New Kansas Bill submitted by Trial Atty's & KAR

[Paul Sabados]

Took awhile to find, but this has already been presented.

http://www.kslegislature.org/bills/2008/2075.pdf

Kansas Inspectors, wake up you're going to get your asses served up on a Silver Platter. No other group will be forced to give up this portion of their contracts, just inspectors. Note how this nicely ties into the Bill that KAR wants to enact.

Paul

[Blaine Wiley]

That has to be one of the dumber bills I've seen.

It is fascinating that many Kansas inspectors are going to allow the state government to decide that they have no right to incorporate a limititation of liability clause in their agreement to protect their assetts. This is obviously being pushed by trial attorneys and Realtors, who are looking to scapegoat their liability on the inspectors.

That language will prohibit those who wish to carry E&O from obtaining it.

I suggest those of you who feel the same way to call your local representative, and soon!

[ckratzer]

Originally Posted by bwiley

That has to be one of the dumber bills I've seen.

It is Kansas afterall

[James H. Bushart]

No wonder Dorothy and Toto ran away...

[Paul Sabados]

Toto and Dorthy have left the State. Can't say that I blame them.

Now pay attention here. You have the trial attorneys pushing for absolute removal of limits of liability. This is being supported by KAR. Next you have Luke Bell's proposal coming behind about two weeks later with this little provision inserted into what he believes should be the law of the land

Section 10. (a) On and after January 1, 2008, all individuals performing home inspections as defined under this act in the state of Kansas shall be required to file a written registration with the Board. All registrants must:
(1) Be at least eighteen (1 years of age;
(2) Have successfully completed high school or its equivalent;
(3) Submit proof of current general liability insurance coverage in an amount equal to or greater than $250,000;
(4) Submit proof of financial responsibility by one of the following:
(i) A policy of errors and omissions insurance coverage;
(ii) A surety bond in an amount not less than $15,000, providing that the surety bond may not be terminated without thirty (30) days prior written notice to the Board;
(iii) An irrevocable letter of credit not less than $15,000 issued by a bank which is insured by the federal deposit insurance corporation or its successor if such letter of credit is initially issued for a term of at least one (1) year and by its terms is automatically renewed at each expiration date for at least an additional one-year term unless at least thirty (30) days prior written notice of intention not to renew is provided to the Board; or
(iv) Maintaining a minimum balance of $15,000 in an escrow account in a Kansas financial institution as defined in K.S.A. 16-117, and amendments thereto, provided that the escrow account shall maintain the minimum balance through the term of the registrant’s registration as a home inspector. The Board shall be notified in writing by the financial institution within ten (10) days if the amount in the escrow account falls below the $15,000 minimum balance. Upon notification, the Board shall suspend such registrant’s registration as a home inspector until the escrow account minimum balance is restored to greater than or equal to $15,000;

Any thoughts on why this might be happening? How about the full removal of limits to just one sector business might be just to hard to pass the test. So Mr. Bell being the wise one will have an optional offering that appears to be somewhat easier a pill to swallow for the legislature. Slick move.

c) No home inspector may include, as a term or condition in an agreement to conduct a home inspection, any provisions that disclaim the liability for any errors and omissions which may arise during a home inspection, or limit the amount of damages for liability for any errors and omissions which may arise during a home inspection to less than $15,000 in the aggregate for each home inspection.

My personal opinion, right now there is a direct collusive effort being pushed forth by both groups and each and everyone one of you Kansas inspectors have a big target on your backs. This all started last year with Mr. Bell's mass email to all agents in the state looking for any and all problems with a real estate transaction involving an inspection to show cause for licensing.

Mr. Bell from his own mouth made the statement that the KAREI group's proposal was to weak and not worth backing. I'm sure he wouldn't like the KARCI position statement.

Wake up guys

Paul

[Blaine Wiley]

That clause certainly has a tendentious position toward the trial lawyers and absolving the realestators from potential liability.


It also proves to be quite a conundrum for home inspectors. Inspectors will get to choose whether to operate without a liability limitation clause and E&O insurance, or to operate outside the law because the insurance companies require a liability limitation clause to provide E&O.


Perhaps Mr. Bell just thinks that inspectors should have "sue me for your home problems" tattooed somewhere on them. Which is he, a trial lawyer, Realtor, or a home inspector looking to control other inspectors by being a board member?


Regardless of whether you are inspector in favor of licensing or not, this is not home inspector friendly legislation. I suggest you start calling and writing your legislators now. If this passes, it will not be enjoyable to be a home inspector in Kansas!

[Joseph Burkeson, CMI]

Originally Posted by jbushart

No wonder Dorothy and Toto ran away...

