The bill introduces new procedures for civil actions concerning fraudulent insurance acts, empowering the commissioner of insurance to initiate such actions in district court. It establishes that the burden of proof rests with the commissioner, who may impose civil penalties of up to $10,000 for each fraudulent act, seek restitution for damages incurred by insurers or automobile assigned claims plans, and request reimbursement for investigation costs. The bill also allows witness testimony via electronic means and eliminates the option for aggrieved insurers or claims plans to join these actions as parties.

Additionally, the bill revises laws related to the expungement of criminal records, particularly for individuals applying for licensure as insurance producers or public adjusters when the offense pertains to fraudulent insurance acts. It repeals certain sections of K.S.A. 21-6614, 40-2,118, and 40-2,119, while introducing new definitions and provisions for the expungement process, including eligibility criteria and exemptions. The legislation also clarifies the definition of "fraudulent insurance act," categorizes penalties based on the amount involved, mandates antifraud initiatives for insurers, and provides immunity for those reporting suspected fraud, thereby enhancing the overall framework for addressing insurance fraud and improving the expungement process.

Statutes affected:
As introduced: 40-2, 21-6614