KS| Kansas Senate Bill 42, passed during the 2025-2026 legislative session, introduces sweeping changes to the state’s insurance laws and compliance requirements. The bill also broadens definitions and penalties for unfair insurance practices, strengthens consumer privacy and disclosure standards, and provides the Commissioner with expanded enforcement authority, including immediate cease-and-desist orders and increased fines for violations.
Senate Bill No. 42 introduces significant changes to Kansas insurance laws and compliance requirements:
- Establishes the Kansas Real Time Motor Vehicle Insurance Verification Act, requiring a web-based system for real-time verification of motor vehicle liability insurance, to be operational by July 1, 2026.
- Mandates insurers to participate in the verification system, with exceptions for commercial vehicle coverage, and provides immunity for good faith compliance.
- Requires third-party administrators to maintain separate fiduciary accounts for each payor, prohibits commingling of funds, and mandates bankruptcy petition disclosures to the commissioner.
- Standardizes the surety bond amount for title insurance agents at $100,000. As of January 1, 2026, Kansas will standardize the surety bond or irrevocable letter of credit requirement for title insurance producers handling escrow, settlement, or closing accounts to $100,000, regardless of the county’s population size. This means the previous tiered system based on county population will be eliminated. Title licensees: please see Email Response Required. KDOI sent an Email to all Title Licensees on June 18, 2025, stating that if you are not writing escrow, settlements, or closings, please make sure you have a letter on file stating that you are not performing these services, no later than July 1, 2025.
- Updates reporting requirements: the insurance commissioner must publish certain reports on the department’s website instead of submitting them to the governor; title agents must make reports available upon request rather than annually.
- Expands and clarifies unfair insurance practices, including new rules on rebates, inducements, consumer disclosures, and privacy protections.
- Enhances penalties for violations, including increased fines and new cease-and-desist authority for the commissioner.
- Requires annual audits of title agent escrow accounts and strengthens escrow fund management and disclosure rules.
- Repeals and amends multiple statutory sections to align with these new requirements and modernize compliance frameworks.