The bill amends Kansas laws related to title insurance, particularly the operations of title insurance agents. It requires these agents to make their 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 includes provisions for the proper handling of escrow funds, ensuring they are segregated and disbursed under specific conditions. Additionally, the bill repeals sections K.S.A. 40-1139 and K.S.A. 40-2404, while clarifying that the surety bond or irrevocable letter of credit must benefit individuals suffering losses due to misappropriation of funds by title agents.

Moreover, the bill introduces new regulations for insurers and producers in the insurance industry, allowing them to offer value-added products or services at no or reduced cost, provided they relate to insurance coverage and are designed to mitigate loss or enhance health. It mandates that the costs of these offerings be reasonable compared to customer premiums and requires insurers to provide contact information for inquiries. The bill also outlines unfair claim settlement practices, prohibits inducements or rebates for obtaining title insurance business, and emphasizes transparency regarding financial interests in title insurance referrals. It further clarifies the responsibilities of title agents and ensures that regulations align with national standards for consumer privacy, while also affirming that it does not override existing Kansas laws on parental notification for minors' health treatment.

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