BULLETIN 1997- 3

TO: All Insurance Companies, Health Maintenance Organizations, Utilization Review Organizations, Third Party Administrators, Kansas Municipal Group -Funded Pools, Group-Funded Workers Compensation Pools, and Licensed Rating/Advisory Organizations licensed or registered to do business in Kansas

FROM: Kathleen Sebelius, Commissioner of Insurance

SUBJECT: Class Action Law Suit Notification

DATE: March 25, 1997

My office has recently received numerous inquiries regarding class action lawsuits which have reportedly been filed against a number of insurance carriers. Although we have been advised of several of those actions, in too many instances we have not been made aware of the suit, or have been advised after the suits have been settled. In such instances, we are unable to assist Kansas insureds with their inquiries or direct them to the appropriate authority to determine what action, if any, they should take with regard to their policy.

The purpose of this bulletin is to clearly set forth my position as to what will be expected of companies who become the subject of a class action law suit. K.S.A. 40-226 imposes penalties for the failure to reply to a proper inquiry of the commissioner of insurance. In that regard, this bulletin is an official notice and request that all of the above named organizations immediately notify this office of all current and future class action suits. The notice should include a brief description of the suit and should be followed by a similar notice as soon as possible upon settlement. Failure to notify the Commissioner could be considered a violation of the above cited statute.