reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-207 Secretary and certain officers to give bond.

40-207.
Secretary and certain officers to give bond.
The board of directors or other managing body of every insurance company organized under the laws of this state shall require the secretary, and all other officers having the care and handling of the funds and securities of the company, to give a good and sufficient bond to cover the term for which they are elected, appointed or employed, conditioned for the faithful accounting and disbursement of all money that may come into their hands; such bond to be in an amount named and to be approved by the board of directors, and other governing body, and to be held by a custodian to be designated by such board or body, and the expense of providing such a bond may be charged to the operating expense of the company.
History:
L. 1927, ch. 231, 40-207; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-208 Examination by commissioner before issuance of certificate.

40-208.
Examination by commissioner before issuance of certificate.
Every insurance company organized under the laws of this state having fulfilled the conditions precedent required by this code shall notify the commissioner of insurance who shall, prior to issuing any certificate of authority, make an examination, or cause the same to be made by some disinterested person appointed by him for that purpose. The corporators or officers of such company shall be required to certify under oath to the person making such examination that the money, notes, stocks, bonds, mortgages, deeds of trust and all obligations exhibited to him are the bona fide property of the company.
History:
L. 1927, ch. 231, 40-208; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-209b Same; act supplemental.

40-209b.
Same; act supplemental.
That this act is supplemental to and in no wise derogatory of or amending or repealing any existing statutes prescribing the powers and duties of the state insurance department.
History:
L. 1931, ch. 210, § 2; May 28.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-210 Foreign companies outside United States; permission to transact business; assets; condition.

40-210.
Foreign companies outside United States; permission to transact business; assets; condition.
To determine whether any insurance company organized under the laws of any government or state, other than one of the United States, may be permitted to transact the business of insurance, indemnity or suretyship in this state, the commissioner of insurance shall observe and be governed by the following rule: Such company shall be credited with all assets, at their actual value, which it may have deposited for the security of its policyholders within the United States in the insurance departments or with the chief financial officers of the several states of the United States, and with all assets it may have deposited for like purpose with and in the name of trustees appointed by such company, residents of the United States, approved by the chief officer of the insurance department of the state where such trustees reside or the commissioner of insurance of this state: Provided, That the plainly expressed terms and conditions of the deed or instrument under and by virtue of which such deposit is made and held by trustees are such that, until all liabilities secured by such deposit are canceled, there shall at all times be one or more acting trustees thereunder competent and authorized to hold, control and manage such trust to the full extent and for all the purposes for which it was created.
Any of the assets of the trust may be released therefrom upon substitution of other legally qualified assets of at least equivalent value. Assets in excess of the deposits required by law may be released from the trust upon the authority of the supervisory official designated in the trust agreement, which trust agreement shall have been approved by the chief officer of the insurance department of the state where such deed is filed or the commissioner of insurance of this state. A statement showing all assets deposited or released from the trust shall be furnished the commissioner of insurance of this state at such times as he, in his discretion may require, but not less than once each year: And provided further, That such company shall only have credit for such assets so deposited as are permitted under the laws of its domicile, but such assets shall be of a quality substantially as high as those permitted for investment by like domestic insurers.
History:
L. 1927, ch. 231, 40-210; L. 1951, ch. 292, § 1; June 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-211 Amount of deposit of foreign company outside United States.

40-211.
Amount of deposit of foreign company outside United States.
No insurance company organized under the laws of any government or state other than one of the United States, shall be permitted to transact the business of insurance in this state unless the aggregate of such deposits shall be at least one hundred thousand dollars in excess of all its liabilities in the United States for unpaid losses, unearned premiums on risks not expired, and all other liabilities in the United States.
History:
L. 1927, ch. 231, 40-211; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-212 Credit for reinsured risks.

40-212.
Credit for reinsured risks.
In considering the liabilities of any insurance company organized under the laws of any government or state other than one of the United States, it shall not be credited with risks reinsured, except for such risks as are reinsured in companies doing business in the United States, and which are or might, under the statutes of this state, be permitted to do business in this state.
History:
L. 1927, ch. 231, 40-212; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-213 Unlawful transfer of premium notes.

40-213.
Unlawful transfer of premium notes.
It shall be unlawful for any insurance company or any agent thereof who shall have accepted premium notes in payment for policies of insurance to sell or assign such note or notes prior to the delivery of the policy or policies to the insured.
History:
L. 1927, ch. 231, 40-213; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-214 Conditions under which insurance may be written; certificate of authority; revocation, when; unlawful acts.

