An  Act relating to insurance; concerning licensing requirements for insurance agents;
      amending K.S.A. 40-241c, 40-241j, 40-3707 and 40-3711 and K.S.A. 1998 Supp. 40-240,
      40-240f, 40-241, 40-241i, 40-246 and 40-3706 and repealing the existing sections.


     
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 1998 Supp. 40-240 is hereby amended to read as
follows: 40-240. (a) Any person desiring as agent to engage in the insur-
ance business, as herein set out, shall apply to the commissioner of in-
surance of this state, in the manner hereinafter prescribed, for an insur-
ance agent's license, authorizing such agent to engage in and transact
such business. The applicant for such license shall file with the commis-
sioner of insurance such applicant's written application for a license au-
thorizing the applicant to engage in the insurance business and the ap-
plicant shall make sworn answers to such interrogatories as the
commissioner of insurance may require on uniform forms and supple-
ments prepared by the commissioner. A nonrefundable fee in the amount
of $30 shall accompany such application. Such applicant, if an individual,
shall establish:

      (1) That the applicant certifies, by evidence satisfactory to the com-
missioner, that the applicant is a graduate of an accredited four-year high
school or its equivalent. This requirement shall not apply to any person
holding a valid agent's license as of July 1, 1971, or a full-time student
enrolled in an accredited high school in this state while and to the extent
such student is participating in an insurance project sponsored by a bona
fide junior achievement program; and

      (2) that the applicant is of good business reputation and is worthy of
a license.

      (b) Corporations, associations, partnerships, sole proprietorships and
other legal entities acting as insurance agents and holding a direct agency
appointment from an insurance company or companies or health main-
tenance organization are required to obtain an insurance agent's license.
Application for such license shall be made to the commissioner on a form
prescribed by such commissioner. Before granting the license, the com-
missioner shall determine that:

      (1) Each officer, director, partner and employee of the applicant who
is acting as an insurance agent is licensed as an insurance agent;

      (2) the applicant has disclosed to the insurance department all offi-
cers, directors and partners whether or not they are licensed as insurance
agents;

      (3) the applicant has disclosed to the insurance department all offi-
cers, directors, partners and employees who are licensed as insurance
agents; and

      (4) the applicant has designated a licensed officer, employee, partner
or other person to be responsible for the organization's compliance with
the insurance laws and rules and regulations of this state.

      (c) The insurance department may require any documents reasonably
necessary to verify the information contained in the application.

      (d)  (1) Agents licensed pursuant to subsection (b) shall advise the
commissioner of any officers, directors, partners or employees who are
licensed as individual insurance agents and are not disclosed at the time
application is made for a license within 30 working days of their affiliation
with the licensee. Failure to provide the commissioner with such infor-
mation shall subject the licensee to a monetary penalty of $10 per day for
each working day the required information is late subject to a maximum
of $50 per person per licensing year.

      (2) Officers, directors, partners or employees disclosed at the time of
the original application or reported thereafter whose affiliation with the
licensee is terminated shall be reported to the commissioner within 30
days of the effective date of termination. Failure to report such termi-
nation shall subject the licensee to the penalty prescribed in paragraph
(1) of this subsection.

      Sec.  2. K.S.A. 1998 Supp. 40-240f is hereby amended to read as fol-
lows: 40-240f. (a) For purposes of this section:

      (1) "Biennial due date" means March 31, 1991, and March 31 of each
odd-numbered year thereafter. Effective January 1, 1997, the term shall
mean the date of birth of the licensed agent who is required to complete
C.E.C.'s and report the completion of such C.E.C.'s to the commissioner
pursuant to this section, except that such due date shall not be earlier
than two years from the date of the agent's initial licensure.

      (2) "Approved subject" or "approved course" means any educational
presentation involving insurance fundamentals, insurance law, insurance
policies and coverage, insurance needs, insurance risk management, in-
surance agency management or other areas, which is offered in a class,
seminar, computer based training, interactive internet training or other
similar form of instruction, and which has been approved by the com-
missioner or the commissioner's designee under this section as expanding
skills and knowledge obtained prior to initial licensure or developing new
and relevant skills and knowledge.

