Panel hears bill to shorten insurer response time for complaints, allow longer value‑added pilot programs

Senate Bill 23 would require insurers and producers to respond to inquiries from the Kansas Insurance Commissioner concerning consumer complaints within 14 calendar days and would allow rebate or value‑added pilot programs to run longer than the current one‑year statutory pilot period if additional time is needed to determine whether the program meets statutory criteria.

Eileen, Revisor of Statutes, told the Senate Committee on Financial Institutions and Insurance the bill amends KSA 42‑404 (the statute addressing unfair methods of competition or unfair and deceptive acts or practices) to add a 14‑calendar‑day response requirement for inquiries about complaints and to allow the extension of pilot programs beyond one year. The bill also amends KSA 40‑49 0 9 (the Uniform Insurance Agents Licensing Act) to include failure to respond to such inquiries among grounds the commissioner may use to deny, revoke, suspend or refuse to renew a license.

Eric Turek of the Kansas Department of Insurance testified in support, saying the department handled about 3,600 consumer complaints last year (not including general inquiries) and that technological advances and a NAIC portal pilot make a 14‑day calendar response window for consumer complaints reasonable. Turek said the 15‑business‑day standard currently in statute dates to a 1981 NAIC model regulation and translates to roughly 21 calendar days; the change narrows that to 14 calendar days specifically for consumer complaint responses.

“The 15 business day threshold that dates back to 1981…translates into 3 weeks or 21 calendar days. We are hoping to move the requirement for the insurance companies to respond to the department concerning consumer complaints to 14 calendar days,” Turek said.

Senators asked operational questions about how the department sends inquiries and how an insurer or agent would demonstrate receipt. Committee members noted most correspondence is now electronic and the department has piloted a secure portal for company filings; an agent portal is not yet implemented. Senator Francisco suggested clarifying that the commissioner — not merely the insurer or producer — would have discretion to grant extensions for pilot programs; Eileen said the reviser and department would not object to language making commissioner discretion explicit.

Committee members also asked whether the pilot‑extension language should specify limits for additional time; Turek said the department would exercise discretion in granting extensions and could set a reasonable period case by case.

The committee received a neutral filing from the Kansas Association of Property and Casualty Insurance Companies, which indicated it had worked with the department on the timing change. No opponent testimony was presented and the committee closed the hearing on Senate Bill 23 without taking a vote.

The bill would affect insurer and agent response obligations under the cited KSA sections and change the statutory pilot program rules for value‑added products and rebate programs.