Kansas Insurance Department

The Kansas Insurance Department is the state agency responsible for regulating the Property & Casualty insurance industry in Kansas. The Department operates under Kansas Statutes Annotated Chapter 40 and serves to protect Kansas consumers while ensuring a healthy insurance marketplace.

The Insurance Commissioner

The Kansas Insurance Commissioner is unique among state regulators:

Election and Term

• ELECTED by Kansas voters (not appointed by Governor)
• Four-year term with no term limits
• Direct accountability to Kansas citizens
• Chief regulator of Kansas insurance industry
• Supported by Kansas Insurance Department staff

Exam Tip: Kansas is one of only 12 states where the Insurance Commissioner is ELECTED by voters rather than appointed. This is a frequently tested fact that distinguishes Kansas from appointment states.

Commissioner Powers and Duties

Current Contact Information (2026)

Kansas Insurance Law

Kansas Statutes Annotated Chapter 40

Kansas insurance regulation is codified in Kansas Statutes Annotated Chapter 40 (Insurance), which comprehensively covers:

Chapter 40 Key Sections:

1. General Provisions (40-101 et seq.)

   • Definitions and terms
   • Commissioner authority
   • Department organization and powers

2. Insurer Licensing and Operations (40-201 et seq.)

   • Insurer licensing requirements
   • Capital and surplus standards
   • Annual reporting and examinations
   • Prohibited practices

3. Producer Licensing (40-2,100 et seq.)

   • Producer license requirements
   • Application procedures
   • Continuing education mandates
   • License renewal and termination
   • Prohibited acts and penalties

4. Policy Provisions (40-2,143 et seq.)

   • Standard policy provisions
   • Required policy terms
   • Consumer protections
   • Cancellation and non-renewal rules

5. Auto Insurance Requirements (40-3,104 et seq.)

   • Mandatory liability: 25/50/25
   • Personal Injury Protection (PIP): $4,500 minimum
   • Uninsured/Underinsured Motorist: 25/50
   • Proof of insurance requirements
   • No-fault system provisions

6. Workers' Compensation (44-501 et seq.)

   • Coverage requirements
   • Employer obligations
   • Benefit schedules
   • Claims procedures

Exam Tip: You don't need to memorize statute numbers, but understand that Kansas Statutes Chapter 40 is the comprehensive insurance code. Focus on key provisions: auto insurance requirements, producer licensing, and consumer protections.

Rate Regulation in Kansas

Kansas uses a file-and-use system for most property and casualty insurance:

File-and-Use System

Key Provisions:

• File-and-Use: Insurers file rates with Department and may use them immediately
• No Prior Approval: No waiting for approval before using rates
• Post-Use Review: Commissioner reviews rates after implementation
• Disapproval Authority: Commissioner may disapprove rates that violate standards
• Rate Standards: Rates must not be excessive, inadequate, or unfairly discriminatory

Rate Filing Process

1. Insurer Files Rates:

   • Submit rate filing with actuarial justification
   • Include supporting data and methodologies
   • File with Kansas Insurance Department

2. Immediate Implementation:

   • Rates become effective upon filing
   • No waiting period required
   • Insurer assumes responsibility for compliance

3. Department Review:

   • Commissioner reviews filing for compliance
   • Examines actuarial support
   • Assesses whether rates are excessive, inadequate, or discriminatory
   • Review typically completed within 30-60 days

4. Approval or Disapproval:

   • Commissioner approves compliant rates
   • May disapprove rates that violate standards
   • Insurer notified of any concerns

5. Insurer Response to Disapproval:

   • Modify rates to comply
   • Provide additional justification
   • Request hearing to contest disapproval

Exam Tip: Kansas file-and-use differs from prior approval (Massachusetts) where rates must be approved before use, and use-and-file (some states) where rates are filed after use. Know that Kansas allows immediate use upon filing.