40-214.
Conditions under which insurance may be written; certificate of authority; revocation, when; unlawful acts.
It shall be unlawful for any person, company, corporation or fraternal benefit society to transact the business of insurance, indemnity or suretyship, or do any act toward transacting such business, unless such person, company, corporation or fraternal benefit society shall have been duly authorized under the laws of this state to transact such business and shall have received proper written authority from the commissioner of insurance in conformity with the provisions of the laws of this state relative to insurance, indemnity and suretyship, and further, it shall be unlawful for any insurance company to effect contracts of insurance in this state on the life or person of residents of this state or on property located in this state except through persons duly licensed and certified in accordance with the insurance laws of this state and subject to the provisions of K.S.A. 40-245, and amendments thereto. Neither the enrollment of individuals under a group policy nor the inclusion of insurance in a credit transaction under an arrangement for its purchase by the creditor in compliance with the applicable provisions of the uniform consumer credit code shall constitute the effecting of a contract of insurance.
It shall be unlawful for any insurance company organized under the laws of this state to do business in any other state or territory of the United States without being first legally admitted and authorized to do business under the laws of such state or territory, and the insurance commissioner may revoke the license of any insurance company organized under the laws of this state and doing business in another state or territory without being first authorized so to do, and may require said company to pay the taxes upon the business so unlawfully written to the state or territory in which the business was written as provided by the laws of said state or territory. A company shall be considered admitted and authorized for the purposes of this section when it has been legally authorized to operate in such other state or territory as a nonadmitted insurer.
History:
L. 1927, ch. 231, 40-214; L. 1929, ch. 196, § 1; L. 1959, ch. 209, § 1; L. 1974, ch. 184, § 2; L. 1979, ch. 133, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-215 Duration of licenses and certificates.

40-215.
Duration of licenses and certificates.
All certificates and licenses granted under this code shall continue in force until suspended, revoked, or otherwise terminated by the commissioner of insurance.
History:
L. 1927, ch. 231, 40-215; L. 1978, ch. 167, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-217 Contents of policies of foreign company.

40-217.
Contents of policies of foreign company.
The policies of any insurance company not organized under the laws of this state may, with the approval of the commissioner of insurance, contain any provision which the laws of the state, territory, district, or country under which the company is organized require in such policies, and the policies of any insurance company organized under the law of this state, may, when issued or delivered in any other state, territory, district, or country, contain any provisions required by the laws of the state, territory, district or country in which the same are issued or delivered.
History:
L. 1927, ch. 231, 40-217; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-219 Failure of company to pay judgment.

40-219.
Failure of company to pay judgment.
Whenever any insurance company shall become liable to pay any loss to any person in this state, and shall neglect or refuse for three months after final judgment to pay the same, there being no appeal pending, and no supersedeas bond filed, the company may be enjoined from doing any business in this state until the judgment is fully paid.
History:
L. 1927, ch. 231, 40-219; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-220 Action against insurance company to be brought in this state; injunction.

40-220.
Action against insurance company to be brought in this state; injunction.
It shall be unlawful for any person who is a resident of this state to bring or maintain any action arising in this state, at law or in equity, against any insurance company organized under the laws of this state except in some court of competent jurisdiction of this state; and any such insurance company shall be entitled to a writ of injunction against the maintenance of any such action and against the enforcement of any judgment which may be procured in violation of this section.
History:
L. 1927, ch. 231, 40-220; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-222a Examination of corporations organizing domestic insurance companies.

40-222a.
Examination of corporations organizing domestic insurance companies.
The commissioner may, whenever he deems it necessary, examine the affairs of any corporation organized under any law of this state, or having an office in this state, which corporation is engaged in, or advertising that it is engaged in, or receiving stock subscription for the formation of a domestic insurance company; or any corporation which is holding the capital stock of any domestic insurance company for the purpose of controlling the management thereof. Each such company or corporation, its officers, directors, employees, and agents, shall produce the corporate books and papers in its or their possession relating to its business or affairs, and any other person may be required to produce any corporate book or paper in his custody deemed to be relevant to such examination, for the inspection of the commissioner, or any person appointed by the commissioner for such examination.
History:
L. 1967, ch. 250, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-222c Same; insurance company defined.

