Kansas Insurance Commissioner Vicki Schmidt this week testified in favor of a bill that would create an Insurance Savings Account (ISA). The Kansas Department of Insurance introduced the bill to give Kansans a state tax free way to save for property and casualty insurance expenses.
If passed, the bill will allow Kansas tax filers to open up an ISA at a financial institution and make contributions up to a set amount, depending on their tax filing status. Account holders can then use the money contributed to pay for any property and casualty insurance expense including home and auto insurance premiums and their associated deductibles. A married couple contributing the maximum to an ISA can save up to $670 on their taxes every year.
The bill was heard Monday in the House Committee on Taxation. This is the second year that the Department has proposed an ISA bill to the Legislature. Commissioner Vicki Schmidt recently announced the Department has recovered over $202 million for Kansas policy holders since taking office in 2019.
“Insurance Savings Accounts are a sustainable way for Kansans to save state-tax free for their insurance costs,” said Schmidt. “As the legislature works to address affordability, they should include this tool for Kansas families.”
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