Session of 1998
By Committee on Judiciary
            9             AN ACT concerning the Kansas automobile injury reparations act; in-
10             creasing minimum coverage limits; amending K.S.A. 40-3107 and re-
11             pealing the existing section.
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 40-3107 is hereby amended to read as follows:
15       40-3107. Every policy of motor vehicle liability insurance issued by an
16       insurer to an owner residing in this state shall:
17           (a) Designate by explicit description or by appropriate reference of
18       all vehicles with respect to which coverage is to be granted;
19           (b) insure the person named and any other person, as insured, using
20       any such vehicle with the expressed or implied consent of such named
21       insured, against loss from the liability imposed by law for damages arising
22       out of the ownership, maintenance or use of any such vehicle within the
23       United States of America or the Dominion of Canada, subject to the limits
24       stated in such policy;
25           (c) state the name and address of the named insured, the coverage
26       afforded by the policy, the premium charged and the policy period;
27           (d) contain an agreement or be endorsed that insurance is provided
28       in accordance with the coverage required by this act;
29           (e) contain stated limits of liability, exclusive of interest and costs,
30       with respect to each vehicle for which coverage is granted, not less than
31         $25,000 $100,000 because of bodily injury to, or death of, one person in
32       any one accident and, subject to the limit for one person, to a limit of not
33       less than   $50,000 $200,000 because of bodily injury to, or death of, two
34       or more persons in any one accident, and to a limit of not less than   $10,000
35       $40,000 because of harm to or destruction of property of others in any
36       one accident;
37           (f) include personal injury protection benefits to the named insured,
38       relatives residing in the same household, persons operating the insured
39       motor vehicle, passengers in such motor vehicle and other persons struck
40       by such motor vehicle and suffering bodily injury while not an occupant
41       of a motor vehicle, not exceeding the limits prescribed for each of such
42       benefits, for loss sustained by any such person as a result of injury. The
43       owner of a motorcycle, as defined by K.S.A. 8-1438 and amendments

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  1       thereto or motor-driven cycle, defined by K.S.A. 8-1439 and amendments
  2       thereto, who is the named insured, shall have the right to reject in writing
  3       insurance coverage including such benefits for injury to a person which
  4       occurs while the named insured is operating or is a passenger on such
  5       motorcycle or motor-driven cycle; and unless the named insured requests
  6       such coverage in writing, such coverage need not be provided in or sup-
  7       plemental to a renewal policy when the named insured has rejected the
  8       coverage in connection with a policy previously issued by the same in-
  9       surer. The fact that the insured has rejected such coverage shall not cause
10       such motorcycle or motor-driven cycle to be an uninsured motor vehicle;
11           (g) notwithstanding any omitted or inconsistent language, any con-
12       tract of insurance which an insurer represents as or which purports to be
13       a motor vehicle liability insurance policy meeting the requirements of this
14       act shall be construed to obligate the insurer to meet all the mandatory
15       requirements and obligations of this act;
16           (h) notwithstanding any other provision contained in this section, any
17       insurer may exclude coverage required by subsections (a), (b), (c) and (d)
18       of this section while any insured vehicles are:
19           (1) Rented to others or used to carry persons for a charge, however,
20       such exclusion shall not apply to the use of a private passenger car on a
21       share the expense basis;
22           (2) being repaired, serviced or used by any person employed or en-
23       gaged in any way in the automobile business. This does not apply to the
24       named insured, spouse or relative residents; or the agents, employers,
25       employees or partners of the named insured, spouse or resident relative;
26       and
27           (i) in addition to the provisions of subsection (h) and notwithstanding
28       any other provision contained in subsections (a), (b), (c) and (d) of this
29       section, any insurer may exclude coverage:
30           (1) For any damages for which the United States government might
31       be liable for the insured's use of the vehicle;
32           (2) for any damages to property owned by, rented to, or in charge of
33       or transported by an insured, however, this exclusion shall not apply to
34       coverage for a rented residence or rented private garage;
35           (3) for any obligation of an insured, or the insured's insurer under
36       any type of workers' compensation or disability or similar law;
37           (4) for liability assumed by an insured under any contract or agree-
38       ment;
39           (5) if two or more vehicle liability policies apply to the same accident,
40       the total limits of liability under all such policies shall not exceed that of
41       the policy with the highest limit of liability;
42           (6) for any damages arising from an intentional act;
43           (7) for any damages to any person who would be covered for such

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  1       damages under a nuclear energy liability policy;
  2           (8) for any obligation of the insured to indemnify another for damages
  3       resulting from bodily injury to the insured's employee by accident arising
  4       out of and in the course of such employee's employment;
  5           (9) for bodily injury to any fellow employee of the insured arising out
  6       of and in the course of such employee's employment;
  7           (10) for bodily injury or property damage resulting from the handling
  8       of property:
  9           (A) Before it is moved from the place where it is accepted by the
10       insured for movement into or onto the covered auto; or
11           (B) after it is moved from the covered auto to the place where it is
12       finally delivered by the insured;
13           (11) for bodily injury or property damage resulting from the move-
14       ment of property by a mechanical device, other than a hand truck, not
15       attached to the covered auto; and
16           (12) for bodily injury or property damage caused by the dumping,
17       discharge or escape of irritants, pollutants or contaminants; however, this
18       exclusion does not apply if the discharge is sudden and accidental.
19           Sec. 2. K.S.A. 40-3107 is hereby repealed.
20           Sec. 3. This act shall take effect and be in force from and after its
21       publication in the statute book.