Session of 2025
SENATE BILL No. 240
By Committee on Judiciary
2-6
AN ACT concerning fraudulent insurance acts; establishing procedures for
a civil action instituted by the commissioner of insurance and
authorizing civil penalties, restitution and other relief; providing that
expunged criminal records will be disclosed in any application for
licensure as an insurance producer or public adjuster if the arrest,
conviction or diversion is for a fraudulent insurance act; including
automobile assigned claims plans in provisions related to fraudulent
insurance acts; amending K.S.A. 21-6614, 40-2,118 and 40-2,119 and
repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) If the commissioner believes that a person has
committed a fraudulent insurance act, the commissioner may bring a civil
action in the district court of Shawnee county or in the district court of any
county in which an alleged fraudulent insurance act occurred.
(b) In an action brought pursuant to this section, the burden of proof
shall be on the commissioner to prove by a preponderance of the evidence
that the person committed a fraudulent insurance act.
(c) In an action pursuant to this section, if the court finds that the
person committed a fraudulent insurance act, the court may:
(1) Impose a civil penalty of up to $10,000 for each fraudulent
insurance act, which shall be paid into the insurance department service
regulation fund;
(2) order the person who engaged in the fraudulent insurance act to
pay restitution to the insurer or automobile assigned claims plan to the
extent of such insurer's or plan's actual pecuniary harm;
(3) order payment of reasonable expenses and investigation fees
incurred by the department of insurance as a result of the fraudulent
insurance act or acts, which shall be paid into the department of insurance
service regulation fund; and
(4) order such other relief as the court considers appropriate.
(d) An aggrieved insurer or automobile assigned claims plan shall not
be joined as a party pursuant to K.S.A 60-219 or 60-220, and amendments
thereto, in any action brought pursuant to this section.
(e) The defendant and the commissioner shall be permitted to present
the testimony of witnesses through a two-way electronic audio-video
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36 SB 240 2
communication device in actions brought pursuant to this section.
(f) In an action pursuant to this section, a person shall not be excused
from testifying, producing a record or other evidence or obeying a
subpoena on the ground that the required testimony, record or other
evidence, directly or indirectly, may tend to incriminate the individual or
subject the person to a criminal fine, penalty or forfeiture. If the person
refuses to testify, produce a record or other evidence or obey a subpoena
based on the person's privilege against self-incrimination, the court may
compel the testimony, the production of the record or other evidence or
compliance with the subpoena. The testimony, record or other evidence
compelled under such an order shall not be used, directly or indirectly,
against the person in a criminal case, except in a prosecution for perjury or
contempt or otherwise failing to comply with the court's order.
(g) As used in this section:
(1) "Commissioner" means the commissioner of insurance; and
(2) "fraudulent insurance act" means the same as defined in K.S.A.
40-2,118, and amendments thereto.
Sec. 2. K.S.A. 21-6614 is hereby amended to read as follows: 21-
6614. (a) (1) Except as provided in subsections (b), (c), (d), (e) and (f), any
person convicted in this state of a traffic infraction, cigarette or tobacco
infraction, misdemeanor or a class D or E felony, or for crimes committed
on or after July 1, 1993, any nongrid felony or felony ranked in severity
levels 6 through 10 of the nondrug grid, or for crimes committed on or
after July 1, 1993, but prior to July 1, 2012, any felony ranked in severity
level 4 of the drug grid, or for crimes committed on or after July 1, 2012,
any felony ranked in severity level 5 of the drug grid may petition the
convicting court for the expungement of such conviction or related arrest
records if three or more years have elapsed since the person: (A) Satisfied
the sentence imposed; or (B) was discharged from probation, a community
correctional services program, parole, postrelease supervision, conditional
release or a suspended sentence.
(2) Except as provided in subsections (b), (c), (d), (e) and (f), any
person who has fulfilled the terms of a diversion agreement may petition
the district court for the expungement of such diversion agreement and
related arrest records if three or more years have elapsed since the terms of
the diversion agreement were fulfilled.
