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Minutes for SB323 - Committee on Financial Institutions and Insurance
Short Title
Altering the terms of an insurance policy not considered a denial of renewal of the policy if the insured is provided proper notice.
Minutes Content for Wed, Feb 19, 2020
Chairman Olson opened the hearing on the bill and called upon Eileen Ma for a Revisor of Statutes review of the bill.
Chairman Olson called upon Brad Sneed for the primary proponent testimony on the bill.
Mr. Sneed stated that the bill proposed to simplify and make more efficient the process of making minor alterations to a policy without having to cancel the policy and offer a new policy with slightly altered terms. Mr. Sneed proposed a balloon amendment to make the process more efficient. Mr. Sneed was critical of the accuracy of the bill's fiscal note. (Attachment 1)
Chairman Olson called upon Brad Smoot to speak for David Monaghan for further proponent testimony. Mr. Smoot provided support for the bill but was concerned that the amendment would be prone to lawsuits. He pointed out the amendment affixed to his testimony would remedy concerns about the amendment. (Attachment 2)
Chairman Olson called upon Will Larson for opponent testimony. Mr. Larson opposed the the proposed bill because it would create an undue burden for the consumer and the independent agent. Mr. Larson explained that in a commercial setting the agent would have a limited time to present changes and attain approval or find a replacement option. Mr. Larson indicated that he could offer support for the bill upon the committee's adoption of the amendment offered by Mr. Sneed. (Attachment 3)
Chairman Olson called upon Lee Modesitt for a neutral perspective from the Kansas Insurance Department. Mr. Modesitt expressed the Kansas Insurance Department's concern that the word "changes" is not defined and could lead to insurers reducing or eliminating coverage without consent of the policy holder. He addressed committee concerns regarding the bill's fiscal note related to the need for an additional staff member to support the proposed bill. (Attachment 4)
Written-Only Proponents:
Marlee Carpenter, Kansas Association of Property and Casualty Insurance Companies (Attachment 5)
Larrie Ann Brown, The American Property Casualty Insurance Association (Attachment 6)
Chairman Olson closed the hearing on the bill.
