SENATE PASSES LEGISLATION STRENGTHENING INSURANCE PROTECTIONS AND REQUIREMENTS
Senate Bills 18 and 24, sponsored by Sen. Rick Girdler
FRANKFORT, KY. (Feb 19, 2024) – Two key pieces of legislation designed to strengthen protections against insurance fraud and ensure proper insurance coverage for vehicle business licensees have passed the Kentucky Senate. Senate Bill (SB) 24 and SB 18, both sponsored by Sen. Rick Girdler, R-Somerset, address critical gaps in insurance regulations to better safeguard Kentucky consumers and promote accountability in the insurance and auto sales industries.
SB 24 enhances protections against insurance fraud by closing loopholes, deterring fraudulent claims, and protecting consumers from inflated or false insurance statements. The bill broadens the definition of a fraudulent statement in property and casualty insurance claims, now explicitly including estimates for casualty damages, as well as bids and proposals related to property damage. The bill also ensures that misrepresentations regarding repair costs, towing, storage, and other expenses are classified as fraudulent insurance acts.
SB 18 establishes clearer insurance requirements for motor vehicle dealers, new recreational vehicle dealers, motor vehicle auction dealers, and wholesalers. The legislation updates the current statute to require licensees to maintain an approved indemnifying bond or insurance policy with specified coverage limits to better ensure financial responsibility in the event of accidents or damages. The bill also outlines policy requirements, including coverage for vehicles in operation and commercial general liability standards for automotive recycling dealers.
"Insurance fraud impacts every Kentuckian by driving up costs and weakening consumer protections,” said Girdler. “These bills provide stronger protections for Kentucky consumers, reduce fraud, and ensure accountability in both the insurance and auto sales industries. I appreciate my colleagues’ support in passing these measures, and I look forward to working with the House to get them across the finish line.”
Both SB 24 and SB 18 move to the House of Representatives for consideration.
For more information about these bills and the 2025 Kentucky General Assembly, visit www.legislature.ky.gov.
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Sen. Rick Girdler, R-Somerset, represents the 15th Senate District, including Clinton, Cumberland, Pulaski, Russell, and Wayne Counties. Girdler serves as vice chair of the Senate Banking and Insurance Committee. He is also a member of the Senate Committees on Economic Development, Tourism, and Labor; Families and Children; and Natural Resources and Energy. Additionally, Girdler serves on the Capital Projects and Bond Oversight Committee.
Please visit: https://legislature.ky.gov/Legislators%20Full%20Res%20Images/senate115.jpg for a high-resolution .jpeg of Girdler.