40-222c.
Same; insurance company defined.
As used in this act: The term "insurance company" shall mean and include all corporations, companies, associations, societies, fraternal benefit societies, reciprocal exchanges, persons or partnerships writing contracts of insurance, indemnity or suretyship in this state upon any type of risk or loss except insurance companies transacting business pursuant to the provisions of K.S.A. 40-202.
History:
L. 1972, ch. 177, § 2; L. 1997, ch. 8, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-222d Same; company deemed to be in hazardous financial condition, when.

40-222d.
Same; company deemed to be in hazardous financial condition, when.
For the purposes of this act a company may be deemed to be in a hazardous financial condition when the commissioner has determined, after notice and hearing as provided in K.S.A. 40-222b, that the loss experience of the company, when reviewed in conjunction with the kinds and nature of risks insured, the financial condition of the company and its ownership or the ratio of the annual premium volume in proportion to the company's policyholders surplus creates a condition that would make further assumption of risks hazardous to the insuring public.
History:
L. 1972, ch. 177, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-222e Same; suspension, revocation or refusal to renew certificate.

40-222e.
Same; suspension, revocation or refusal to renew certificate.
Whenever any insurance company subject to the provisions of this act fails to comply with any requirement imposed pursuant to this act, the commissioner may suspend or revoke such company's certificate of authority to transact business in this state pursuant to the provisions of K.S.A. 40-222 or the commissioner may refuse to renew such company's certificate of authority.
History:
L. 1972, ch. 177, § 4; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-222f Examination of condition of company; definitions.

40-222f.
Examination of condition of company; definitions.
As used in this act*:
(a) "Commissioner" means the commissioner of insurance of this state;
(b) "company" means any person engaging in or proposing or attempting to engage in any transaction or kind of insurance or surety business and any person or group of persons who may otherwise be subject to the administrative, regulatory or taxing authority of the commissioner;
(c) "department" means the department of insurance of this state;
(d) "examiner" means any individual or firm having been authorized by the commissioner to conduct an examination under this act;
(e) "insurer" shall have the meaning ascribed to the term "insurance company" by K.S.A. 40-222(c),** and amendments thereto; and
(f) "person" means any individual, aggregation of individuals, trust, association, partnership or corporation, or any affiliate thereof.
History: L. 1991, ch. 124, § 1; January 1, 1992.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-223a Insurance company annual statement examination fund established; purpose.

40-223a.
Insurance company annual statement examination fund established; purpose.
A fund, designated "insurance company annual statement examination fund" in an amount not to exceed twenty-eight thousand dollars ($28,000) shall be set apart and maintained for the commissioner of insurance from insurance company tax and fee collections. Such fund shall be held by the state treasurer for the payment of expenses and salaries incurred in the auditing of securities deposited with the commissioner and examination of the annual statements required by K.S.A. 40-225 and shall be limited to the amount necessary to compensate and reimburse no more than five (5) examiners for a period of time not exceeding ninety (90) days in any one calendar year.
History:
L. 1971, ch. 157, § 1; L. 1979, ch. 135, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-223b Same; compensation and expenses of examiners.

40-223b.
Same; compensation and expenses of examiners.
Any person or persons who shall conduct a securities audit or annual statement examinations under the provisions of this act shall be regularly employed examiners and shall receive as full compensation for their services the amount provided by K.S.A. 40-223 together with such necessary and actual expenses for traveling and subsistence as shall be incurred in and on account of the performance of such services. For the purposes of this act, "necessary and actual expenses" shall be limited as provided in K.S.A. 75-3207 which pertain to official travel outside the state.
History:
L. 1971, ch. 157, § 2; L. 1979, ch. 135, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-223c Same; duties of commissioner; warrants of director of accounts and reports.

40-223c.
Same; duties of commissioner; warrants of director of accounts and reports.
At such monthly intervals as he deems necessary and subject to the limitations applicable to this act, the commissioner shall certify the amount of compensation and expense reimbursement due on a voucher to the director of accounts and reports for payment of such amount. Upon receipt of such voucher, properly executed, the director of accounts and reports shall issue his warrant to the state treasurer for the payment out of the revolving fund provided for by this act.
History:
L. 1971, ch. 157, § 3; March 16.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-223d Same; insufficiency of fund; transfer from general fund, limitation; files.

