Kansas Health Care Stabilization Fund
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Non-Residents

Compliance Guidelines for Non-Resident Health Care Providers

Health care providers who are licensed to render professional services in Kansas are subject to the basic professional liability coverage requirements (minimum of $200,000 per claim with $600,000 annual aggregate limits) plus a Fund surcharge which is based upon the percentage ratio of their Kansas practice. This applies to non-resident health care providers who have an active license to practice in Kansas. If a licensee is no longer actively practicing in Kansas, he or she must convert their license to inactive in order to avoid the basic insurance and HCSF surcharge required by Kansas law.

Non-resident health care providers who are licensed to render professional services in Kansas comply with the Fund directly by completing the Fund Non-Resident Compliance Form (link below). The surcharge payment is submitted to the Fund with the completed Non-Resident Compliance Form and a copy of a current Certificate of Insurance from the primary carrier. A “Non-Resident Certification” form may be downloaded from the forms page.  Another option is the “E-Compliance” on line multiple purpose form. A portable document image of  a certificate of insurance may be attached and submitted with the electronic compliance form. A separate website is available that allows on line payment via electronic check or credit card. The “KanPay” on line payment option requires payment of a convenience fee.

Cancellations, Expirations & Non-renewals

Non-Residents must comply with the following statutory requirements:

If a provider terminates his or her primary coverage they must notify the Fund Compliance Section in writing within 10 days of the cancellation.  Written notice of cancellation should include the following:

  • Primary Insurance Company Name
  • Policy Number
  • Policy Dates
  • Date of Cancellation

Pursuant to K.S.A. 40-3402(a)(2): “In the event of termination of basic coverage by cancellation, nonrenewal, expiration or otherwise by either the insurer or named insured, notice of such termination shall be furnished by the insurer to the board of governors, the state agency which licenses, registers or certifies the named insured and the named insured. Such notice shall be provided no less than 30 days prior to the effective date of any termination initiated by the insurer or within 10 days after the date coverage is terminated at the request of the named insured and shall include the name and address of the health care provider or providers for whom basic coverage is terminated and the date basic coverage will cease to be in effect. No basic coverage shall be terminated by cancellation or failure to renew by the insurer unless such insurer provides a notice of termination as required by this subsection.”

Refunds

Subsection (a)(2) of K.S.A. 40-3402 requires that insurers or the named insured notify the Board of Governors of cancellation of basic coverage in a timely manner. In the event of late notice of cancellation of basic coverage by an insurer or insured, the Board of Governors will consider the late notice to be beyond the health care provider’s control. In such instances of late notice of cancellation, the Board will calculate the unearned Health Care Stabilization Fund surcharge based on the date the notice of cancellation was received minus ten days. If the health care provider has become inactive and is no longer practicing in Kansas, the Board will determine the thirty-day time period during which a health care provider may purchase prior acts coverage from the Health Care Stabilization Fund Board of Governors based on the date the notice of cancellation was received minus ten days. A “Refund Request and Instructions” may be downloaded from the forms page.

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