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Insurance department amendment approved to notify nonresident agents of revocation and allow commissioner waiver in narrow cases
Summary
An amendment to SB 422 from the Kansas Department of Insurance requiring notice to nonresident agents whose licenses are revoked and allowing the commissioner to waive the two-year reapply prohibition in technical-revocation cases passed; the bill was moved out of committee favorably.
Eric Turk, representing the Kansas Department of Insurance, described the department’s amendment to Senate Bill 422 as a change developed with industry input. He said the amendment adds a requirement to notify nonresident agents when their Kansas license is revoked, because such agents may be selling insurance in Kansas even if they live elsewhere.
Turk also explained that, in cases where revocation stems from a technical failure to maintain licensure (for example, missing continuing education), the current rule bars reapplication for licensure for two years. The amendment would give the commissioner the permissive authority to waive that prohibition in appropriate, nonegregious circumstances so an agent could be relicensed sooner when the revocation was not based on misconduct.
Senator Gossage expressed support for the amendment, noting the practical licensing issues for multistate agents; the committee adopted the amendment by voice vote and passed the bill out favorably.
Next steps: SB 422, as amended, will be reported to the Senate floor.
