This bill amends K.S.A. 40-284 to modify the requirements for automobile liability insurance policies in Kansas, specifically regarding uninsured and underinsured motorist coverage. Starting January 1, 2026, any automobile liability insurance policy issued or renewed in the state must include coverage limits for uninsured motorist claims that are equal to the liability coverage for bodily injury or death provided in the policy. The bill also clarifies that insurers are not required to offer this coverage in connection with excess or umbrella policies that do not provide primary motor vehicle insurance. Additionally, the bill establishes that underinsured motorist coverage must have limits equal to those of the uninsured motorist coverage, ensuring that insured individuals can recover damages exceeding the limits of the other motorist's insurance.

Furthermore, the bill outlines the rights of insured individuals regarding the rejection of uninsured motorist coverage, stating that a rejection by the named insured applies to all parties covered under the policy. It also specifies conditions under which coverage may be excluded or limited, such as when the insured is in an uninsured vehicle or when there is no evidence of physical contact with the uninsured motorist. The bill includes provisions for subrogation rights for underinsured motorist coverage insurers and establishes a process for notifying insurers of tentative settlements with underinsured tortfeasors. The existing section of K.S.A. 40-284 is repealed, and the new provisions will take effect on January 1, 2026.

Statutes affected:
As introduced: 40-284