Kansas Ends Annual Producer Appointment Renewal Fees — What Carriers Should Know

The Kansas Department of Insurance has adopted a significant regulatory change impacting carrier appointment requirements. Beginning July 1, 2025, House Bill 2050 eliminates the annual producer appointment renewal fee for carriers operating in Kansas, reducing recurring compliance costs and simplifying long-term producer management. Producer appointments will stay active until they are terminated electronically by the company or the producer’s license goes inactive. This update, part of a broader fee-reduction effort led by the Office of the Insurance Commissioner, aims to streamline regulatory processes, lower the cost of doing business, and support a more efficient appointment system for carriers and compliance professionals. Kansas Insurance Department

Key Changes to Kansas Appointment Renewal Requirements

Effective July 1, 2025, the Kansas Department of Insurance implemented House Bill 2050, which eliminates the recurring producer appointment renewal fee that carriers were historically required to pay each year. Previously, carriers paid a fee (e.g., $2 for Kansas-domiciled and $5 for foreign-domiciled) per producer appointment submitted to the state via the National Insurance Producer Registry (NIPR). With the new law, these renewal fees no longer apply, meaning carriers will not incur ongoing charges simply to maintain active producer appointments in Kansas. Instead, appointments remain in place until the company chooses to terminate them or the producer’s license lapses or becomes inactive. Kansas Insurance Department

Why Kansas Is Reducing Appointment Fees

The elimination of the annual appointment renewal fee is part of a broader strategy to reduce regulatory costs for the insurance industry in Kansas. According to the Kansas Department of Insurance, this change is expected to reduce department revenues by an estimated $5.9 million, reflecting a policy priority of lowering the cost of doing business within the state’s insurance market. Commissioner Vicki Schmidt emphasized that reducing fees helps prevent unnecessary compliance costs from being passed on to consumers, while annual publication of adjusted statutory fees provides transparency for future planning. Kansas Insurance Department

How the New Rules Affect Carriers and Appointment Management

Under the revised law, carriers should adjust their internal appointment workflows to account for the removal of the annual fee. Rather than paying to renew appointments each year, carriers will now focus on active maintenance — ensuring records remain accurate and terminations are executed when appropriate. Appointments will automatically remain in force through Kansas’s NIPR system until the appointing entity submits a termination or the producer’s license status changes to inactive. It’s important for carriers to update internal tracking processes and document terminations promptly, as the absence of renewal invoices means there will be fewer routine reminders to review appointment lists. Kansas Insurance Department

Implications for Compliance and Operational Planning

For compliance teams and carrier operations, the removal of annual appointment renewal fees brings both benefits and responsibilities. Administrative burden and recurring costs are reduced, but carriers must still ensure that appointment records are accurate, up to date, and reflect active business relationships. Without the annual renewal prompt, regular audits of appointment data will be crucial to prevent unintended lapses, unnecessary appointments, or outdated records from remaining on file. Carriers also must remain compliant with other Kansas licensing rules and deadlines, including reporting requirements through NIPR for appointments and terminations. Kansas Insurance Department

Summary

Kansas’s elimination of annual producer appointment renewal fees represents a significant regulatory shift designed to lower compliance costs and streamline the appointment process for carriers and insurers. With appointments now remaining active until explicitly terminated, insurance organizations must revisit their appointment management practices to ensure accuracy and efficiency. This change supports long-term cost savings, reduces repetitive fee cycles, and emphasizes proactive license and appointment oversight in the Kansas insurance marketplace.