The bill amends Kansas laws related to title insurance, focusing on the responsibilities of title insurance agents. It requires title agents to make audit reports available for inspection by the commissioner of insurance upon request, rather than submitting them annually. The bill sets the surety bond amount at $100,000 and removes the controlled business exemption in certain counties. It also establishes guidelines for the handling of escrow funds, ensuring they are properly segregated and disbursed under specific conditions. Additionally, the bill updates definitions of unfair competition and deceptive practices, emphasizing transparency and accountability in the insurance industry to enhance consumer protection.

Moreover, the bill introduces new regulations for insurers and producers, allowing them to offer value-added products and services at no or reduced cost, provided they are related to insurance coverage and designed to mitigate risks. It mandates that these offerings' costs must be reasonable compared to customer premiums and requires insurers to provide contact information for inquiries. The bill outlines unfair claim settlement practices, prohibits inducements or rebates for business acquisition, and emphasizes the need for transparency regarding financial interests in title transactions. It also allows courts to award costs and attorney fees to successful parties in related actions and mandates compliance with the Real Estate Settlement Procedures Act. The act will take effect upon publication in the Kansas Register, with the specific effective date of January 1, 2026, removed from the text.

Statutes affected:
As introduced: 40-1139, 40-1137, 40-2404
As Amended by Senate Committee: 40-1139, 40-1137, 40-2404
As Amended by House Committee: 40-1139, 40-1137, 40-2404