(3) Notwithstanding the provisions of subsection (a)(1), and except as
provided in subsections (b), (c), (d), (e) and (f), any person who has
completed the requirements of a specialty court program established
pursuant to K.S.A. 20-173, and amendments thereto, may petition the
district court for the expungement of the conviction and related arrest
records. The court may waive all or part of the docket fee imposed for
filing a petition pursuant to this subsection.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 240 3
(b) Any person convicted of prostitution, as defined in K.S.A. 21-
3512, prior to its repeal, convicted of a violation of K.S.A. 21-6419, and
amendments thereto, or who entered into a diversion agreement in lieu of
further criminal proceedings for such violation, may petition the
convicting court for the expungement of such conviction or diversion
agreement and related arrest records if:
(1) One or more years have elapsed since the person satisfied the
sentence imposed or the terms of a diversion agreement or was discharged
from probation, a community correctional services program, parole,
postrelease supervision, conditional release or a suspended sentence; and
(2) such person can prove they were acting under coercion caused by
the act of another. For purposes of this subsection, "coercion" means:
Threats of harm or physical restraint against any person; a scheme, plan or
pattern intended to cause a person to believe that failure to perform an act
would result in bodily harm or physical restraint against any person; or the
abuse or threatened abuse of the legal process.
(c) Except as provided in subsections (e) and (f), no person may
petition for expungement until five or more years have elapsed since the
person satisfied the sentence imposed or the terms of a diversion
agreement or was discharged from probation, a community correctional
services program, parole, postrelease supervision, conditional release or a
suspended sentence, if such person was convicted of a class A, B or C
felony, or for crimes committed on or after July 1, 1993, if convicted of an
off-grid felony or any felony ranked in severity levels 1 through 5 of the
nondrug grid, or for crimes committed on or after July 1, 1993, but prior to
July 1, 2012, any felony ranked in severity levels 1 through 3 of the drug
grid, or for crimes committed on or after July 1, 2012, any felony ranked
in severity levels 1 through 4 of the drug grid, or:
(1) Vehicular homicide, as defined in K.S.A. 21-3405, prior to its
repeal, or K.S.A. 21-5406, and amendments thereto, or as prohibited by
any law of another state that is in substantial conformity with that statute;
(2) driving while the privilege to operate a motor vehicle on the
public highways of this state has been canceled, suspended or revoked, as
prohibited by K.S.A. 8-262, and amendments thereto, or as prohibited by
any law of another state that is in substantial conformity with that statute;
(3) perjury resulting from a violation of K.S.A. 8-261a, and
amendments thereto, or resulting from the violation of a law of another
state that is in substantial conformity with that statute;
(4) violating the provisions of K.S.A. 8-142 Fifth, and amendments
thereto, relating to fraudulent applications or violating the provisions of a
law of another state that is in substantial conformity with that statute;
(5) any crime punishable as a felony wherein a motor vehicle was
used in the perpetration of such crime;
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 240 4
(6) failing to stop at the scene of an accident and perform the duties
required by K.S.A. 8-1603, prior to its repeal, or K.S.A. 8-1602 or 8-1604,
and amendments thereto, or required by a law of another state that is in
substantial conformity with those statutes;
(7) violating the provisions of K.S.A. 40-3104, and amendments
thereto, relating to motor vehicle liability insurance coverage; or
(8) a violation of K.S.A. 21-3405b, prior to its repeal.
(d) (1) No person may petition for expungement until five or more
years have elapsed since the person satisfied the sentence imposed or the
terms of a diversion agreement or was discharged from probation, a
community correctional services program, parole, postrelease supervision,
conditional release or a suspended sentence, if such person was convicted
of a first violation of K.S.A. 8-1567, and amendments thereto, including
any diversion for such violation.
(2) No person may petition for expungement until 10 or more years
have elapsed since the person satisfied the sentence imposed or was
discharged from probation, a community correctional services program,
parole, postrelease supervision, conditional release or a suspended
sentence, if such person was convicted of a second or subsequent violation
of K.S.A. 8-1567, and amendments thereto.
(3) Except as provided further, the provisions of this subsection shall
apply to all violations committed on or after July 1, 2006. The provisions
of subsection (d)(2) shall not apply to violations committed on or after
July 1, 2014, but prior to July 1, 2015.
(e) There shall be no expungement of convictions for the following
offenses or of convictions for an attempt to commit any of the following
offenses:
(1) Rape, as defined in K.S.A. 21-3502, prior to its repeal, or K.S.A.
