Bill
HB 2047
Kansas will require insurers to integrate with a real-time, web-based verification system to confirm motor vehicle liability coverage for Kansas-registered vehicles.
Status & Procedural Timeline
- Introduced: January 23, 2025 (requested by Eric Turek on behalf of the Kansas Insurance Department).
- House Committee on Insurance amended the bill; House passed the bill (Feb 13, 2025; vote 121–0) and transmitted to the Senate.
- Hearing: Wednesday, March 5, 2025, 9:30 AM, Room 546‑S.
- Target operational deadline for the system: fully operational no later than July 1, 2026, after a testing period of not less than nine months. No enforcement actions based on system data until testing is successfully completed.
Purpose / Intent
HB 2047 creates the "Kansas Real Time Motor Vehicle Insurance Verification Act" to establish a single, web‑based, real‑time system for verifying motor vehicle liability insurance in Kansas. The intent is to centralize and modernize proof-of-insurance verification, improve matching accuracy, aid authorized users (including KDOR and law enforcement), and reduce uninsured motorist rates (a benefit cited by proponents based on other states’ experiences).
Key Provisions
- Establishment and control
- Directs the Commissioner of Insurance to create and operate a web‑based insurance verification system and adopt implementing rules.
- The new system supersedes prior electronic verification systems and becomes the sole electronic verification system for Kansas.
- Commissioner may competitively contract with an experienced private vendor to build/maintain the system.
- Technical and functional requirements
- Must support real‑time requests/responses via insurer web services and include multiple matching data elements (e.g., NAIC company code, VIN, policy number, verification date).
- Must secure data per applicable privacy laws and interface with existing state systems where appropriate.
- Accessible to authorized personnel: Kansas Insurance Department, KDOR Division of Vehicles, courts, law enforcement, and other legally authorized entities.
- Insurer obligations and exceptions
- All property & casualty insurers licensed to write motor vehicle liability insurance in Kansas must provide verification for vehicles registered in Kansas (insurers may use third‑party vendors).
- Commercial motor vehicle coverage is excluded (insurers of commercial vehicles may participate voluntarily).
- Insurers need not verify insurance for vehicles registered outside Kansas.
- Reasonable downtime allowed (with notice); no enforcement fees when outages are outside insurer control as determined by KDOR.
- Commissioner may allow alternative verification methods for insurers insuring 1,000 or fewer vehicles in Kansas.
- Insurers receive civil and administrative immunity for good‑faith compliance efforts.
- Confidentiality and use limits
- All data and reports in the system are privileged and confidential: not subject to the Kansas Open Records Act, not discoverable, and not admissible in private civil actions.
- The system cannot be used as the primary cause for a law enforcement vehicle stop.
- Online verification may be used as proof of insurance where law permits.
Fiscal impact (estimated)
- Kansas Insurance Department: estimated cost from Insurance Department Regulation Service Fund — $1.0 million in FY2026 (startup and testing) and $500,000 in FY2027 (ongoing maintenance/enhancements).
- Kansas Department of Revenue (KDOR): estimated $45,100 State General Fund in FY2026 to modify/test internal databases and create an interface with the Insurance Department. KDOR expects to use existing staff but may require outside contractors if workload or timelines exceed capacity.
- Implementation costs are not reflected in the FY2026 Governor’s Budget Report.
Who is affected
- Primary: property & casualty insurers writing motor vehicle liability insurance in Kansas (must integrate/respond to the system).
- Secondary: Kansas Insurance Department (operational and regulatory responsibilities); Kansas Department of Revenue (technical interface and registration workflows); law enforcement and courts (authorized users); Kansas vehicle registrants (verification used for registration/enforcement processes).
Potential impacts and considerations
- Expected to streamline insurance verification and support faster, more accurate checks (proponents assert similar laws in other states reduced uninsured motorist rates).
- Requires insurer IT integration and state IT work—upfront and ongoing costs exist.
- The confidentiality provisions restrict public access and use in private litigation, which may affect transparency and civil discovery practices.
- Operational and enforcement safeguards: testing period, downtime protections, and limits on law‑enforcement use.
Compiled from official sources — confirm details with the bill’s official record.
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