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Session of 2025
HOUSE BILL No. 2351
By Committee on Judiciary
Requested by Joe Molina on behalf of the Kansas Bar Association
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AN ACT concerning arbitration; relating to contracts of insurance; making
certain agreements to appraise or arbitrate in contracts of insurance
invalid and creating exceptions therefor; amending K.S.A. 5-428 and
repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 5-428 is hereby amended to read as follows: 5-428.
(a) (1) An agreement contained in a record to submit to arbitration any
existing or subsequent controversy arising between the parties to the
agreement is valid, enforceable and irrevocable, except upon a ground that
exists at law or in equity for the revocation of a contract , or as provided in
paragraph (2).
(2) An agreement contained in a contract of insurance entered into or
renewed after July, 1, 2025, to submit to appraisal or arbitration any
existing or subsequent controversy arising between the parties to the
agreement, except for those contracts between insurance companies,
including reinsurance contracts, shall not be valid, enforceable or
irrevocable, but shall be regarded as an offer by the insurance company to
enter into binding or nonbinding arbitration.
(b) The court shall decide whether an agreement to arbitrate exists or
a controversy is subject to an agreement to arbitrate.
(c) An arbitrator shall decide whether a condition precedent to
arbitrability has been fulfilled and whether a contract containing a valid
agreement to arbitrate is enforceable.
(d) If a party to a judicial proceeding challenges the existence of, or
claims that a controversy is not subject to, an agreement to arbitrate, the
arbitration proceeding may continue, pending final resolution of the issue
by the court, unless the court otherwise orders.
Sec. 2. K.S.A. 5-428 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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