| 191 | | - | renewal of registration of a vehicle shall not be accepted, if the records |
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| 192 | | - | of the division show that after three attempts by the Kansas turnpike |
|---|
| 193 | | - | authority to contact the registered owner, including at least one |
|---|
| 194 | | - | registered letter, the registered owner of such vehicle has unpaid tolls |
|---|
| 195 | | - | and that the director of the Kansas turnpike authority or the director's |
|---|
| 196 | | - | designee has instructed the division to refuse to accept the registration |
|---|
| 197 | | - | or renewal of registration, pursuant to K.S.A. 68-2020a, and |
|---|
| 198 | | - | amendments thereto, unless the owner or registered owner makes |
|---|
| 199 | | - | payment to the county treasurer at the time of registration or renewal of |
|---|
| 200 | | - | registration. Of such moneys collected, 15% shall be retained by the |
|---|
| 201 | | - | county treasurer and the remainder shall be remitted to the Kansas |
|---|
| 202 | | - | turnpike authority. |
|---|
| 203 | | - | Sec. 12. K.S.A. 40-108 is hereby amended to read as follows: 40- |
|---|
| 204 | | - | 108. The commissioner of insurance shall make an annual report to the |
|---|
| 205 | | - | governor of the general conduct and condition of the insurance |
|---|
| 206 | | - | companies, including fraternal benefit societies, doing business in this |
|---|
| 207 | | - | state. The commissioner of insurance shall make an annual report of |
|---|
| 208 | | - | the general conduct and condition of the insurance companies, |
|---|
| 209 | | - | including fraternal benefit societies, doing business in this state and |
|---|
| 210 | | - | shall publish such report on the department's website. The |
|---|
| 211 | | - | commissioner of insurance shall keep and preserve in a permanent form |
|---|
| 212 | | - | a full record of the commissioner's proceedings, including a concise |
|---|
| 213 | | - | statement of the condition of each company reported, visited or |
|---|
| 214 | | - | examined by the commissioner. |
|---|
| 215 | | - | Sec. 13. K.S.A. 2024 Supp. 40-2,125 is hereby amended to read as |
|---|
| 216 | | - | follows: 40-2,125. (a) If the commissioner determines after notice and |
|---|
| 217 | | - | opportunity for a hearing that any person has engaged or is engaging in |
|---|
| 218 | | - | any act or practice constituting a violation of any provision of Kansas |
|---|
| 219 | | - | insurance statutes or any rule and regulation or order thereunder, the |
|---|
| 220 | | - | commissioner may, in the exercise of discretion, order any one or more |
|---|
| 221 | | - | of the following: |
|---|
| 222 | | - | (1) Payment of a monetary penalty of not more than $1,000 for |
|---|
| 223 | | - | each and every act or violation, unless the person knew or reasonably |
|---|
| 224 | | - | should have known that such person was in violation of the Kansas |
|---|
| 225 | | - | insurance statutes or any rule and regulation or order thereunder, in |
|---|
| 226 | | - | which case the penalty shall be not more than $2,000 for each and |
|---|
| 227 | | - | every act or violation; |
|---|
| 228 | | - | (2) suspension or revocation of the person's license or certificate if |
|---|
| 229 | | - | such person knew or reasonably should have known that such person |
|---|
| 230 | | - | was in violation of the Kansas insurance statutes or any rule and |
|---|
| 231 | | - | regulation or order thereunder; or |
|---|
| 232 | | - | (3) that such person cease and desist from the unlawful act or |
|---|
| 233 | | - | practice and take such affirmative action as that, in the judgment of the |
|---|
| 234 | | - | commissioner, will carry out the purposes of the violated or potentially |
|---|
| 235 | | - | violated provision. |
|---|
| 236 | | - | (b) If any person fails to file any report or other information with |
|---|
| 237 | | - | the commissioner as required by statute or fails to respond to any |
|---|
| 238 | | - | proper inquiry of the commissioner, the commissioner, after notice and |
|---|
| 239 | | - | opportunity for hearing, may impose a civil penalty of up to $1,000, for |
|---|
| 240 | | - | each violation or act, along with an additional penalty of up to $500 for |
|---|
| 241 | | - | each week thereafter that such report or other information is not SENATE BILL No. 42—page 5 |
|---|
| 242 | | - | provided to the commissioner. |
|---|
| 243 | | - | (c) If the commissioner makes written findings of fact that there is |
|---|
| 244 | | - | a situation involving an immediate danger to the public health, safety or |
|---|
| 245 | | - | welfare or the public interest will be irreparably harmed by delay in |
|---|
| 246 | | - | issuing an order under subsection (a)(3), the commissioner may issue |
|---|
| 247 | | - | an emergency temporary cease and desist order. Such order, even when |
|---|
| 248 | | - | not an order within the meaning of K.S.A. 77-502, and amendments |
|---|
| 249 | | - | thereto, shall be subject to the same procedures as an emergency order |
|---|
| 250 | | - | issued under K.S.A. 77-536, and amendments thereto. Upon the entry |
|---|
| 251 | | - | of such an order, the commissioner shall promptly notify the person |
|---|
| 252 | | - | subject to the order that: (1) It Such order has been entered; (2) the |
|---|
| 253 | | - | reasons therefor; and (3) that upon written request within 15 days after |
|---|
| 254 | | - | service of the order, the matter will be set for a hearing, which shall be |
|---|
| 255 | | - | conducted in accordance with the provisions of the Kansas |
|---|
| 256 | | - | administrative procedure act. If no hearing is requested and none is |
|---|
| 257 | | - | ordered by the commissioner, the order will remain in effect until it is |
|---|
| 258 | | - | modified or vacated by the commissioner. If a hearing is requested or |
|---|
| 259 | | - | ordered, the commissioner, after notice of and opportunity for hearing |
|---|
| 260 | | - | to the person subject to the order, shall, by written findings of fact and |
|---|
| 261 | | - | conclusions of law vacate, modify or make permanent the order. |
|---|
| 262 | | - | (d) For purposes of this section: |
|---|
| 263 | | - | (1) "Person" means any individual, corporation, association, |
|---|
| 264 | | - | partnership, reciprocal exchange, inter-insurer, Lloyd's insurer, fraternal |
|---|
| 265 | | - | benefit society and any other legal entity engaged in the business of |
|---|
| 266 | | - | insurance, rating organization, third party administrator, nonprofit |
|---|
| 267 | | - | dental service corporation, nonprofit medical and hospital service |
|---|
| 268 | | - | corporation, automobile club, premium financing company, health |
|---|
| 269 | | - | maintenance organization, insurance holding company, mortgage |
|---|
| 270 | | - | guaranty insurance company, risk retention or purchasing group, |
|---|
| 271 | | - | prepaid legal and dental service plan, captive insurance company, |
|---|
| 272 | | - | automobile self-insurer or reinsurance intermediary and any other legal |
|---|
| 273 | | - | entity under the jurisdiction of the commissioner. The term "person" |
|---|
| 274 | | - | does not include insurance agents and brokers as such terms are defined |
|---|
| 275 | | - | in K.S.A. 40-4902, and amendments thereto. |
|---|
| 276 | | - | (2) "Commissioner" means the commissioner of insurance of this |
|---|
| 277 | | - | state. |
|---|
| 278 | | - | Sec. 14. On and after January 1, 2026, K.S.A. 2024 Supp. 40-1137 |
|---|
| 279 | | - | is hereby amended to read as follows: 40-1137. A title insurance agent |
|---|
| 280 | | - | may operate as an escrow, settlement or closing agent, provided that: |
|---|
| 281 | | - | (a) All funds deposited with the title insurance agent in connection |
|---|
| 282 | | - | with an escrow, settlement or closing shall be submitted for collection |
|---|
| 283 | | - | to, invested in or deposited in a separate fiduciary trust account or |
|---|
| 284 | | - | accounts in a qualified financial institution no later than the close of the |
|---|
| 285 | | - | next business day, in accordance with the following requirements: |
|---|
| 286 | | - | (1) The funds shall be the property of the person or persons |
|---|
| 287 | | - | entitled to them under the provisions of the escrow, settlement or |
|---|
| 288 | | - | closing agreement and shall be segregated for each depository by |
|---|
| 289 | | - | escrow, settlement or closing in the records of the title insurance agent |
|---|
| 290 | | - | in a manner that permits the funds to be identified on an individual |
|---|
| 291 | | - | basis; |
|---|
| 292 | | - | (2) the funds shall be applied only in accordance with the terms of |
|---|
| 293 | | - | the individual instructions or agreements under which the funds were |
|---|
| 294 | | - | accepted; and |
|---|
| 295 | | - | (3) an agent shall not retain any interest on any money held in an |
|---|
| 296 | | - | interest-bearing account without the written consent of all parties to the |
|---|
| 297 | | - | transaction. |
|---|
| 298 | | - | (b) Funds held in an escrow account shall be disbursed only: |
|---|
| 299 | | - | (1) Pursuant to written authorization of buyer and seller; |
|---|
| 300 | | - | (2) pursuant to a court order; or SENATE BILL No. 42—page 6 |
|---|
| 301 | | - | (3) when a transaction is closed according to the agreement of the |
|---|
| 302 | | - | parties. |
|---|
| 303 | | - | (c) A title insurance agent shall not commingle the agent's |
|---|
| 304 | | - | personal funds or other moneys with escrow funds. In addition, the |
|---|
| 305 | | - | agent shall not use escrow funds to pay or to indemnify against the |
|---|
| 306 | | - | debts of the agent or of any other party. The escrow funds shall be used |
|---|
| 307 | | - | only to fulfill the terms of the individual escrow and none of the funds |
|---|
| 308 | | - | shall be utilized until the necessary conditions of the escrow have been |
|---|
| 309 | | - | met. All funds deposited for real estate closings, including closings |
