Bill
Bill > HB2044
KS HB2044
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.
summary
Introduced
01/21/2025
01/21/2025
In Committee
03/11/2025
03/11/2025
Crossed Over
02/07/2025
02/07/2025
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
AN ACT concerning insurance; 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 pursuant to chapter 9 or chapter 11 of the United States bankruptcy code; amending K.S.A. 40-3807 and 40-3809 and repealing the existing sections.
AI Summary
This bill requires third party administrators (TPAs) in the insurance industry to maintain separate fiduciary accounts for each individual payor, ensuring that funds collected on behalf of different payors are not commingled in a single account. The bill mandates that when TPAs collect insurance premiums, charges, or other funds, they must deposit these funds into distinct, federally or state-insured financial accounts dedicated to each specific payor. Additionally, the bill introduces a new disclosure requirement, compelling TPAs to immediately inform the insurance commissioner if they or their organization file for bankruptcy under Chapter 9 or Chapter 11 of the United States bankruptcy code. The legislation aims to enhance financial transparency and protect the interests of payors by ensuring clear segregation of funds and timely reporting of potential financial distress. These changes are made by amending existing sections of Kansas insurance law (K.S.A. 40-3807 and 40-3809) and will take effect upon publication in the Kansas register.
Committee Categories
Business and Industry
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Insurance (H)
Last Action
Senate Motion to accede adopted; Senator Dietrich, Senator Fagg and Senator Francisco appointed as conferees (on 03/20/2025)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://kslegislature.gov/li/b2025_26/measures/hb2044/ |
| BillText | https://kslegislature.gov/li/b2025_26/measures/documents/hb2044_01_0000.pdf |
| Senate Committee on Financial Institutions and Insurance Report | https://kslegislature.gov/li/b2025_26/measures/documents/cr_2025_hb2044_s_1838.pdf |
| Analysis - Supplemental Note: As Amended by Senate Committee | https://kslegislature.gov/li/b2025_26/measures/documents/supp_note_hb2044_01_0000.pdf |
| Analysis - Supplemental Note: As introduced | https://kslegislature.gov/li/b2025_26/measures/documents/supp_note_hb2044_00_0000.pdf |
| Fiscal Note - Ficsal Note: As introduced | https://kslegislature.gov/li/b2025_26/measures/documents/fisc_note_hb2044_00_0000.pdf |
| BillText | https://kslegislature.gov/li/b2025_26/measures/documents/hb2044_00_0000.pdf |
Loading...