The bill amends Kansas laws related to title insurance, specifically targeting 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 amending definitions related to unfair competition and deceptive practices in the insurance sector.

Moreover, the bill introduces new regulations for insurers and producers offering value-added products and services, allowing them to provide these at no or reduced cost in specific areas, while ensuring costs remain reasonable compared to customer premiums. It establishes requirements for maintaining complaint handling procedures and prohibits various unfair claim settlement practices. The bill also tightens regulations on title insurance by removing exemptions for transactions in smaller counties and mandates disclosures regarding financial interests in title insurance transactions. It emphasizes the need for compliance with the Gramm-Leach-Bliley Act and sets a new effective date of January 1, 2026, for the act's provisions.

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