May 2017
New Kansas Insurance Department Bulletin Changes TPA Licensing and TPA Renewals  

On the heels of the Kansas Legislature’s recent adoption of Senate Bill No. 22 regarding third party administrators, the Kansas Insurance Department issued Bulletin 2017-2 to identify the states the Department has determined have substantially similar third party administrator laws to Kansas.  

Kansas Senate Bill No. 22 announced a change regarding how the Department will issue initial and renewal licenses for nonresident third party administrators in Kansas. Pursuant to Senate Bill No. 22, a person (an individual or business entity) that performs the duties of an administrator in Kansas must hold either a resident or a nonresident license.  A person is not eligible for a nonresident administrator license unless the person is licensed as a resident administrator in a home state that has a third party administrator law or regulation substantially similar to Kansas.

Bulletin 2017-2 was signed by Kansas Insurance Commissioner Ken Selzer on May 2nd, and the Bulletin states that the Department conducted a review of all TPA laws in the U.S. to determine which states’ TPA laws are substantially similar to Kansas’ TPA laws. As a result of its review, the Department has concluded that only the following eight states have TPA laws that are substantially similar to the Kansas law:
  • Alaska
  • Delaware
  • Florida
  • Idaho
  • Indiana
  • Missouri
  • New Hampshire
  • West Virginia
Bulletin 2017-2 indicates that beginning June 1, 2017, the Department will not renew nonresident administrator licenses for nonresident administrators holding resident licenses in states other than these eight states.

Bulletin 2017-2 also provides that beginning January 1, 2018, resident and nonresident administrators holding licenses in Kansas will need to renew their licenses on a biennial basis. The first biennial renewal will be due by December 31, 2018. Also, every administrator will be required to file annual reports with the Department on or before July 1 of each year, with the first annual report due on or before July 1, 2018.

For questions regarding this information, please contact one of the authors, a member of Polsinelli’s Insurance Business and Regulatory practice, or your Polsinelli attorney.