Share this e-Alert:

Polsinelli - Insurance Polsinelli - Insurance


April 2017


Kansas Strengthens Third Party Administrator Laws







Third Party Administrators Professionals:


Steven L. Imber


Email | Bio


Justin T. Liby


Email | Bio


Jennifer Osborn Nix


Email | Bio



To learn more about our Third Party Administrators practice, to contact one of our attorneys, or for more Third Party Administrators Intelligence, click here.



View Polsinelli documents on JD Supra  
LinkedIn Twitter Facebook Polsinelli Podcast


LinkedIn Twitter Facebook Inside Law Podcast Connect with us on LinkedIn. Connection with us on Twitter. Connect with us on Facebook. Connect with us on LinkedIn. Connection with us on Twitter. Connect with us on Facebook.



Kansas Senate Bill No. 22, which became effective on March 9, 2017, amends the Kansas Third Party Administrator laws and appears designed to make them more robust by incorporating much of the language from the new National Association of Insurance Commissioners' Third Party Administrator Model Act.

One of the most significant provisions in Senate Bill 22 is that it implements a provision in Section 3(b) that an administrator is not eligible for a nonresident license in Kansas if its home state has not adopted laws that are substantially similar governing administrators.

Other items of interest regarding Kansas Senate Bill 22 include, but are not limited to, the following:

  • Requires submission of audited financial statements for the two most recent fiscal years, unless the applicant has not been in existence for two years. The Commissioner may grant a hardship exemption and permit applicants to file unaudited financial statements, but surety bonds will be required.
  • Requires the submission of business plan statements.
  • Specifies that applicants and licensees will be required to make available for the Department's inspection copies of all contracts with payors, as well as any other persons utilizing their services, and requires that they produce their accounts, records, and files for the Department's examination.
  • Sets forth filing requirements for annual reports, including financial statements, that must be submitted on or before July 1 of each year.
  • Allows the Commissioner to revoke a license under Section 5(b)(4) in the event that a TPA fails at any time to meet a qualification for which issuance of a license could have been refused.
  • Specifies conditions under which TPA license must or may be, denied, suspended, or revoked and details conditions under which the Department will be authorized to suspend a TPA's license without giving advance notice or an opportunity for a hearing. Authorizes the Department to impose other types of administrative penalties in accordance with the state's administrative procedure act.
  • Changes the requirements for written agreements between TPA and insurers, and the contractual provisions they must include. Adds provisions regarding the termination of agreements and disputes between insurers and TPAs. Requires that either the TPA or insurer notify the Department of the termination of an agreement.
  • Specifies that written agreements between TPAs and payors must require that TPAs render periodic accountings to payors, as further described. Expands record keeping requirements for TPAs who collect charges or premiums on behalf of multiple payors. Revises the scope of conditions under which withdrawals or payments may be made from fiduciary accounts.
  • Revises and clarifies scope of prohibited or permitted compensation arrangements for TPAs.

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

For More Information

For additional information regarding this article, please contact:











Atlanta  Boston  Chattanooga  Chicago  Dallas  Denver  Houston  Kansas City  Los Angeles  Nashville  New York
Overland Park  Phoenix  Raleigh  San Francisco  Silicon Valley  St. Joseph  St. Louis  Washington, D.C.  Wilmington








real challenges. real answers.SM  
Polsinelli is an Am Law 100 firm with approximately 800 attorneys in 20 offices, serving corporations, institutions, and entrepreneurs nationally. Ranked #17 for Client Service Excellence among 650 U.S. law firms, Polsinelli has risen more than 50 spots over the past five years in the Am Law 100 annual law firm ranking. Polsinelli attorneys provide practical legal counsel infused with business insight, and focus on health care, financial services, real estate, intellectual property, mid-market corporate, labor and employment, and business litigation. Polsinelli attorneys have depth of experience in 100 service areas and 70 industries. The firm can be found online at Polsinelli PC. In California, Polsinelli LLP.

* 2017 BTI Client Service A-Team Report







Polsinelli provides this material for informational purposes only. The material provided herein is general and is not intended to be legal advice. Polsinelli is very proud of the results we obtain for our clients, but you should know that past results do not guarantee future results; that every case is different and must be judged on its own merits; and that the choice of a lawyer is an important decision and should not be based solely upon advertisements.

Copyright © 2017 Polsinelli PC.





Connect with us on LinkedIn. Connection with us on Twitter. Connect with us on Facebook. Polsinelli Third Party Administrator (TPA) Licensing and Compliance Services Third Party Administrator (TPA) Licensing and Compliance Services