K.S.A. » Chapter 40
Kansas Statutes Annotated

K.S.A. § 40-3402 (2026)

Professional liability insurance to be maintained by health care providers as condition of active licensure to render services in state, exception, limits of coverage; information to be furnished by insurer; termination of coverage, notice; contents of policies issued in state; duties of certain insurance companies; surcharge and information required of certain health care providers; occurrence form policy as alternative to required claims made policy for certain persons

✓ current as of May 2026
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40-3402. Professional liability insurance to be maintained by health care providers as condition of active licensure to render services in state, exception, limits of coverage; information to be furnished by insurer; termination of coverage, notice; contents of policies issued in state; duties of certain insurance companies; surcharge and information required of certain health care providers; occurrence form policy as alternative to required claims made policy for certain persons. (a) Prior to January 1, 2022, a policy of professional liability insurance approved by the commissioner and issued by an insurer duly authorized to transact business in this state in which the limit of the insurer's liability is not less than $200,000 per claim, subject to not less than a $600,000 annual aggregate for all claims made during the policy period, shall be maintained in effect by each resident healthcare provider as a condition of active licensure or other statutory authorization to render professional service as a healthcare provider in this state, unless such healthcare provider is a self-insurer. For all new policies and policies that renew on and after January 1, 2022, a policy of professional liability insurance approved by the commissioner and issued by an insurer duly authorized to transact business in this state in which the limit of the insurer's liability is not less than $500,000 per claim, subject to not less than a $1,500,000 annual aggregate for all claims made during the policy period, shall be maintained by each resident healthcare provider as a condition of active licensure or other statutory authorization to render professional service as a healthcare provider in this state, unless such healthcare provider is a self-insurer. This provision shall not apply to optometrists and pharmacists on and after July 1, 1991, to physical therapists on and after July 1, 1995, or to health maintenance organizations on and after July 1, 1997. Such policy shall provide as a minimum coverage for claims made during the term of the policy that were incurred during the term of such policy or during the prior term of a similar policy. Any insurer offering such policy of professional liability insurance to any healthcare provider may offer to such healthcare provider a policy as prescribed in this section with deductible options. Such deductible shall be within such policy limits.

(1) Each insurer providing basic coverage shall, within 30 days after the effective date of any policy issued in accordance with this subsection, notify the board of governors that such coverage is or will be in effect. Such notification shall be on a form approved by the board of governors and shall include information identifying the professional liability policy issued or to be issued, the name and address of all healthcare providers covered by the policy, the amount of the annual premium, the effective and expiration dates of the coverage and such other information as the board of governors shall require. A copy of the notice required by this subsection shall be furnished to the named insured.

(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 business days after the date coverage is terminated at the request of the named insured and shall include the name and address of the healthcare 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.

(3) Any professional liability insurance policy issued, delivered or in effect in this state on and after July 1, 1976, shall contain or be endorsed to provide basic coverage as required by subsection (a). Notwithstanding any omitted or inconsistent language, any contract of professional liability insurance shall be construed to obligate the insurer to meet all the mandatory requirements and obligations of this act. The liability of an insurer for claims made prior to July 1, 1984, shall not exceed those limits of insurance provided by such policy prior to July 1, 1984.

(b) A nonresident healthcare provider shall not be licensed to actively render professional service as a healthcare provider in this state unless such healthcare provider maintains continuous coverage in effect as prescribed by subsection (a), except such coverage may be provided by a nonadmitted insurer who has filed the form required by subsection (b)(1). This provision shall not apply to optometrists and pharmacists on and after July 1, 1991, or to physical therapists on and after July 1, 1995.

(1) Every insurance company authorized to transact business in this state, that is authorized to issue professional liability insurance in any jurisdiction, shall file with the commissioner, as a condition of its continued transaction of business within this state, a form prescribed by the commissioner declaring that its professional liability insurance policies, wherever issued, shall be deemed to provide at least the insurance required by this subsection when the insured is rendering professional services as a nonresident healthcare provider in this state. Any nonadmitted insurer may file such a form.

