KANSAS INSURANCE DEPARTMENT

Notice of Hearing on Proposed

Administrative Regulations

A public hearing will be conducted at 1:30 p.m., October 27, 2005, in the third floor a conference room, Kansas Insurance Department, 420 S.W. 9th, Topeka, Kansas, to consider the adoption of proposed changes in existing rules and regulations.

The 60-day notice of the public hearing shall constitute a public comment period for purpose of receiving written public comments on the proposed rules and regulations. All interested parties may submit written comments prior to the hearing to Deletria Nash, Kansas Insurance Department, 420 S.W. 9th, Topeka, Kansas, 66612-1678, via facsimile at 785-291-3673, or via email at dnash@ksinsurance.org. All interested parties will be given a reasonable opportunity to present their views orally on the adoption of the proposed regulation during the hearing.

A summary of the regulations and their economic impact follows.

K.A.R. 40-2-14a. Life insurance and annuities; recommendation standards. This proposed regulation provides the criteria for insurers and agents recommending the purchase or surrender of any variable product to consumers. It also provides for the type of information insurers and agents must obtain prior to recommending these products.

The Kansas Insurance Department is proposing to adopt by reference its opinion and memorandum regarding annuity transactions dated June 8, 2005, which is based primarily on the current National Association of Insurance Commissioners’ Senior Protection in Annuity Transactions Model Regulation dated October, 2003. The previous regulation, in its entirety, is being replaced by our opinion and memorandum.

The economic impact on the companies and the Kansas Insurance Department is minimal because many companies currently have established criteria for themselves and their agents in this regards. There is little or no economic impact on other governmental agencies while the economic impact on consumers is positive in that consumers who purchase these products will have products that are suitable for their needs.

K.A.R. 40-2-14b. This regulation provides the requirement for a compliance program as it pertains to the sale of variable products to consumers. It also puts insurers on notice that the failure to comply with this regulation constitutes a violation of Kansas law and sets out the requirement for companies to maintain records of relevant information pertaining to each transaction.

The economic impact this proposed revocation will have on the companies is positive because companies will have standards to follow in Kansas that are substantially similar to those required by other states. There is minimal impact on the Kansas Insurance Department, other governmental agencies, and consumers.

Any individual with a disability may request accommodation in order to participate in the public hearing and may request the proposed regulations and economic impact statements in an accessible format. Requests for accommodation to participate in the hearing should be made at least 5 working days in advance by contacting Deletria Nash at (785) 296-4140 or via email at dnash@ksinsurance.org. Any individual desiring a copy of this regulation and the policy and procedure that is being adopted by reference, if applicable, may obtain a copy from our website, www.ksinsurance.org, under the Legal Issues link or by contacting Deletria Nash by phone at (785) 296-4140 or via email at dnash@ksinsurance.org. The charge for copies is fifty cents per page.