40-223d.
Same; insufficiency of fund; transfer from general fund, limitation; files.
In the event such fund as established by this act is, at any time, insufficient to provide the amount necessary to compensate and reimburse the examiners as provided herein, the commissioner shall certify the amount of additional funds required to the director of accounts and reports who shall promptly transfer the required amount from the state general revenue fund to the insurance company annual statement examination fund and notify the state treasurer who shall make proper entry on his records: Provided, That such additional funds shall not exceed the amount of five thousand dollars ($5,000) per fiscal year. The commissioner shall maintain in his files for a period of five (5) years from its date a duplicate of said voucher and a statement which shall set forth the reasons such fund was deficient.
History:
L. 1971, ch. 157, § 4; March 16.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-223e Training insurance company examiners; establishment of revolving fund for financing training.

40-223e.
Training insurance company examiners; establishment of revolving fund for financing training.
A revolving fund, designated as the "insurance company examiner training fund" in an amount not to exceed forty thousand dollars ($40,000) shall be set apart and maintained for the commissioner of insurance from insurance company tax and fee collections. Such fund shall be held by the state treasurer for the payment of enrollment costs of training for insurance company examiners and for the expenses and salaries incurred by the examiners while receiving the training, and shall be limited to the amount necessary to provide training to and compensate and reimburse those individuals who in the opinion of the commissioner would benefit from the training.
History:
L. 1974, ch. 182, § 1; March 14.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-223f Same; compensation and expenses of persons receiving training.

40-223f.
Same; compensation and expenses of persons receiving training.
Any person or persons who shall receive training or payment for salaries or expenses under the provisions of this act shall be regularly employed examiners and shall receive as full compensation while in training the amount provided by K.S.A. 40-223, together with such necessary and actual expenses for traveling and subsistence as shall be incurred while in training. For the purposes of this act, "necessary and actual expenses" shall be limited as provided in K.S.A. 75-3207 which relates to official travel outside the state.
History:
L. 1974, ch. 182, § 2; March 14.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-223g Same; payments from revolving fund.

40-223g.
Same; payments from revolving fund.
At such monthly intervals as he deems necessary and subject to the limitations applicable to this act, the commissioner shall certify the amount of enrollment fees, compensation and expense reimbursement due on a voucher to the director of accounts and reports for payment of such amount. Upon receipt of such voucher, properly executed, the director of accounts and reports shall issue his warrant to the state treasurer for the payment out of the revolving fund provided for by this act.
History:
L. 1974, ch. 182, § 3; March 14.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-223h Property and casualty actuarial opinion letter law; citation of act.

40-223h.
Property and casualty actuarial opinion letter law; citation of act.
K.S.A. 40-223h through 40-223j, and amendments thereto, shall be known and may be cited as the property and casualty actuarial opinion letter law.
History:
L. 2008, ch. 63, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-223i Same; actuarial opinion, contents; procedure.

40-223i.
Same; actuarial opinion, contents; procedure.
(a) Unless otherwise exempted by the commissioner, every property and casualty insurance company doing business in this state shall annually submit to the commissioner the opinion of an appointed actuary entitled "Statement of Actuarial Opinion." Such opinion shall be filed in accordance with the appropriate NAIC property and casualty annual statement instructions.
(b) (1) Every property and casualty insurance company domiciled in this state that is required to submit a statement of actuarial opinion shall annually submit an actuarial opinion summary, written by the company's appointed actuary. This actuarial opinion summary shall be filed in accordance with the appropriate NAIC property and casualty annual statement instructions and shall be considered as a document supporting the actuarial opinion required in subsection (a).
(2) A property and casualty insurance company licensed but not domiciled in this state shall provide the actuarial opinion summary to the commissioner upon request.
(c) (1) An actuarial report, including all underlying work papers as required by the appropriate NAIC property and casualty annual statement instructions, shall be prepared to support each actuarial opinion.
(2) The commissioner may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting actuarial report or work papers if:
(A) The property and casualty insurance company fails to provide a supporting actuarial report or work papers, or both, at the request of the commissioner; or
(B) the commissioner determines that the supporting actuarial report or work papers provided by the insurance company is otherwise unacceptable to the commissioner.
(d) The property and casualty insurance company's appointed actuary shall not be liable for damages to any person other than the insurance company and the commissioner for any act, error, omission, decision or conduct with respect to the actuary's opinion, except in cases of fraud or willful misconduct on the part of the appointed actuary.
(e) This section shall take effect on January 1, 2009.
History:
L. 2008, ch. 63, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-224 When disbursements to be made only on voucher or affidavit.