(2) Every nonresident healthcare provider that is required to maintain basic coverage pursuant to this subsection shall pay the surcharge levied by the board of governors pursuant to K.S.A. 40-3404(a), and amendments thereto, directly to the board of governors and shall furnish to the board of governors the information required in subsection (a)(1).

(c) Every healthcare provider that is a self-insurer, the university of Kansas medical center for persons engaged in residency training, as described in K.S.A. 40-3401(r)(1), and amendments thereto, the employers of persons engaged in residency training, as described in K.S.A. 40-3401(r)(2), and amendments thereto, the private practice corporations or foundations and their full-time physician faculty employed by the university of Kansas medical center or a medical care facility or mental health center for self-insurers under K.S.A. 40-3414(e), and amendments thereto, shall pay the surcharge levied by the board of governors pursuant to K.S.A. 40-3404(a), and amendments thereto, directly to the board of governors and shall furnish to the board of governors the information required in subsections (a)(1) and (a)(2).

(d) In lieu of a claims made policy otherwise required under this section, a person engaged in residency training who is providing services as a healthcare provider but, while providing such services, is not covered by the self-insurance provisions of K.S.A. 40-3414(d), and amendments thereto, may obtain basic coverage under an occurrence form policy, if such policy provides professional liability insurance coverage and limits that are substantially the same as the professional liability insurance coverage and limits required by K.S.A. 40-3402(a), and amendments thereto. Where such occurrence form policy is in effect, the provisions of the healthcare provider insurance availability act referring to claims made policies shall be construed to mean occurrence form policies.

(e) In lieu of a claims made policy otherwise required under this section, a nonresident healthcare provider employed pursuant to a locum tenens contract to provide services in this state as a healthcare provider may obtain basic coverage under an occurrence form policy, if such policy provides professional liability insurance coverage and limits that are substantially the same as the professional liability insurance coverage and limits required by K.S.A. 40-3402, and amendments thereto. Where such occurrence form policy is in effect, the provisions of the healthcare provider insurance availability act referring to claims made policies shall be construed to mean occurrence form policies.

History: L. 1976, ch. 231, § 2; L. 1984, ch. 238, § 2; L. 1985, ch. 166, § 2; L. 1986, ch. 229, § 26; L. 1986, ch. 179, § 3; L. 1986 ch. 184, § 2; L. 1989, ch. 143, § 2; L. 1990, ch. 175, § 2; L. 1991, ch. 139, § 2; L. 1994, ch. 155, § 1; L. 1995, ch. 145, § 1; L. 1997, ch. 134, § 1; L. 2014, ch. 56, § 6; L. 2021, ch. 108, § 13; July 1.

