About Kansas Insurance Laws, Health Insurance and Regulations…
The Kansas insurance industry is strong and well equipped to handle the needs of consumers. The industry is regulated by the Kansas Insurance Department, which institutes guidelines and standards that the state’s insurance companies are required to adhere to. Companies that do not comply with the state’s regulations, or those of the federal government, face severe legal action. Many of these regulations are in place to protect consumers, while others are meant to ensure that insurance companies can operate freely and generate a profit.
Kansas drivers are required to carry auto insurance coverage. The Kansas Insurance Department has established regulations that ensure consumers can have access to comprehensive and fairly prices policies. This is a two-way door, so to speak, as drivers in the state are also required to carry at least a miminum level of auto insurance coverage. All auto insurance policies sold within the state must include a minimum of $25,000 per person for bodily injury; $50,000 per accident for bodily injury; and $10,000 per accident for property damage. Drivers are also required to carry personal injury protection (PIP) coverage.
Kansas is a no fault auto insurance state.
This means that insurance companies are required to honor claims regardless of whether a policyholder can be found at fault of an accident. No fault rules can sometimes lead to auto insurance fraud, but the Kansas Insurance Department has been able to keep the prevelence of fraud somewhat low. Because of this, Kansas is ranked as the 6th least expensive state in terms of auto insurance throughout the U.S., with premiums averaging $1,400 per year.
Like other states, Kansas does not require homeowners to purchase or maintain property insurance of any kind. The Kansas Insurance Department does strongly advise that consumers carry some kind of homeowners insurance policy to protect themselves from financial loss or the loss of their possessions. Kansas is no stranger to natural disasters, but its relative distance from the coast means that some homeowners insurance policy are more affordable than those that can be found in states like Florida and Louisiana.
The Affordable Care Act will take effect in 2014 and every American citizen will then be required to carry some form of health insurance policy. Kansas will not require residents to carry insurance coverage, but these residents will still be compelled to do so by federal law. Kansas has the opportunity to build a health insurance exchange system, which would provide the state’s 2,708,002 residents with access to affordable coverage. Approximately 12.48% of the state’s population currently has no health insurance of any kind, largely because of how expensive coverage can be.
Insurance News Update: The Kansas Insurance Department, as well as the state’s legislators, has determined that the state will not build its own exchange program. Instead, this duty will be passed on to t he federal government, which will build a working exchange system by 2014. Kansas will not be allowed to regulate this exchange program.
Kansas Insurance Resources:
Kansas Insurance Commissioner: Sandy Praeger
Kansas Department of Insurance Website: http://www.ksinsurance.org/
Kansas Insurance Licensing Info: http://www.ksinsurance.org/industry/agent.htm
File Insurance Complaint:http://www.ksinsurance.org/consumers/complaint.htm