Underinsured driver coverage would protect policy limits after a crash

An underinsured motorist policy would pay covered damages without reducing its limit for payments by the at-fault driver or another party. The coverage applies to an insured hurt or killed in an accident involving an underinsured motor vehicle. Payment is limited to damages the insured is legally entitled to recover that exceed the proceeds reasonably available from the other driver's bodily injury coverage. The policy's total available limits cannot exceed the highest limit under any one applicable policy. The named insured may reject in writing coverage above the minimum bodily injury or death limits required by Kansas law. The act would take effect January 1, 2026, after publication in the statute book.

An underinsured motorist insurer may pay the insured the tentative settlement amount within 60 days to take over the insured's recovery rights to that extent. This process applies when an insured reaches a tentative settlement with an underinsured driver for that driver's liability limits. The insured must notify the insurer by certified mail after reaching a tentative agreement to settle for the other driver's liability limits, and provide records of financial losses, including medical bills and permission or a court order to obtain employer and medical records. If the insurer does not pay the tentative settlement amount within 60 days after receiving notice, it has no right to recover amounts it pays under underinsured coverage. The insurer's 60-day period starts when it receives the required written notice.