SB 22 — Requiring title agents to make their audit reports available for inspection instead of submitting such reports annually, requiring the amount of surety bonds filed with the commissioner of insurance to be $100,000 and eliminating the controlled business exemption in certain counties.

AsAmended by House Committee As Amended by Senate Committee Session of 2025 SENATE BILLNo.

(c) A title insurance agent shall not commingle the agent's personal fundsSB or22—Am. other moneys with escrow funds.

Inby addition,HC the2 agent shall not use escrow funds to pay or toother indemnifymoneys againstwith theescrow debtsfunds. of the agent or SB 22—Am.

byIn SCaddition, 2the agent shall not use escrow funds to pay or to indemnify against the debts of the agent or of any other party.

(f) If the title insurance agent is appointed by two or more title insurers and maintains fiduciary trust accounts in connection with providing escrow and closing settlement services, the title insurance agent shall allow each title insurer reasonable access to the accounts and any or all of the supporting account information in order to ascertain the safety andSB security22—Am. of the funds held by the title insurance agent.

(g) Nothingby inHC this3 sectionand issecurity intendedof tothe amend,funds alterheld orby supersedethe SBtitle 22—Am.insurance agent.

by(g) Nothing SCin 3this section is intended to amend, alter or supersede other laws of this state or the United States, regarding an escrow holder's duties and obligations.

Making, issuing, circulating or causing to be made, issued or circulated, anySB estimate,22—Am. illustration, circular, statement, sales presentation, omission or comparison that:

SBby 22—Am.HC 4 any estimate, illustration, circular, statement, sales presentation, omission or comparison that:

by SC 4 (a) Misrepresents the benefits, advantages, conditions or terms of any insurance policy;

(a) Knowingly filing with any supervisory or other public official, or knowingly making, publishing, disseminating, circulating or delivering to any person, or placing before the public, or knowingly causing directly or indirectly, to be made, SB 22—Am.

by SCHC 5 disseminating, circulating or delivering to any person, or placing before the public, or knowingly causing directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement of fact as to the financial condition of a person.

(d) Refusing to insure, or refusing to continue to insure, or limiting the amount, extent or kind of coverage available for accident and health and life insurance to an applicant who is the proposed insured or charge, charging a different rate for the same coverage or, excluding or limiting coverage for losses or denying a claim incurred by an insured as a result of SB 22—Am.

by SCHC 6 charging a different rate for the same coverage or, excluding or limiting coverage for losses or denying a claim incurred by an insured as a result of abuse based on the fact that the applicant who, is the proposed insured, is, has been, or may be the subject of domestic abuse, except as provided in subsection (7)(d)(v).

(vii) The provisions of this paragraph shall apply to all policies of life and accident and health insurance issued in this state after the effective date of this act and all existing contracts that are renewed on or after the SB 22—Am.

by SCHC 7 and accident and health insurance issued in this state after the effective date of this act and all existing contracts that are renewed on or after the effective date of this act.

(iv) engaging in an arrangement that would not violate section 106 of the bank holding company act amendments of 1972, as interpreted by the SB 22—Am.

by SCHC 8 (iv) engaging in an arrangement that would not violate section 106 of the bank holding company act amendments of 1972, as interpreted by the board of governors of the federal reserve system or section 5(q) of the home owners' loan act;

(G) If an insurer or producer does not have sufficient evidence but has a good-faith belief that the product or service meets the criteria in SB 22—Am.

by SCHC 9 (G) If an insurer or producer does not have sufficient evidence but has a good-faith belief that the product or service meets the criteria in subsection (8)(b)(v)(B), the insurer or producer may provide the product or service in a manner that is not unfairly discriminatory as part of a pilot or testing program for not more than one year.

(f) not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably SB 22—Am.

by SCHC 10 (f) not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear;

(11) MisrepresentationSB in22—Am. insurance applications.

Makingby falseHC or11 fraudulent(11) Misrepresentation statementsin orinsurance representationsapplications. on or relative to an application for SB 22—Am.

byMaking SCfalse 11or fraudulent statements or representations on or relative to an application for an insurance policy, for the purpose of obtaining a fee, commission, money or other benefit from any insurer, agent, broker or individual.

(e) As used in subsections (14)(e) through (14)(i), unless the context otherwise requires:

by SCHC 12 (i) "Associate"(e) As meansused any firm, association, organization, partnership, business trust, corporation or other legal entity organized for profit in whichsubsections a(14)(e) producerthrough of(14)(i), titleunless businessthe iscontext aotherwise director,requires: officer or partner thereof, or owner of a financial interest;

(i) "Associate" means any firm, association, organization, partnership, business trust, corporation or other legal entity organized for profit in which a producer of title business is a director, officer or partner thereof, or owner of a financial interest;

(f) No title insurer or title agent may accept any order for, issue a title insurance policy to, or provide services to, an applicant if it knows or has reason to believe that the applicant was referred to it by any producer of title business or by any associate of such producer, where the producer, the associate, or both, have a financial interest in the title insurer or title agent to which business is referred unless the producer has disclosed to the buyer,SB seller22—Am. and lender the financial interest of the producer of title business or associate referring the title insurance business.

SBby 22—Am.HC 13 buyer, seller and lender the financial interest of the producer of title business or associate referring the title insurance business.

by SC 13 (g) No title insurer or title agent may accept an order for title insurance business, issue a title insurance policy, or receive or retain any premium, or charge in connection with any transaction if:

Such written disclosure shall be signed bySB the22—Am. person so referred and must have occurred prior to any commitment having been made to such title insurer or agent.

SBby 22—Am.HC 14 by the person so referred and must have occurred prior to any commitment having been made to such title insurer or agent.

by SC 14 (2) No producer of title business or associate of such producer shall require, directly or indirectly, as a condition to selling or furnishing any other person any loan or extension thereof, credit, sale, property, contract, lease or service, that such other person shall purchase title insurance of any kind through any title agent or title insurer if such producer has a financial interest in such title agent or title insurer.

In any such action under this subsection, the court may award to the successful party the court costs of theSB action22—Am. together with reasonable attorney fees.

(7) Theby commissionerHC shall15 alsothe requireaction eachtogether titlewith agentreasonable toattorney providefees. SB 22—Am.

by(7) The SCcommissioner 15shall also require each title agent to provide core title services as required by the real estate settlement procedures act.

5. This act shall take effect and be in force from and after January 1, 2026, and its publication in the statute book.book Kansas register.