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.

SB 240 creates a new civil process allowing Kansas' insurance commissioner to sue individuals or entities for insurance fraud, seeking fines up to $10,000 per violation, restitution for harmed insurers, and recovery of investigation costs. It requires applicants for insurance producer or public adjuster licenses to disclose even expunged criminal records related to fraud, overriding standard expungement protections for such offenses. The bill also extends these fraud provisions to include automobile assigned claims plans. These changes directly affect insurance professionals seeking licensure and insurers pursuing fraud claims, focusing on strengthening enforcement against insurance fraud while modifying how criminal records impact licensing.