40-224.
When disbursements to be made only on voucher or affidavit.
No insurance company organized under the laws of this state shall make any disbursement of one hundred dollars or more unless the same be evidenced by a voucher signed by or on behalf of the person, firm, or corporation receiving the money and correctly describing the consideration for the payment. If the expenditure be for both services and disbursements, the voucher shall set forth the services rendered and an itemized statement of the disbursements made. If the expenditure be in connection with any matter pending before any legislative or public body, or before any department or officer of any state or government, the voucher shall correctly describe, in addition, the nature of the matter and of the interest of such company therein. When such voucher cannot be obtained, the expenditure shall be evidenced by an affidavit describing the character and object of the expenditure, and stating the reason for not obtaining such voucher.
History:
L. 1927, ch. 231, 40-224; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-229 Valuation of securities.

40-229.
Valuation of securities.
All bonds or other evidences of debt having a fixed term and rate held by any insurance company or fraternal benefit society authorized to do business in this state may, if amply secured and not in default as to principal or interest, be valued as follows: If purchased at par, at the par value; if purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made: Provided, That the purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase: And provided further, That the commissioner of insurance shall have full discretion in determining the method of calculating values according to the foregoing rule.
History: L. 1927, ch. 231, 40-229; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-230a Deposit of securities purchased from sale of stock during organization period.

40-230a.
Deposit of securities purchased from sale of stock during organization period.
The proceeds from the sale of stock during the period of organization of any insurance company now being or hereafter to be organized under the laws of this state shall be immediately invested in such securities as are permitted by law, and such securities shall be immediately deposited in accordance with K.S.A. 40-229a. An amount equal to the maximum promotion expense allowed by law may be deducted from the proceeds of such sales.
History:
L. 1931, ch. 209, § 1; L. 1996, ch. 25, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-231 Dealing in goods, wares and merchandise prohibited; exceptions.

40-231.
Dealing in goods, wares and merchandise prohibited; exceptions.
(a) Except as otherwise provided in subsection (b), no insurance company shall directly or indirectly deal or trade in goods, wares, merchandise or other commodities.
(b) This section shall not prohibit an insurance company: (1) From entering into an agreement to provide administrative services to a person, firm or corporation with respect to legally constituted plans of insurance or indemnity; (2) from directly or indirectly dealing or trading in goods, wares, merchandise or other commodities which are insured by the insurance company or which may be sold under judicial process or otherwise; or (3) from negotiating and entering into contracts for alternative rates of payment with health care providers or other parties who have arranged for alternative rates of payment with health care providers, and offering the benefit of such alternative rates to insureds who select such providers.
History:
L. 1927, ch. 231, 40-231; L. 1978, ch. 168, § 1; L. 1985, ch. 158, § 1; May 2.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-232 Sale of stock with insurance.

40-232.
Sale of stock with insurance.
It shall be unlawful for any insurance company, or any officer or agent thereof, or any other person or persons connected with such company, to sell the stock of any company or corporation in connection with the writing or selling of a policy of insurance or to offer any special inducement of any kind or character whatsoever in connection with the selling of such policy: Provided, That it shall be lawful for any insurance company organized under the laws of this state to sell or provide for the sale of its capital stock with the writing and selling of its policies of insurance if the amount for which such stock is sold, less the commission allowed by law for the sale of stock in insurance companies, is, when received, paid to and becomes a part of the capital and surplus of such insurance company.
History:
L. 1927, ch. 231, 40-232; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-233 Dividends, interest or bonus; payment from earned surplus.

40-233.
Dividends, interest or bonus; payment from earned surplus.
It is unlawful for the directors, trustees, managers or officers of an insurance company organized under the laws of this state, directly or indirectly, to make or pay dividends on its capital stock, or pay any interest, bonus or other allowance in lieu of dividends except out of earned surplus as distinguished from contributed surplus. Earned surplus shall be calculated after reserving a sum equal to all liabilities of the company and may include all or part of surplus arising from unrealized capital gains or revaluation of assets. Any dividends or payments made contrary to the provisions of this section shall subject the company to a forfeiture of its charter.
History:
L. 1927, ch. 231, 40-233; L. 1935, ch. 196, § 1; L. 1993, ch. 45, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-234 Unearned premium reserves of insurance companies; domestic title insurance companies; noncancelable policies, additional reserves.

