Kansas Statutes

Chapter 75: State Departments; Public Officers And Employees

Article 41: Surety Bonds And Insurance

Statutes:

• 75-4101: Committee on surety bonds and insurance; composition; officers; meetings; compensation; acquisition of insurance, restrictions and exceptions.
• 75-4101a: Purchase of certain insurance contracts or contracts for health care services of a health maintenance organization by turnpike authority.
• 75-4101b: Same; workmen's compensation insurance.
• 75-4101c:
• 75-4102: Elective state officers; corporate surety; amount, terms and conditions; blanket bond.
• 75-4103: Appointive officers and employees; surety; amount, terms and conditions; blanket bond.
• 75-4104: State officers and employees; surety bonds required; terms and conditions; blanket contracts.
• 75-4105: Purchase of surety bonds and insurance contracts; approval; bids; proration of cost of premiums or rates.
• 75-4106: Filing of bonds and contracts; cancellation of coverage.
• 75-4107: Bond required under other law governed by this act; authority under other acts to purchase surety bonds or insurance transferred to committee.
• 75-4108:
• 75-4108a:
• 75-4109: Property and casualty insurance; coverages required; approval of coverages.
• 75-4109a:
• 75-4110:
• 75-4111: Committee to adopt rules and regulations.
• 75-4112: State agency defined.
• 75-4113:
• 75-4113a:
• 75-4114: Purchase of liability insurance to cover the state and its officers, employees and agents.
• 75-4115 to 75-4124:
• 75-4125: Committee on surety bonds and insurance; negotiated contracts for insurance.

• 75-4101: Committee on surety bonds and insurance; composition; officers; meetings; compensation; acquisition of insurance, restrictions and exceptions. (a) There is hereby created a committee on surety bonds and insurance, which shall consist of the state treasurer, the attorney general and the commissioner of insurance or their respective designees. The commissioner of insurance shall be the chairperson of the committee and the director of purchases or the director's designee shall be ex officio secretary. The committee shall meet on call of the chairperson and at such other times as the committee shall determine but at least once each month on the second Monday in each month. Meetings shall be held in the office of the commissioner of insurance. The members of the committee shall serve without compensation. The secretary shall be the custodian of all property, records and proceedings of the committee. Except as provided in this section and K.S.A. 74-4925, 74-4927, 75-6501 through 75-6511 and K.S.A. 76-749, and amendments thereto, no state agency shall purchase any insurance of any kind or nature or any surety bonds upon state officers or employees, except as provided in this act. Except as otherwise provided in this section, health care coverage and health care services of a health maintenance organization for state officers and employees designated under subsection (c) of K.S.A. 75-6501, and amendments thereto, shall be provided in accordance with the provisions of K.S.A. 75-6501 through 75-6511, and amendments thereto.

        (b)   The Kansas turnpike authority may purchase group life, health and accident insurance or health care services of a health maintenance organization for its employees or members of the highway patrol assigned, by contract or agreement entered pursuant to K.S.A. 68-2025, and amendments thereto, to police toll or turnpike facilities, independent of the committee on surety bonds and insurance and of the provisions of K.S.A. 75-6501 through 75-6511, and amendments thereto. Such authority may purchase liability insurance covering all or any part of its operations and may purchase liability and related insurance upon all vehicles owned or operated by the authority independent of the committee on surety bonds and insurance and such insurance may be purchased without complying with K.S.A. 75-3738 through 75-3744, and amendments thereto. Any board of county commissioners may purchase such insurance or health care services, independent of such committee, for district court officers and employees any part of whose total salary is payable by the county. Nothing in any other provision of the laws of this state shall be construed as prohibiting members of the highway patrol so assigned to police toll or turnpike facilities from receiving compensation in the form of insurance or health maintenance organization coverage as herein authorized.

        (c)   The agencies of the state sponsoring a foster grandparent or senior companion program, or both, shall procure a policy of accident, personal liability and excess automobile liability insurance insuring volunteers participating in such programs against loss in accordance with specifications of federal grant guidelines. Such agencies may purchase such policy of insurance independent of the committee on surety bonds and insurance and without complying with K.S.A. 75-3738 through 75-3744, and amendments thereto.

