Committee hears bill to require 14‑day responses from insurers; industry warns House amendment is too broad

The Financial Institutions and Insurance Committee on Feb. 25 heard testimony on House Bill 2,043, which would require agents and insurers to respond to inquiries from the Commissioner of Insurance within 14 calendar days and would allow certain rebate pilot programs to run longer than one year.

Eric Turek of the Kansas Department of Insurance told the committee the measure’s primary goal is to accelerate responses on consumer complaints. “We process and review thousands of consumer complaints each year,” Turek said, adding that companies often take “13, 14 or 15 business days” to reply and that “14 calendar days is a great balance between the needs of the consumer and the needs of the insurance companies.” He noted the department piloted an external complaint portal intended to speed exchanges of documents between companies and staff.

The bill as introduced focused on consumer complaints; the House amended the language to require agents and insurers to respond to any inquiry from the commissioner within 14 calendar days. The reviser explained the House amendment was intended to clarify timing but broadened the scope beyond consumer complaints. The House Committee of the Whole passed the bill on Feb. 7 by a vote of 97 to 14, the reviser said.

Industry representatives told the committee they were neutral on the original bill but concerned about the House amendment. Marla Carpenter of the Kansas Association of Property and Casualty Insurance Companies said the association “did not discuss or even contemplate any of the other response times to the department” and asked the committee to remove the amendment that makes the 14‑day requirement a blanket rule.

Committee members raised statutory‑clarity questions. Senator Gossage said he preferred language that explicitly ties the 14‑day clock to the insurer’s receipt of an inquiry, noting the difference between a deadline that begins when the department sends an inquiry and one that begins when an insurer receives it. Turek acknowledged industry concerns and suggested the committee might amend the bill during work session to restore the narrower wording.

The committee did not take a final vote during this hearing and indicated staff would prepare clarifying amendments to address when the timeline begins and to limit unintended conflicts with other statutory timeframes or with accreditation/examination schedules.

Votes at other stages: the House Committee of the Whole reported the bill passed 97–14 on Feb. 7 (as discussed in committee testimony).