The bill amends Kansas laws concerning title insurance, particularly the operations 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 includes provisions for the proper handling of escrow funds, ensuring they are segregated and disbursed only under specific conditions. Additionally, the bill repeals sections of K.S.A. 40-1139 and K.S.A. 40-2404, while introducing new definitions of unfair competition methods and deceptive practices in the insurance business, aiming to enhance transparency and consumer protection.

Moreover, the bill establishes new regulations for insurers and producers, allowing them to offer value-added products and services at no or reduced cost, provided they relate to insurance coverage and are designed to mitigate risks. 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 outlines unfair claim settlement practices, prohibits misrepresentation and unreasonable delays in claims processing, and emphasizes transparency in title insurance transactions. It also holds title insurers and agents liable for violations, allowing competitors to take legal action against them. The bill ensures compliance with the Gramm-Leach-Bliley Act regarding the disclosure of nonpublic personal information and sets an effective date of January 1, 2026, upon 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