|---|
| 310 | | - | involving refinances of existing mortgage loans, which exceed $2,500 |
|---|
| 311 | | - | shall be in one of the following forms: |
|---|
| 312 | | - | (1) Lawful money of the United States; |
|---|
| 313 | | - | (2) wire transfers such that the funds are unconditionally received |
|---|
| 314 | | - | by the title insurance agent or the agent's depository; |
|---|
| 315 | | - | (3) cashier's checks, certified checks, teller's checks or bank |
|---|
| 316 | | - | money orders issued by a federally insured financial institution and |
|---|
| 317 | | - | unconditionally held by the title insurance agent; |
|---|
| 318 | | - | (4) funds received from governmental entities, federally chartered |
|---|
| 319 | | - | instrumentalities of the United States or drawn on an escrow account of |
|---|
| 320 | | - | a real estate broker licensed in the state or drawn on an escrow account |
|---|
| 321 | | - | of a title insurer or title insurance agent licensed to do business in the |
|---|
| 322 | | - | state; |
|---|
| 323 | | - | (5) other negotiable instruments that have been on deposit in the |
|---|
| 324 | | - | escrow account at least 10 days; or |
|---|
| 325 | | - | (6) a real-time or instant payment through the FedNow service |
|---|
| 326 | | - | operated by the federal reserve banks or the clearing house payment |
|---|
| 327 | | - | company's real-time payments (RTP) system. |
|---|
| 328 | | - | (d) Each title insurance agent shall have an annual audit made of |
|---|
| 329 | | - | its escrow, settlement and closing deposit accounts, conducted by a |
|---|
| 330 | | - | certified public accountant or by a title insurer for which the title |
|---|
| 331 | | - | insurance agent has a licensing agreement. The title insurance agent |
|---|
| 332 | | - | shall provide a copy of the audit report to the commissioner within 30 |
|---|
| 333 | | - | days after the close of the calendar year for which an audit is required |
|---|
| 334 | | - | upon request. Title insurance agents who are attorneys and who issue |
|---|
| 335 | | - | title insurance policies as part of their legal representation of clients are |
|---|
| 336 | | - | exempt from the requirements of this subsection. However, the title |
|---|
| 337 | | - | insurer, at its expense, may conduct or cause to be conducted an annual |
|---|
| 338 | | - | audit of the escrow, settlement and closing accounts of the attorney. |
|---|
| 339 | | - | Attorneys who are exclusively in the business of title insurance are not |
|---|
| 340 | | - | exempt from the requirements of this subsection. |
|---|
| 341 | | - | (e) The commissioner may promulgate rules and regulations |
|---|
| 342 | | - | setting forth the standards of the audit and the form of audit report |
|---|
| 343 | | - | required. |
|---|
| 344 | | - | (f) If the title insurance agent is appointed by two or more title |
|---|
| 345 | | - | insurers and maintains fiduciary trust accounts in connection with |
|---|
| 346 | | - | providing escrow and closing settlement services, the title insurance |
|---|
| 347 | | - | agent shall allow each title insurer reasonable access to the accounts |
|---|
| 348 | | - | and any or all of the supporting account information in order to |
|---|
| 349 | | - | ascertain the safety and security of the funds held by the title insurance |
|---|
| 350 | | - | agent. |
|---|
| 351 | | - | (g) Nothing in this section is intended to amend, alter or supersede |
|---|
| 352 | | - | other laws of this state or the United States, regarding an escrow |
|---|
| 353 | | - | holder's duties and obligations. |
|---|
| 354 | | - | Sec. 15. On and after January 1, 2026, K.S.A. 40-1139 is hereby |
|---|
| 355 | | - | amended to read as follows: 40-1139. (a) The A title insurance agent |
|---|
| 356 | | - | who that handles escrow, settlement or closing accounts shall file with |
|---|
| 357 | | - | the commissioner a $100,000 surety bond or irrevocable letter of credit |
|---|
| 358 | | - | in a form acceptable to the commissioner,. Such surety bond or |
|---|
| 359 | | - | irrevocable letter of credit shall be issued by an insurance company or SENATE BILL No. 42—page 7 |
|---|
| 360 | | - | financial institution that is authorized to conduct business in this state, |
|---|
| 361 | | - | securing the applicant's or the title insurance agent's faithful |
|---|
| 362 | | - | performance of all duties and obligations set out in K.S.A. 40-1135 |
|---|
| 363 | | - | through 40-1141, and amendments thereto. |
|---|
| 364 | | - | (b) The terms of the bond or irrevocable letter of credit shall be: |
|---|
| 365 | | - | (1) The surety bond shall provide that such bond may not be |
|---|
| 366 | | - | terminated without 30 days prior written notice to the commissioner. |
|---|
| 367 | | - | (2) An(c) The irrevocable letter of credit shall: |
|---|
| 368 | | - | (1) Be issued by a bank which that is insured by the federal |
|---|
| 369 | | - | deposit insurance corporation or its successor if such letter of credit is ; |
|---|
| 370 | | - | and |
|---|
| 371 | | - | (2) initially be issued for a term of at least one year and by its |
|---|
| 372 | | - | terms is automatically renewed at each expiration date for at least an |
|---|
| 373 | | - | additional one-year term unless at least 30 days prior written notice of |
|---|
| 374 | | - | intention not to renew is given provided to the commissioner of |
|---|
| 375 | | - | insurance. |
|---|
| 376 | | - | (c) The amount of the surety bond or irrevocable letter of credit |
|---|
| 377 | | - | for those agents servicing real estate transactions on property located in |
|---|
| 378 | | - | counties having a certain population shall be required as follows: |
|---|
| 379 | | - | (1) $100,000 surety bond or irrevocable letter of credit in counties |
|---|
| 380 | | - | having a population of 40,001 and over; |
|---|
| 381 | | - | (2) $50,000 surety bond or irrevocable letter of credit in counties |
|---|
| 382 | | - | having a population of 20,001 to 40,000; and |
|---|
| 383 | | - | (3) $25,000 surety bond or irrevocable letter of credit in counties |
|---|
| 384 | | - | having a population of 20,000 or under. |
|---|
| 385 | | - | (d) The surety bond or irrevocable letter of credit shall be for the |
|---|
| 386 | | - | benefit of any person suffering a loss if the title insurance agent |
|---|
| 387 | | - | converts or misappropriates money received or held in escrow, deposit |
|---|
| 388 | | - | or trust accounts while acting as a title insurance agent providing any |
|---|
| 389 | | - | escrow or settlement services. |
|---|
| 390 | | - | Sec. 16. K.S.A. 2024 Supp. 40-2404 is hereby amended to read as |
|---|
| 391 | | - | follows: 40-2404. The following are hereby defined as unfair methods |
|---|
| 392 | | - | of competition and unfair or deceptive acts or practices in the business |
|---|
| 393 | | - | of insurance: |
|---|
| 394 | | - | (1) Misrepresentations and false advertising of insurance policies. |
|---|
| 395 | | - | Making, issuing, circulating or causing to be made, issued or circulated, |
|---|
| 396 | | - | any estimate, illustration, circular, statement, sales presentation, |
|---|
| 397 | | - | omission or comparison that: |
|---|
| 398 | | - | (a) Misrepresents the benefits, advantages, conditions or terms of |
|---|
| 399 | | - | any insurance policy; |
|---|
| 400 | | - | (b) misrepresents the dividends or share of the surplus to be |
|---|
| 401 | | - | received on any insurance policy; |
|---|
| 402 | | - | (c) makes any false or misleading statements as to the dividends or |
|---|
| 403 | | - | share of surplus previously paid on any insurance policy; |
|---|
| 404 | | - | (d) is misleading or is a misrepresentation as to the financial |
|---|
| 405 | | - | condition of any person, or as to the legal reserve system upon which |
|---|
| 406 | | - | any life insurer operates; |
|---|
| 407 | | - | (e) uses any name or title of any insurance policy or class of |
|---|
| 408 | | - | insurance policies misrepresenting the true nature thereof; |
|---|
| 409 | | - | (f) is a misrepresentation for the purpose of inducing or tending to |
|---|
| 410 | | - | induce the lapse, forfeiture, exchange, conversion or surrender of any |
|---|
| 411 | | - | insurance policy; |
|---|
| 412 | | - | (g) is a misrepresentation for the purpose of effecting a pledge or |
|---|
| 413 | | - | assignment of or effecting a loan against any insurance policy; or |
|---|
| 414 | | - | (h) misrepresents any insurance policy as being shares of stock. |
|---|
| 415 | | - | (2) False information and advertising generally. Making, |
|---|
| 416 | | - | publishing, disseminating, circulating or placing before the public, or |
|---|
| 417 | | - | causing, directly or indirectly, to be made, published, disseminated, |
|---|
| 418 | | - | circulated or placed before the public, in a newspaper, magazine or SENATE BILL No. 42—page 8 |
|---|
| 419 | | - | other publication, or in the form of a notice, circular, pamphlet, letter or |
|---|
| 420 | | - | poster, or over any radio or television station, or in any other way, an |
|---|
| 421 | | - | advertisement, announcement or statement containing any assertion, |
|---|
| 422 | | - | misrepresentation or statement with respect to the business of insurance |
|---|
| 423 | | - | or with respect to any person in the conduct of such person's insurance |
|---|
| 424 | | - | business, that is untrue, deceptive or misleading. |
|---|
| 425 | | - | (3) Defamation. Making, publishing, disseminating or circulating, |
|---|
| 426 | | - | directly or indirectly, or aiding, abetting or encouraging the making, |
|---|
| 427 | | - | publishing, disseminating or circulating of any oral or written statement |
|---|
| 428 | | - | or any pamphlet, circular, article or literature that is false, or |
|---|
| 429 | | - | maliciously critical of or derogatory to the financial condition of any |
|---|
| 430 | | - | person, and that is calculated to injure such person. |
|---|
| 431 | | - | (4) Boycott, coercion and intimidation. Entering into any |
