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Minutes for HB2469 - Committee on Financial Institutions and Insurance
Short Title
Exempting certain claims handling operations from certain local ordinances and restrictions during an emergency or catastrophe.
Minutes Content for Tue, Mar 6, 2018
Chairperson Longbine called the meeting to order and opened the hearing on HB2469. Eileen Ma, Assistant Revisor of Statutes, presented a brief overview of the bill.
William W. Sneed, Legislative Counsel for the State Farm Insurance Companies, appeared as a proponent for HB2469. Mr. Sneed's client requested introduction of this bill to create a proactive and streamlined approach to setting up temporary claims processing facilities during times of catastrophic loss. It is during these catastrophic losses that consumers are most vulnerable and need immediate assistance to start the process of recovery. (Attachment 1) Mr. Sneed answered a question from Senator Suellentrop relating to who makes the determination what is catastrophic, telling him that under the insurance code, the vendor insurance company makes that determination and then are able to set up a temporary facility to take and process claims.
Clark Shultz, Assistant Insurance Commissioner, Kansas Insurance Department (KID) testified in support of this bill. He stated that KID had been working for almost a year on this proposed law and everyone's cooperation was much appreciated. (Attachment 2)
Eric Smith, Deputy General Counsel for The League of Kansas Municipalities testified in support of HB2469. Mr. Smith told members that his client cities agree that following a major event, such as a tornado or flood, it is beneficial for residents to have their insurance companies there following the event, as soon as possible, to start taking claims and providing benefit services. (Attachment 3)
Chairperson Longbine pointed attention to the Proponent Written-Only testimony of Marlee Carpenter, on behalf of the Kansas Association of Property and Casualty Insurance Companies. (Attachment 4)
There being no other proponent, opponent, or neutral testimony submitted, Chairperson Longbine closed the hearing on HB2469.
Chairperson Longbine asked the Committee if there were any objections to taking action on HB2469. There were no objections, so the Chairperson asked for discussion or motions.
Senator Olson moved to favorably recommend HB2469 for passage to the full Senate and placement on the Consent Calendar; seconded by Senator Rogers. The motion to favorably recommend passage and placement on the Consent Calendar carried.
The meeting adjourned at 9:50 am. The next scheduled meeting is Wednesday, March 7, 2018 at 9:30 am.