Notes of Decisions
Cited in 22 cases, 1981–2016 · leading case: Marshall v. Kansas Med. Mut. Ins. Co., 73 P.3d 120 (Kan. 2003).
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Marshall v. Kansas Med. Mut. Ins. Co., 73 P.3d 120 (Kan. 2003). · cites it 15× “40-3401(a), which defines “basic coverage” as “a policy of professional liability insurance required to be maintained by each health care provider pursuant to the provisions of subsection (a) or (b) of K.S.A. 40-3402 and amendments thereto.” Thus, by definition, K.”
Missouri Med. Ins. v. Wong, 676 P.2d 113 (Kan. 1984). · cites it 32× “This form states, in substance, that MoMedico declares that its professional liability policies, wherever issued, shall be deemed to provide the insurance coverage required by K.S.A. 40-3402( a )(1), when the nonresident health care provider renders professional service as a…”
Kansas Malpractice Victims Coalition v. Bell, 757 P.2d 251 (Kan. 1988). · cites it 8× “K.S.A. 40-3402. Under K.S.A. 1987 Supp. 40-3401, "health care providers" is defined to include not only physicians but also persons engaged in certain medical training programs, hospitals, medical care facilities, optometrists, podiatrists, pharmacists, nurse anesthetists,…”
Bell v. Simon, 790 P.2d 925 (Kan. 1990). · cites it 15× “The court here also found that the Fund was not relieved of liability because the Fund’s coverage continues when basic coverage continues, and the basic coverage continued by operation of law due to the insurer’s failure to give a cancellation notice to the Commissioner (K.S.A.…”
Miller v. Johnson, 289 P.3d 1098 (Kan. 2012). · cites it 3× “See K.S.A. 40-3402 (mandatory coverage); K.S.”
Aves Ex Rel. Aves v. Shah, 906 P.2d 642 (Kan. 1995). · cites it 4× “At the time of the events that are the subject matter of this lawsuit, K.S.A. 40-3402 required a primary coverage of $200,000 per occurrence and not less than $600,000 annual aggregate for all claims.”
Bair v. Peck, 811 P.2d 1176 (Kan. 1991). · cites it 2× “2661 lowers the cost of insurance, thereby encouraging doctors to continue their practices, increasing the number of doctors available, and guaranteeing the availability of quality health care to seriously injured malpractice victims.”
Williamson v. Amrani, 152 P.3d 60 (Kan. 2007). · cites it 2× “Specifically, K.S.A. 40-3402(a) requires all health care *78 professionals who wish to practice within the state to carry mandatory malpractice liability insurance.”
Stephens v. Snyder Clinic Ass'n, 631 P.2d 222 (Kan. 1981). · cites it 2× “The medical "malpractice package" contained a number of elements, among which were: (1) The requirement that each health care provider maintain a policy of professional liability insurance with limits of $100,000 per occurrence and $300,000 per year (K.S.A. 1980 Supp. 40-3402);…”
Wilson v. Ramirez, 2 P.3d 778 (Kan. 2000). · cites it 10× “) Wilson argues that the KaMMCO policy does not conform to K.S.A. 40-3402(a) because the Ramirez policy limits coverage to $200,000 per claim.”
Geiger-Schorr v. Todd, 901 P.2d 515 (Kan. Ct. App. 1995). · cites it 5× “She argues that the trial court incorrectly interpreted K.S.A. 40-3402 and erred in holding that there was substantial compliance with the statute and there was no duty on the part of Todd or KaMMCO to.”
Sharples v. Roberts, 816 P.2d 390 (Kan. 1991). · cites it 2× “That fund coverage is provided for deceased health care providers when claims are made after the provider's death is supported by K.S.A. 1990 Supp. 40-3403(m). That statute requires that certain inactive health care providers must have complied with the mandatory insurance…”
Show all 22 citing cases →
— K.S.A. § 40-3402(a) — 11 cases
Marshall v. Kansas Med. Mut. Ins. Co., 73 P.3d 120 (Kan. 2003). “40-3401(a), which defines “basic coverage” as “a policy of professional liability insurance required to be maintained by each health care provider pursuant to the provisions of subsection (a) or (b) of K.S.A. 40-3402 and amendments thereto.” Thus, by definition, K.”
Missouri Med. Ins. v. Wong, 676 P.2d 113 (Kan. 1984). “This form states, in substance, that MoMedico declares that its professional liability policies, wherever issued, shall be deemed to provide the insurance coverage required by K.S.A. 40-3402( a )(1), when the nonresident health care provider renders professional service as a…”
Williamson v. Amrani, 152 P.3d 60 (Kan. 2007). “Specifically, K.S.A. 40-3402(a) requires all health care *78 professionals who wish to practice within the state to carry mandatory malpractice liability insurance.”