21-5503, and amendments thereto;
(2) indecent liberties with a child or aggravated indecent liberties
with a child, as defined in K.S.A. 21-3503 or 21-3504, prior to their repeal,
or K.S.A. 21-5506, and amendments thereto;
(3) criminal sodomy, as defined in K.S.A. 21-3505(a)(2) or (a)(3),
prior to its repeal, or K.S.A. 21-5504(a)(3) or (a)(4), and amendments
thereto;
(4) aggravated criminal sodomy, as defined in K.S.A. 21-3506, prior
to its repeal, or K.S.A. 21-5504, and amendments thereto;
(5) indecent solicitation of a child or aggravated indecent solicitation
of a child, as defined in K.S.A. 21-3510 or 21-3511, prior to their repeal,
or K.S.A. 21-5508, and amendments thereto;
(6) sexual exploitation of a child, as defined in K.S.A. 21-3516, prior
to its repeal, or K.S.A. 21-5510, and amendments thereto;
(7) internet trading in child pornography or aggravated internet
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 240 5
trading in child pornography, as defined in K.S.A. 21-5514, and
amendments thereto;
(8) aggravated incest, as defined in K.S.A. 21-3603, prior to its
repeal, or K.S.A. 21-5604, and amendments thereto;
(9) endangering a child or aggravated endangering a child, as defined
in K.S.A. 21-3608 or 21-3608a, prior to their repeal, or K.S.A. 21-5601,
and amendments thereto;
(10) abuse of a child, as defined in K.S.A. 21-3609, prior to its repeal,
or K.S.A. 21-5602, and amendments thereto;
(11) capital murder, as defined in K.S.A. 21-3439, prior to its repeal,
or K.S.A. 21-5401, and amendments thereto;
(12) murder in the first degree, as defined in K.S.A. 21-3401, prior to
its repeal, or K.S.A. 21-5402, and amendments thereto;
(13) murder in the second degree, as defined in K.S.A. 21-3402, prior
to its repeal, or K.S.A. 21-5403, and amendments thereto;
(14) voluntary manslaughter, as defined in K.S.A. 21-3403, prior to
its repeal, or K.S.A. 21-5404, and amendments thereto;
(15) involuntary manslaughter, as defined in K.S.A. 21-3404, prior to
its repeal, or K.S.A. 21-5405, and amendments thereto;
(16) sexual battery, as defined in K.S.A. 21-3517, prior to its repeal,
or K.S.A. 21-5505, and amendments thereto, when the victim was less
than 18 years of age at the time the crime was committed;
(17) aggravated sexual battery, as defined in K.S.A. 21-3518, prior to
its repeal, or K.S.A. 21-5505, and amendments thereto;
(18) a violation of K.S.A. 8-2,144, and amendments thereto,
including any diversion for such violation; or
(19) any conviction for any offense in effect at any time prior to July
1, 2011, that is comparable to any offense as provided in this subsection.
(f) Except as provided in K.S.A. 22-4908, and amendments thereto,
for any offender who is required to register as provided in the Kansas
offender registration act, K.S.A. 22-4901 et seq., and amendments thereto,
there shall be no expungement of any conviction or any part of the
offender's criminal record while the offender is required to register as
provided in the Kansas offender registration act.
(g) (1) When a petition for expungement is filed, the court shall set a
date for a hearing of such petition and shall cause notice of such hearing to
be given to the prosecutor and the arresting law enforcement agency. The
petition shall state the:
(A) Defendant's full name;
(B) full name of the defendant at the time of arrest, conviction or
diversion, if different than the defendant's current name;
(C) defendant's sex, race and date of birth;
(D) crime for which the defendant was arrested, convicted or
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 240 6
diverted;
(E) date of the defendant's arrest, conviction or diversion; and
(F) identity of the convicting court, arresting law enforcement
authority or diverting authority.
(2) Except as otherwise provided by law, a petition for expungement
shall be accompanied by a docket fee in the amount of $176. On and after
July 1, 2019, through June 30, 2025, the supreme court may impose a
charge, not to exceed $19 per case, to fund the costs of non-judicial
personnel. The charge established in this section shall be the only fee
collected or moneys in the nature of a fee collected for the case. Such
charge shall only be established by an act of the legislature and no other
authority is established by law or otherwise to collect a fee.