40-234.
Unearned premium reserves of insurance companies; domestic title insurance companies; noncancelable policies, additional reserves.
Unless otherwise specifically provided in this code, the unearned premiums or reserves of any insurance company shall consist of a sum equal to a pro rata amount of the premiums received on all unexpired risks. The "sum of the digits" or "rule of 78" unearned premium reserve method may be used only on policies where the exposure to risk is decreasing in equal amounts during the contract period and where premium refunds on such policies would be computed using only the "sum of the digits" or "rule of 78" method if such method places a sound value on its liabilities. Any domestic title insurance company engaged exclusively in the business of insuring titles to real estate shall establish and maintain, in addition to a special reserve in adequate amount to cover its liability as to losses incurred under policies issued by it, a reserve for unearned premiums on its policies and guarantees in force and such reserve shall, at all times and for all purposes, be considered a separate and distinct trust fund and shall be deemed and shall constitute unearned portions of the original premiums and shall be charged as a reserve liability of the insurer in determining its financial condition. The unearned premium reserve shall be retained and held by such domestic title insurance company for the protection of the policyholders' interest in policies which have not expired. Except upon liquidation, dissolution or insolvency, assets equal to the amount of such reserve shall not be subject to distribution among depositors or other creditors or stockholder of such title insurance company until all claims of policyholders or holders of other title insurance contracts or agreements of such domestic title insurance company have been paid in full and all liability on the policies or other title insurance contracts or agreements, whether contingent or actual, has been discharged or lawfully reinsured. Income from the investment of the amount of such reserve shall be the unrestricted property of such title insurance company. The amount of the unearned premium reserve of every such domestic title insurance company shall be computed in accordance with the provisions of this section. Any such company, other than companies engaged exclusively in the business of insuring titles to real estate, issuing noncancelable policies shall, in addition to the reserve required under this section, accumulate an additional reserve of 3% per annum on all premiums received on such policies, and such reserves required shall be held and regarded as an absolute liability of the company.
History: L. 1927, ch. 231, 40-234; L. 1931, ch. 203, § 1; L. 1935, ch. 197, § 1; L. 1971, ch. 159, § 1; L. 1979, ch. 136, § 1; L. 1985, ch. 159, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-234a Reserves required for accident and health policies; unearned premium reserves.

40-234a.
Reserves required for accident and health policies; unearned premium reserves.
For all individual accident and health and group accident and health insurance policies, the insurer shall maintain reserves which shall place a sound value on its liabilities under such policies and which shall not be less than the reserves according to the standards set forth in regulations issued by the commissioner and, unless otherwise specifically provided herein, less than the gross pro rata unearned premium reserve for such policies. For all individual accident and health and group accident and health insurance policies where the exposure to risk is decreasing in equal amounts during the contract period and where premium refunds on such policies would be computed using only the "sum of the digits" or "rule of 78" method, the insurer shall maintain unearned premium reserves which shall not be less than the gross unearned premium reserves computed using the "sum of the digits" or "rule of 78" unearned premium reserve method.
History:
L. 1967, ch. 258, § 1; L. 1980, ch. 129, § 1; L. 1985, ch. 159, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-234c Unearned premium reserves required of foreign title insurance company.

40-234c.
Unearned premium reserves required of foreign title insurance company.
The unearned premium reserve of a title insurance company not organized under the laws of the state of Kansas transacting business in this state shall be computed as prescribed or permitted by the laws of the insurer's domicile.
History:
L. 1971, ch. 159, § 3; L. 2008, ch. 71, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-235 Misrepresentations regarding policy terms; title insurance policies, search and examination requirements.

