SB 56--
=================================================================================
SENATE BILL No. 56
By Committee on Financial Institutions and Insurance
1-17
----------------------------------------------------------------------------

AN ACT relating to insurance; payment for outside consulting services for department of insurance; amending K.S.A. 40-223 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas: Section 1. K.S.A. 40-223 is hereby amended to read as follows: 40- 223. Any person who makes any examination under the provisions of this act, except as provided in K.S.A. 40-110 and 40-253 and amendments thereto, may receive, as full compensation for such person's services, on a per diem basis an amount fixed by the commissioner, which shall not exceed the amount recommended by the national association of insurance commissioners, for such time necessarily and actually occupied in going to and returning from the place of such examination and for such time the examiner is necessarily and actually engaged in making such exami- nation including any day within the regular workweek when the examiner would have been so engaged had the company or society been open for business, together with such necessary and actual expenses for traveling and subsistence as the examiner shall incur because of the performance of such services. For the purposes of this act, ``necessary and actual ex- penses'' shall be limited, whether for travel within the state or travel outside the state, to those limitations expressed in K.S.A. 75-3207 and amendments thereto which pertain to official travel outside the state. The daily charge shall be calculated by dividing the amount the examiner is authorized by the commissioner of insurance to charge per week by the number of days in the regular workweek of the company or society being examined. All of such compensation, expenses, the employer's share of the federal insurance contributions act taxes, the employer's contribution to the Kan- sas public employees retirement system as provided in K.S.A. 74-4920 and amendments thereto, the self-insurance assessment for the work- men's compensation act as provided in K.S.A. 44-576 and amendments thereto, the employer's cost of the state health care benefits program under K.S.A. 75-6507 and amendments thereto, a pro rata amount de- termined by the commissioner to provide vacation and sick leave for the examiner not to exceed the number of days allowed state officers and employees in the classified service pursuant to regulations promulgated in accordance with the Kansas civil service act, all outside consulting and data processing fees necessary to perform any examination, and a pro rata amount determined by the commissioner not to exceed an annual aggre- gate of $18,000 to fund the purchase, maintenance and enhancement of examination equipment and computer software shall be paid to the com- missioner of insurance by the insurance company or society so examined, on demand of the commissioner. The amount paid for all outside con- sulting and data processing fees necessary to perform any examination, and the pro rata amount to fund the purchase of examination equipment and computer software shall not collectively total more than $25,000 at any one company examination including examination of its subsidiaries or combination thereof. Such demand shall be accompanied by the sworn statement of the person making such examination, setting forth in sepa- rate items the number of days necessarily and actually occupied in going to and returning from the place of such examination, the number of days the examiners were necessarily and actually engaged in making such ex- amination including those days within the regular workweek while the examination was in progress and the company or society had closed for business, and the necessary and actual expenses for traveling and subsis- tence, incurred in and on account of such services. A duplicate of every such sworn statement shall be kept on file in the office of the commis- sioner of insurance. All moneys so paid to the commissioner of insurance shall be remitted to the state treasurer and the state treasurer shall issue duplicate receipts therefor, one to be delivered to the commissioner of insurance and the other to be filed with the director of accounts and reports. Sec. 2. K.S.A. 40-223 is hereby repealed. Sec. 3. This act shall take effect and be in force from and after its publication in the statute book.