Bill > HB2323

This bill establishes new procedures for how the Kansas Insurance Commissioner can address fraudulent insurance acts, expanding the commissioner's ability to take civil action against individuals or entities engaged in insurance fraud. Specifically, the bill allows the commissioner to file a civil lawsuit in district court when there is a belief that a fraudulent insurance act has occurred, with the burden of proof on the commissioner to demonstrate the act by a preponderance of the evidence. If the court finds a fraudulent insurance act was committed, it can impose a civil penalty of up to $10,000 for each act, order restitution to insurers or automobile assigned claims plans, require payment of investigation expenses, and provide other appropriate relief. The bill also modifies existing laws to include automobile assigned claims plans in provisions related to fraudulent insurance acts and changes rules about expunged criminal records, requiring that if an insurance producer or public adjuster license applicant has a prior expunged arrest or conviction related to insurance fraud, they must still disclose this information during the application process. Additionally, the bill clarifies the definition of "fraudulent insurance act" and provides protections for insurers and claims plans that report suspected fraudulent activities.

Justice

Judiciary (House)

https://kslegislature.gov/li/b2025_26/measures/hb2323/