WeVote
Log In

Bill

Bill

SB 240

Establishing procedures for a civil action instituted by the commissioner of insurance related to fraudulent insurance acts, providing that expunged criminal records will be disclosed in any application for licensure as an insurance producer or public adjuster if the arrest, conviction or diversion is for a fraudulent insurance act and including automobile assigned claims plans in provisions related to fraudulent insurance acts.

2025-2026 Regular Session

Kansas bill enables Insurance Commissioner civil actions against insurance fraud and requires disclosure of expunged fraud records for producer/adjuster licensure applications.

Died in Committee
#civilprocedureandcivilactions #insurance
0
WeVote Research Nonpartisan
Bill Summary · SB 240

Legislative bill overview

SB 240 modifies Kansas insurance fraud procedures by allowing the Commissioner of Insurance to file civil actions against individuals engaged in fraudulent insurance acts. The bill requires disclosure of expunged criminal records related to insurance fraud when applicants apply for insurance producer or public adjuster licenses, and extends fraud provisions to include automobile assigned claims plans.

Why is this important

Insurance fraud increases premiums for all consumers and destabilizes the insurance market. This bill strengthens enforcement mechanisms and creates barriers for individuals with fraud histories to re-enter the industry, potentially reducing repeat offenses. However, it also affects individuals seeking to rehabilitate their careers after criminal convictions.

Potential points of contention

  • Expungement exceptions: The bill carves out insurance fraud from standard expungement protections, meaning individuals convicted of insurance fraud cannot fully clear their records for licensing purposes—raising questions about rehabilitation, second chances, and whether this creates permanent professional barriers
  • Scope of "fraudulent insurance acts": The bill's definition and how broadly it applies (especially to newly included auto assigned claims plans) could affect interpretation and enforcement consistency
  • Civil liability expansion: Allowing the Commissioner to pursue civil actions separately from criminal proceedings could result in double consequences for the same conduct, raising due process concerns

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.