The bill amends Kansas laws concerning title insurance, particularly the operations of title insurance agents. It requires title 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 management of escrow, settlement, and closing accounts, ensuring that funds are disbursed only under specific conditions. Additionally, the bill updates definitions related to unfair competition and deceptive practices, clarifies requirements for surety bonds or irrevocable letters of credit, and aims to enhance regulatory oversight and consumer protection.

Moreover, the bill introduces regulations for value-added products and services offered by insurers and producers, allowing them to provide these at no or reduced cost if they relate to insurance coverage and are designed to mitigate risks. It outlines unfair claim settlement practices, including misrepresentation and delays in claims processing, and mandates compliance with the Gramm-Leach-Bliley Act regarding the disclosure of nonpublic personal information. The bill also establishes liability for title insurers or agents committing prohibited acts, allowing competitors to pursue legal action and recover costs. It repeals certain sections of existing law and specifies an effective date of January 1, 2026, following publication in the Kansas Register.

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