This bill amends K.S.A. 5-428 to invalidate certain arbitration agreements in insurance contracts. Specifically, it states that any agreement to submit to appraisal or arbitration in contracts of insurance entered into or renewed after July 1, 2025, will not be valid, enforceable, or irrevocable, except for contracts between insurance companies, including reinsurance contracts. Instead, such agreements will be treated as offers by the insurance company to enter into binding or nonbinding arbitration.

Additionally, the bill clarifies the roles of the court and arbitrators in determining the existence of arbitration agreements and the enforceability of contracts containing such agreements. It allows arbitration proceedings to continue even if a party challenges the existence of an arbitration agreement, pending a final court resolution. The existing section of K.S.A. 5-428 is repealed, and the act will take effect upon publication in the statute book.

Statutes affected:
As introduced: 5-428