Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam C. Proffitt, Director Laura Kelly, Governor


February 26, 2024


The Honorable William Sutton, Chairperson
House Committee on Insurance
300 SW 10th Avenue, Room 218-N
Topeka, Kansas 66612
Dear Representative Sutton:
SUBJECT: Fiscal Note for HB 2707 by House Committee on Judiciary
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2707 is
respectfully submitted to your committee.
HB 2707 would create the UIM Transparency in Insurance Act. The bill would require
uninsured motorist coverage to include an underinsured motorist provision that has coverage limits
equal to the limits of liability provided by the uninsured motorist coverage. This provision would
enable recovery from the insurer the amount of damages for bodily injury or death to which an
insured is legally entitled from the owner or operator of another motor vehicle to the extend the
damages exceed the proceeds reasonably available to the insured from the bodily injury coverage
carried by the owner or operator of the other motor vehicle. Automobile policies sold or renewed,
on or after January 1, 2025, would have to meet this requirement. The statute would also prohibit
any reduction in the amount of underinsured motorist coverage because of any liability limit or
payment by or on behalf of the owner or operator of the other motor vehicle or any third party.
The Office of Judicial Administration states that the bill could increase the number of cases
filed in district courts because the bill could result in more civil case filings. This would increase
the time spent by district court judicial and nonjudicial personnel in processing, researching, and
hearing cases. The Office also states that the bill could increase the collection of docket fees that
would be deposited into the State General Fund. However, a precise fiscal effect cannot be
determined.
The Department of Insurance states that the bill could increase coverage limits which
would increase insurance premiums. The agency estimates that the increase in additional premium
The Honorable William Sutton, Chairperson
Page 2—HB 2707

taxes would be negligible. Any fiscal effect associated with HB 2707 is not reflected in The FY
2025 Governor’s Budget Report.

Sincerely,

Adam C. Proffitt
Director of the Budget


cc: Bobbi Mariani, Insurance Department
Trisha Morrow, Judiciary


Statutes affected:
As introduced: 40-284