Chairperson Humphries opened the Hearing on HB2351.

Jason Thompson, Office of Revisor of Statutes, presented the Bill Brief.  (Attachment 7)

Mr. Thompson stood for questions.

Proponents:

Joe Molina, Kansas Bar Association, shared that this bill corrects an unintended statutory consequence created in 2018 with the adoption of the Revised Uniform Arbitration Act. That legislation inadvertently removed a long-standing prohibition against binding arbitration provisions in certain insurance contracts - a result that was never intended and is inconsistent with prior Kansas law and public policy. This bill restores the law to its intended state and clarifies that arbitration clauses in insurance contracts are not enforceable unless voluntarily agreed to after a dispute arises.  (Attachment 8)

Tamera Anwar, Private Citizen, shared her personal experience of attempting to repair structural damage caused to their home during a storm and the need for the changes to HB2351. Their family truly believed the appeal process would be timely and fair, however, it lead to a lengthy and costly process. She urged the passing of this bill.  (Attachment 9)

Russ Hazlewood, Graybill and Hazlewood Lawyers, L.L.C., testified that he often represents people who need to go into arbitration with insurance companies. At the moment insurance companies can force policyholders into mandatory arbitration or appraisal as the only way to resolve a claim dispute. He pointed out that several states around Kansas do not allow this to happen. He testified that after eight years there is a need to put this law back in place.  (Attachment 10) 

The Proponents stood for questions. 

The Chairperson drew attention to the Proponent Written Only testimonies:

Joyce Hirt, Private Citizen  (Attachment 11)

Callie Jill Denton, Kansas Trial Lawyers Association  (Attachment 12)

Opponent:

Zach Chaffee-McClure Kansas Association of Property Casualty Insurance Companies, testified that arbitration reduces litigation costs for both the insurance companies and consumers. Numerous studies show that claimants receive even-handed justice in arbitration proceedings. These pre-dispute arbitration agreements should be preserved.  (Attachment 13)

Mr. Chaffee-McClure stood for questions.

The Chairperson drew attention to the Opponent Written Only testimonies:

Eric Stafford, Vice President of Government Affairs, Kansas Chamber of Commerce  (Attachment 14)

Alex Young, American Council of Life Insurers  (Attachment 15)

Justin McFarland, Second Vice President & Assistant General Counsel, Security Benefit Life Insurance Company  (Attachment 16)

Breanna West Jones, State Farm  (Attachment 17)

The Chairperson drew attention to the Neutral Written Only testimony:

Sarah Fertig, Director of Government Relations, Blue Cross and Blue Shield of Kansas  (Attachment 18)

Chairperson Humphries closed the Hearing on HB2351.