The bill amends Kansas laws concerning title insurance, particularly the operations of title insurance agents. It requires that audit reports from title agents be made available for inspection by the commissioner of insurance upon request, rather than submitted 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 of K.S.A. 40-1139 and K.S.A. 40-2404, while updating definitions related to unfair competition and deceptive practices in the insurance sector.

Moreover, the bill introduces new regulations for insurers and producers regarding value-added products and services, allowing them to offer these at no or reduced cost if they relate to insurance coverage. It outlines unfair claim settlement practices and mandates record-keeping for complaints. The bill also tightens regulations by prohibiting rebates and requiring financial interest disclosures in title insurance transactions, removing previous exemptions for smaller counties. Title insurers and agents found in violation of certain acts will be liable to purchasers for the title insurance premium, and competitors can pursue legal action for violations. The bill ensures compliance with the Gramm-Leach-Bliley Act and clarifies that it does not override existing Kansas laws on parental consent for minors' health matters, with an effective date of January 1, 2026.

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