|---|
| 432 | | - | agreement to commit, or by any concerted action committing, any act |
|---|
| 433 | | - | of boycott, coercion or intimidation resulting in or tending to result in |
|---|
| 434 | | - | unreasonable restraint of the business of insurance, or by any act of |
|---|
| 435 | | - | boycott, coercion or intimidation monopolizing or attempting to |
|---|
| 436 | | - | monopolize any part of the business of insurance. |
|---|
| 437 | | - | (5) False statements and entries. (a) Knowingly filing with any |
|---|
| 438 | | - | supervisory or other public official, or knowingly making, publishing, |
|---|
| 439 | | - | disseminating, circulating or delivering to any person, or placing before |
|---|
| 440 | | - | the public, or knowingly causing directly or indirectly, to be made, |
|---|
| 441 | | - | published, disseminated, circulated, delivered to any person, or placed |
|---|
| 442 | | - | before the public, any false material statement of fact as to the financial |
|---|
| 443 | | - | condition of a person. |
|---|
| 444 | | - | (b) Knowingly making any false entry of a material fact in any |
|---|
| 445 | | - | book, report or statement of any person or knowingly omitting to make |
|---|
| 446 | | - | a true entry of any material fact pertaining to the business of such |
|---|
| 447 | | - | person in any book, report or statement of such person. |
|---|
| 448 | | - | (6) Stock operations and advisory board contracts. Issuing or |
|---|
| 449 | | - | delivering or permitting agents, officers or employees to issue or |
|---|
| 450 | | - | deliver, agency company stock or other capital stock, or benefit |
|---|
| 451 | | - | certificates or shares in any common-law corporation, or securities or |
|---|
| 452 | | - | any special or advisory board contracts or other contracts of any kind |
|---|
| 453 | | - | promising returns and profits as an inducement to insurance. Nothing |
|---|
| 454 | | - | herein shall prohibit the acts permitted by K.S.A. 40-232, and |
|---|
| 455 | | - | amendments thereto. |
|---|
| 456 | | - | (7) Unfair discrimination. (a) Making or permitting any unfair |
|---|
| 457 | | - | discrimination between individuals of the same class and equal |
|---|
| 458 | | - | expectation of life in the rates charged for any contract of life insurance |
|---|
| 459 | | - | or life annuity or in the dividends or other benefits payable thereon, or |
|---|
| 460 | | - | in any other of the terms and conditions of such contract. |
|---|
| 461 | | - | (b) Making or permitting any unfair discrimination between |
|---|
| 462 | | - | individuals of the same class and of essentially the same hazard in the |
|---|
| 463 | | - | amount of premium, policy fees or rates charged for any policy or |
|---|
| 464 | | - | contract of accident or health insurance or in the benefits payable |
|---|
| 465 | | - | thereunder, or in any of the terms or conditions of such contract, or in |
|---|
| 466 | | - | any other manner whatever. |
|---|
| 467 | | - | (c) Refusing to insure, or refusing to continue to insure, or limiting |
|---|
| 468 | | - | the amount, extent or kind of coverage available to an individual, or |
|---|
| 469 | | - | charging an individual a different rate for the same coverage solely |
|---|
| 470 | | - | because of blindness or partial blindness. With respect to all other |
|---|
| 471 | | - | conditions, including the underlying cause of the blindness or partial |
|---|
| 472 | | - | blindness, persons who are blind or partially blind shall be subject to |
|---|
| 473 | | - | the same standards of sound actuarial principles or actual or reasonably |
|---|
| 474 | | - | anticipated experience as are sighted persons. Refusal to insure |
|---|
| 475 | | - | includes denial by an insurer of disability insurance coverage on the |
|---|
| 476 | | - | grounds that the policy defines "disability" as being presumed in the |
|---|
| 477 | | - | event that the insured loses such person's eyesight. However, an insurer SENATE BILL No. 42—page 9 |
|---|
| 478 | | - | may exclude from coverage disabilities consisting solely of blindness |
|---|
| 479 | | - | or partial blindness when such condition existed at the time the policy |
|---|
| 480 | | - | was issued. |
|---|
| 481 | | - | (d) Refusing to insure, or refusing to continue to insure, or |
|---|
| 482 | | - | limiting the amount, extent or kind of coverage available for accident |
|---|
| 483 | | - | and health and life insurance to an applicant who is the proposed |
|---|
| 484 | | - | insured or charge, charging a different rate for the same coverage or, |
|---|
| 485 | | - | excluding or limiting coverage for losses or denying a claim incurred |
|---|
| 486 | | - | by an insured as a result of abuse based on the fact that the applicant |
|---|
| 487 | | - | who, is the proposed insured, is, has been, or may be the subject of |
|---|
| 488 | | - | domestic abuse, except as provided in subsection (7)(d)(v). "Abuse" As |
|---|
| 489 | | - | used in this paragraph, "abuse" means one or more acts defined in |
|---|
| 490 | | - | K.S.A. 60-3102, and amendments thereto, between family members, |
|---|
| 491 | | - | current or former household members, or current or former intimate |
|---|
| 492 | | - | partners. |
|---|
| 493 | | - | (i) An insurer may shall not ask an applicant for life or accident |
|---|
| 494 | | - | and health insurance who is the proposed insured if the individual is, |
|---|
| 495 | | - | has been or may be the subject of domestic abuse, or seeks, has sought |
|---|
| 496 | | - | or had reason to seek medical or psychological treatment or counseling |
|---|
| 497 | | - | specifically for abuse, protection from abuse or shelter from abuse. |
|---|
| 498 | | - | (ii) Nothing in this section shall be construed to prohibit a person |
|---|
| 499 | | - | from declining to issue an insurance policy insuring the life of an |
|---|
| 500 | | - | individual who is, has been or has the potential to be the subject of |
|---|
| 501 | | - | abuse if the perpetrator of the abuse is the applicant or would be the |
|---|
| 502 | | - | owner of the insurance policy. |
|---|
| 503 | | - | (iii) No insurer that issues a life or accident and health policy to an |
|---|
| 504 | | - | individual who is, has been or may be the subject of domestic abuse |
|---|
| 505 | | - | shall be subject to civil or criminal liability for the death or any injuries |
|---|
| 506 | | - | suffered by that individual as a result of domestic abuse. |
|---|
| 507 | | - | (iv) No person shall refuse to insure, refuse to continue to insure, |
|---|
| 508 | | - | limit the amount, extent or kind of coverage available to an individual |
|---|
| 509 | | - | or charge a different rate for the same coverage solely because of |
|---|
| 510 | | - | physical or mental condition, except where the refusal, limitation or |
|---|
| 511 | | - | rate differential is based on sound actuarial principles. |
|---|
| 512 | | - | (v) Nothing in this section shall be construed to prohibit a person |
|---|
| 513 | | - | from underwriting or rating a risk on the basis of a preexisting physical |
|---|
| 514 | | - | or mental condition, even if such condition has been caused by abuse, |
|---|
| 515 | | - | provided that: |
|---|
| 516 | | - | (A) The person routinely underwrites or rates such condition in |
|---|
| 517 | | - | the same manner with respect to an insured or an applicant who is not a |
|---|
| 518 | | - | victim of abuse; |
|---|
| 519 | | - | (B) the fact that an individual is, has been or may be the subject of |
|---|
| 520 | | - | abuse may not be considered a physical or mental condition; and |
|---|
| 521 | | - | (C) such underwriting or rating is not used to evade the intent of |
|---|
| 522 | | - | this section or any other provision of the Kansas insurance code. |
|---|
| 523 | | - | (vi) Any person who underwrites or rates a risk on the basis of |
|---|
| 524 | | - | preexisting physical or mental condition as set forth in subsection (7) |
|---|
| 525 | | - | (d)(v), shall treat such underwriting or rating as an adverse |
|---|
| 526 | | - | underwriting decision pursuant to K.S.A. 40-2,112, and amendments |
|---|
| 527 | | - | thereto. |
|---|
| 528 | | - | (vii) The provisions of this paragraph shall apply to all policies of |
|---|
| 529 | | - | life and accident and health insurance issued in this state after the |
|---|
| 530 | | - | effective date of this act and all existing contracts that are renewed on |
|---|
| 531 | | - | or after the effective date of this act. |
|---|
| 532 | | - | (e) Refusing to insure, or refusing to continue to insure, or limiting |
|---|
| 533 | | - | the amount, extent or kind of coverage available for life insurance to an |
|---|
| 534 | | - | individual, or charging an individual a different rate for the same |
|---|
| 535 | | - | coverage, solely because of such individual's status as a living organ |
|---|
| 536 | | - | donor. With respect to all other conditions, persons who are living SENATE BILL No. 42—page 10 |
|---|
| 537 | | - | organ donors shall be subject to the same standards of sound actuarial |
|---|
| 538 | | - | principles or actual or reasonably anticipated experience as are persons |
|---|
| 539 | | - | who are not organ donors. |
|---|
| 540 | | - | (8) Rebates. (a) Except as otherwise expressly provided by law, |
|---|
| 541 | | - | knowingly permitting, offering to make or making any contract of life |
|---|
| 542 | | - | insurance, life annuity or accident and health insurance, or agreement |
|---|
| 543 | | - | as to such contract other than as plainly expressed in the insurance |
|---|
| 544 | | - | contract issued thereon; paying, allowing, giving or offering to pay, |
|---|
| 545 | | - | allow or give, directly or indirectly, as inducement to such insurance, or |
|---|
| 546 | | - | annuity, any rebate of premiums payable on the contract, any special |
|---|
| 547 | | - | favor or advantage in the dividends or other benefits thereon, or any |
|---|
| 548 | | - | valuable consideration or inducement whatever not specified in the |
|---|
