4).
The members asked questions of the proponents including: the requirements of an agent's home state, the 24-hour continuing education requirement and other states' requirements, why the insurance department was in support of the bill considering it reduced fee income, a comparison of the CE requirement with other professions, the cost and time for CE classes and who provided training, what drove the increase to 24 hours of CE, and how agents would be notified of the change.
Virgil Peck testified in opposition to the bill. He said the bill was large and complex. His objection was to Section 2, that the CE change from 12 hours to 24 would have a significant negative impact on single-line agents. He noted that CE courses were repetitive, cost money and took time away from making sales calls and serving policyholders, which reduced agents' income. (Attachment 5).
Nathan Wolf provided written testimony in opposition to the bill (Attachment 6).
Will Larson provided written testimony neutral to the bill (Attachment 7)
Dave Hulcher with the Kansas Association of Insurance Agents said their association had worked with the insurance department on the bill and he was available if the members had questions.
The members asked questions of the opponents including: captive versus independent agents, acceptance of CE in other states where a Kansas agent might work, testing prior to licensing and the information covered, the usefulness of CE for long-time agents, and insurance company supervision of new agents.
There being no other conferees or questions, Chairperson Vickrey closed the hearing on SB 402.