      (3) "C.E.C " means continuing education credit. One C.E.C. is at
least 50 minutes of each clock hour of instruction or the C.E.C. value
assigned by the commissioner or the commissioner's designee. The
C.E.C. values shall be assigned in whole units. The commissioner or the
commissioner's designee shall assign a C.E.C. value to each approved
subject on a case-by-case basis.

      (4) "Biennium" means the period beginning on the effective date of
this section and ending on March 31, 1991, and each two-year period
thereafter. Effective January 1, 1997, for those agents who were born in
an odd-numbered year, the term shall mean the period starting with the
agent's biennial due date in 1997 and each two-year period thereafter,
for those agents who were born in an even-numbered year, the term shall
mean the period starting with the agent's biennial due date in 1998 and
each two-year period thereafter.

      (5) "Inactive agent" means a licensed agent who presents evidence
satisfactory to the commissioner which demonstrates that such agent will
not do any act toward transacting the business of insurance for not less
than two but not more than six years from the date such evidence is
received by the commissioner. Such additional periods may be granted
by the commissioner upon further presentation of evidence satisfactory
to the commissioner.

      (b)  (1) Every licensed agent who is an individual and holds a property
or casualty qualification, or both, shall biennially obtain a minimum of
twelve C.E.C.'s in courses certified as property and casualty which, on
and after April 1, 1995, shall include at least one hour of instruction in
insurance ethics. No more than three C.E.C.'s shall be in insurance
agency management.

      (2) Every licensed agent who is an individual and holds a life, accident
and health, or variable contracts qualification, or any combination thereof,
shall biennially complete twelve C.E.C.'s in courses certified as life, ac-
cident and health, or variable contracts which, on and after April 1, 1995,
shall include at least one hour of instruction in insurance ethics. No more
than three C.E.C.'s shall be in insurance agency management.

      (3) Every licensed agent who is an individual and holds a crop only
qualification shall biennially obtain a minimum of two C.E.C.'s in courses
certified as crop under the property and casualty category.

      (4) Every licensed agent who is an individual and is licensed only for
title insurance shall biennially obtain a minimum of four C.E.C.'s in
courses certified by the board of abstract examiners as title under the
property and casualty category.

      (5) Every licensed agent who is an individual and holds a life insur-
ance license solely for the purpose of selling life insurance or annuity
products used to fund a prearranged funeral program and whose report
of compliance required by subsection (f) of this section is accompanied
by a certification from an officer of each insurance company represented
that the agent transacted no other insurance business during the period
covered by the report shall biennially obtain a minimum of two C.E.C.'s
in courses certified as life or variable contracts under the life, accident
and health, or variable contracts category.

      (c) Individual agents who hold licenses with both a property or ca-
sualty qualification, or both, and a life, accident and health, or variable
contracts qualification, or any combination thereof, and who earn C.E.C.'s
from courses certified by the commissioner or the commissioner's des-
ignee as qualifying for credit in any class, may apply those C.E.C.'s toward
either the property or casualty continuing education requirement or to
the life, accident and health, or variable contracts continuing education
requirement. However, a C.E.C. shall not be applied to satisfy both the
biennial property or casualty requirement, or both, and the biennial re-
quirement for life, accident and health, or variable contracts, or any com-
bination thereof.

      (d) An instructor of an approved subject shall be entitled to the same
credit as a student completing the study.

      (e)  (1) An individual agent who has been licensed for more than one
year shall, on or before the biennial due date, file a report with the com-
missioner that such agent has met the continuing education requirements
for the previous biennium ending on such biennial due date. Every in-
dividual agent shall maintain a record of all courses attended together
with a certificate of attendance for the remainder of the biennium in
which the courses were attended and the entire biennium immediately
following.

      (2) If the required report showing proof of continuing education
completion is not received by the commissioner by the biennial due date,
the individual agent's qualification and corresponding license or licenses
shall be automatically suspended for a period of 90 calendar days or until
such time as the agent satisfactorily demonstrates completion of the con-
tinuing education requirement whichever is sooner and a penalty of $100
shall be assessed for each license suspended. If the required proof of
continuing education completion and the monetary penalty is not fur-
nished within 90 calendar days of the biennial due date, the individual
agent's qualification and corresponding license or licenses will expire. The
commissioner may waive the penalties of this subsection upon written
application by the agent in cases of extreme hardship.