| 549 | | - | contract; or giving, selling, purchasing or offering to give, sell or |
|---|
| 550 | | - | purchase as inducement to such insurance contract or annuity or in |
|---|
| 551 | | - | connection therewith, any stocks, bonds or other securities of any |
|---|
| 552 | | - | insurance company or other corporation, association or partnership, or |
|---|
| 553 | | - | any dividends or profits accrued thereon, or anything of value |
|---|
| 554 | | - | whatsoever not specified in the contract. |
|---|
| 555 | | - | (b) Nothing in subsection (7)(a) or (8)(a) shall be construed as |
|---|
| 556 | | - | including within the definition of discrimination or rebates any of the |
|---|
| 557 | | - | following practices: |
|---|
| 558 | | - | (i) In the case of any contract of life insurance or life annuity, |
|---|
| 559 | | - | paying bonuses to policyholders or otherwise abating their premiums in |
|---|
| 560 | | - | whole or in part out of surplus accumulated from nonparticipating |
|---|
| 561 | | - | insurance. Any such bonuses or abatement of premiums shall be fair |
|---|
| 562 | | - | and equitable to policyholders and for the best interests of the company |
|---|
| 563 | | - | and its policyholders; |
|---|
| 564 | | - | (ii) in the case of life insurance policies issued on the industrial |
|---|
| 565 | | - | debit plan, making allowance to policyholders who have continuously |
|---|
| 566 | | - | for a specified period made premium payments directly to an office of |
|---|
| 567 | | - | the insurer in an amount that fairly represents the saving in collection |
|---|
| 568 | | - | expenses; |
|---|
| 569 | | - | (iii) readjustment of the rate of premium for a group insurance |
|---|
| 570 | | - | policy based on the loss or expense experience thereunder, at the end of |
|---|
| 571 | | - | the first or any subsequent policy year of insurance thereunder, which |
|---|
| 572 | | - | may be made retroactive only for such policy year; |
|---|
| 573 | | - | (iv) engaging in an arrangement that would not violate section 106 |
|---|
| 574 | | - | of the bank holding company act amendments of 1972, as interpreted |
|---|
| 575 | | - | by the board of governors of the federal reserve system or section 5(q) |
|---|
| 576 | | - | of the home owners' loan act; |
|---|
| 577 | | - | (v) the offer or provision by insurers or producers, by or through |
|---|
| 578 | | - | employees, affiliates or third-party representatives, of value-added |
|---|
| 579 | | - | products or services at no or reduced cost when such products or |
|---|
| 580 | | - | services are not specified in the policy of insurance if the product or |
|---|
| 581 | | - | service: |
|---|
| 582 | | - | (A) Relates to the insurance coverage; and |
|---|
| 583 | | - | (B) is primarily designed to satisfy one or more of the following: |
|---|
| 584 | | - | (1) Provide loss mitigation or loss control; |
|---|
| 585 | | - | (2) reduce claim costs or claim settlement costs; |
|---|
| 586 | | - | (3) provide education about liability risks or risk of loss to persons |
|---|
| 587 | | - | or property; |
|---|
| 588 | | - | (4) monitor or assess risk, identify sources of risk or develop |
|---|
| 589 | | - | strategies for eliminating or reducing risk; |
|---|
| 590 | | - | (5) enhance health; |
|---|
| 591 | | - | (6) enhance financial wellness through items such as education or |
|---|
| 592 | | - | financial planning services; |
|---|
| 593 | | - | (7) provide post-loss services; |
|---|
| 594 | | - | (8) (a) incentivize behavioral changes to improve the health or |
|---|
| 595 | | - | reduce the risk of death or disability of a customer; SENATE BILL No. 42—page 11 |
|---|
| 596 | | - | (b) as used in this section, "customer" means a policyholder, |
|---|
| 597 | | - | potential policyholder, certificate holder, potential certificate holder, |
|---|
| 598 | | - | insured, potential insured or applicant; or |
|---|
| 599 | | - | (9) assist in the administration of the employee or retiree benefit |
|---|
| 600 | | - | insurance coverage. |
|---|
| 601 | | - | (C) The cost to the insurer or producer offering the product or |
|---|
| 602 | | - | service to any given customer shall be reasonable in comparison to |
|---|
| 603 | | - | such customer's premiums or insurance coverage for the policy class. |
|---|
| 604 | | - | (D) If the insurer or producer is providing the product or service |
|---|
| 605 | | - | offered, the insurer or producer shall ensure that the customer is |
|---|
| 606 | | - | provided with contact information, upon request, to assist the customer |
|---|
| 607 | | - | with questions regarding the product or service. |
|---|
| 608 | | - | (E) The commissioner may adopt rules and regulations when |
|---|
| 609 | | - | implementing the permitted practices set forth in this section to ensure |
|---|
| 610 | | - | consumer protection. Such rules and regulations, consistent with |
|---|
| 611 | | - | applicable law, may address, among other issues, consumer data |
|---|
| 612 | | - | protections and privacy, consumer disclosure and unfair discrimination. |
|---|
| 613 | | - | (F) The availability of the value-added product or service shall be |
|---|
| 614 | | - | based on documented objective criteria and offered in a manner that is |
|---|
| 615 | | - | not unfairly discriminatory. The documented criteria shall be |
|---|
| 616 | | - | maintained by the insurer or producer and produced upon request by |
|---|
| 617 | | - | the commissioner. |
|---|
| 618 | | - | (G) (1) If an insurer or producer does not have sufficient evidence |
|---|
| 619 | | - | but has a good-faith belief that the product or service meets the criteria |
|---|
| 620 | | - | in subsection (8)(b)(v)(B), the insurer or producer may provide the |
|---|
| 621 | | - | product or service in a manner that is not unfairly discriminatory as part |
|---|
| 622 | | - | of a pilot or testing program for not more than one year. An insurer or |
|---|
| 623 | | - | producer shall notify the commissioner of such a pilot or testing |
|---|
| 624 | | - | program offered to consumers in this state prior to launching and may |
|---|
| 625 | | - | proceed with the program unless the commissioner objects within 21 |
|---|
| 626 | | - | days of notice. |
|---|
| 627 | | - | (2) If the insurer or producer is unable to determine sufficient |
|---|
| 628 | | - | evidence within the one-year pilot or testing period, the insurer or |
|---|
| 629 | | - | producer may request that such pilot or testing period be extended for |
|---|
| 630 | | - | such additional time as necessary to determine if the product or service |
|---|
| 631 | | - | meets the criteria described in subsection (8)(b)(v)(B). Upon such a |
|---|
| 632 | | - | request, the commissioner may grant an extension of a specified time. |
|---|
| 633 | | - | (vi) An insurer or a producer may: |
|---|
| 634 | | - | (A) Offer or give non-cash gifts, items or services, including |
|---|
| 635 | | - | meals to or charitable donations on behalf of a customer, in connection |
|---|
| 636 | | - | with the marketing, sale, purchase or retention of contracts of |
|---|
| 637 | | - | insurance, as long as the cost does not exceed an amount determined to |
|---|
| 638 | | - | be reasonable by the commissioner per policy year per term. The offer |
|---|
| 639 | | - | shall be made in a manner that is not unfairly discriminatory. The |
|---|
| 640 | | - | customer shall not be required to purchase, continue to purchase or |
|---|
| 641 | | - | renew a policy in exchange for the gift, item or service. |
|---|
| 642 | | - | (B) Conduct raffles or drawings to the extent permitted by state |
|---|
| 643 | | - | law, as long as there is no financial cost to entrants to participate, the |
|---|
| 644 | | - | drawing or raffle does not obligate participants to purchase insurance, |
|---|
| 645 | | - | the prizes are not valued in excess of a reasonable amount determined |
|---|
| 646 | | - | by the commissioner and the drawing or raffle is open to the public. |
|---|
| 647 | | - | The raffle or drawing shall be offered in a manner that is not unfairly |
|---|
| 648 | | - | discriminatory. The customer shall not be required to purchase, |
|---|
| 649 | | - | continue to purchase or renew a policy in exchange for the gift, item or |
|---|
| 650 | | - | service. |
|---|
| 651 | | - | (c) An insurer, producer or representative of an insurer or |
|---|
| 652 | | - | producer shall not offer or provide insurance as an inducement to the |
|---|
| 653 | | - | purchase of another policy. |
|---|
| 654 | | - | (9) Unfair claim settlement practices. It is an unfair claim SENATE BILL No. 42—page 12 |
|---|
| 655 | | - | settlement practice if any of the following or any rules and regulations |
|---|
| 656 | | - | pertaining thereto are either committed flagrantly and in conscious |
|---|
| 657 | | - | disregard of such provisions, or committed with such frequency as to |
|---|
| 658 | | - | indicate a general business practice: |
|---|
| 659 | | - | (a) Misrepresenting pertinent facts or insurance policy provisions |
|---|
| 660 | | - | relating to coverages at issue; |
|---|
| 661 | | - | (b) failing to acknowledge and act reasonably promptly upon |
|---|
| 662 | | - | communications with respect to claims arising under insurance |
|---|
| 663 | | - | policies; |
|---|
| 664 | | - | (c) failing to adopt and implement reasonable standards for the |
|---|
| 665 | | - | prompt investigation of claims arising under insurance policies; |
|---|
| 666 | | - | (d) refusing to pay claims without conducting a reasonable |
|---|
| 667 | | - | investigation based upon all available information; |
|---|
| 668 | | - | (e) failing to affirm or deny coverage of claims within a |
|---|
| 669 | | - | reasonable time after proof of loss statements have been completed; |
|---|
| 670 | | - | (f) not attempting in good faith to effectuate prompt, fair and |
|---|
| 671 | | - | equitable settlements of claims in which liability has become |
|---|
| 672 | | - | reasonably clear; |
|---|
| 673 | | - | (g) compelling insureds to institute litigation to recover amounts |