(3) All petitions for expungement shall be docketed in the original
criminal action. Any person who may have relevant information about the
petitioner may testify at the hearing. The court may inquire into the
background of the petitioner and shall have access to any reports or
records relating to the petitioner that are on file with the secretary of
corrections or the prisoner review board.
(h) At the hearing on the petition, the court shall order the petitioner's
arrest record, conviction or diversion expunged if the court finds that:
(1) (A) The petitioner has not been convicted of a felony in the past
two years and no proceeding involving any such crime is presently
pending or being instituted against the petitioner if the petition is filed
under subsection (a)(1) or (a)(2); or
(B) no proceeding involving a felony is presently pending or being
instituted against the petitioner if the petition is filed under subsection (a)
(3);
(2) the circumstances and behavior of the petitioner warrant the
expungement;
(3) the expungement is consistent with the public welfare; and
(4) with respect to petitions seeking expungement of a felony
conviction, possession of a firearm by the petitioner is not likely to pose a
threat to the safety of the public.
(i) When the court has ordered an arrest record, conviction or
diversion expunged, the order of expungement shall state the information
required to be contained in the petition. The clerk of the court shall send a
certified copy of the order of expungement to the Kansas bureau of
investigation that shall notify the federal bureau of investigation, the
secretary of corrections and any other criminal justice agency that may
have a record of the arrest, conviction or diversion. If the case was
appealed from municipal court, the clerk of the district court shall send a
certified copy of the order of expungement to the municipal court. The
municipal court shall order the case expunged once the certified copy of
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 240 7
the order of expungement is received. After the order of expungement is
entered, the petitioner shall be treated as not having been arrested,
convicted or diverted of the crime, except that:
(1) Upon conviction for any subsequent crime, the conviction that
was expunged may be considered as a prior conviction in determining the
sentence to be imposed;
(2) the petitioner shall disclose that the arrest, conviction or diversion
occurred if asked about previous arrests, convictions or diversions:
(A) In any application for licensure as a private detective, private
detective agency, certification as a firearms trainer pursuant to K.S.A. 75-
7b21, and amendments thereto, or employment as a detective with a
private detective agency, as defined by K.S.A. 75-7b01, and amendments
thereto; as security personnel with a private patrol operator, as defined by
K.S.A. 75-7b01, and amendments thereto; or with an institution, as defined
in K.S.A. 76-12a01, and amendments thereto, of the Kansas department
for aging and disability services;
(B) in any application for admission, or for an order of reinstatement,
to the practice of law in this state;
(C) to aid in determining the petitioner's qualifications for
employment with the Kansas lottery or for work in sensitive areas within
the Kansas lottery as deemed appropriate by the executive director of the
Kansas lottery;
(D) to aid in determining the petitioner's qualifications for executive
director of the Kansas racing and gaming commission, for employment
with the commission or for work in sensitive areas in parimutuel racing as
deemed appropriate by the executive director of the commission, or to aid
in determining qualifications for licensure or renewal of licensure by the
commission;
(E) to aid in determining the petitioner's qualifications for the
following under the Kansas expanded lottery act: (i) Lottery gaming
facility manager or prospective manager, racetrack gaming facility
manager or prospective manager, licensee or certificate holder; or (ii) an
officer, director, employee, owner, agent or contractor thereof;
(F) upon application for a commercial driver's license under K.S.A.