        (d)   Any postsecondary educational institution as defined by K.S.A. 74-3201b[*], and amendments thereto, may purchase insurance of any kind or nature except employee health insurance. Such insurance shall be purchased on a competitively bid or competitively negotiated basis in accordance with procedures prescribed by the state board of regents. Such insurance may be purchased independent of the committee on surety bonds and insurance and without complying with K.S.A. 75-3738 through 75-3744, and amendments thereto. Such insurance shall be purchased from an insurance company authorized to transact business in the state of Kansas.

        (e)   The state board of regents may enter into one or more group insurance contracts to provide health and accident insurance coverage or health care services of a health maintenance organization for all students attending a state educational institution as defined in K.S.A. 76-711, and amendments thereto, and such students' dependents, except that such insurance shall not provide coverage for elective procedures that are not medically necessary as determined by a treating physician. The participation by a student in such coverage shall be voluntary. In the case of students who are employed by a state educational institution in a student position, the level of employer contributions toward such coverage shall be determined by the board of regents. The board of regents may adopt rules and regulations necessary to administer and implement the provisions of this section.

        History:   L. 1965, ch. 458, § 39; L. 1969, ch. 406, § 1; L. 1971, ch. 281, § 1; L. 1974, ch. 364, § 27; L. 1977, ch. 110, § 8; L. 1979, ch. 293, § 1; L. 1982, ch. 360, § 1; L. 1984, ch. 329, § 14; L. 1986, ch. 329, § 1; L. 1987, ch. 345, § 1; L. 1989, ch. 273, § 1; L. 2006, ch. 189, § 1; May 25.

• 75-4101a: Purchase of certain insurance contracts or contracts for health care services of a health maintenance organization by turnpike authority. All insurance contracts or contracts for health care services of a health maintenance organization purchased by the Kansas turnpike authority pursuant to K.S.A. 75-4101, and amendments thereto, shall be purchased by the authority in the manner prescribed for the purchase of supplies, material, equipment or contractual services under K.S.A. 75-3738 to 75-3744, inclusive, and amendments thereto. Any such contract having a premium or rate in excess of $500 shall be purchased on sealed bids.

        History:   L. 1971, ch. 281, § 2; L. 1979, ch. 293, § 2; L. 1986, ch. 329, § 2; July 1.

• 75-4101b: Same; workmen's compensation insurance. Notwithstanding any provision of K.S.A. 75-4101, or any amendments thereto, to the contrary, the Kansas turnpike authority is hereby authorized to purchase workmen's compensation insurance independent of the committee on surety bonds and insurance. All insurance contracts purchased by the Kansas turnpike authority pursuant to this section shall be purchased by the authority subject to and in accordance with the provisions of K.S.A. 75-4101a.

        History:   L. 1974, ch. 204, § 7; April 8.

• 75-4101c:

        History:   L. 1965, ch. 458, § 39; L. 1969, ch. 406, § 1; L. 1971, ch. 281, § 1; L. 1974, ch. 364, § 27; L. 1977, ch. 110, § 8; L. 1979, ch. 293, § 1; L. 1982, ch. 360, § 1; L. 1984, ch. 329, § 14; L. 1986, ch. 330, § 3; Repealed, L. 1987, ch. 345, § 2; July 1.

• 75-4102: Elective state officers; corporate surety; amount, terms and conditions; blanket bond. Each elective state officer, before entering upon the duties of office, shall give corporate surety in an amount and upon terms and conditions, as may be specified and provided by the committee created by this act. Such surety shall be furnished by a company duly qualified under the insurance laws of this state. Any such elected official shall be deemed to have furnished surety if he or she is covered by a blanket bond purchased pursuant to this act.

        History:   L. 1965, ch. 458, § 40; L. 1969, ch. 406, § 2; L. 1973, ch. 357, § 1; July 1.

