The bill introduces new procedures for civil actions concerning fraudulent insurance acts, empowering the commissioner of insurance to initiate such actions in district court. The commissioner bears the burden of proof and can impose civil penalties of up to $10,000 per act, seek restitution for actual damages, and request reimbursement for investigation costs. The legislation allows for electronic testimony and eliminates the option for aggrieved insurers or automobile assigned claims plans to join these actions. It also stipulates that individuals cannot refuse to testify on self-incrimination grounds, while providing certain protections for compelled testimony.

In addition, the bill revises laws related to the expungement of criminal records, particularly for those applying for insurance-related licenses. It requires that expunged records be disclosed if they relate to fraudulent insurance acts and repeals specific sections of K.S.A. 21-6614, 40-2,118, and 40-2,119. The bill clarifies that individuals with expunged records can claim they have never been arrested or convicted of a crime, restores their right to possess firearms, and outlines when expunged records may be disclosed, particularly in the context of employment in the insurance sector. It also revises the definition of "fraudulent insurance act," establishes penalties based on the amount involved, and grants immunity to those reporting suspected fraud, thereby enhancing the overall framework for addressing fraudulent activities in the insurance industry.

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