---

Session of 1999
          HOUSE BILL No. 2503           By Committee on Insurance           2-12          

---

  9             AN  ACT concerning insurance; relating to insurance fraud; amending
10             K.S.A. 1998 Supp. 40-2,118 and repealing the existing section.
11      
12       Be it enacted by the Legislature of the State of Kansas:
13             Section  1. K.S.A. 1998 Supp. 40-2,118 is hereby amended to read as
14       follows: 40-2,118. (a) For purposes of this act a "fraudulent insurance act"
15       means an act committed by any person who, knowingly and with intent
16       to defraud, presents, causes to be presented or prepares with knowledge
17       or belief that it will be presented to or by an insurer, purported insurer,
18       broker or any agent thereof, any written statement as part of, or in support
19       of, an application for the issuance of, or the rating of an insurance policy
20       for personal or commercial insurance, or a claim for payment or other
21       benefit pursuant to an insurance policy for commercial or personal in-
22       surance which such person knows to contain materially false information
23       concerning any fact material thereto; or conceals, for the purpose of mis-
24       leading, information concerning any fact material thereto.
25             (b) Except as otherwise specifically provided in K.S.A. 21-3718 and
26       amendments thereto and K.S.A. 44-5,125 and amendments thereto, a
27       fraudulent insurance act shall constitute a severity level 6, nonperson
28       felony if the amount involved is $25,000 or more; a severity level 7, non-
29       person felony if the amount is at least $5,000 but less than $25,000; a
30       severity level 8, nonperson felony if the amount is at least $1,000 but less
31       than $5,000; a severity level 9, nonperson felony if the amount is at least
32       $500 but less than $1,000; and a class C nonperson misdemeanor if the
33       amount is less than $500.
34             (c) In addition to any other penalty, a person who violates this statute
35       shall be ordered to make restitution to the insurer or any other person
36       or entity for any financial loss sustained as a result of such violation. An
37       insurer shall not be required to provide coverage or pay any first party
38       claim involving a fraudulent insurance act.
39             (d) This act shall apply to all insurance applications, ratings, claims
40       and other benefits made pursuant to any insurance policy. 
41       Sec.  2. K.S.A. 1998 Supp. 40-2,118 is hereby repealed.
42        Sec.  3. This act shall take effect and be in force from and after its
43       publication in the statute book.