|---|
| 674 | | - | due under an insurance policy by offering substantially less than the |
|---|
| 675 | | - | amounts ultimately recovered in actions brought by such insureds; |
|---|
| 676 | | - | (h) attempting to settle a claim for less than the amount to which a |
|---|
| 677 | | - | reasonable person would have believed that such person was entitled by |
|---|
| 678 | | - | reference to written or printed advertising material accompanying or |
|---|
| 679 | | - | made part of an application; |
|---|
| 680 | | - | (i) attempting to settle claims on the basis of an application that |
|---|
| 681 | | - | was altered without notice to, or knowledge or consent of the insured; |
|---|
| 682 | | - | (j) making claims payments to insureds or beneficiaries not |
|---|
| 683 | | - | accompanied by a statement setting forth the coverage under which |
|---|
| 684 | | - | payments are being made; |
|---|
| 685 | | - | (k) making known to insureds or claimants a policy of appealing |
|---|
| 686 | | - | from arbitration awards in favor of insureds or claimants for the |
|---|
| 687 | | - | purpose of compelling them to accept settlements or compromises less |
|---|
| 688 | | - | than the amount awarded in arbitration; |
|---|
| 689 | | - | (l) delaying the investigation or payment of claims by requiring an |
|---|
| 690 | | - | insured, claimant or the physician of either to submit a preliminary |
|---|
| 691 | | - | claim report and then requiring the subsequent submission of formal |
|---|
| 692 | | - | proof of loss forms, both of which submissions contain substantially |
|---|
| 693 | | - | the same information; |
|---|
| 694 | | - | (m) failing to promptly settle claims, where liability has become |
|---|
| 695 | | - | reasonably clear, under one portion of the insurance policy coverage in |
|---|
| 696 | | - | order to influence settlements under other portions of the insurance |
|---|
| 697 | | - | policy coverage; or |
|---|
| 698 | | - | (n) failing to promptly provide a reasonable explanation of the |
|---|
| 699 | | - | basis in the insurance policy in relation to the facts or applicable law |
|---|
| 700 | | - | for denial of a claim or for the offer of a compromise settlement. |
|---|
| 701 | | - | (10) Failure to respond to an inquiry. An insurer's failing, upon |
|---|
| 702 | | - | receipt of any inquiry from the insurance department concerning a |
|---|
| 703 | | - | complaint or inquiry related to a particular matter, within 14 calendar |
|---|
| 704 | | - | days of receipt of such inquiry to furnish the department with an |
|---|
| 705 | | - | adequate response to such inquiry. |
|---|
| 706 | | - | (10)(11) Failure to maintain complaint handling procedures. |
|---|
| 707 | | - | Failure of any person, who is an insurer on an insurance policy, to |
|---|
| 708 | | - | maintain a complete record of all the complaints that it has received |
|---|
| 709 | | - | since the date of its last examination under K.S.A. 40-222, and |
|---|
| 710 | | - | amendments thereto; but, except that no such records shall be required |
|---|
| 711 | | - | for complaints received prior to the effective date of this act. The |
|---|
| 712 | | - | record shall indicate the total number of complaints, their classification |
|---|
| 713 | | - | by line of insurance, the nature of each complaint, the disposition of the SENATE BILL No. 42—page 13 |
|---|
| 714 | | - | complaints, the date each complaint was originally received by the |
|---|
| 715 | | - | insurer and the date of final disposition of each complaint. For purposes |
|---|
| 716 | | - | of this subsection section, "complaint" means any written |
|---|
| 717 | | - | communication primarily expressing a grievance related to the acts and |
|---|
| 718 | | - | practices set out in this section. |
|---|
| 719 | | - | (11)(12) Misrepresentation in insurance applications. Making |
|---|
| 720 | | - | false or fraudulent statements or representations on or relative to an |
|---|
| 721 | | - | application for an insurance policy, for the purpose of obtaining a fee, |
|---|
| 722 | | - | commission, money or other benefit from any insurer, agent, broker or |
|---|
| 723 | | - | individual. |
|---|
| 724 | | - | (12)(13) Statutory violations. Any violation of any of the |
|---|
| 725 | | - | provisions of K.S.A. 40-216, 40-276a, 40-2,155 or 40-1515, and |
|---|
| 726 | | - | amendments thereto. |
|---|
| 727 | | - | (13)(14) Disclosure of information relating to adverse |
|---|
| 728 | | - | underwriting decisions and refund of premiums. Failing to comply with |
|---|
| 729 | | - | the provisions of K.S.A. 40-2,112, and amendments thereto, within the |
|---|
| 730 | | - | time prescribed in such section. |
|---|
| 731 | | - | (14)(15) Rebates and other inducements in title insurance. (a) No |
|---|
| 732 | | - | title insurance company or title insurance agent, or any officer, |
|---|
| 733 | | - | employee, attorney, agent or solicitor thereof, may pay, allow or give, |
|---|
| 734 | | - | or offer to pay, allow or give, directly or indirectly, as an inducement to |
|---|
| 735 | | - | obtaining any title insurance business, any rebate, reduction or |
|---|
| 736 | | - | abatement of any rate or charge made incident to the issuance of such |
|---|
| 737 | | - | insurance, any special favor or advantage not generally available to |
|---|
| 738 | | - | others of the same classification, or any money, thing of value or other |
|---|
| 739 | | - | consideration or material inducement. The words "Charge made |
|---|
| 740 | | - | incident to the issuance of such insurance" includes, without |
|---|
| 741 | | - | limitations, escrow, settlement and closing charges. |
|---|
| 742 | | - | (b) No insured named in a title insurance policy or contract nor |
|---|
| 743 | | - | any other person directly or indirectly connected with the transaction |
|---|
| 744 | | - | involving the issuance of the policy or contract, including, but not |
|---|
| 745 | | - | limited to, mortgage lender, real estate broker, builder, attorney or any |
|---|
| 746 | | - | officer, employee, agent representative or solicitor thereof, or any other |
|---|
| 747 | | - | person may knowingly receive or accept, directly or indirectly, any |
|---|
| 748 | | - | rebate, reduction or abatement of any charge, or any special favor or |
|---|
| 749 | | - | advantage or any monetary consideration or inducement referred to in |
|---|
| 750 | | - | subsection (14)(a) (15)(a). |
|---|
| 751 | | - | (c) Nothing in this section shall be construed as prohibiting: |
|---|
| 752 | | - | (i) The payment of reasonable fees for services actually rendered |
|---|
| 753 | | - | to a title insurance agent in connection with a title insurance |
|---|
| 754 | | - | transaction; |
|---|
| 755 | | - | (ii) the payment of an earned commission to a duly appointed title |
|---|
| 756 | | - | insurance agent for services actually performed in the issuance of the |
|---|
| 757 | | - | policy of title insurance; or |
|---|
| 758 | | - | (iii) the payment of reasonable entertainment and advertising |
|---|
| 759 | | - | expenses. |
|---|
| 760 | | - | (d) Nothing in this section prohibits the division of rates and |
|---|
| 761 | | - | charges between or among a title insurance company and its agent, or |
|---|
| 762 | | - | one or more title insurance companies and one or more title insurance |
|---|
| 763 | | - | agents, if such division of rates and charges does not constitute an |
|---|
| 764 | | - | unlawful rebate under the provisions of this section and is not in |
|---|
| 765 | | - | payment of a forwarding fee or a finder's fee. |
|---|
| 766 | | - | (e) As used in subsections (14)(e) (15)(e) through (14)(i) (15)(i), |
|---|
| 767 | | - | unless the context otherwise requires: |
|---|
| 768 | | - | (i) "Associate" means any firm, association, organization, |
|---|
| 769 | | - | partnership, business trust, corporation or other legal entity organized |
|---|
| 770 | | - | for profit in which a producer of title business is a director, officer or |
|---|
| 771 | | - | partner thereof, or owner of a financial interest;, the spouse or any |
|---|
| 772 | | - | relative within the second degree by blood or marriage of a producer of SENATE BILL No. 42—page 14 |
|---|
| 773 | | - | title business who is a natural person;, any director, officer or employee |
|---|
| 774 | | - | of a producer of title business or associate;, any legal entity that |
|---|
| 775 | | - | controls, is controlled by, or is under common control with a producer |
|---|
| 776 | | - | of title business or associate; and any natural person or legal entity with |
|---|
| 777 | | - | whom a producer of title business or associate has any agreement, |
|---|
| 778 | | - | arrangement or understanding or pursues any course of conduct, the |
|---|
| 779 | | - | purpose or effect of which is to evade the provisions of this section. |
|---|
| 780 | | - | (ii) "Financial interest" means any direct or indirect interest, legal |
|---|
| 781 | | - | or beneficial, where the holder thereof is or will be entitled to 1% or |
|---|
| 782 | | - | more of the net profits or net worth of the entity in which such interest |
|---|
| 783 | | - | is held. Notwithstanding the foregoing, an interest of less than 1% or |
|---|
| 784 | | - | any other type of interest shall constitute a "financial interest" if the |
|---|
| 785 | | - | primary purpose of the acquisition or retention of that interest is the |
|---|
| 786 | | - | financial benefit to be obtained as a consequence of that interest from |
|---|
| 787 | | - | the referral of title business. |
|---|
| 788 | | - | (iii) "Person" means any natural person, partnership, association, |
|---|
| 789 | | - | cooperative, corporation, trust or other legal entity. |
|---|
| 790 | | - | (iv) "Producer of title business" or "producer" means any person, |
|---|
| 791 | | - | including any officer, director or owner of 5% or more of the equity or |
|---|
| 792 | | - | capital or both of any person, engaged in this state in the trade, |
|---|
