From taxes to tort reform, the Kansas Legislature each year considers bills that impact independent agents and their businesses. KIAPAC is a critical part of the association ' s efforts to build relationships with Kansas elected officials and to keep members of the Legislature informed about issues impacting small businesses and the independent agent system. If you haven’ t already, please consider becoming a KIAPAC member today so that our advocacy remains strong and effective for Kansas insurance agents. •
ADVOCACY to pay legal expenses in exchange for receiving compensation contingent on the case ' s outcome. However, it excludes agreements where the third party only receives repayment of their provided funds plus reasonable interest( which is defined as not exceeding 11.1 %).
Under the new law, courts must prohibit inquiries into third-party agreements if such inquiries could cause undue prejudice. When making this determination, courts must consider factors like the political or social nature of the case, the balance of litigation resources between parties, and whether the inquiry is proportional to the case ' s needs. The bill also provides special protections for nonprofit organizations, ensuring they don ' t have to disclose their members or donors.
Starting July 1, 2025, any qualifying third-party agreement must be reported to the judicial council within 45 days of either filing the legal action or entering into the agreement, whichever comes later. These reports will remain confidential and exempt from open records requests until July 1, 2030, unless renewed by the legislature. Importantly, any unreported third-party agreements will be considered void and unenforceable, with some exceptions for certain public interest cases.
The bill also establishes oversight mechanisms, requiring the judicial council to create a committee by July 1, 2028, to study third-party agreements. This committee will review all submitted reports and begin providing annual updates to the chief justice, attorney general, and legislative judiciary committees starting December 1, 2029. These reports will inform about third-party agreements in Kansas and other states, along with recommendations for their use in Kansas.
The legislation includes specific provisions regarding foreign persons and entities, requiring special reporting when agreements involve foreign parties. It also contains a severability clause, ensuring that if any portion of the new provisions is found unconstitutional, the remaining portions can still be enforced.
WHAT ' S NEXT?
The legislature will return on Monday, January 12 for the 2026 legislative session. In the meantime, legislative leaders have appointed interim committees to study topics of interest and make nonbinding recommendations to the 2026 legislature. Additionally, planning for the 2026 session for KAIA has already begun. From our participation in various task forces, like legal reform, and conversations with the Kansas Department of Insurance, rest assured we are already working to shape legislation that will be impactful and beneficial to Kansas agents and brokers.
KIAPAC
Now that the Kansas Legislature has adjourned, legislative fundraising is in full swing. The incredible stress that has been placed on all aspects of American life in recent weeks and months makes the prospect of political engagement unappealing to many. But the importance of targeted advocacy and meaningful participation in policymaking is evident. KAIA is the trusted voice for Kansas insurance agents and brokers— always working with lawmakers on policies affecting the insurance industry and our small business clients. Effective advocacy does not begin and end according to legislative sessions. Effective advocacy is rooted in relationships and requires investment in mutual understanding and support. Our voice as independent insurance agent advocates is amplified by our political giving through KIAPAC.
From taxes to tort reform, the Kansas Legislature each year considers bills that impact independent agents and their businesses. KIAPAC is a critical part of the association ' s efforts to build relationships with Kansas elected officials and to keep members of the Legislature informed about issues impacting small businesses and the independent agent system. If you haven’ t already, please consider becoming a KIAPAC member today so that our advocacy remains strong and effective for Kansas insurance agents. •
MAY / JUNE 2025
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