8-2,125 through 8-2,142, and amendments thereto;
(G) to aid in determining the petitioner's qualifications to be an
employee of the state gaming agency;
(H) to aid in determining the petitioner's qualifications to be an
employee of a tribal gaming commission or to hold a license issued
pursuant to a tribal-state gaming compact;
(I) in any application for registration as a broker-dealer, agent,
investment adviser or investment adviser representative all as defined in
K.S.A. 17-12a102, and amendments thereto;
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 240 8
(J) in any application for employment as a law enforcement officer as
defined in K.S.A. 22-2202 or 74-5602, and amendments thereto; or
(K) to aid in determining the petitioner's qualifications for a license to
act as a bail enforcement agent pursuant to K.S.A. 75-7e01 through 75-
7e09, and amendments thereto, and K.S.A. 2024 Supp. 50-6,141, and
amendments thereto; or
(L) in any application for licensure as an insurance producer or
public adjuster, as defined in K.S.A. 40-4901 and 40-5501, and
amendments thereto, and the arrest, conviction or diversion is for one or
more instances of a fraudulent insurance act, as defined in K.S.A. 40-
2,118, and amendments thereto;
(3) the court, in the order of expungement, may specify other
circumstances under which the conviction is to be disclosed;
(4) the conviction may be disclosed in a subsequent prosecution for
an offense that requires as an element of such offense a prior conviction of
the type expunged; and
(5) upon commitment to the custody of the secretary of corrections,
any previously expunged record in the possession of the secretary of
corrections may be reinstated and the expungement disregarded, and the
record continued for the purpose of the new commitment.
(j) Whenever a person is convicted of a crime, pleads guilty and pays
a fine for a crime, is placed on parole, postrelease supervision or
probation, is assigned to a community correctional services program, is
granted a suspended sentence or is released on conditional release, the
person shall be informed of the ability to expunge the arrest records or
conviction. Whenever a person enters into a diversion agreement, the
person shall be informed of the ability to expunge the diversion.
(k) (1) Subject to the disclosures required pursuant to subsection (i),
in any application for employment, license or other civil right or privilege,
or any appearance as a witness, a person whose arrest records, conviction
or diversion of a crime has been expunged under this statute may state that
such person has never been arrested, convicted or diverted of such crime.
(2) A person whose arrest record, conviction or diversion of a crime
that resulted in such person being prohibited by state or federal law from
possessing a firearm has been expunged under this statute shall be deemed
to have had such person's right to keep and bear arms fully restored. This
restoration of rights shall include, but not be limited to, the right to use,
transport, receive, purchase, transfer and possess firearms. The provisions
of this paragraph shall apply to all orders of expungement, including any
orders issued prior to July 1, 2021.
(l) Whenever the record of any arrest, conviction or diversion has
been expunged under the provisions of this section or under the provisions
of any other existing or former statute, the custodian of the records of
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 240 9
arrest, conviction, diversion and incarceration relating to that crime shall
not disclose the existence of such records, except when requested by:
(1) The person whose record was expunged;
(2) a private detective agency or a private patrol operator, and the
request is accompanied by a statement that the request is being made in
conjunction with an application for employment with such agency or
operator by the person whose record has been expunged;
(3) a court, upon a showing of a subsequent conviction of the person
whose record has been expunged;
(4) the secretary for aging and disability services, or a designee of the
secretary, for the purpose of obtaining information relating to employment
in an institution, as defined in K.S.A. 76-12a01, and amendments thereto,
of the Kansas department for aging and disability services of any person
whose record has been expunged;
(5) a person entitled to such information pursuant to the terms of the
expungement order;
(6) a prosecutor, and such request is accompanied by a statement that
the request is being made in conjunction with a prosecution of an offense
that requires a prior conviction as one of the elements of such offense;
(7) the supreme court, the clerk or disciplinary administrator thereof,
the state board for admission of attorneys or the state board for discipline
of attorneys, and the request is accompanied by a statement that the
request is being made in conjunction with an application for admission, or
for an order of reinstatement, to the practice of law in this state by the
person whose record has been expunged;
(8) the Kansas lottery, and the request is accompanied by a statement
that the request is being made to aid in determining qualifications for
employment with the Kansas lottery or for work in sensitive areas within
the Kansas lottery as deemed appropriate by the executive director of the
Kansas lottery;
(9) the governor or the Kansas racing and gaming commission, or a
designee of the commission, and the request is accompanied by a
statement that the request is being made to aid in determining
qualifications for executive director of the commission, for employment