| 793 | | - | business, occupation or profession of: |
|---|
| 794 | | - | (A) Buying or selling interests in real property; |
|---|
| 795 | | - | (B) making loans secured by interests in real property; or |
|---|
| 796 | | - | (C) acting as broker, agent, representative or attorney for a person |
|---|
| 797 | | - | who buys or sells any interest in real property or who lends or borrows |
|---|
| 798 | | - | money with such interest as security. |
|---|
| 799 | | - | (v) "Refer" means to direct or cause to be directed or to exercise |
|---|
| 800 | | - | any power or influence over the direction of title insurance business, |
|---|
| 801 | | - | whether or not the consent or approval of any other person is sought or |
|---|
| 802 | | - | obtained with respect to the referral. |
|---|
| 803 | | - | (f) No title insurer or title agent may accept any order for, issue a |
|---|
| 804 | | - | title insurance policy to, or provide services to, an applicant if it knows |
|---|
| 805 | | - | or has reason to believe that the applicant was referred to it by any |
|---|
| 806 | | - | producer of title business or by any associate of such producer, where |
|---|
| 807 | | - | the producer, the associate, or both, have a financial interest in the title |
|---|
| 808 | | - | insurer or title agent to which business is referred unless the producer |
|---|
| 809 | | - | has disclosed to the buyer, seller and lender the financial interest of the |
|---|
| 810 | | - | producer of title business or associate referring the title insurance |
|---|
| 811 | | - | business. |
|---|
| 812 | | - | (g) (i) No title insurer or title agent may accept an order for title |
|---|
| 813 | | - | insurance business, issue a title insurance policy, or receive or retain |
|---|
| 814 | | - | any premium, or charge in connection with any transaction if: (i) (A) |
|---|
| 815 | | - | The title insurer or title agent knows or has reason to believe that the |
|---|
| 816 | | - | transaction will constitute controlled business for that title insurer or |
|---|
| 817 | | - | title agent; and (ii) (B) 70% or more of the closed title orders of that |
|---|
| 818 | | - | title insurer or title agent during the 12 full calendar months |
|---|
| 819 | | - | immediately preceding the month in which the transaction takes place |
|---|
| 820 | | - | is derived from controlled business. The prohibitions contained in this |
|---|
| 821 | | - | paragraph shall not apply to transactions involving real estate located in |
|---|
| 822 | | - | a county that has a population, as shown by the last preceding decennial |
|---|
| 823 | | - | census, of 10,000 or less. |
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| 824 | | - | (ii) Paragraph (g) shall become effective on and after January 1, |
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| 825 | | - | 2026. |
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| 826 | | - | (h) Within 90 days following the end of each business year, as |
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| 827 | | - | established by the title insurer or title agent, each title insurer or title |
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| 828 | | - | agent shall file with the department of insurance and any title insurer |
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| 829 | | - | with which the title agent maintains an underwriting agreement, a |
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| 830 | | - | report executed by the title insurer's or title agent's chief executive |
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| 831 | | - | officer or designee, under penalty of perjury, stating the percent of SENATE BILL No. 42—page 15 |
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| 832 | | - | closed title orders originating from controlled business. The failure of a |
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| 833 | | - | title insurer or title agent to comply with the requirements of this |
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| 834 | | - | section, at the discretion of the commissioner, shall be grounds for the |
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| 835 | | - | suspension or revocation of a license or other disciplinary action, with |
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| 836 | | - | the commissioner able to mitigate any such disciplinary action if the |
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| 837 | | - | title insurer or title agent is found to be in substantial compliance with |
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| 838 | | - | competitive behavior as defined by federal housing and urban |
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| 839 | | - | development statement of policy 1996-2. |
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| 840 | | - | (i) (1) No title insurer or title agent may accept any title insurance |
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| 841 | | - | order or issue a title insurance policy to any person if it knows or has |
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| 842 | | - | reason to believe that such person was referred to it by any producer of |
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| 843 | | - | title business or by any associate of such producer, where the producer, |
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| 844 | | - | the associate, or both, have a financial interest in the title insurer or title |
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| 845 | | - | agent to which business is referred unless the producer has disclosed in |
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| 846 | | - | writing to the person so referred the fact that such producer or associate |
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| 847 | | - | has a financial interest in the title insurer or title agent, the nature of the |
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| 848 | | - | financial interest and a written estimate of the charge or range of |
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| 849 | | - | charges generally made by the title insurer or agent for the title |
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| 850 | | - | services. Such disclosure shall include language stating that the |
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| 851 | | - | consumer is not obligated to use the title insurer or agent in which the |
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| 852 | | - | referring producer or associate has a financial interest and shall include |
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| 853 | | - | the names and telephone numbers of not less than three other title |
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| 854 | | - | insurers or agents that operate in the county in which the property is |
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| 855 | | - | located. If fewer than three insurers or agents operate in that county, the |
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| 856 | | - | disclosure shall include all title insurers or agents operating in that |
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| 857 | | - | county. Such written disclosure shall be signed by the person so |
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| 858 | | - | referred and must have occurred prior to any commitment having been |
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| 859 | | - | made to such title insurer or agent. |
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| 860 | | - | (2) No producer of title business or associate of such producer |
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| 861 | | - | shall require, directly or indirectly, as a condition to selling or |
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| 862 | | - | furnishing any other person any loan or extension thereof, credit, sale, |
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| 863 | | - | property, contract, lease or service, that such other person shall |
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| 864 | | - | purchase title insurance of any kind through any title agent or title |
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| 865 | | - | insurer if such producer has a financial interest in such title agent or |
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| 866 | | - | title insurer. |
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| 867 | | - | (3) No title insurer or title agent may accept any title insurance |
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| 868 | | - | order or issue a title insurance policy to any person it knows or has |
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| 869 | | - | reason to believe that the name of the title company was pre-printed in |
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| 870 | | - | the sales contract, prior to the buyer or seller selecting that title |
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| 871 | | - | company. |
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| 872 | | - | (4) Nothing in this paragraph shall prohibit any producer of title |
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| 873 | | - | business or associate of such producer from referring title business to |
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| 874 | | - | any title insurer or title agent of such producer's or associate's choice, |
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| 875 | | - | and, if such producer or associate of such producer has any financial |
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| 876 | | - | interest in the title insurer, from receiving income, profits or dividends |
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| 877 | | - | produced or realized from such financial interest, so long as if: |
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| 878 | | - | (a) Such financial interest is disclosed to the purchaser of the title |