      (3) An applicant for an individual agent's license who previously held
a license which expires on or after May 1, 1989, because of failure to meet
continuing education requirements and who seeks to be relicensed shall
pass the examination required for issuance of the new qualification and
license and provide evidence that appropriate C.E.C.'s have been com-
pleted for the prior biennium.

      (4) An applicant for an individual agent's license who previously held
a license which expired on or before April 30, 1989, for failure to meet
the minimum educational requirements contained in K.S.A. 40-240b, and
amendments thereto, as it existed prior to the passage of this act and who
seeks to be relicensed shall pass the examination required for issuance of
the new license.

      (5) Upon written application by an individual agent, the commis-
sioner may, in cases involving medical hardship or military service, extend
the time within which to fulfill the minimum continuing educational
requirements for a period of not to exceed 180 days.

      (6) This section shall not apply to inactive agents as herein defined
during the period of such inactivity. Upon return to active status or ex-
piration of the maximum inactive period, the agent shall have the re-
mainder of the current calendar year plus the next calendar year to com-
ply with the continuing education requirement.

      (f)  (1) A course, program of study, or subject shall be submitted to
and certified by the commissioner or the commissioner's designee in or-
der to qualify for purposes of continuing education.

      (2) The following information shall be furnished with each request
for certification:

      (A) Name of provider or provider organization;

      (B) course title;

      (C) date course will be offered;

      (D) location where course will be offered;

      (E) outline of the course including a schedule of times when subjects
will be presented;

      (F) names and qualifications of instructors;

      (G) number of C.E.C.'s requested; and

      (H) a nonrefundable course fee in the amount of $50 per course or
$250 per year for all courses, and a nonrefundable annual provider fee of
$100.

      (3) Upon receipt of such information, the commissioner or commis-
sioner's designee shall grant or deny certification as an approved subject
and indicate the number of C.E.C.'s that will be recognized for the sub-
ject. Each approved subject or course shall be assigned by the commis-
sioner or commissioner's designee to one or both of the following classes:

      (A) Property and casualty or

      (B) life insurance (including annuity and variable contracts) and ac-
cident and health insurance.

      (4) A course or subject shall have a value of at least one C.E.C.

      (5) A provider seeking approval of a course for continuing education
credit shall provide for the issuance of a certificate of attendance to each
person who attends a course offered by it. The certificate shall be signed
by either the course instructor or the provider's authorized representa-
tive. Providers shall also maintain a list of all persons who attend courses
offered by them for continuing education credit for the remainder of the
biennium in which the courses are offered and the entire biennium im-
mediately following.

      The commissioner shall accept, without substantive review, courses
submitted by a provider which have been approved by the insurance
supervisory authority of any state or territory accredited by the national
association of insurance commissioners. The commissioner may disap-
prove individual instructors or providers who have been the subject of
disciplinary proceedings or who have otherwise failed to comply with any
state's laws or regulations.

      (6) The commissioner may grant approval to specific programs of
study that have appropriate merit, such as programs with broad national
or regional recognition, notwithstanding the lack of a request for certifi-
cation. The fee prescribed by subsection (f)(2)(H) of this section shall not
apply to approvals granted hereunder.

      (7) The C.E.C. value assigned to any course, program of study or
subject, other than a correspondence course, computer based training,
interactive internet study training or other course pursued by independ-
ent study, shall in no way be contingent upon passage or satisfactory
completion of any examination given in connection with such course,
program of study or subject. The commissioner shall establish criteria for
determining acceptability of any method used for on line verification of
the completion of each stage of any computer based or interactive internet
study training. Completion of any computer based training or interactive
internet study training shall be verified on line in accordance with a
method approved by the commissioner.

      (g) The commissioner shall provide, upon request, a list of all ap-
proved continuing education courses currently available to the public.

