2026 Regular Session - Day 52 - SB 158 | Rep. Matt Lockett

Thank you, Mr. Speaker. Would you please have the clerk call House Committee Substitute 1. Clerk, please report. House Committee Substitute 1 to Senate Bill 158. Gentleman from Jesmond. I move adoption. Motion is for the adoption of House Committee Substitute 1. Is there any discussion of the committee substitute? Seeing none, those in favor signify by voting aye. Aye. Those opposed, nay. House Committee Substitute 1 is adopted. Gentleman from Jesmond. Thank you, Mr. Speaker. Senate Bill 158 is an insurance bill that deals with what's called gap insurance and gap waivers and protection plans for cars. This particular bill defines these products, clarifies that they are not insurance. They establish consumer protections, such as disclosures, contract rights, cancellation periods, and refund rights, while also imposing the financial responsibility requirements and grants enforcement to the Attorney General under the Consumer Protection Act. Gap insurance is something that is becoming very popular, especially as car values increase, when if a car is totaled and the insurance does not completely pay for a fix, gap insurance will complete that gap. The other portion of this particular bill relates to credit property insurance. It's a product that protects personal property used to secure a loan in the event of theft, accidents, or natural disasters. Kentucky's licensed consumer loan companies have been offering this particular product for more than 20 years, and while these policies are filed and approved by the Department of Insurance, there's currently no statutory authority in Kentucky law. Senate Bill 158 creates the regulatory structure for these credit property insurance and codifies the practices that are already going on today and have been for decades. So, Mr. Speaker, if there are no questions, I move passage of Senate Bill 158 as amended by House Committee Substitute 1.