• 75-4103: Appointive officers and employees; surety; amount, terms and conditions; blanket bond. The committee shall not later than November 1, 1965, and as necessary thereafter, designate which appointive officers or employees of any state agency shall be required to give surety to the state, having due regard for the duties and responsibilities of any such office or employment and the committee shall require such surety in such amount or amounts and upon such terms and conditions as to the committee shall seem necessary and proper.

        (A)   Any such officer or employee shall be deemed to have furnished surety if he or she is covered by a blanket bond. The committee shall purchase a surety contract or contracts in the form known as a "blanket bond" whenever such blanket bond may be purchased for a premium that is less than the aggregate of premiums chargeable for individual bonds covering each officer and employee to be covered by such blanket bond.

        History:   L. 1965, ch. 458, § 41; L. 1969, ch. 406, § 3; July 1.

• 75-4104: State officers and employees; surety bonds required; terms and conditions; blanket contracts. The committee shall not later than November 1, 1965, and as necessary thereafter, set the terms, conditions, or penalties of the bonds for state officers and employees to be covered by surety contracts purchased under this act. The committee shall also determine which officers and employees of the state shall be required to be bonded and shall set the amount of coverage of the bond or bonds so required. In determining which officers or employees shall be bonded, the committee may make such determination by classes of employees with due regard to the duties and responsibilities of officers and employees falling within such class. A blanket surety contract purchased hereunder may cover both elected and appointed officers and employees.

        History:   L. 1965, ch. 458, § 42; L. 1969, ch. 406, § 4; July 1.

• 75-4105: Purchase of surety bonds and insurance contracts; approval; bids; proration of cost of premiums or rates. Except as provided in K.S.A. 2007 Supp. 75-4125, and amendments thereto, all surety bonds and insurance contracts purchased pursuant to this act shall be purchased by the committee in the manner prescribed for the purchase of supplies, materials, equipment or contractual services under K.S.A. 75-3738 to 75-3744, inclusive, and amendments thereto. The director of accounts and reports shall not pay any premium or rate on any surety bond or insurance contract until the purchase of such surety bond or contract shall have been approved by the secretary of the committee. Surety bonds or insurance contracts having a premium or rate in excess of $500 purchased hereunder shall be purchased on sealed bids as provided by law for the purchase of other materials, equipment or contractual services. Where more than one state agency is covered by any bond or insurance contract, the committee shall prorate the cost of premiums or rates on any and all such bonds or contracts, except as provided in K.S.A. 75-4114, and amendments thereto, purchased as charges upon the funds of the state agency wherein any covered state officers or employees are employed or covered property is located or controlled. Such prorated charges shall constitute a lawful charge by the committee upon the funds available to any such state agency and shall be paid by each such state agency to the committee, or to the surety or insurance carrier if the committee requires it, in the manner provided by law for the payment of other obligations of such state agency.

        History:   L. 1965, ch. 458, § 43; L. 1969, ch. 406, § 7; L. 1970, ch. 364, § 1; L. 1971, ch. 282, § 1; L. 1972, ch. 335, § 2; L. 1976, ch. 390, § 1; L. 1979, ch. 293, § 3; L. 1984, ch. 329, § 15; L. 1986, ch. 329, § 3; L. 2004, ch. 159, § 13; July 1.

• 75-4106: Filing of bonds and contracts; cancellation of coverage. All surety bonds or insurance contracts purchased shall be kept in the office of the secretary of the committee or in the office of the designated representative of the secretary. No bond or contract purchased hereunder may be canceled by the insurance or surety company, the health maintenance organization or the committee during the term of such contract unless a substitute contract upon the same terms and conditions covering the affected officers, employees or property is in force, or the committee determines that the officers, employees or property or class of officers, employees or property affected no longer requires the coverage provided by the contract.

        History:   L. 1965, ch. 458, § 44; L. 1969, ch. 406, § 8; L. 1970, ch. 364, § 2; L. 1979, ch. 293, § 4; L. 1984, ch. 329, § 16; Aug. 1.

