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KS SB42
Bill
Status
4/10/2025
Primary Sponsor
Financial Institutions and Insurance
Click for details
AI Summary
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Establishes the Kansas Real Time Motor Vehicle Insurance Verification Act, creating a web-based system for online verification of motor vehicle liability insurance that must be fully operational by July 1, 2026, with a nine-month testing period before enforcement begins
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Requires third-party administrators to maintain separate fiduciary accounts for each payor, prohibiting commingling of funds held on behalf of multiple payors, and mandates disclosure to the commissioner of any bankruptcy petition filed under Chapter 9 or 11 of the U.S. Bankruptcy Code
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Standardizes surety bond requirements for title insurance agents at $100,000 statewide, eliminating the previous tiered system based on county population ($25,000-$100,000)
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Shifts insurance commissioner's annual reports from submission to the governor to publication on the insurance department's website, and changes title agent audit report requirements from mandatory annual submission to available upon request
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Narrows the definition of "person" for insurance law enforcement purposes by removing specific entity types (third-party administrators, HMOs, automobile clubs, etc.), while retaining jurisdiction over insurance agents and brokers separately
Legislative Description
Providing for the establishment of a web-based online insurance verification system for the verification of evidence of motor vehicle liability insurance, eliminating the requirement that the commissioner of insurance submit certain reports to the governor and requiring certain reports be available on the insurance department's website, removing certain entities from the definition of person for the purpose of enforcing insurance law, requiring that third party administrators maintain separate fiduciary accounts for individual payors and prohibiting the commingling of funds held on behalf of multiple payors, requiring the disclosure to the commissioner of insurance of any bankruptcy petition filed by or on behalf of such administrator pursuant to the United State bankruptcy code, requiring title agents to make their reports available for inspection upon request of the commissioner of insurance instead of submitting such reports annually, standardizing the amount of surety bonds filed with the commissioner of insurance at $100,000 and eliminating the small business exemption in certain counties.
Last Action
Senate Approved by Governor on Tuesday, April 8, 2025
4/10/2025