with the commission, for work in sensitive areas in parimutuel racing as
deemed appropriate by the executive director of the commission or for
licensure, renewal of licensure or continued licensure by the commission;
(10) the Kansas racing and gaming commission, or a designee of the
commission, and the request is accompanied by a statement that the
request is being made to aid in determining qualifications of the following
under the Kansas expanded lottery act: (A) Lottery gaming facility
managers and prospective managers, racetrack gaming facility managers
and prospective managers, licensees and certificate holders; and (B) their
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 240 10
officers, directors, employees, owners, agents and contractors;
(11) the Kansas sentencing commission;
(12) the state gaming agency, and the request is accompanied by a
statement that the request is being made to aid in determining
qualifications: (A) To be an employee of the state gaming agency; or (B)
to be an employee of a tribal gaming commission or to hold a license
issued pursuant to a tribal-gaming compact;
(13) the Kansas securities commissioner or a designee of the
commissioner, and the request is accompanied by a statement that the
request is being made in conjunction with an application for registration as
a broker-dealer, agent, investment adviser or investment adviser
representative by such agency and the application was submitted by the
person whose record has been expunged;
(14) the Kansas commission on peace officers' standards and training
and the request is accompanied by a statement that the request is being
made to aid in determining certification eligibility as a law enforcement
officer pursuant to K.S.A. 74-5601 et seq., and amendments thereto;
(15) a law enforcement agency and the request is accompanied by a
statement that the request is being made to aid in determining eligibility
for employment as a law enforcement officer as defined by K.S.A. 22-
2202, and amendments thereto;
(16) (A) the attorney general and the request is accompanied by a
statement that the request is being made to aid in determining
qualifications for a license to act as a bail enforcement agent pursuant to
K.S.A. 75-7e01 through 75-7e09, and amendments thereto, and K.S.A.
2024 Supp. 50-6,141, and amendments thereto; or
(B) the attorney general for any other purpose authorized by law,
except that an expungement record shall not be the basis for denial of a
license to carry a concealed handgun under the personal and family
protection act; or
(17) the Kansas bureau of investigation, for the purpose of
completing a person's criminal history record information within the
central repository, in accordance with K.S.A. 22-4701 et seq., and
amendments thereto; or
(18) the Kansas insurance commissioner or a designee of the
commissioner, and the request is accompanied by a statement that the
request is being made in conjunction with an application for licensure as
an insurance producer or public adjuster, as defined in K.S.A 40-4901 and
40-5501, and amendments thereto, and the arrest, conviction or diversion
is for one or more instances of a fraudulent insurance act, as defined in
K.S.A. 40-2,118, and amendments thereto.
(m) (1) The provisions of subsection (l)(17) shall apply to records
created prior to, on and after July 1, 2011.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 240 11
(2) Upon the issuance of an order of expungement that resulted in the
restoration of a person's right to keep and bear arms, the Kansas bureau of
investigation shall report to the federal bureau of investigation that such
expunged record be withdrawn from the national instant criminal
background check system. The Kansas bureau of investigation shall
include such order of expungement in the person's criminal history record
for purposes of documenting the restoration of such person's right to keep
and bear arms.
Sec. 3. K.S.A. 40-2,118 is hereby amended to read as follows: 40-
2,118. (a) For purposes of this act, a "fraudulent insurance act" means an
act committed by any person who, knowingly and with intent to defraud,
presents, causes to be presented or prepares with knowledge or belief that
it will be presented to or by an insurer, purported insurer, broker or any
agent thereof, or the Kansas automobile assigned claims plan, any written,
electronic, electronic impulse, facsimile, magnetic, oral, or telephonic
communication or statement as part of, or in support of, an application for
the issuance of, or the rating of an insurance policy for personal or
commercial insurance, or a claim for payment or other benefit pursuant to
an insurance policy for commercial or personal insurance or automobile
assigned claims plan that such person knows to contain materially false
information concerning any fact material thereto; or conceals, for the
purpose of misleading, information concerning any fact material thereto.
(b) An insurer or automobile assigned claims plan that has
knowledge or a good faith belief that a fraudulent insurance act is being or
has been committed shall provide to the commissioner, on a form
prescribed by the commissioner, any and all information and such
additional information relating to such fraudulent insurance act as the
commissioner may require.
(c) Any other person who has knowledge or a good faith belief that a
fraudulent insurance act is being or has been committed may provide to
the commissioner, on a form prescribed by the commissioner, any and all
information and such additional information relating to such fraudulent
insurance act as the commissioner may request.
