Current through Register Vol. 43, No. 39, September 26, 2024
(a) As used in this
regulation and
K.S.A.
40-5101 through
K.S.A.
40-5114 and amendments thereto, these terms
shall have the following meanings:
(1)
"Farmowner insurance policy" means a policy that provides coverage for a
dwelling and its contents, barns, stables, and other buildings. This term shall
include liability coverage.
(2)
"Insurer" means an insurance company.
(3) "Policy" means any personal insurance or
individual farmowner insurance policy.
(4) "Premium charge" means the payment
required for an insurance policy as determined by rates and rating factors.
(5) "Rerate" means to calculate
premiums based on rates, rating factors, or rating procedures filed with the
Kansas insurance department as required by
K.S.A.
40-951 through
K.S.A.
40-967 and amendments thereto.
(6) "Reunderwrite" means to reexamine
insurance risks to determine whether or not to renew policies.
(7) "Third party" means any person or entity
that creates an insurance score.
(8) "Underwriting" means examining,
accepting, or rejecting insurance risks.
(b) No insurer authorized to write business
in the state of Kansas shall use credit information or an insurance score that
has an adverse premium or coverage impact on an insured, unless all of the
following conditions are met:
(1) The insurer
has considered applicable factors other than credit.
(2) The insurer has documented the factors
considered.
(3) The insurer
provides the insured with each reason for the change in the premium or
coverage.
(c) Each
insurer using credit information for the purpose of rating shall have specific,
written criteria governing how credit information is utilized by the insurer in
underwriting, tier placement, and insurance scoring.
(d) If an insurer takes an adverse action
against a consumer, the insurer shall perform the following:
(1) Maintain evidence of the notice to the
consumer and a record of the contents of the credit information used, for a
minimum of five years after the adverse action was taken;
(2) provide to the consumer a written,
electronic, or oral notice and an explanation. If an oral notice is given, the
notice shall be followed by a written or electronic notice and an explanation
to the consumer pursuant to
K.S.A.
40-5107, and amendments thereto; and
(3) provide underwriting
guidelines to the department upon request. All underwriting guidelines shall be
considered trade secrets and confidential under the Kansas open records act.
(e) Any insurer may
require that a consumer provide documentation to establish the existence and
duration of personal circumstances justifying that certain adverse credit
information not be used.
