The Kansas Real Time Motor Vehicle Insurance Verification Act establishes a web-based system for the electronic verification of motor vehicle liability insurance, which will be the exclusive method for such verification in the state. Insurers are required to collaborate with the commissioner of insurance and the Kansas Department of Revenue to ensure the system is operational by July 1, 2026. The bill also emphasizes data confidentiality and outlines insurers' responsibilities, including maintaining separate fiduciary accounts and prohibiting the commingling of funds. Additionally, it eliminates the requirement for the commissioner to submit certain reports to the governor, instead mandating their publication on the insurance department's website, and standardizes surety bond amounts at $100,000.

Moreover, the bill introduces new regulations to enhance consumer protections in the insurance industry, focusing on data privacy, consumer disclosures, and preventing unfair discrimination. It requires insurers to maintain documented criteria for value-added products and allows for pilot programs under specific conditions. The legislation also addresses unfair claim settlement practices, detailing actions that constitute such practices and establishing penalties for violations. It mandates the creation of universal claim forms for accident and sickness policies and outlines fiduciary responsibilities for insurance administrators, including maintaining separate accounts and providing detailed transaction accounting. The act aims to improve transparency and accountability within the insurance marketplace while repealing outdated statutes.

Statutes affected:
As introduced: 8-173
As Amended by Senate Committee: 8-173
{As Amended by Senate Committee of the Whole}: 8-173
As Amended by House Committee: 8-173
Enrolled: 40-3104, 8-173, 40-108, 40-2, 40-4902, 40-1137, 40-1139, 40-2404, 40-2253, 40-3807, 40-3809