SESSION OF 2025
SUPPLEMENTAL NOTE ON SENATE BILL NO. 42
As Amended by House Committee on Insurance
Brief*
SB 42, as amended, would enact the Kansas Real Time
Motor Vehicle Insurance Verification Act (Act). The Act would:
●Require the Commissioner of Insurance
(Commissioner) to establish a web-based system
for online verification of motor vehicle insurance;
●Require motor vehicle insurers to cooperate with
the Commissioner to establish and maintain the
system as specified in the Act; and
●Establish the web-based system created in the Act
as the only electronic system to be used for the
purpose of verifying motor vehicle liability
insurance.
The bill would also make technical amendments.
The bill would be in effect upon publication in the
Kansas Register.
Definitions (New Section 1)
The bill would define various terms as used in the Act,
including:
●“Commercial vehicle coverage” would mean any
coverage provided to an insured, regardless of the
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
https://klrd.gov/ number of vehicles covered, under a commercial
coverage form and rated from a commercial
manual approved by the Kansas Insurance
Department (Department); and
●“Insurance verification system” would mean the
web-based system for online verification of motor
vehicle liability insurance.
Insurance Verification System Established
(New Section 2)
The bill would direct the Commissioner to establish an
online verification of motor vehicle insurance system
(system). The bill would require the system to be web-based,
supersede any other verification system requirements, and be
the only system in Kansas for this purpose. The
Commissioner also would have authority to adopt reasonable
and necessary rules and regulations for the system.
Insurance Verification System Technical Capabilities
(New Section 3)
The bill would create requirements for the system,
including the ability to:
●Transmit requests to insurers for verification of
coverage and receive responses from insurance
company systems. The insurance company
systems would be required to respond to each
request for verification with a prescribed response
upon evaluation of the data provided in such
request;
●Ensure the data is secured with applicable data
privacy protection laws;
●Be used for verification of motor vehicle liability
insurance as prescribed by state law and
2- 42 accessible to authorized personnel and entities
authorized by state or federal privacy laws;
●Interface wherever appropriate with existing state
systems; and
●Include multiple data elements for greater matching
accuracy, limited to:
○Insurer National Association of Insurance
Commissioners company code number;
○Vehicle identification number;
○Policy number;
○Verification date; or
○Other information as required by the
Commissioner or Kansas Department of
Revenue (KDOR).
Acquisition (New Section 4)
The bill would permit the Commissioner to conduct a
competitive bid and contract process to purchase the system
from a private service provider that has successfully
implemented similar systems in other states.
Funding Source (New Section 5)
The bill would require the Department to provide the
funding for implementation, ongoing maintenance, and
enhancement of the system from the Insurance Department
Regulation Service Fund.
System Information Exchange (New Section 6)
The bill would direct insurers to cooperate with the
Commissioner and KDOR to establish and maintain the
3- 42 system. Insurer systems would be permitted reasonable
system downtime with proper notice, and fees would not be
charged during downtime or when the system is not available
due to emergency situations, outside attack, or other
unexpected outages outside the insurer’s control as
determined by KDOR.
The bill would require each property and casualty
insurance company licensed to issue motor vehicle liability
insurance or authorized to do business in Kansas to provide
verification through the system for vehicles registered in
Kansas and allow the company to use a third-party vendor.
The bill would allow commercial motor vehicle insurers
to participate in the system voluntarily.
The bill would also provide insurers with immunity from
civil and administrative liability for good faith efforts to comply
with the Act.
Alternative Verification (New Section 7)
The bill would authorize the Commissioner to establish
rules and regulations for an alternative verification method for
insurers that insure 1,000 or fewer vehicles in Kansas.
Confidentiality of Information (New Section 8)
The bill would establish that all information and data
provided by the insurance companies to the system, including
all reports, responses, or other information generated for
purposes on the system, would be confidential by law and
privileged. The information would not be subject to the
Kansas Open Records Act or subject to discovery or
admissible as evidence in any private civil action.
4- 42 Effective Date (New Section 9)
The bill would require the system to be fully operational
no later than July 1, 2026, following a testing period of no less
than nine months. Enforcement action based on system
information would not be permitted until after a successful
completion of the testing period.
Law Enforcement Stops (New Section 10)
The bill would prohibit establishing compliance through
the system as a primary cause for law enforcement to stop a
vehicle.
Permitted Use (Section 11)
The bill would establish that the online verification
established through the Act could be used as proof of
insurance for vehicle registration purposes.
Background
The bill was introduced by the Senate Committee on
Financial Institutions and Insurance at the request of a
representative of the Department. [Note: A companion bill, HB
2047, has been introduced in the House.]
Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, proponent testimony
was provided by a representative of the Department and a
representative of the Kansas Association of Chiefs of Police,
Kansas Peace Officers Association, and the Kansas Sheriffs
Association. The representative of the Department stated the
bill would allow the Department to issue a request for
proposal and contract with a company for a real-time motor
5- 42 vehicle insurance verification system. The representative of
the Department stated the Department intends to fully fund
the cost of the implementation of the system, noted the law is
based upon a model law working to solve the issue of
uninsured motorists, the legislation has been enacted in more
than 20 states, and those states have reduced their
uninsured motorist rates by half. The representative of law
enforcement indicated the system would assist law
enforcement in verifying drivers’ insurance information
accurately in a timely manner.
Written-only proponent testimony was provided by the
Superintendent of the Kansas Highway Patrol.
No other testimony was provided.
The Senate Committee made a technical amendment to
correct the title of the Act in New Section 1.
Senate Committee of the Whole
The Senate Committee of the Whole amended the bill to
prohibit establishing compliance through the system as a
primary cause for law enforcement to stop a vehicle and to
limit the data elements for greater matching accuracy that a
motor vehicle liability insurance company provides.
House Committee on Insurance
In the House Committee hearing, written-only proponent
testimony was provided by representatives of the Kansas
Association of Insurance Agents, Kansas Highway Patrol, and
the Kansas Association of Chiefs of Police, Kansas Peace
Officers Association, and Kansas Sheriffs Association.
No other testimony was provided.
6- 42 The House Committee made a technical amendment to
the bill and changed the effective date to be upon publication
in the Kansas Register.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department
estimates enactment of the bill would cost $1.0 million in FY
2026 and $500,000 in FY 2027 from its Insurance
Department Service Regulation Fee Fund. The Department
indicates the cost of real-time verification can vary depending
on specific features. The Department’s estimates include the
startup costs and the verification testing in FY 2026. The cost
for FY 2027 includes ongoing maintenance and other
services required for the new system.
KDOR estimates that it would require $45,100 from the
State General Fund in FY 2026 to modify and test agency
databases and update publications. The estimate includes
development and testing of its internal system as well as
creating a new interface between the Department and KDOR.
The required programming for this bill by itself would be
performed by existing KDOR staff. In addition, if the
combined effect of implementing this bill and other enacted
legislation would exceed KDOR’s programming resources, or
if the time for implementing the changes is too short,
additional expenditures for outside contract programmer
services beyond KDOR’s current budget may be required.
Any fiscal effect associated with the bill is not reflected
in The FY 2026 Governor’s Budget Report.
Insurance; Real Time Motor Vehicle Insurance Verification Act; motor vehicle; law
enforcement
7- 42