FROM THE COMMISH
COMMISSIONER ' S LETTER
YOUR DEPARTMENT CONTINUES TO TAKE ACTION written by Commissioner Vicki Schmidt, Kansas Department of Insurance
This year’ s legislative session has been moving along at breakneck speed. In only 90 days, the legislature has passed many bills, including two from the Department. HB 2323 and SB 23 are both headed to the governor for consideration. These bills focus strongly on fighting fraud and going after bad actors.
Below are some highlights of the Department’ s legislative initiatives in Topeka:
Bolstering Insurance Fraud Enforcement Because insurance fraud directly drives up premiums for Kansans, the Department introduced HB 2323 in 2025 to provide the state with enhanced tools and authority to prevent, investigate, and prosecute insurance fraud. The bill accomplishes this in the following three ways:
1. Civil Penalties for Insurance Fraud HB 2323 authorizes the KDOI to pursue civil penalties against individuals suspected of committing insurance fraud in addition to the criminal prosecution currently contracted with the Office of the Attorney General.
“ these bills focus strongly on fighting fraud and
going after bad actors.”
convictions of insurance fraud. Additionally, the criminal background check, specifically for these applicants, would reveal any expunged convictions of insurance fraud.
HB 2323 passed the House and Senate unanimously.
Modernizing Licensure in Kansas SB 23 makes some changes for licensees in two ways:
2. Insurance Fraud, Auto Assigned Claims Plan The benefits under the Kansas Automobile Assigned Claims Plan( KAACP) are not explicitly defined as insurance benefits and fall outside of the scope of Kansas insurance fraud statutes. HB 2323 clarifies that an attempt to defraud this plan would constitute insurance fraud, closing this loophole.
3. Expunged Convictions of Insurance Fraud Insurance agent or public adjuster applicants must undergo a criminal history background check as a part of licensing requirements in Kansas. HB 2323 requires applicants to disclose any expunged
32 KANSAS INSURANCE AGENT & BROKER