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| 879 | | - | insurance in accordance with paragraphs (i)(1) through (i)(4); |
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| 880 | | - | (b) the payment of income, profits or dividends is not in exchange |
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| 881 | | - | for the referral of business; and |
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| 882 | | - | (c) the receipt of income, profits or dividends constitutes only a |
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| 883 | | - | return on the investment of the producer or associate. |
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| 884 | | - | (5) Any producer of title business or associate of such producer |
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| 885 | | - | who violates the provisions of paragraphs (i)(2) through (i)(4), or any |
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| 886 | | - | title insurer or title agent who accepts an order for title insurance |
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| 887 | | - | knowing that it is in violation of paragraphs (i)(2) through (i)(4), in |
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| 888 | | - | addition to any other action that may be taken by the commissioner of |
|---|
| 889 | | - | insurance, shall be subject to a fine by the commissioner in an amount |
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| 890 | | - | equal to five times the premium for the title insurance and, if licensed SENATE BILL No. 42—page 16 |
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| 891 | | - | pursuant to K.S.A. 58-3034 et seq., and amendments thereto, shall be |
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| 892 | | - | deemed to have committed a prohibited act pursuant to K.S.A. 58- |
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| 893 | | - | 3602, and amendments thereto, and shall be liable to the purchaser of |
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| 894 | | - | such title insurance in an amount equal to the premium for the title |
|---|
| 895 | | - | insurance. |
|---|
| 896 | | - | (6) Any title insurer or title agent that is a competitor of any title |
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| 897 | | - | insurer or title agent that, subsequent to the effective date of this act, |
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| 898 | | - | has violated or is violating the provisions of this paragraph, shall have a |
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| 899 | | - | cause of action against such title insurer or title agent and, upon |
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| 900 | | - | establishing the existence of a violation of any such provision, shall be |
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| 901 | | - | entitled, in addition to any other damages or remedies provided by law, |
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| 902 | | - | to such equitable or injunctive relief as the court deems proper. In any |
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| 903 | | - | such action under this subsection, the court may award to the successful |
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| 904 | | - | party the court costs of the action together with reasonable attorney |
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| 905 | | - | fees. |
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| 906 | | - | (7) The commissioner shall also require each title agent to provide |
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| 907 | | - | core title services as required by the real estate settlement procedures |
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| 908 | | - | act. |
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| 909 | | - | (j) The commissioner shall adopt any rules and regulations |
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| 910 | | - | necessary to carry out the provisions of this act. |
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| 911 | | - | (15)(16) Disclosure of nonpublic personal information. (a) No |
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| 912 | | - | person shall disclose any nonpublic personal information contrary to |
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| 913 | | - | the provisions of title V of the Gramm-Leach-Bliley act of 1999 (, |
|---|
| 914 | | - | public law 106-102). The commissioner may adopt rules and |
|---|
| 915 | | - | regulations necessary to carry out this subsection. Such rules and |
|---|
| 916 | | - | regulations shall be consistent with and not more restrictive than the |
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| 917 | | - | model regulation adopted on September 26, 2000, by the national |
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| 918 | | - | association of insurance commissioners entitled "Privacy of consumer |
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| 919 | | - | financial and health information regulation"." |
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| 920 | | - | (b) Nothing in this subsection shall be deemed or construed to |
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| 921 | | - | authorize the promulgation or adoption of any regulation that preempts, |
|---|
| 922 | | - | supersedes or is inconsistent with any provision of Kansas law |
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| 923 | | - | concerning requirements for notification of, or obtaining consent from, |
|---|
| 924 | | - | a parent, guardian or other legal custodian of a minor relating to any |
|---|
| 925 | | - | matter pertaining to the health and medical treatment for such minor. |
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| 926 | | - | Sec. 17. K.S.A. 40-2253 is hereby amended to read as follows: 40- |
|---|
| 927 | | - | 2253. (a) The commissioner of insurance shall devise universal forms |
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| 928 | | - | to be utilized by every insurance company, including health |
|---|
| 929 | | - | maintenance organizations where applicable, offering any type of |
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| 930 | | - | accident and sickness policy covering individuals residing in this state |
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| 931 | | - | for the purpose of receiving every claim under such policy by persons |
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| 932 | | - | covered thereunder. In the preparation of such forms, the commissioner |
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| 933 | | - | may confer with representatives of insurance companies, health |
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| 934 | | - | maintenance organizations, trade associations and other interested |
|---|
| 935 | | - | parties. Upon completion and final adoption of such forms by the |
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| 936 | | - | commissioner, the commissioner shall notify those companies affected |
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| 937 | | - | by sending them a copy of such forms and an explanation of the |
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| 938 | | - | requirements of this section. Every such company shall implement |
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| 939 | | - | utilization of such forms not later than six months following the date of |
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| 940 | | - | the commissioner's notification. |
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| 941 | | - | (b) An accident and sickness insurer may not refuse to accept a |
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| 942 | | - | claim submitted on duly promulgated uniform claim forms. An insurer |
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| 943 | | - | may accept claims submitted on any other form. |
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| 944 | | - | (c) An accident and sickness insurer does not violate subsection |
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| 945 | | - | (a) by using a document that the accident and sickness insurer has been |
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| 946 | | - | required to use by the federal government or the state. |
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| 947 | | - | (d) The commissioner of insurance shall report to the governor |
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| 948 | | - | and to the legislature, no later than the commencement of the 1993 |
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| 949 | | - | regular session of the Kansas legislature, regarding the development of SENATE BILL No. 42—page 17 |
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| 950 | | - | uniform electronic data interchange formats and standards, along with a |
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| 951 | | - | proposed plan, including an analysis of the cost impact thereof. |
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| 952 | | - | Sec. 18. K.S.A. 40-3807 is hereby amended to read as follows: 40- |
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| 953 | | - | 3807. (a) All insurance charges, premiums, collateral and loss |
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| 954 | | - | reimbursements collected by an administrator on behalf of or for a |
|---|
| 955 | | - | payor, and the return of premiums or collateral received from that |
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| 956 | | - | payor, shall be held by the administrator in a fiduciary capacity. Such |
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| 957 | | - | funds shall be immediately remitted to the person or persons entitled |
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| 958 | | - | thereto, or shall be deposited promptly in a fiduciary account |
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| 959 | | - | established and maintained by the administrator in a federally or state- |
