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Minutes for SB362 - Committee on Financial Institutions and Insurance
Short Title
Exempting labor from depreciation in certain property and casualty insurance claims.
Minutes Content for Wed, Mar 14, 2018
Chairperson Longbine turned the committee's attention to and opened the hearing on SB362. Eileen Ma, Assistant Revisor of Statutes, provided a short summary of the bill.
Glenn G. Graves, Tonganoxie, KS resident, testified in support of SB362. Mr. Graves told the committee that a personal insurance loss had inspired him to request and support this bill which seeks to prohibit the depreciation of labor expenses in certain property and casualty insurance claims. (Attachment 4)
William W. Sneed, Retained Counsel for State Farm Insurance Companies, testified on behalf of his client in opposition to SB362. Mr. Sneed told members that this bill is not consistent with the interests of Kansas insureds or the public interest. Kansas law currently allows proper indemnification for "actual cash value," which is the current value, in money, of insured property in its condition just before a loss. Also, insureds are able to purchase policies with replacement cost benefits, if they want to insure against the potential that repairing or replacing their property will cost more than the property's current value. Mr. Sneed urged the committee not take action on SB362. (Attachment 5)
Chairperson Longbine pointed the committee's attention to the written-only opponent testimony as follows:
Larrie Ann Brown, Kansas Legislative Counsel on behalf of The Property Casualty Insurers Association of America (PCI) (Attachment 6)
Marlee Carpenter, on behalf of Kansas Association of Property and Casualty Insurance Companies (KAPCIC) (Attachment 7)
Mark Johnston, Regional Vice President-Midwest, The National Association of Mutual Insurance Companies (NAMIC) (Attachment 8)
Aaron Mays, on behalf of All State Insurance (Attachment 9)
David Monaghan, CPCU, Government Affairs Counsel, on behalf of American Family Insurance (Attachment 10)
Brad Smoot, Legislative Counsel, on behalf of the American Insurance Association (AIA) (Attachment 11)
There being no additional questions or discussion, and no other proponent, opponent, or neutral testimony submitted, Chairperson Longbine closed the hearing on SB362.
The meeting adjourned at 10:05 am. The next scheduled meeting is on Tuesday, March 20, 2018, at 9:30 am.
