CHAPTER 214 SENATE CONCURRENT RESOLUTION No. 1623 A Concurrent Resolution requesting the Kansas commissioner of insurance to study
the use of insurance scoring reports within the insurance industry and the need for
additional regulation, if any.
      WHEREAS,  Insurance is an essential economic tool to protect the
assets of Kansas residents and property owners; and

      WHEREAS,  Insurance companies are now using insurance scores in
the underwriting of all types of personal and commercial insurance; and

      WHEREAS,  There is extensive evidence that a person's credit is an
accurate predictor of their future loss probability; and

      WHEREAS,  Insurance consumers deserve to know and understand
the impact their credit and insurance score has on the availability and
affordability of their coverage; and

      WHEREAS,  Insurance consumers need to know that an insurance
score will be used and to understand how they can positively impact their
insurance score; and

      WHEREAS,  The public policy of the State of Kansas may dictate that
certain limitations need to be placed on the use of insurance scoring such
as prohibiting use of scores on an individual's or business' insurance re-
newal, prohibiting use of scores as the sole factor considered or prohib-
iting use of scores that are in a legitimate dispute; and

      WHEREAS,  The Kansas Insurance Department may need the au-
thority to require the filing of credit or insurance scoring models with
protection from public disclosure of proprietary information to allow the
department to monitor their proper application: Now, therefore,

      Be it resolved by the Senate of the State of Kansas, the House of Rep-
resentatives concurring therein: That a task force be formed consisting
of 15 members to include one member appointed by the president of the
senate; one member appointed by the minority leader of the senate; one
member appointed by the speaker of the house of representatives; one
member appointed by the minority leader of the house of representatives;
the insurance commissioner or the commissioner's designee; one person
representing a domestic property and casualty insurance company and
one person representing a foreign property and casualty insurance com-
pany appointed by the insurance commissioner from a list submitted by
the Kansas Association of Property and Casualty Insurance Companies;
one person representing a property and casualty insurance company ap-
pointed by the insurance commissioner from a list submitted by the
America Insurance Association, one person representing a property and
casual insurance company appointed by the insurance commissioner from
a list submitted by the National Association of Independent Insurers; one
person representing a property and casualty insurance company ap-
pointed by the insurance commissioner from a list submitted by the Al-
liance of American Insurers; one person representing a property and ca-
sualty insurance company appointed by the insurance commissioner from
a list submitted by the National Association of Mutual Insurance Com-
panies; two members representing the licensed Kansas insurance agents
appointed by the insurance commissioner from a list submitted by the
Kansas Association of Insurance Agents; and two members appointed by
the governor representing the consumer interests. The governor shall
appoint the chairperson and vice chairperson from the membership of
the committee. The chairperson and vice chairperson shall not be of the
same political party. No task force member shall receive any compensa-
tion, subsistence, mileage or other allowances for serving on the task force
or attending any meeting thereof. The task force shall conduct a study of
the desirability of regulation of insurance scoring practices for the benefit
of Kansas consumers; and

      Be it further resolved: That a report containing the results of such
study and the task force's recommendations and conclusions emanating
therefrom be transmitted to the speaker of the house of representatives,
the president of the senate, the chair of the house committee on insur-
ance, and the chair of the senate committee on financial institutions and
insurance no later than the convening of the 2003 Kansas legislature; and

      Be it further resolved: That the secretary of state transmit an enrolled
copy of this resolution to the commissioner of insurance.

 Adopted by the House May 8, 2002.
Adopted by the Senate
May 9, 2002.
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