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| 960 | | - | insured financial institution. A separate fiduciary account shall be |
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| 961 | | - | maintained by the administrator for each payor and shall not contain |
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| 962 | | - | funds collected or held by the administrator on behalf of multiple |
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| 963 | | - | payors. The written agreement between the administrator and the payor |
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| 964 | | - | shall provide for the administrator to periodically render an accounting |
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| 965 | | - | to the payor detailing all transactions performed by the administrator |
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| 966 | | - | pertaining to the business of the payor, and the written agreement |
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| 967 | | - | between the payor and the administrator shall include specifications of |
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| 968 | | - | this reporting. |
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| 969 | | - | (b) The administrator shall keep copies of all records of any |
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| 970 | | - | fiduciary account maintained or controlled by the administrator, and, |
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| 971 | | - | upon request of a payor, shall furnish the payor with copies of such |
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| 972 | | - | records pertaining to deposits and withdrawals on behalf of the payor. |
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| 973 | | - | If charges or premiums so deposited have been collected on behalf of |
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| 974 | | - | or for more than one payor, or for the payment of claims associated |
|---|
| 975 | | - | with more than one policy, the administrator shall keep records clearly |
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| 976 | | - | recording the deposits in and withdrawals from the account on behalf |
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| 977 | | - | of each payor and relating to each policyholder. |
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| 978 | | - | (c) The administrator shall not pay any claim by withdrawals from |
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| 979 | | - | a fiduciary account in which premiums or charges are deposited. |
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| 980 | | - | Withdrawals from a fiduciary account shall be made as provided in the |
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| 981 | | - | written agreement between the administrator and the payor, and only |
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| 982 | | - | for the following purposes: (1) Remittance to an insurer entitled |
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| 983 | | - | thereto; (2) deposit in an account maintained in the name of the payor; |
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| 984 | | - | (3) transfer to and deposit in a claims paying account, with claims to be |
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| 985 | | - | paid as provided in subsection (d); (4) payment to a group policyholder |
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| 986 | | - | for remittance to the payor entitled thereto; (5) payment to the |
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| 987 | | - | administrator of its earned commissions, fees or charges; (6) remittance |
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| 988 | | - | of return premiums to the person or persons entitled thereto; or (7) |
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| 989 | | - | payment to other service providers as authorized by the payor. |
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| 990 | | - | (d) All claims paid by the administrator from funds collected on |
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| 991 | | - | behalf of or for a payor shall be paid only as authorized by the payor. |
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| 992 | | - | Payments from an account maintained or controlled by the |
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| 993 | | - | administrator may be made for the following purposes including the |
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| 994 | | - | payment of claims: (1) Payment of valid claims; (2) payment of |
|---|
| 995 | | - | expenses associated with the handling of claims to the administrator or |
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| 996 | | - | to other service providers approved by the payor; (3) remittance to the |
|---|
| 997 | | - | payor, or transfer to a successor administrator as directed by the payor, |
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| 998 | | - | for the purpose of paying claims and associated expenses; and (4) |
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| 999 | | - | return of funds held as collateral or prepayment, to the person entitled |
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| 1000 | | - | to those funds, upon a determination by the payor that those funds are |
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| 1001 | | - | no longer necessary to secure or facilitate the payment of claims and |
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| 1002 | | - | associated expenses. |
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| 1003 | | - | Sec. 19. K.S.A. 40-3809 is hereby amended to read as follows: 40- |
|---|
| 1004 | | - | 3809. (a) Where the services of an administrator are utilized, the |
|---|
| 1005 | | - | administrator shall provide a written notice, approved by the payor, to |
|---|
| 1006 | | - | covered individuals advising them of the identity of and relationship |
|---|
| 1007 | | - | among the administrator, the policyholder and the payor. |
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| 1008 | | - | (b) When an administrator collects funds, the reason for collection SENATE BILL No. 42—page 18 |
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| 1009 | | - | of each item shall be identified to the insured party and each item shall |
|---|
| 1010 | | - | be shown separately from any premium. Additional charges may not be |
|---|
| 1011 | | - | made for services to the extent the services have already been paid for |
|---|
| 1012 | | - | by the payor. |
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| 1013 | | - | (c) The administrator shall disclose to the payor all charges, fees |
|---|
| 1014 | | - | and commissions that the administrator receives arising from services it |
|---|
| 1015 | | - | provides for the payor, including any fees or commissions paid by |
|---|
| 1016 | | - | payors providing reinsurance or stop-loss insurance. |
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| 1017 | | - | (d) An administrator shall disclose to the commissioner any |
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| 1018 | | - | bankruptcy petition filed by or on behalf of such administrator |
|---|
| 1019 | | - | pursuant to chapter 9 or chapter 11 of the United States bankruptcy |
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| 1020 | | - | code at the time such filing is made. |
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| 1021 | | - | Sec. 20. K.S.A. 8-173, 40-108, 40-2253, 40-3807 and 40-3809 and |
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| 1022 | | - | K.S.A. 2024 Supp. 40-2,125 and 40-2404 are hereby repealed. |
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| 1023 | | - | Sec. 21. On and after January 1, 2026, K.S.A. 40-1139 and K.S.A. |
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| 1024 | | - | 2024 Supp. 40-1137 are hereby repealed. |
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| 1025 | | - | Sec. 22. This act shall take effect and be in force from and after its |
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| 292 | + | renewal of registration of a vehicle shall not be accepted, if the records of |
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| 335 | + | 43 SB 42 5 |
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| 336 | + | the division show that after three attempts by the Kansas turnpike authority |
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| 337 | + | to contact the registered owner, including at least one registered letter, the |
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| 338 | + | registered owner of such vehicle has unpaid tolls and that the director of |
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| 339 | + | the Kansas turnpike authority or the director's designee has instructed the |
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| 340 | + | division to refuse to accept the registration or renewal of registration, |
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| 341 | + | pursuant to K.S.A. 68-2020a, and amendments thereto, unless the owner or |
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| 342 | + | registered owner makes payment to the county treasurer at the time of |
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| 343 | + | registration or renewal of registration. Of such moneys collected, 15% |
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| 344 | + | shall be retained by the county treasurer and the remainder shall be |
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| 345 | + | remitted to the Kansas turnpike authority. |
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| 346 | + | Sec. 11. K.S.A. 8-173 is hereby repealed. |
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| 347 | + | Sec. 12. This act shall take effect and be in force from and after its |
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