      (h) An individual agent who studies an insurance subject indepen-
dently, other than an agent's examination, approved by the commissioner
or commissioner's designee, and who passes an independently monitored
examination, shall receive credit for the C.E.C.'s assigned by the com-
missioner or commissioner's designee as recognition for the approved
subject. No other credit shall be given for independent study.

      (i) The commissioner may waive the continuing education require-
ments imposed by this act for nonresident agents who provide evidence
of compliance with continuing education requirements imposed by their
state of domicile.

      Sec.  3. K.S.A. 1998 Supp. 40-241 is hereby amended to read as fol-
lows: 40-241. Any applicant or prospective applicant for an agent's license,
if an individual, shall be given an examination by the commissioner or the
commissioner's designee to determine whether such applicant possesses
the competence and knowledge of the kinds of insurance and transactions
under the license applied for, or to be applied for, of the duties and
responsibilities of such a license and of the pertinent provisions of the
laws of this state. The applicant shall be tested on each class or subclas-
sification of insurance which may be written. An examination fee pre-
scribed in rules and regulations adopted by the commissioner shall be
paid by the applicant and shall be required for each class of insurance for
each attempt to pass the examination. Such examination fee shall be in
addition to the certification fee required under K.S.A. 40-252, and
amendments thereto. There shall be four classes of insurance for the
purposes of this act:

      (1) Life;

      (2) accident and health;

      (3) casualty and allied lines; and

      (4) property and allied lines.

      An insurance license may be issued as a subclassification of casualty
and allied lines to any auto rental agency. An auto rental agency may
offer or sell insurance only in connection with and incidental to the rental
of motor vehicles, whether at the rental office, at the point of delivery of
a vehicle, or by preselection of coverage in a master, corporate or group
rental agreement, in any of the following general categories: (1) Personal
accident insurance covering risks of travel, (2) motor vehicle liability in-
surance, (3) personal effects insurance providing coverage to renters and
other occupants of the motor vehicle, (4) roadside assistance and emer-
gency sickness protection programs, and (5) any other travel or auto-
related coverage an auto rental company may offer in connection with
and incidental to rental of motor vehicles. No insurance may be issued by
an auto rental agency unless the rental period of the rental agreement
does not exceed 90 consecutive days and brochures and other written
material clearly and correctly explaining insurance coverages offered by
the agency are available for prospective renters and clear and complete
disclosures are provided to prospective renters that such coverage may
be duplicative of other insurance owned by the renter, that purchase of
insurance coverage is not a condition for renting a motor vehicle and
describing the process for filing a claim.

      Auto rental agencies employing representatives shall conduct a training
program for each representative, providing instruction on the kinds of
insurance coverage offered by the agency.

      No auto rental agency shall offer or solicit any insurance other than
the coverages described in this section without an insurance license. No
auto rental employee or auto rental agency shall advertise or otherwise
hold themselves out as licensed insurers, insurance agents or insurance
brokers.

