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, with the exception of 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 and enforceability of arbitration agreements. The court is tasked with deciding whether an agreement to arbitrate exists, while arbitrators will determine if conditions precedent to arbitrability have been met. The bill also allows arbitration proceedings to continue even if a party challenges the existence of an arbitration agreement, pending a final court resolution, unless the court orders otherwise. The existing section of K.S.A. 5-428 is repealed, and the act will take effect upon publication in the statute book.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