Bill > SB55

This bill prohibits the assignment of post-loss insurance benefits under residential or commercial property insurance policies, effectively making such assignments null and void. Specifically, the bill defines an "assignment agreement" as any instrument transferring post-loss insurance benefits to a person providing services like property inspection, repair, restoration, or damage mitigation. Under the proposed law, a person cannot solicit or accept an assignment of these insurance benefits, with two key exceptions: (1) assignments to federally insured financial institutions, mortgagees, or property purchasers, and (2) liability coverage under property insurance policies. The bill classifies violation of this prohibition as an unfair method of competition and an unfair or deceptive act or practice in the insurance industry. By restricting these assignments, the legislation aims to prevent potential abuse in property insurance claims and limit practices that could potentially increase insurance costs or create unnecessary litigation. The bill also amends existing insurance regulations to explicitly include this new prohibition within the state's established unfair insurance practices framework.

Business and Industry

Financial Institutions and Insurance (S)

https://kslegislature.gov/li/b2025_26/measures/sb55/