Wilson v. Ramirez, 2 P.3d 778 (Kan. 2000). “) Wilson argues that the KaMMCO policy does not conform to K.S.A. 40-3402(a) because the Ramirez policy limits coverage to $200,000 per claim.”
Miller v. Johnson, 289 P.3d 1098 (Kan. 2012). “See K.S.A. 40-3402 (mandatory coverage); K.S.”
— K.S.A. § 40-3402(a)(1) — 1 case
Missouri Med. Ins. v. Wong, 676 P.2d 113 (Kan. 1984). “This form states, in substance, that MoMedico declares that its professional liability policies, wherever issued, shall be deemed to provide the insurance coverage required by K.S.A. 40-3402( a )(1), when the nonresident health care provider renders professional service as a…”
— K.S.A. § 40-3402(a)(2) — 3 cases
Bell v. Simon, 790 P.2d 925 (Kan. 1990). “The court here also found that the Fund was not relieved of liability because the Fund’s coverage continues when basic coverage continues, and the basic coverage continued by operation of law due to the insurer’s failure to give a cancellation notice to the Commissioner (K.S.A.…”
Geiger-Schorr v. Todd, 901 P.2d 515 (Kan. Ct. App. 1995). “She argues that the trial court incorrectly interpreted K.S.A. 40-3402 and erred in holding that there was substantial compliance with the statute and there was no duty on the part of Todd or KaMMCO to.”
Missouri Med. Ins. v. Wong, 676 P.2d 113 (Kan. 1984). “This form states, in substance, that MoMedico declares that its professional liability policies, wherever issued, shall be deemed to provide the insurance coverage required by K.S.A. 40-3402( a )(1), when the nonresident health care provider renders professional service as a…”
— K.S.A. § 40-3402(a)(3) — 1 case
Bell v. Simon, 790 P.2d 925 (Kan. 1990). “The court here also found that the Fund was not relieved of liability because the Fund’s coverage continues when basic coverage continues, and the basic coverage continued by operation of law due to the insurer’s failure to give a cancellation notice to the Commissioner (K.S.A.…”
— K.S.A. § 40-3402(a)(l) — 2 cases
Missouri Med. Ins. v. Wong, 676 P.2d 113 (Kan. 1984). “This form states, in substance, that MoMedico declares that its professional liability policies, wherever issued, shall be deemed to provide the insurance coverage required by K.S.A. 40-3402( a )(1), when the nonresident health care provider renders professional service as a…”
Resolution Oversight Corp. v. Kansas Health Care Stabilization Fund, 175 P.3d 268 (Kan. Ct. App. 2008).
— K.S.A. § 40-3402(b) — 1 case
Bell v. Simon, 790 P.2d 925 (Kan. 1990). “The court here also found that the Fund was not relieved of liability because the Fund’s coverage continues when basic coverage continues, and the basic coverage continued by operation of law due to the insurer’s failure to give a cancellation notice to the Commissioner (K.S.A.…”
— K.S.A. § 40-3402(b)(1) — 1 case
Missouri Med. Ins. v. Wong, 676 P.2d 113 (Kan. 1984). “This form states, in substance, that MoMedico declares that its professional liability policies, wherever issued, shall be deemed to provide the insurance coverage required by K.S.A. 40-3402( a )(1), when the nonresident health care provider renders professional service as a…”
— K.S.A. § 40-3402(b)(l) — 2 cases
Missouri Med. Ins. v. Wong, 676 P.2d 113 (Kan. 1984). “This form states, in substance, that MoMedico declares that its professional liability policies, wherever issued, shall be deemed to provide the insurance coverage required by K.S.A. 40-3402( a )(1), when the nonresident health care provider renders professional service as a…”
Bell v. Simon, 790 P.2d 925 (Kan. 1990). “The court here also found that the Fund was not relieved of liability because the Fund’s coverage continues when basic coverage continues, and the basic coverage continued by operation of law due to the insurer’s failure to give a cancellation notice to the Commissioner (K.S.A.…”
— K.S.A. § 40-3402(c) — 1 case
Missouri Med. Ins. v. Wong, 676 P.2d 113 (Kan. 1984). “This form states, in substance, that MoMedico declares that its professional liability policies, wherever issued, shall be deemed to provide the insurance coverage required by K.S.A. 40-3402( a )(1), when the nonresident health care provider renders professional service as a…”
— K.S.A. § 40-3402(fe)(l) — 1 case
Missouri Med. Ins. v. Wong, 676 P.2d 113 (Kan. 1984). “This form states, in substance, that MoMedico declares that its professional liability policies, wherever issued, shall be deemed to provide the insurance coverage required by K.S.A. 40-3402( a )(1), when the nonresident health care provider renders professional service as a…”
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