HB 2323: Establishing procedures for a civil action instituted by the commissioner of insurance related to fraudulent insurance acts, providing that expunged criminal records will be disclosed in any application for licensure as an insurance producer or public adjuster if the arrest, conviction or diversion is for a fraudulent insurance act and including automobile assigned claims plans in provisions related to fraudulent insurance acts. - Kansas

As Amended by House Committee on Judiciary → As Amended by Senate Committee · 4 edits

MODERATE

The bill was amended to expand where fraudulent insurance cases can be filed to include the defendant's residence, requiring the commissioner to prove fraud with a higher standard of evidence, and clarifying that insurers cannot be joined as parties in these specific civil actions.

Scope change

The scope of jurisdiction was expanded to allow lawsuits in counties where the defendant lives, not just where the fraud occurred or in Shawnee County.

ENFORCEMENT

Jurisdiction for civil fraud actions was expanded to include the district court of any county where the defendant resides, in addition to Shawnee County or where the fraud occurred.

REQUIREMENT

The burden of proof for the commissioner was increased from a 'preponderance of the evidence' to 'clear and convincing evidence,' making it harder to prove fraud.

A new requirement was added stating that the commissioner must plead the specific circumstances of the alleged fraud with particularity.

SCOPE

Clarified that aggrieved insurers cannot be joined as parties in these specific civil actions, ensuring the case remains focused on the alleged fraudster.

Enrolled → As Amended by House Committee on Judiciary · 4 edits

MODERATE

The bill was amended to streamline the venue for lawsuits by limiting them to Shawnee County or the county where the fraud occurred, and to lower the burden of proof for the insurance commissioner from 'clear and convincing evidence' to the more common 'preponderance of the evidence.' Additionally, the penalty fund was clarified, and the list of crimes eligible for expungement was updated to include specific felony severity levels for drug-related offenses.

Scope change

The scope of where civil actions can be filed was narrowed from any county where the defendant resides to only Shawnee County or the county where the alleged fraud occurred.

ENFORCEMENT

The burden of proof for the insurance commissioner to prove fraud was lowered from 'clear and convincing evidence' to 'preponderance of the evidence,' making it easier to win cases.

The venue for filing civil actions was restricted to the district court of Shawnee County or the county where the fraudulent act occurred, rather than any county where the defendant lives.

FISCAL

The destination for civil penalties was clarified to be the 'insurance department service regulation state general fund,' and investigation fees were directed to the 'department of insurance department service regulation fund.'

ELIGIBILITY

The list of crimes eligible for expungement was updated to explicitly include felonies ranked in severity levels 6 through 10 of the nondrug grid and specific drug grid severity levels (level 4 for crimes before 2012, level 5 for crimes on or after 2012).

As Introduced → Enrolled · 7 edits · Apr 9, 2026

MODERATE

The bill was updated to modernize formatting and significantly strengthen enforcement powers. The commissioner can now file lawsuits in any county where the defendant lives or where the fraud occurred (previously limited to Shawnee County), must prove fraud with a higher standard of evidence (clear and convincing evidence instead of a preponderance), and civil penalties must now be paid into the state general fund rather than the service regulation fund.

Scope change

The bill's scope expanded to allow civil actions in any county where the defendant resides or the fraud occurred, rather than being restricted to Shawnee County or the county where the fraud happened.

ENFORCEMENT

Jurisdiction for civil actions was expanded to include any county where the defendant resides or where the alleged fraud occurred, removing the previous restriction to Shawnee County.

The burden of proof for the commissioner was increased from a 'preponderance of the evidence' to 'clear and convincing evidence,' making it harder to prove fraud.

FISCAL

Civil penalties collected from fraudulent acts must now be paid into the state general fund instead of the insurance department service regulation fund.

REQUIREMENT

The commissioner is now required to plead with particularity the specific circumstances of the fraud in their legal filings.

TECHNICAL

Removed the line item requesting the bill by Steve Karrer on behalf of the Kansas Insurance Department.

Removed the line item indicating the bill was requested by the Kansas Insurance Department.

Replaced the 'As Introduced' session header with the standard 'Be it enacted' text and updated page numbering formatting.

What changed between versions

How they voted

Actions timeline

Sponsors