We should probably get Lewis Capaul read on this bill, no doubt this law is for your own good and you have just missed or glossed over the win-win silver lining, comon guys get with it. Licensing is inevitable

[William J. Decker]

FYI:

There is already a de facto elimination of limitation of liability in Illinois.

[pcarter-old-04]

It has been quite interesting to see the development of opposing forces in Kansas and the split that has occurred. Major players for legislation are the Realtors , Trial Attorneys, and a group of select ASHI Home Inspectors and I sense that home builders are lurking in the shadows. The Opponents to Legislation are a group of Inspectors who belong to KARCI, members of KARCI are made up of inspectors from ASHI, NACHI and NAHI from both the metro and rural areas. What I have pieced together through emails, personal conversations is that each of these groups for legislation have their own agendas that; A. limits their liabilty to their client and can push the blame for their incompentence to the home inspector; B. A cash cow to sue Home Inspectors for the incompentence of a realtor and home builder; C. Try to limit competition under the guise of Consumer Protection which is a facade; D. A cash cow for a HI school in Kansas who's owner at one time a past HI who was unsuccessful at being a HI; E. A member of a major association trying to get themselves elected to the association's National Broad of Directors; F. A representative for realtors who lied and decieved a registered lobbiest; and last but not least a state Association of HI's who say they represent all Home Inspectors, and made such claims to other associations and legislators which is false.

Kansas inspectors, you best get your act together or you will be out of business before you know it because you will not be able to afford your insurance to stay in business, because of one simple thing; the proponents of legislation will get you one way or the other (NO limited liability and required Insurance). At this time there is only one state association that is fighting back, and that IS KARCI, join the fight to protect your business and family from those who want to take it away by spreading falsehoods and practicing deceit. If you believe the rhetoric of "Consumer Protection" broadcasted by these pro-legislation activists, think again, its not there. If you believe in "Consumer Protection" fight these bills being introduced and then protect your clientel by keeping up with your continuing education requirements, follow your associations Code of Ethics and most important, write your Inspection Reports honestly and without favor, thats goes along way to protecting the consumer.

As a well known member who posts on this board says "Legislation Solves Nothing".

Join KARCI, write or call your state reps and protest these bills being introduce, stand up and be counted and protect your livelyhood from those wishing to take it away. Those inspectors in Western Missouri, its your fight too if you have clients in Kansas, nothing wrong for you to join and write the Kansas Legislators in the areas of Kansas you practice your trade.

I will get off the Soap Box now for the next inspector..........................

[Blaine Wiley]

It is unfathomable to me that any home inspector would stand against his or her ability to protect his or her assets by removing limitation of liability, and their ability to disclaim portions of the inspection.

Consumer protection is and always has been a false argument in any legislation battle.

Ambulance chasers are abundant, and don't need us to make them more wealthy.

I hope the Kansas inspectors will pay attention, and fight this poor piece of legislation.

[Dan Bowers, CMI]

If you really look at this sort of language it also starts taking out our SOP.

I can't tell you I can't see behind the drywall, under the carpet, etc, etc.

Can you imagine your new conversations with everyone:

"Good morning, my name is Bob the Inspector. I'm your cradle to grave insurance policy. Remember if you move in and you find a hole in the wall behind the refrigerator OR an electrical outlet that does not work behind the 400 pound Amoire that I so carelessly forgot to move - Just call me".

"Because as you know, I can't limit my liability or DISCLAIM it".

I wonder how the insurance companies will look at this language. Will we be able to get E&O insurance OR will it run $8,000 a year for a $20,000 E&O Policy.

Because of this we now have 2 Kansas HI Associations - KARCI (against letting some other profession do to us stuff they would not tolerate if it was not happening to them) and KAREI (their philosophy seems to be - "well guys theres more realtors and attorneys than there are inspectors so we better take the best deal they'll let us have and live with it").

[James H. Bushart]

Is there anything we can do from Missouri to help your situation?

[Blaine Wiley]

Originally Posted by jbushart

Is there anything we can do from Missouri to help your situation?

Well, you could go round up the pettifoggers who are pushing the bill, and change their minds. That would be a start!!

[James H. Bushart]

Originally Posted by bwiley

Well, you could go round up the pettifoggers who are pushing the bill, and change their minds. That would be a start!!

Good idea. Perhaps you guys could get them all in one spot...like, say...Lawrence, Kansas. Then a few of us could ride in...

[jwortham1]

There is already a de facto elimination of limitation of liability in Illinois.

Where did you get that from Will?

More than one attorney I have spoken to has said to be SURE it's in my contract.

As the litigation attorney I spoke to said, "One more hurdle for them to clear!".

He also stated that Illinois is very big on contract law. If it's in a contract that you signed, be prepared to lose in court.