Insurance department proposes real‑time auto‑insurance verification system; supporters cite uninsured‑motorist costs, critics raise privacy and enforcement caut

House Bill 2047 would create a real‑time motor vehicle liability insurance verification system. The bill directs the insurance commissioner to establish the system, requires insurers to provide policy information for vehicles registered in Kansas (with some carve outs), and limits access to authorized users such as the Kansas Insurance Department, Department of Revenue Division of Vehicles, courts and law enforcement. The bill allows the commissioner to contract with a private vendor and directs the insurance department to fund implementation and ongoing operation from its regulation service fund. The bill sets a target full operational date of July 1, 2026.

Mandy Roe, chief of staff for the Kansas Department of Insurance, told the committee the department's data call found insurers paid over $51,000,000 in uninsured‑motorist claims in calendar years 2021‑22 and that roughly 8% of vehicles in Kansas are uninsured. The department said the proposal would allow routine cross‑checks of registered vehicles against insurers' books of business, generate lists of registrations with no matching policy, and enable administrative follow‑up — including notices and possible registration or license suspension under existing law — rather than relying solely on post‑accident detection.

Law‑enforcement witnesses — Ed Klomp of the Kansas Sheriffs Association and Steve Kearney of the Kansas State Troopers Association — supported the bill as a tool that would streamline verification and reduce the current, often clunky, multi‑step process for confirming insurance after traffic stops or accidents. They said a real‑time system could reduce uninsured‑motorist rates and related claims; Ed Klomp also said the approach could reduce hit‑and‑run crashes tied to uninsured drivers.

Supporters estimated costs in the transcript's testimony: the department's fiscal estimate described a potential implementation cost of up to $1,000,000 in the first year and ongoing maintenance estimated at about $500,000 in subsequent years. The department said it would pay from its existing balances rather than raising fees to pay for the system. Mandy Roe cited other states and industry models; proponents said about 20 states have implemented similar laws and that the NAIC/IICMVA model was in use in other jurisdictions.

Several lawmakers and witnesses raised concerns. Committee members asked how the system would be used in the field, whether it would create new grounds for stops or expand license‑plate scanning, and how it would protect privacy. Lawmakers asked whether the system would lead to automated enforcement or produce probabilistic surveillance; proponents said the bill as drafted does not change the underlying stop or criminal‑law standards and that existing penalties for driving uninsured would remain in place. The reviser and department staff confirmed the bill includes confidentiality protections, and proposed technical rules and an RFP process for vendor selection. Questions about which agencies would be required to use the system, whether the Department of Revenue would be compelled to participate, and how the system would treat legitimately uninsured but nonoperational registered vehicles (for example, a vehicle kept off roads while being rebuilt) remained unanswered in the transcript.

Why it matters: Supporters said the system would let Kansas identify uninsured vehicles proactively, reduce uninsured‑motorist claims, and save money for insured motorists and insurers; critics worried the system could be expanded into broader automated enforcement, raised privacy concerns, and sought clarity on enforcement mechanics and fiscal treatment.

What's next: The committee heard several proponents and closed the hearing. No committee vote appears in the transcript. Several legislators asked the reviser and department staff to return with clarifying language and to consider privacy and enforcement safeguards.

Direct quotes from the hearing are included below, attributed to listed speakers.