New legislation in the state of Kansas is affecting public adjusters in the state. The new bill, which is titled HB 2214, obliges public adjusters to be licensed and to present substantiation of financial accountability. A surety bond in a quantity that the Insurance Commissioner concludes to be appropriate can be used to satisfy the financial responsibility requirements. The surety bond must permit recovery by the Insurance Commissioner on behalf of any individual in the State who received damages ensuing from the erroneous acts, failure to act, conviction of fraud or conviction of unjust practices of the public adjuster. In place of the surety bond, an irrevocable letter of credit (ILOC) may be submitted. HB 2214 is based on the National Association of Insurance Commissioners’ model act.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.