Session Law

Identifying Information:L. 2002 ch. 214
Other Identifying Information:2002 Senate Concurrent Resolution 1623
Tax Type:Other
Brief Description: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.
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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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Date Composed: 10/10/2002 Date Modified: 10/10/2002