Each controlled insurance program providing coverage for general liability or workers compensation, or both, shall meet the following requirements:

1. (a) Establish a method for the quarterly reporting of the participant's respective claims details and loss information to that participant;
2. (b) provide that cancellation of any or all of the coverage provided to a participant before completion of work on the applicable project shall require the owner or contractor who establishes a controlled insurance program to either replace the insurance or pay the subcontractor's cost to do so;
3. (c) not charge enrolled participants who are not the sponsoring participants a deductible in excess of $2,500 per occurrence or a per claim assessment by the sponsor;
4. (d) keep self-insured retentions fully funded or collateralized by the owner or contractor establishing the controlled insurance program, except that this subsection shall not apply to deductible programs;
5. (e) disclose specific requirements for safety or equipment before accepting bids from contractors and subcontractors on a construction project; and
6. (f) allow monetary fines for alleged safety violations to be assessed only by government agencies.

(Authorized by K.S.A. 40-103 and 2009 HB 2214, sec. 3; implementing 2009 HB 2214, sec. 3; effective Oct. 30, 2009.)