| 1 | 1 | | Session of 2025 |
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| 2 | 2 | | HOUSE BILL No. 2351 |
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| 3 | 3 | | By Committee on Judiciary |
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| 4 | 4 | | Requested by Joe Molina on behalf of the Kansas Bar Association |
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| 5 | 5 | | 2-7 |
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| 6 | 6 | | AN ACT concerning arbitration; relating to contracts of insurance; making |
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| 7 | 7 | | certain agreements to appraise or arbitrate in contracts of insurance |
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| 8 | 8 | | invalid and creating exceptions therefor; amending K.S.A. 5-428 and |
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| 9 | 9 | | repealing the existing section. |
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| 10 | 10 | | Be it enacted by the Legislature of the State of Kansas: |
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| 11 | 11 | | Section 1. K.S.A. 5-428 is hereby amended to read as follows: 5-428. |
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| 12 | 12 | | (a) (1) An agreement contained in a record to submit to arbitration any |
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| 13 | 13 | | existing or subsequent controversy arising between the parties to the |
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| 14 | 14 | | agreement is valid, enforceable and irrevocable, except upon a ground that |
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| 15 | 15 | | exists at law or in equity for the revocation of a contract, or as provided in |
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| 16 | 16 | | paragraph (2). |
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| 17 | 17 | | (2) An agreement contained in a contract of insurance entered into or |
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| 18 | 18 | | renewed after July, 1, 2025, to submit to appraisal or arbitration any |
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| 19 | 19 | | existing or subsequent controversy arising between the parties to the |
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| 20 | 20 | | agreement, except for those contracts between insurance companies, |
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| 21 | 21 | | including reinsurance contracts, shall not be valid, enforceable or |
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| 22 | 22 | | irrevocable, but shall be regarded as an offer by the insurance company to |
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| 23 | 23 | | enter into binding or nonbinding arbitration. |
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| 24 | 24 | | (b) The court shall decide whether an agreement to arbitrate exists or |
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| 25 | 25 | | a controversy is subject to an agreement to arbitrate. |
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| 26 | 26 | | (c) An arbitrator shall decide whether a condition precedent to |
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| 27 | 27 | | arbitrability has been fulfilled and whether a contract containing a valid |
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| 28 | 28 | | agreement to arbitrate is enforceable. |
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| 29 | 29 | | (d) If a party to a judicial proceeding challenges the existence of, or |
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| 30 | 30 | | claims that a controversy is not subject to, an agreement to arbitrate, the |
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| 31 | 31 | | arbitration proceeding may continue, pending final resolution of the issue |
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| 32 | 32 | | by the court, unless the court otherwise orders. |
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| 33 | 33 | | Sec. 2. K.S.A. 5-428 is hereby repealed. |
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| 34 | 34 | | Sec. 3. This act shall take effect and be in force from and after its |
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| 35 | 35 | | publication in the statute book. |
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