Kansas Insurers Oppose Drivers’ License Renewals at AAA Offices

August 17, 2005

Kansas members of the National Association of Mutual Insurance Companies (NAMIC) are mobilizing opposition to a state program permitting drivers’ license renewals at local AAA offices.

The Kansas Department of Revenue (KDR) recently announced plans to expand the pilot program, which began in May in Lawrence. The expanded program will allow for the renewal of drivers’ licenses in Lawrence as well as Topeka, Manhattan, Hutchison, Pittsburg and Wichita.

NAMIC estimates the program expansion could increase walk-in traffic at AAA offices by 30,000 people each year, providing AAA with an unfair competitive advantage in insurance marketing and sales because it also sells auto and homeowners insurance.

Industry advocates will be meeting with Gov. Sebelius in late August or early September to advocate elimination of this program.

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