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Kansas SB 22 enacts and amends law relating to third party administrators (TPAs). The bill creates the Third Party Administrators Act.
The bill sets forth requirements for home state TPA licensure and also provides the requirements for non-resident TPA licenses. “Unless a TPA has obtained a Kansas home state TPA license, any TPA performing duties as a TPA in Kansas is required to obtain a non-resident TPA license. A TPA will not be eligible for a non-resident license if the TPA does not hold a home state license in a state that has adopted substantially similar TPA law.”
Other requirements include:
- Submitting all basic organizational documents, bylaws, rules, regulations, or similar documents regulating the internal affairs of the applicant;
- NAIC biographical affidavits for individuals responsible for the applicant’s conduct of affairs;
- Audited financial statements or reports;
- Unaudited financial statements in lieu of audited financial statements, if the Commissioner grants a hardship exemption;
- Business plan description. The plan must provide details of the applicant’s capability for providing sufficient number of experienced and qualified personnel in the areas of claim processing, record keeping, and underwriting;
- License application fee;
- Other pertinent information, as required by the Commissioner.
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