This bill amends K.S.A. 40-284 to modify the requirements for automobile liability insurance policies regarding uninsured and underinsured motorist coverage. Starting January 1, 2026, any automobile liability insurance policy issued in Kansas must include coverage limits for uninsured motorist claims that are equal to the liability coverage limits for bodily injury or death in the policy. Additionally, the bill stipulates that underinsured motorist coverage must also have limits equal to those of the uninsured motorist coverage, ensuring that insured individuals can recover damages that exceed the limits available from the other motor vehicle's insurance. 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.

Furthermore, the bill allows the named insured to reject the required uninsured motorist coverage in writing, which will apply to all parties covered under the policy. It establishes that coverage limits cannot exceed the highest limits of any single applicable policy, regardless of the number of policies involved. The bill also outlines specific exclusions and limitations for coverage, such as when the insured is struck by an uninsured vehicle owned by the insured or when there is no evidence of physical contact with the uninsured vehicle. Lastly, it includes provisions for subrogation rights for underinsured motorist coverage insurers and the process for notifying them 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 The existing section of K.S.A. 40-284 is repealed, and the new provisions will take effect on January 1, 2026.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
As introduced: 40-284