40-235.
Misrepresentations regarding policy terms; title insurance policies, search and examination requirements.
(a) No insurance company or fraternal benefit society doing business in this state, and no officer, director, solicitor or other agent thereof, shall make, issue or circulate, or cause to be issued or circulated, any estimate, illustration, circular or statement of any sort misrepresenting the terms of any policy issued or to be issued by it or the benefits or advantages promised thereby, or the dividends or share of the surplus to be received thereon, or shall use any name or title of any policy or class of policies misrepresenting the true nature thereof. No officer, director, solicitor or agent of any insurance company shall make any misrepresentation to any person insured in any company for the purpose of inducing or tending to induce a policyholder in any company to lapse, forfeit or surrender such policyholder's insurance.
(b) No preliminary or final policy or contract of insurance of the class authorized to be transacted in this state pursuant to paragraph (e) of K.S.A. 40-1102, and amendments thereto, and as further defined in subsection (g) of K.S.A. 40-1136, and amendments thereto, may be written unless and until the insurance company or its agent has caused to be conducted a reasonable search and examination of the title to the property involved and has caused to be made a determination of insurability of title and the risk in accordance with sound underwriting practices.
(1) For owner's policies of title insurance and loan policies of title insurance insuring purchase money mortgages, such search and examination shall be conducted by a title insurance agent or an employee of a title insurance company licensed to do business in this state or an abstracter licensed to do business in this state. The search and examination shall be based upon a search of all applicable records of the county, state and federal offices in which the real estate is located, as may pertain to the marketability of title for a minimum period of 25 years, or from the date of the previously issued title insurance policy, whichever period is less.
(2) For the purposes of this provision, "sound underwriting practices" shall be defined as underwriting practices promulgated by the underwriter which has an agency agreement with the licensed title insurance company or which comply with the seventh edition of the title standards promulgated by the Kansas bar association as copyrighted in 2005.
History:
L. 1927, ch. 231, 40-235; L. 1983, ch. 153, § 1; L. 2006, ch. 91, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-236 Statements made with intent to injure company.

40-236.
Statements made with intent to injure company.
It shall be unlawful for any person to make, utter, circulate or transmit to another or others any derogatory statement, untrue in fact, as to any insurance company lawfully engaged in business in this state, or in the process of organization, with intent to injure any such company; or to counsel, aid, procure or induce another to originate, make, utter, circulate or transmit any such statement with like intent.
History:
L. 1927, ch. 231, 40-236; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-237 Contracts and promissory notes by minors.

40-237.
Contracts and promissory notes by minors.
Minors may consummate contracts respecting insurance the same as adults, and any policy, certificate or other evidence of such contract shall be binding upon the minor to the same extent, as though of legal age, and any minor entering into any such insurance contract also may enter into a promissory note or installment contract for the payment of the first or subsequent premiums due under such insurance contract, the same as an adult, and any such promissory note or installment contract shall be binding upon such minor to the same extent as though he were of legal age: Provided, That all such contracts made by a minor shall have the written consent of either a parent, guardian, or conservator: Provided further, That if any insurance company or any insurance agent accepts from a minor a promissory note or installment contract for the payment of the first or subsequent premiums on a policy of life insurance, said note or contract shall be cosigned by a person over the age of eighteen (18) years, and a copy of said note or contract shall be furnished all parties thereto. A copy of said note or contract shall be furnished to the consenting parent, guardian, or conservator.
History: L. 1927, ch. 231, 40-237; L. 1965, ch. 297, § 1; L. 1971, ch. 160, § 1; L. 1972, ch. 161, § 10; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-238 Resident general agents of foreign companies.

40-238.
Resident general agents of foreign companies.
Any insurance company not organized under the laws of this state may appoint one or more general agents or managers in this state, with authority to appoint other agents of said company in this state. A certified copy of such appointment shall be filed with the commissioner of insurance. Agents for any such company in this state may be appointed by the president, vice-president, chief manager or secretary thereof, in writing, with or without the seal of the company.
History:
L. 1927, ch. 231, 40-238; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-239 Definition; insurance agent.

40-239.
Definition; insurance agent.
An insurance agent is hereby defined to be an individual, corporation, association, partnership or other legal entity authorized in writing, by any insurance company or health maintenance organization lawfully qualified to transact the business of insurance, suretyship or indemnity in this state or authorized to operate as a health maintenance organization in this state, to negotiate or effect contracts of insurance, suretyship or indemnity on behalf of any such insurance company or health maintenance organization; or any member of a partnership or association, or any stockholder, officer or agent of a corporation, permitted by law to negotiate or effect such contracts, where such partnership, association or corporation holds a direct agency appointment from any insurance company or health maintenance organization. All such agents shall thereby become liable to all the duties, requirements, liabilities and penalties as provided in this code.
History:
L. 1927, ch. 231, 40-239; L. 1988, ch. 151, § 1; L. 1996, ch. 169, § 4; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-241h Waiver of examination in certain cases.

40-241h.
Waiver of examination in certain cases.
No insurance agent shall be required to take an examination for an agent's license for any class or subclassification of business which he was engaged in writing prior to April 25, 1971, on behalf of any insurance company or association which the insurance code of this state was made applicable by K.S.A. 40-202: Provided, That said insurance agent shall be subject to all the requirements of K.S.A. 40-241 before being licensed to sell insurance on behalf of any other company or association.
History:
L. 1971, ch. 163, § 1; April 3.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-241j Annual report of agents contracted with and payment of certification fees; audit.