Rate Standards

Rates Must Not Be:

• Excessive: Unreasonably high relative to benefits provided
• Inadequate: Insufficient to sustain long-term obligations
• Unfairly Discriminatory: Different treatment without actuarial justification

Actuarial Justification Required:

• Statistical data supporting rates
• Claims experience
• Expense factors
• Profit margins within reasonable ranges
• Risk classification methodologies

Kansas Insurance Department Organization

The Department operates through several functional divisions:

Key Divisions and Functions

Consumer Protection Functions

Consumer Assistance

The Kansas Insurance Department provides robust consumer protection:

Services Provided:

• Consumer Hotline: (785) 296-3071 for complaints and questions
• Complaint Investigation: Reviews complaints against insurers and producers
• Mediation Services: Facilitates dispute resolution
• Consumer Education: Provides guides, brochures, and online resources
• Fraud Prevention: Investigates insurance fraud cases

Complaint Process

How Consumers File Complaints:

1. Consumer Contacts Department:

   • Phone: (785) 296-3071
   • Online: Through insurance.kansas.gov website
   • Mail: 420 SW 9th Street, Topeka, KS 66612
   • In-person: Visit Department office

2. Department Review:

   • Complaint logged and reviewed for jurisdiction
   • Preliminary assessment of issues
   • Assignment to appropriate staff

3. Insurer/Producer Notification:

   • Department forwards complaint to insurer or producer
   • Response required within specified timeframe (typically 15-30 days)
   • Documentation requested

4. Investigation:

   • Department reviews responses and documentation
   • May request additional information
   • Evaluates compliance with Kansas law
   • Determines if violations occurred

5. Resolution:

   • Facilitates resolution between parties
   • Takes enforcement action if warranted
   • Informs consumer of outcome
   • Tracks for patterns of problems

6. Follow-Up:

   • Monitors compliance with resolution
   • Maintains complaint database
   • Uses data for market conduct targeting

Common Complaint Types

Exam Tip: The Kansas Insurance Department consumer hotline number is (785) 296-3071. This specific number may appear on exams. Know that consumers can file complaints online, by phone, by mail, or in person.

Regulatory Authority and Enforcement

Examination Authority

The Commissioner has broad authority to examine insurance operations:

Financial Examinations:

• Review insurer financial records
• Verify compliance with reserve requirements
• Assess solvency and financial condition
• Conduct periodic examinations (typically every 3-5 years)
• Special examinations when concerns arise

Market Conduct Examinations:

• Review business practices and procedures
• Examine claims handling processes
• Verify rating and underwriting compliance
• Check producer licensing and appointments
• Assess consumer treatment and complaint handling
• Review advertising and sales practices

Producer Examinations:

• Review producer records and practices
• Verify proper premium handling
• Check continuing education compliance
• Assess client file documentation
• Investigate consumer complaints

Enforcement Powers

The Commissioner may impose various penalties and remedies:

Exam Tip: The Commissioner can impose fines up to $10,000 PER VIOLATION. Multiple violations can result in substantial cumulative fines. This amount is commonly tested.

Administrative Hearings

Parties subject to Department action have due process rights:

Hearing Rights:

• Written notice of charges or proposed action
• Opportunity for hearing before final decision
• Right to legal representation
• Right to present evidence and witnesses
• Right to cross-examine Department witnesses
• Written decision with findings of fact
• Right to appeal to Kansas courts

Hearing Process:

1. Notice of charges or proposed action
2. Request for hearing (within specified time)
3. Hearing scheduled before hearing officer
4. Presentation of evidence by both sides
5. Written decision issued
6. Appeal rights to district court

Kansas Insurance Guaranty Association

Purpose and Function

The Kansas Insurance Guaranty Association (KIGA) protects policyholders when P&C insurers become insolvent:

Coverage Provided:

• Pays covered claims when member insurer fails
• Continues essential coverage temporarily
• Provides safety net for Kansas policyholders
• Funded by assessments on solvent insurers

Coverage Limits

Producer Responsibilities

Prohibited Uses:

• ✗ Cannot advertise KIGA coverage in marketing
• ✗ Cannot use KIGA as sales inducement
• ✗ Cannot suggest KIGA makes insurer financial strength irrelevant
• ✗ Cannot minimize importance of company selection

Permitted Communications:

• ✓ Answer factual questions about KIGA if asked
• ✓ Provide KIGA information after insolvency occurs
• ✓ Assist affected clients with KIGA claims process
• ✓ Direct clients to KIGA website for details

Exam Tip: It is a violation to advertise or promote KIGA coverage as a selling point. The guaranty association is a safety net, not a marketing tool. Producers can answer questions factually but cannot use KIGA proactively in sales.