Prohibiting insurance companies from using environmental, social and governance criteria in the process of writing contracts of insurance, indemnity or suretyship, authorizing the attorney general or the county attorney or district attorney where a violation occurred to enforce such prohibition and providing a civil penalty for violations thereof.
Impact
If enacted, SB512 would significantly alter the operational landscape for insurance companies within the state. By mandating that ESG criteria not be considered in the contracting process, the bill could empower traditional underwriting strategies and lower potential costs associated with compliance to ESG-focused criteria. However, this could also limit the industry's ability to adapt to changing social norms and community expectations regarding responsible investment and sustainability practices.
Summary
Senate Bill 512 addresses the regulatory framework surrounding the insurance industry by prohibiting insurance companies from incorporating environmental, social, and governance (ESG) criteria in their contracts, including those related to insurance, indemnity, and suretyship. The bill aims to limit the influence of ESG factors in underwriting decisions, reflecting a movement towards deregulation and a desire to maintain traditional underwriting practices based purely on business and economic considerations.
Contention
The bill has sparked considerable debate among legislators and stakeholders. Supporters argue that the bill protects the insurance sector from being influenced by potentially politicized ESG concerns, allowing for a more straightforward and economically driven approach to insurance underwriting. Conversely, opponents contend that this legislation would undermine the capacity of insurance companies to address significant societal challenges, such as climate change and social equity, thus potentially hampering innovative insurance solutions that align with evolving public interests.
Prohibiting lobbying for or by foreign adversaries; authorizing the attorney general to file civil lawsuits; providing for civil penalties for violations thereof.
Relating to the enforcement of certain election laws by district attorneys, criminal district attorneys, and county attorneys; providing a civil penalty.
Enacting the second amendment financial privacy act, prohibiting financial institutions from using a firearms code to engage in certain discriminatory conduct and surveilling, reporting or tracking the purchase of firearms and ammunition, authorizing the attorney general to investigate and enforce violations of such act and providing a civil penalty for violations thereof.
Prohibiting abortion procedures except when necessary to save the life of the pregnant woman and providing a private cause of action for civil enforcement of violations of such prohibition.
Enacting the Kansas public investments and contracts protection act concerning environmental, social and governance (ESG) criteria, prohibiting the state and political subdivisions from giving preferential treatment to or discriminating against companies based on such ESG criteria in procuring or letting contracts, requiring KPERS fiduciaries to act solely in the financial interest of the participants and beneficiaries of the system, indemnifying KPERS with respect to actions taken in compliance with such act, restricting state agencies from adopting ESG criteria or requiring any person or business to operate in accordance with such criteria and providing for enforcement of such act by the attorney general.