A lawsuit brought by the Kansas Insurance Department against the governor's office has been settled.
The Kansas insurance commissioner, Vicki Schmidt, announced that the settlement will return $16.1 million to the Insurance Department Service Regulation Fund. She said that the funds were unlawfully swept in fiscal year 2018 and fiscal year 2019.
“This case was a classic example of government overreach,” Commissioner Schmidt said in a statement. “Insurance agents and companies should not be on the hook for general state expenses.”
The lawsuit began under different administrations in both the Insurance Department and the governor's office. However, with Governor Laura Kelly's signature of the state budget, Kansas insurance agents and companies can be certain the fees they pay will be used for their intended purpose, industry regulation, and not general state expenses, Commissioner Schmidt added.
“I am pleased this matter has been settled, without going to court. Taxpayers should not have to see their hard earned dollars wasted on yet another costly lawsuit,” said Commissioner Schmidt.
Governor Kelly and Commissioner Schmidt reached a settlement agreement that requires full repayment of the fee sweeps totaling $16.1 million over a three-year budget period.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].