40-241j.
Annual report of agents contracted with and payment of certification fees; audit.
Each company admitted to this state shall report annually to the commissioner all agents the company has contracted with during the prior calendar year and shall pay the certification fees set forth in K.S.A. 40-252, and amendments thereto. The commissioner may audit agent or representative certification forms and fees to ensure proper reporting and receipt of fees. Any costs associated with auditing such forms shall be borne by the company or auto rental agency audited.
History:
L. 1978, ch. 164, § 5; L. 1982, ch. 196, § 1; L. 1999, ch. 91, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-241k Rules and regulations; establishing fees for agents.

40-241k.
Rules and regulations; establishing fees for agents.
The commissioner may adopt rules and regulations establishing reasonable fees necessary to accommodate the cost of issuing duplicate agents' licenses, certifications of individual agent qualifications or credentials to other supervisory authorities and similar functions performed by the commissioner for the benefit of insurance agents or companies or both.
History:
L. 1983, ch. 154, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-244 Representations without complying with code.

40-244.
Representations without complying with code.
It shall be unlawful for any person, without conforming to the provisions of this code, to represent himself or herself to be the agent of any insurance company, or, as agent, to negotiate, effect or attempt to effect any contracts of insurance, suretyship or indemnity or renewal thereof within this state.
History:
L. 1927, ch. 231, 40-244; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-246a Penalties for violating K.S.A. 40-246; hearings.

40-246a.
Penalties for violating K.S.A. 40-246; hearings.
The commissioner of insurance shall have the power to examine any agent, nonresident agent, company or assured if the commissioner has cause to believe that any provision of this act has been violated. At such hearing all pertinent records, files and policies shall be produced for examination by the commissioner. The insurance commissioner shall collect double the amount of the tax provided by law from any insurance company, agent or nonresident agent receiving premiums in violation of the manner prescribed in this act, and may suspend or revoke the license of any company, agent or nonresident agent willfully failing to comply therewith. Any agent or nonresident agent who shall write business in any company not authorized to transact business in this state or as otherwise provided by law shall be personally liable for such tax. Any assured who shall knowingly insure such assured's property contrary to the provisions of this act or with a company not authorized to do business in this state, shall be personally liable for double the amount of the tax provided by law on the premiums paid for such insurance.
Hearings under this section shall be conducted in accordance with the provisions of the Kansas administrative procedure act.
History:
L. 1933, ch. 69, § 2 (Special Session); L. 1988, ch. 356, § 76; July 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-246c Excess coverage license; accounting of gross premiums and tax thereon; penalty.

40-246c. Excess coverage license; accounting of gross premiums and tax thereon; penalty.
(a) (1) On March 1 of each year, each licensed agent shall collect and pay to the commissioner a tax of 6% on the total gross premiums charged, less any return premiums, for the preceding calendar year for surplus lines insurance transacted by the licensee pursuant to the license for insureds whose home state is this state.
(2) On March 1 of each year, each licensed agent shall collect and pay to the commissioner a tax of 3% on the total gross premiums charged, less any returned premiums, for the preceding calendar year for surplus lines insurance transacted by the licensee for insureds whose home state is this state. The provisions of this paragraph shall commence with the taxable year beginning January 1, 2024.
(b) The tax on any portion of the premium unearned at termination of insurance, if any, having been credited by the state to the licensee shall be returned to the policyholder directly by the surplus lines licensee or through the producing broker. The surplus lines licensee is prohibited from rebating any part of the tax for any reason.
(c) The individual responsible for filing the statement shall be the agent who signs the policy or the agent of record with the company. The commissioner of insurance may assess a penalty up to double the amount of tax prescribed in subsection (a) from any licensee or other individual responsible for filing the statement as described in this subsection who fails, refuses or neglects to transmit the required affidavit or statement or fails to pay the tax imposed by this section to the commissioner within the period specified.
History:
L. 1955, ch. 242, § 2; L. 1982, ch. 198, § 2; L. 1992, ch. 154, § 3; L. 2011, ch. 61, § 9; L. 2015, ch. 83, § 6; L. 2020, ch. 10, § 2; L. 2023, ch. 49, § 1; July 1.