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KS HB2044
Bill
Status
2/7/2025
Primary Sponsor
Insurance
Click for details
AI Summary
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Third party administrators must maintain separate fiduciary accounts for each payor and are prohibited from commingling funds collected on behalf of multiple payors in a single account
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Administrators must immediately disclose to the Kansas Commissioner of Insurance any bankruptcy petition filed under Chapter 9 or Chapter 11 of the U.S. Bankruptcy Code at the time of filing
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Funds collected by administrators (insurance charges, premiums, collateral, loss reimbursements) must be held in fiduciary capacity and deposited in federally or state-insured financial institutions
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Amends K.S.A. 40-3807 and 40-3809 governing third party administrator requirements
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Takes effect upon publication in the Kansas Register
Legislative Description
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 disclose to the commissioner of insurance any bankruptcy petition filed by or on behalf of such administrator.
Last Action
Senate Motion to accede adopted; Senator Dietrich, Senator Fagg and Senator Francisco appointed as conferees
3/20/2025