To: Personal Auto Underwriting Supervisor
From: Kathleen Sebelius, Commissioner of Insurance
Subject: Application of Discounts for the Motor Vehicle Accident Prevention Course Discount(K.S.A. 40-1112a)
Date: February 28, 1997
We recently received an inquiry from a consumer who had separate auto policies for her two cars and was the principal operator of both vehicles. She asked if she would qualify for a motor vehicle accident prevention course discount for each policy. It is our position that the statute will permit a discount for each policy.
There are three distinct references in K.S.A. 40-1112a in support of this position. First K.S.A. 40-1112a(a) states that the discount applies to a motor vehicle insurance policy, not the person who buys the policy. Accordingly, if a person owns more than one policy, he or she may be eligible for more than one discount.
Second, the statute refers to covered vehicles, not policyholders or drivers, when it states that the discount applies for a two year period after the principal operator of the covered vehicles successfully completes an approved course. Further, K.S.A. 40-112a(e) refers to a qualified person being eligible for a reduction in premiums. The reference to "premiums" is plural, not singular, and is further evidence that the drafter of the statute intended that a qualified person could receive premium reductions on more than one policy.
Third, the language in K.S.A. 40-1112a(a) stating "Only one discount shall be allowed for each qualified person." is solely intended to prohibit an insured from stacking more than one discount on a single policy for the completion of additional accident prevention courses.
In addition, we are adding The Kansas Law Enforcement Training Center (KLETC) the Cyr Driving School to the list of approved courses. Any policyholder who presents a certificate of completion from these courses must receive the discount. We have attached a complete listing of the approved courses for the Motor Vehicle Accident Prevention Course.
We have received inquiries from consumers that insurance companies are not providing the discount for The Kansas Law Enforcement Training Center course. K.S.A. 40-1112a states that courses must be approved by a governmental agency such as the State Board of Education or the National Safety Council. As such, a governmental agency can, if it chooses, approve its own course. This position is supported by Attorney General Opinion 93-96.
We will endeavor to keep you apprised of any changes to the list of approved courses; however, we will place a higher notification priority on the private courses as these courses must receive approval from an approving entity. If you receive a request from a policyholder for the captioned discount, and you can determine the course was provided by a governmental agency you must provide the discount. This requirement applies regardless of whether the course appears on an approved list.
If you have any questions in this regard, please write the Fire and Casualty Division at 420 S.W. 9th Street, Topeka, KS 66612-1678, or call 913-296-3071. Send e-mail to bwempe@ink.org.
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