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Minutes for HB2593 - Committee on Judiciary

Short Title

Amending the uniform arbitration act of 2000 to make certain agreements to arbitrate in contracts of insurance invalid and creating exceptions therefor.

Minutes Content for Mon, Feb 12, 2024

Chairperson Humphries opened the hearing on HB2593

Natalie Scott provided an overview of HB2593. She stood for questions.(Attachment 1)

Proponents

Joseph Molina, Kansas Bar Association, spoke in favor of HB2593 and stated that Missouri has adopted similar legislation. (Attachment 2)

Russ Hazlewood, Graybill and Hazelwood LLC, spoke in favor of HB2593. He stated the current law precipitates a power imbalance wherein insurance companies hold a disproportionate amount of power. He noted the financial hardship could be avoided by the passing of HB2593(Attachment 3)

Tamera Anwar, spoke in favor of HB2593 by sharing personal experiences with the current law. The conferee then detailed the process of arbitration and the harm the current law posed to policyholders. (Attachment 4)

Callie Denton, Kansas Trial Lawyers Association, spoke in favor of HB2593 by noting it was a restoration of previous law. She noted the potential harm to policyholders that the current legislation poses. She stated Missouri, Nebraska, and Oklahoma have similar provisions to that of HB2593(Attachment 5)

The proponents stood for questions. 

Opponents

Eric Stafford, Kansas Chamber of Commerce, spoke in opposition to HB2593 by noting the potential violation of individual rights. He stated the legislation would serve to exclusively benefit attorneys. (Attachment 6)

Alex Young, American Council of Life Insurers, spoke in opposition to HB2593. He noted the many benefits of arbitration. (Attachment 7)

Robert Passmore, American Casualty Insurance Association, spoke in opposition to HB2593. He spoke of concerns that the legislation would ban arbitration. He stated the bill contained unclear wording. (Attachment 8)

Paige Blevins-Jones, Security Benefit, spoke in opposition to HB2593 by stating it to be anti-business and noting the potential harm to consumers. (Attachment 9)

Sarah Fertig, Blue Cross and Blue Shield, spoke in opposition to HB2593 by stating the wording is unclear and could cause confusion. She also noted current law was passed with no opponents or nay votes.(Attachment 10)

The opponents stood for questions. 

Opponent Written Only Testimony

Roland Spies, State Farm Insurance (Attachment 11)

Marlee Carpenter, Kansas Association of Property and Casualty Insurance Companies (Attachment 12)

Ross Lien, Midwest Regional Vice President, National Association of Mutual Insurance Companies (Attachment 13)

Chairperson Humphries closed the hearing on HB2593