Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Committee hears bill to require separate fiduciary accounts, bankruptcy notice from third-party administrators
Summary
Senate Bill 21 would require third‑party administrators to keep separate fiduciary accounts for each payer and immediately notify the Kansas Insurance Commissioner of bankruptcy petitions under chapter 9 or 11; supporters said the change responds to a recent TPA bankruptcy in which client funds were commingled.
Senate Bill 21 would require third‑party administrators that handle premiums and claims to maintain a separate fiduciary account for each payer and to immediately disclose any bankruptcy petition filed by or on behalf of the administrator under chapter 9 or chapter 11 of the bankruptcy code to the Kansas Insurance Commissioner.
The measure was explained to the Senate Committee on Financial Institutions and Insurance by Eileen, Revisor of Statutes, and supported in testimony by Eric Turek of the Kansas Department of Insurance. Turek told the committee the department licenses about 400 third‑party administrators (TPAs) doing business in Kansas and that most are based out of…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
