Kan. Commissioner Notes Proposed Legislation

Kansas Insurance Commissioner Sandy Praeger is asking Kansas lawmakers to approve two major consumer protection measures as part of her 2004 legislative agenda package.

One proposal would prohibit insurance companies from canceling a homeowner’s policy due to a single catastrophic claim.

“Kansans who buy insurance should not have to worry about having their coverage dropped if they are unlucky enough to be hit by a tornado or hail,” said Praeger. “That’s precisely the reason we buy insurance.”

Another proposal would protect consumers from being charged higher premiums for simply making an inquiry about their coverage. Currently, some insurance companies mandate that when consumers call their agents with a question, that inquiry be then placed as a claim in property claims databases, such as the Comprehensive Loss Underwriting Exchange system (or C.L.U.E. report).

“Consumers should not be punished when they don’t file a claim or
even have damage,” commented Praeger. “We should be able to ask straightforward questions about our coverage or deductible without being penalized.”

“These initiatives are based on input from consumers and agents and are policy changes that will benefit all Kansans,” said Praeger. “We look forward to working with the legislature to implement these proposals into Kansas law.”