      The commissioner of insurance shall adopt rules and regulations with
respect to the scope, subclassification, type and conduct of such exami-
nation. Examinations shall be given to applicants at least twice a month
in Topeka, Kansas, and at least quarterly in other convenient locations in
the state of Kansas. The commissioner shall publish or arrange for the
publication of information and material which applicants can use to pre-
pare for such examination. One or more rating organizations, advisory
organizations or other associations may be designated by the commis-
sioner to assist in, or assume responsibility for, distribution of the study
manuals to applicants and other interested parties. Persons purchasing
the study manual shall be charged a reasonable fee established or ap-
proved by the commissioner. In the event the publication and distribution
of the study material or the development and conduct of examinations is
delegated to private firms, organizations or associations and the state in-
curs no expense or obligation, the provisions of K.S.A. 75-3738 to 75-
3744, inclusive, and amendments thereto, shall not apply. If the commis-
sioner of insurance finds that the individual applicant is trustworthy,
competent and has satisfactorily completed the examination, the com-
missioner shall forthwith issue to the applicant a license as an insurance
agent but the issuance of such license shall confer no authority to transact
business in this state until the agent has been certified by a company
pursuant to K.S.A. 40-241i, and amendments thereto and submitted proof
that the agent is covered by an errors and omissions policy required by
this section. If such applicant fails to satisfactorily complete the exami-
nation, the examination may be retaken following a waiting period of not
less than seven days from the date of the last attempt. If the applicant
again fails to satisfactorily complete the examination, it may be retaken
following another waiting period of not less than seven days from the date
of the most recent attempt. Thereafter, the examination may be retaken
following a waiting period of not less than six months from the date of
the most recent attempt, except that following a waiting period of two
years from the date of the applicant's last examination attempt an appli-
cant will be treated as a new applicant and new examination and waiting
periods shall apply. The certification fee shall not be returned for any
reason. The commissioner of insurance shall keep a permanent record of
all agents' licenses issued and the insurance companies that the respective
agents were certified to represent under such licenses for a period of 10
years. While licensed every agent shall be covered by an errors and
omissions policy covering the individual agent in an amount of not less
than $100,000 total liability limit per occurrence, subject to not less than
$100,000 annual aggregate for all claims made during the policy period;
or, covering the agent under blanket liability policy or policies, which
policy or policies can include other coverage on an excess basis over
$100,000 primary, insuring other insurance agents or brokers in an
amount of not less than $500,000 total liability limit per occurrence sub-
ject to not less than $500,000 annual aggregate for all claims made during
the policy period. Such policy shall be issued by an authorized insurance
company or as authorized by K.S.A. 40-246b or 40-246c, and amendments
thereto, for errors and omissions of the agent. Self-retention shall be per-
mitted on liability policies covering the agent.

      Sec.  4. K.S.A. 40-241c is hereby amended to read as follows: 40-241c.
The commissioner of insurance, under appropriate rules and regulations,
shall waive examinations when the applicant establishes that:

      (a) The applicant has been engaged in an active career as an insur-
ance agent in a specified class or classes of insurance in some other state,
territory or the District of Columbia district accredited by the national
association of insurance commissioners and that the license held in such
other state, territory or the District of Columbia : (1) Was based upon a
written examination; (2) that the state, territory or District of Columbia
from which the applicant comes has standards equal to those maintained
in Kansas; (3) that the applicant's license has never been suspended or
revoked; and (4) the applicant shall file has filed a certificate from such
licensing authority which shall provide the class or classes of insurance
which the agent was authorized to write the insurance supervisory official
for that state, territory or district certifying the agency is authorized to
transact insurance business in those lines of insurance in which the agent
seeks licensure, is in good standing in that jurisdiction and such further
information as the commissioner may require; or

      (b) the applicant seeks a license as travel insurance agent to persons
selling transportation tickets of common carriers, who shall act as such
agent only as to transportation ticket policies, or health or accident in-
surance, or baggage insurance on personal effects in connection with such
transportation tickets of common carriers; or

      (c) the applicant has been licensed and certified in Kansas for the
class of insurance the applicant is applying for and where the license and
certifications have has been permitted to lapse for not more than two
years prior to the date of the application and where the commissioner of
insurance is satisfied that the applicant is trustworthy and competent; or

      (d) the applicant is an applicant for a license to write insurance on
growing crops in this state and has been continuously certified licensed
to write such coverage in this state on and after April 30, 1986; or

      (e) the applicant has qualified by examination, but due to clerical
error by an insurance company, the applicant was not certified pursuant
to K.S.A. 40-241i, and amendments thereto. Such insurance company
shall pay all certification appointment fees that would have been paid had
the applicant been properly certified appointed plus the penalty pre-
scribed by K.S.A. 40-241i, and amendments thereto, for each violation.