(d) (1) Each insurer and automobile assigned claims plan shall have
antifraud initiatives reasonably calculated to detect fraudulent insurance
acts. Antifraud initiatives may include fraud investigators, who may be
insurer employees or independent contractors and an antifraud plan
submitted to the commissioner not later than July 1, 2007. Each insurer
and automobile assigned claims plan that submits an antifraud plan shall
notify the commissioner of any material change in the information
contained in the antifraud plan within 30 days after such change occurs.
Such insurer or automobile assigned claims plan shall submit to the
commissioner in writing the amended antifraud plan.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 240 12
(2) Any antifraud plan, or any amendment thereof, submitted to the
commissioner for informational purposes only shall be confidential and
not be a public record and shall not be subject to discovery or subpoena in
a civil action unless following an in camera review, the court determines
that the antifraud plan is relevant and otherwise admissible under the rules
of evidence set forth in article 4 of chapter 60 of the Kansas Statutes
Annotated, and amendments thereto.
(e) Except as otherwise specifically provided in K.S.A. 44-5,125, and
amendments thereto, and K.S.A. 21-5812(a), and amendments thereto, a
fraudulent insurance act shall constitute a severity level 6, nonperson
felony if the amount involved is $25,000 or more; a severity level 7,
nonperson felony if the amount involved is at least $5,000 but less than
$25,000; a severity level 8, nonperson felony if the amount involved is at
least $1,000 but less than $5,000; and a class C nonperson misdemeanor if
the amount involved is less than $1,000. Any combination of fraudulent
acts as defined in subsection (a) that occur in a period of six consecutive
months and that involve $25,000 or more shall have a presumptive
sentence of imprisonment regardless of its location on the sentencing grid
block.
(f) In addition to any other penalty, a person who violates this statute
shall be ordered to make restitution to the insurer or any other person or
entity for any financial loss sustained as a result of such violation. An
insurer shall not be required to provide coverage or pay any claim
involving a fraudulent insurance act.
(g) For the purposes of this section:
(1) "Amount involved" means the greater of: (A) The actual
pecuniary harm resulting from the fraudulent insurance act; (B) the
pecuniary harm that was intended to result from the fraudulent insurance
act; or (C) the intended pecuniary harm that would have been impossible
or unlikely to occur, such as in a government sting operation or a fraud in
which the claim for payment or other benefit pursuant to an insurance
policy exceeded the allowed value. The aggregate dollar amount of the
fraudulent claims submitted to the insurance company shall constitute
prima facie evidence of the amount of intended loss and is sufficient to
establish the aggregate amount involved in the fraudulent insurance act, if
not rebutted; and
(2) "pecuniary harm" means harm that is monetary or that otherwise
is readily measurable in money, and does not include emotional distress,
harm to reputation or other non-economic harm.
(h) This act shall apply to all insurance applications, ratings, claims
and other benefits made pursuant to any insurance policy or automobile
assigned claims plan.
Sec. 4. K.S.A. 40-2,119 is hereby amended to read as follows: 40-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 240 13
2,119. In the absence of fraud, bad faith or malice, no person or, insurer or
automobile assigned claims plan shall be subject to civil liability for libel,
slander or any other relevant cause of action:
(a) For filing reports or furnishing other information required by
chapter 40 of the Kansas Statutes Annotated, and amendments thereto, or
required by the commissioner under the authority granted in chapter 40 of
the Kansas Statutes Annotated, and amendments thereto;
(b) for any information relating to suspected fraudulent insurance acts
furnished to or received from law enforcement officials, their agents and
employees;
(c) for any information relating to suspected fraudulent insurance acts
furnished to or received from other persons subject to the provisions of
chapter 40 of the Kansas Statutes Annotated, and amendments thereto;
(d) for any such information furnished in reports to the insurance
department, regulatory agencies of any other state, the national association
of insurance commissioners or any organization established to detect and
prevent fraudulent insurance acts, their agents, employees or designees; or
(e) for the publication of any report or bulletin related to the official
activities of the insurance department by the commissioner or any
employee of the insurance department. Nothing herein is intended to
abrogate or modify in any way any common law or statutory privilege or
immunity heretofore enjoyed by any person.
Sec. 5. K.S.A. 21-6614, 40-2,118 and 40-2,119 are hereby repealed.
Sec. 6. This act shall take effect and be in force from and after its
publication in the statute book.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25