Bill Summary – FastDemocracy

Division of the Budget
Landon State Office Building                                                                        Phone: (785) 296-2436
900 SW Jackson Street, Room 504                                                                     larry.campbell@ks.gov
Topeka, KS 66612                               Division of the Budget                              http://budget.kansas.gov
Larry L. Campbell, Director                                                                       Laura Kelly, Governor

                                                 February 21, 2019


         The Honorable Jene Vickrey, Chairperson
         House Committee on Insurance
         Statehouse, Room 276-W
         Topeka, Kansas 66612
         Dear Representative Vickrey:
                   SUBJECT:       Fiscal Note for HB 2210 by House Committee on Judiciary
                 In accordance with KSA 75-3715a, the following fiscal note concerning HB 2210 is
         respectfully submitted to your committee.
                 HB 2210 would increase the underinsured motorist (UIM) coverage available to
         policyholders covered under a motor vehicle liability insurance policy to an amount equal to the
         uninsured (UM) motorist coverage limits. The bill would also prohibit UIM coverage from being
         reduced because of any liability limit or payment by an owner or operator of another motor vehicle
         or any third party.
                 According to the Insurance Department, enactment of HB 2210 would have no fiscal effect
         on agency expenditures. However, the agency indicates that the bill could result in a minimal
         increase in the premium tax from insurance companies if the UIM limit does not currently match
         the UM limit. The agency retains 1.0 percent of all premium taxes collected and the remainder is
         deposited into the State General Fund. The agency states that if premium taxes increase as a result
         of enactment of the bill, then State General Fund revenues would also increase. However, the
         fiscal effect cannot be estimated because the additional premium taxes that would be collected are
         unknown. The agency also notes that the bill would require companies that are currently
         authorized to sell UIM coverage to submit new policy forms to the Insurance Department for
         approval. Any fiscal effect associated with HB 2210 is not reflected in The FY 2020 Governor’s
         Budget Report.

                                                              Sincerely,

                                                              Larry L. Campbell
                                                              Director of the Budget
         cc: Glenda Haverkamp, Insurance
Statutes affected: 
As introduced: 40-284