• 75-4107: Bond required under other law governed by this act; authority under other acts to purchase surety bonds or insurance transferred to committee. Whenever by any presently existing law of this state or by any law hereafter enacted any officer or employee is required to furnish bond as a prerequisite to employment, such requirement as to terms, conditions, penalty, amount, or quality or type of surety shall be and is hereby deemed and defined to mean the furnishing of a bond or surety contract in the manner and amount and under the provisions and requirements of this act. Whenever any officer, board, commission, committee, department, authority, or any state agent or agency by whatever name called, shall be authorized by any law of this state to purchase any official bond, surety bond, blanket bond or surety contract upon any state officers or employees or is authorized to purchase any type of property or casualty insurance coverage, such authority is hereby transferred and conferred upon the committee created by this act and such authority so transferred and conferred shall be exercised by the committee in the manner and under the provisions and requirements prescribed by this act.

        History:   L. 1965, ch. 458, § 45; L. 1969, ch. 406, § 9; July 1.

• 75-4108:

        History:   L. 1969, ch. 406, § 5; L. 1972, ch. 335, § 3; L. 1974, ch. 390, § 24; L. 1975, ch. 451, § 1; L. 1975, ch. 452, § 18; L. 1979, ch. 293, § 5; L. 1980, ch. 264, § 13; Repealed, L. 1984, ch. 329, § 17; Aug. 1.

• 75-4108a:

        History:   L. 1967, ch. 463, § 1; L. 1969, ch. 406, § 10; L. 1972, ch. 335, § 1; L. 1974, ch. 390, § 25; L. 1975, ch. 452, § 19; L. 1979, ch. 293, § 6; L. 1980, ch. 264, § 14; Repealed, L. 1984, ch. 329, § 17; Aug. 1.

• 75-4109: Property and casualty insurance; coverages required; approval of coverages. (a) The committee, at least once every three years, shall approve the property and casualty insurance coverages that shall be purchased by each state agency.

        (b)   The committee shall require that each state agency purchase the insurance coverages prescribed by K.S.A. 74-4703, 74-4705, 74-4707, 75-712e, 75-2728, 76-218, 76-391, 76-394, 76-747 and 76-491, and amendments to these sections, and shall prescribe the terms, conditions and amounts of such coverage giving due regard to the operations and requirements of the agencies involved.

        (c)   The committee shall, in addition to the coverages specified in subsection (b), designate the insurance coverages to be purchased by each state agency that are deemed by the committee to be necessary to protect the state for property of others that may be in the possession or control of such state agencies.

        (d)   Such coverages as are specified in subsections (b) and (c) may also include coverages on property of the state that are deemed by the committee to be incidental to the basic coverages herein required, and the committee shall prescribe the terms, conditions and amounts of all insurance coverages purchased pursuant to this section. Property of the state board of regents of any university or college which is referred to in subsection (b) may be self-insured as provided under this act.

        (e)   No property insurance coverage may be purchased by the committee, except as provided herein or by K.S.A. 2007 Supp. 75-4125, and amendments thereto, or specifically required by other Kansas statutes or appropriations.

        History:   L. 1969, ch. 406, § 6; L. 1971, ch. 279, § 11; L. 1974, ch. 204, § 9; L. 1979, ch. 186, § 28; L. 1983, ch. 293, § 3; L. 1985, ch. 253, § 5; L. 1986, ch. 329, § 4; L. 1987, ch. 346, § 1; L. 1991, ch. 261, § 3; L. 2004, ch. 159, § 14; July 1.

• 75-4109a:

        History:   L. 1969, ch. 406, § 6; L. 1971, ch. 279, § 11; L. 1974, ch. 204, § 9; L. 1979, ch. 186, § 28; L. 1983, ch. 293, § 3; L. 1985, ch. 253, § 5; L. 1986, ch. 293, § 4; Repealed, L. 1987, ch. 346, § 2; July 1.

