Kansas Commissioner Backs Legislation for Insurance Savings Account Creation

This week, Kansas Insurance Commissioner Vicki Schmidt took a significant step by testifying in favor of a proposed bill aimed at establishing an Insurance Savings Account (ISA). Introduced by the Kansas Department of Insurance, this bill is designed to provide Kansans with a state tax-free method to save for property and casualty insurance expenses.

Should the bill pass, Kansas tax filers will have the opportunity to open an ISA at a financial institution. They can contribute up to a specified amount, which varies based on their tax filing status. The funds accumulated in these accounts can be utilized for a range of property and casualty insurance expenses, including home and auto insurance premiums, as well as their associated deductibles. Notably, a married couple contributing the maximum amount to an ISA could potentially save up to $670 on their taxes each year.

The bill was discussed on Monday during a session of the House Committee on Taxation. This marks the second consecutive year that the Department has proposed an ISA bill to the Legislature. Since taking office in 2019, Commissioner Vicki Schmidt has announced that the Department has successfully recovered over $202 million for Kansas policyholders.

“Insurance Savings Accounts are a sustainable way for Kansans to save state-tax free for their insurance costs,” Schmidt stated. “As the legislature works to address affordability, they should include this tool for Kansas families.”

This week, Kansas Insurance Commissioner Vicki Schmidt took a significant step by testifying in favor of a proposed bill aimed at establishing an Insurance Savings Account (ISA). Introduced by the Kansas Department of Insurance, this bill is designed to provide Kansans with a state tax-free method to save for property and casualty insurance expenses.

Should the bill pass, Kansas tax filers will have the opportunity to open an ISA at a financial institution. They can contribute up to a specified amount, which varies based on their tax filing status. The funds accumulated in these accounts can be utilized for a range of property and casualty insurance expenses, including home and auto insurance premiums, as well as their associated deductibles. Notably, a married couple contributing the maximum amount to an ISA could potentially save up to $670 on their taxes each year.

The bill was discussed on Monday during a session of the House Committee on Taxation. This marks the second consecutive year that the Department has proposed an ISA bill to the Legislature. Since taking office in 2019, Commissioner Vicki Schmidt has announced that the Department has successfully recovered over $202 million for Kansas policyholders.

“Insurance Savings Accounts are a sustainable way for Kansans to save state-tax free for their insurance costs,” Schmidt stated. “As the legislature works to address affordability, they should include this tool for Kansas families.”