      Sec.  5. K.S.A. 1998 Supp. 40-241i is hereby amended to read as fol-
lows: 40-241i. (a) Any company authorized to transact business in this
state may, upon determining that the agent is of good business reputation
and, if an individual, has had experience in insurance or will immediately
receive a course of instruction in insurance and on the policies and policy
forms of such company, certify appoint such agent as the agent of the
company under the license in effect for the agent. The certification ap-
pointment shall be made to the commissioner annually on a form pre-
scribed by the commissioner within 30 days of appointment of the agent
by the company. Such appointment shall be effective immediately and
shall remain in effect until May 1, unless the commissioner is notified to
the contrary or the license of the certified agent is terminated at the same
time the company files its returns under K.S.A. 40-252, and amendments
thereto. A nonrefundable appointment or certification fee set forth in
K.S.A. 40-252, and amendments thereto, shall be paid in accordance with
the billing procedures established by the commissioner. Such procedures
shall require payment of the fees annually, based on the number of agents
appointed during the calendar year preceding the return. The certification
fees required by K.S.A. 40-252, and amendments thereto, shall be due for
all agents appointed by the company during the preceding calendar year,
irrespective of the number of months the agent was appointed for that
year. The certification fee shall not be returned for any reason, and failure
of the company to certify an agent within 30 working days of such agent's
appointment shall subject the company to a penalty of not more than $25
per calendar day from the date of appointment the appropriate return
was required to the date proper certification is recorded by the insurance
department.

      (b) Certification of other than an individual agent will automatically
include each licensed insurance agent who is an officer, director, partner,
employee or otherwise legally associated with the corporation, association,
partnership or other legal entity appointed by the company. The required
annual certification fee shall be paid for each licensed agent certified by
the company at the time of the original certification of the agency and
any continuation thereof and the prescribed reporting form shall be re-
turned at the same time the company files its tax returns as required by
K.S.A. 40-252, and amendments thereto.

      (c) With respect to insurance on growing crops, evidence satisfactory
to the commissioner that the agent is qualified to transact insurance in
accordance with standards or procedures established by any branch of
the federal government shall be deemed to be the equivalent of certifi-
cation by a company.

      (d) Duly licensed insurance agents transacting business in accordance
with the provisions of article 41 of chapter 40 of the Kansas Statutes
Annotated, and amendments thereto, shall be deemed to be certified by
a company for the kinds of insurance permitted under the license in effect
for the agent.

      Sec.  6. K.S.A. 40-241j is hereby amended to read as follows: 40-241j.
On or before May 1 each year the commissioner shall recertify all agents
certified by the company as of the close of business on April 30 for the
ensuing calendar year and shall collect for each agent recertified the cer-
tification fees set forth in K.S.A. 40-252, and any amendments thereto.
Each company admitted to this state shall report annually to the com-
missioner all agents the company has contracted with during the prior
calendar year and shall pay the certification fees set forth in K.S.A. 50-
252, and amendments thereto. The commissioner may audit agent or rep-
resentative certification forms and fees to ensure proper reporting and
receipt of fees. Any costs associated with auditing such forms shall be
borne by the company or auto rental agency audited.

      Sec.  7. K.S.A. 1998 Supp. 40-246 is hereby amended to read as fol-
lows: 40-246. The commissioner of insurance is prohibited from issuing
any license or authority to write policies of insurance, or to solicit and
obtain such policies, to any person, agent or corporation, unless such
person, agent or corporation is a legal resident of this state at the time
such license or authority is issued. Under such regulations and restrictions
deemed necessary by the commissioner of insurance, licenses may be
issued to nonresident agents, who are licensed by the state in which they
reside, upon the payment of an annual biennial fee of $25 $50.

      Sec.  8. K.S.A. 1998 Supp. 40-3706 is hereby amended to read as
follows: 40-3706. (a) No person shall be eligible to apply for a license as
a life insurance broker unless such person has been licensed as a life and
accident and health insurance agent or broker in this or another state, a
United States territory or a province of Canada for the five years imme-
diately preceding the date of application. This requirement shall not in-
clude variable life or variable annuity licenses.

      (b) No person shall be eligible to apply for a license as a casualty
insurance broker unless such person has been licensed as an all lines fire
and casualty insurance agent or broker in this or another state, a United
States territory or a province of Canada for the five years immediately
preceding the date of application. This requirement shall not include title
insurance. Agents licensed for at least one line of fire insurance and at
least one line of casualty insurance during said five-year period may qual-
ify under this section by successfully passing the insurance department
examinations for the remaining lines.