• 75-4110:

        History:   L. 1969, ch. 406, § 11; L. 1972, ch. 335, § 4; L. 1973, ch. 358, § 1; L. 1974, ch. 389, § 1; L. 1974, ch. 391, § 1; L. 1975, ch. 451, § 2; L. 1975, ch. 452, § 20; L. 1976, ch. 391, § 1; L. 1976, ch. 392, 1; L. 1977, ch. 299, § 1; L. 1978, ch. 359, § 1; L. 1979, ch. 293, § 7; L. 1980, ch. 264, § 15; Repealed, L. 1984, ch. 329, § 17; Aug. 1.

• 75-4111: Committee to adopt rules and regulations. The committee may establish rules and regulations necessary to carry out the provisions of this act.

        History:   L. 1969, ch. 406, § 12; July 1.

• 75-4112: State agency defined. As used in this act the term "state agency" shall mean any state office or officer whether elected or appointed, department, board, commission, institution, bureau, authority or any agency, division or unit within any office, department, board or other state authority.

        History:   L. 1969, ch. 406, § 13; July 1.

• 75-4113:

        History:   L. 1970, ch. 364, § 3; L. 1971, ch. 282, § 2; L. 1972, ch. 335, § 5; L. 1977, ch. 110, § 9; L. 1979, ch. 293, § 8; L. 1982, ch. 361, § 1; Repealed, L. 1984, ch. 329, § 17; Aug. 1.

• 75-4113a:

        History:   L. 1979, ch. 291, § 5; Repealed, L. 1984, ch. 329, § 17; Aug. 1.

• 75-4114: Purchase of liability insurance to cover the state and its officers, employees and agents. The committee, in addition to the coverages specified in K.S.A. 75-4109, may, within the limitations of appropriations made by the legislature therefor, purchase such liability insurance as they deem necessary for the protection of the state and its officers, employees and agents against any liability for injuries or damages resulting from any tortious conduct of such officers, employees or agents arising from the course of their employment or from any liability for injuries or damages resulting from conduct or decisions of such officers, employees or agents in carrying out the official duties of their offices pursuant to existing law, rule or regulation or court order.

        History:   L. 1970, ch. 364, § 4; L. 1974, ch. 393, § 1; L. 1976, ch. 390, § 2; July 1.

• 75-4115 to 75-4124:

        History:   L. 1971, ch. 279, §§ 1 to 10; Repealed, L. 1974, ch. 388, § 3; July 1.

• 75-4125: Committee on surety bonds and insurance; negotiated contracts for insurance. (a) The committee on surety bonds and insurance is hereby authorized to negotiate and enter into contracts with qualified insurers and sureties for the purpose of purchasing insurance, surety coverage and similar coverages, including the purchase of insurance, surety coverage and similar coverage for any state agency authorized by law to make such purchase, and the acquisition of consulting and other services necessary therefor. The committee shall advertise for proposals. If the committee receives at least three proposals, the committee shall negotiate with the parties submitting proposals and select the party to negotiate with for the purpose of entering into contracts. If less than three parties submit bids, then the committee shall readvertise for proposals. Upon receiving proposals in response to the second advertisement for proposals, the committee shall negotiate with the parties submitting proposals and select from those parties submitting proposals, the party to negotiate with for the purpose of entering into contracts regardless of the number of proposals received. The division of purchases shall: (1) Maintain records of the requests for proposals; (2) handle the receipt of proposals; and (3) assist the committee in negotiating procedures and the award of contracts.

        (b)   The provisions of K.S.A. 75-4317 through 75-4320a, and amendments thereto, shall not apply to meetings of the committee when the committee meets solely for the purpose of discussing and preparing strategies for negotiations for such contracts.

        (c)   Contracts entered into pursuant to this section, shall not be subject to the provisions of K.S.A. 75-3738 to 75-3740, inclusive, and amendments thereto. Such contracts may be for terms of not more than three years and may be renegotiated and renewed. All such contracts shall be subject to the limits of appropriations made or available therefor and subject to the provisions of appropriations acts relating thereto.

        (d)   The provisions of this section shall be a complete alternative to other procurement procedures available to the committee pursuant to law.

        (e)   This section shall take effect on and after July 1, 2004.

        History:   L. 2004, ch. 159, § 12; May 27.