      (c) Except as otherwise provided by this subsection, no person shall
be eligible for licensure under this act unless such person is a resident of
the state of Kansas and a citizen of the United States. Evidence of such
facts shall be submitted to the commissioner. A broker's license may be
issued to a nonresident of this state who is licensed as a broker or its
equivalent by the state in which such person resides if such nonresident:
(1) Has been licensed as a nonresident agent in this state for the five years
immediately preceding the date of application; (2) submits evidence of
completion of 15 credit hours, or the equivalent thereof, of business or
accounting courses taught by an accredited college, university or com-
munity college, or, a professional designation determined equivalent by
the commissioner; (3) Satisfactorily demonstrates to the commissioner
that such person is otherwise qualified in the lines of insurance to be
transacted under the broker's license for which application is made; and
(4) (2) pays the fee prescribed by K.S.A. 40-3704, and amendments
thereto. The annual renewal fee for any such broker's license shall be in
the amount prescribed by K.S.A. 40-3708, and amendments thereto. In
addition to the foregoing requirements, such nonresident applicant shall
comply with the provisions of K.S.A. 40-3711, and amendments thereto.
Whenever any other state imposes on Kansas brokers additional or greater
fees, obligations or prohibitions, the same shall be imposed on similar
brokers of such other state.

      (d) Nothing in this act shall be construed as preventing a person from
being simultaneously licensed hereunder as a life insurance broker and a
casualty insurance broker.

      Sec.  9. K.S.A. 40-3707 is hereby amended to read as follows: 40-
3707. (a) Each life insurance broker, within five years from the date of
original licensure hereunder, shall submit evidence of completion of 15
credit hours, or the equivalent thereof, of business or life/health insurance
courses provided through an accredited college, university or community
college; or, a professional designation college insurance courses, or any
portion of or all of a professional designation or any combination thereof,
determined equivalent by the commissioner to be equal to or the equiv-
alent of 15 hours of college level credit in insurance courses.

      (b) Each casualty insurance broker, within five years from the date
of original licensure hereunder, shall submit evidence of completion of
15 credit hours, or the equivalent thereof, of business or property/casualty
insurance courses provided through an accredited college, university or
community college; or, a professional designation determined equivalent
by the commissioner. Accreditation of any portion of a national recog-
nized professional designation by any widely recognized council or ac-
crediting body for colleges, universities and community colleges shall be
sufficient evidence of college level credit.

      Sec.  10. K.S.A. 40-3711 is hereby amended to read as follows: 40-
3711. Every applicant for a broker's license shall maintain in force while
licensed an errors and omissions policy covering the individual applicant
in an amount of not less than $100,000 total liability limit per occurrence,
subject to not less than $100,000 annual aggregate for all claims made
during the policy period; or, covering the applicant under blanket liability
policy or policies, which policy or policies can include other coverage on
an excess basis over $100,000 primary, insuring other insurance agents or
brokers in an amount of not less than $500,000 total liability limit per
occurrence subject to not less than $500,000 annual aggregate for all
claims made during the policy period. Such policy shall be issued by an
authorized insurance company or as authorized by K.S.A. 40-246b or 40-
246c, and amendments thereto, for errors and omissions of the broker.
Self-retention shall be permitted on liability policies covering the appli-
cant. The applicant shall file with the commissioner a dishonesty bond in
the amount of $5,000 executed by an authorized surety company in favor
of the people of Kansas. Such bond shall be issued in a form prescribed
by the commissioner and shall be continuous in nature. The surety may
cancel the bond upon 30 days' written notice to the commissioner.

      Sec.  11. K.S.A. 40-241c, 40-241j, 40-3707 and 40-3711 and K.S.A.
1998 Supp. 40-240, 40-240f, 40-241, 40-241i, 40-246, and 40-3706 are
hereby repealed.

      Sec.  12. This act shall take effect and be in force from and after its
publication in the statute book.

I hereby certify that the above BILL originated in the
SENATE, and passed that body

____________________________________

SENATE concurred in
HOUSE amendments ______________________________

Passed the HOUSE
     as amended ______________________________

APPROVED ______________________________