reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 40 - Insurance › Article 26 - Insurance Premium Financing › 40-2606 Revocation or suspension of license, grounds; hearing; other penalties.

40-2606.
Revocation or suspension of license, grounds; hearing; other penalties.
The commissioner shall have the right to revoke or suspend the license of any premium finance company if the commissioner finds that:
(a) Any license issued to such company was obtained by fraud;
(b) there was any misrepresentation in the application for the license;
(c) the holder of such license is otherwise shown to be untrustworthy or incompetent to act as a premium finance company; or
(d) such company has violated any of the provisions of this act.
Before the commissioner shall revoke, suspend or refuse to renew the license of any premium finance company, the commissioner shall conduct a hearing in accordance with the provisions of the Kansas administrative procedure act. In lieu of revoking or suspending the license for any of the causes enumerated in this section, after hearing as herein provided, the commissioner may subject such company to a penalty of not more than $500 for each offense when the commissioner finds that the public interest would not be harmed by the continued operation of such company. The amount of any such penalty shall be paid by such company to the commissioner for deposit in the state general fund. At any hearing provided by this section, anyone testifying falsely, after having been administered an oath, shall be subject to the penalty of perjury.
History:
L. 1968, ch. 287, § 6; L. 1986, ch. 318, § 40; L. 1988, ch. 356, § 114; July 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 26 - Insurance Premium Financing › 40-2607 Records required to be maintained; examination; fees and expenses; duration.

40-2607.
Records required to be maintained; examination; fees and expenses; duration.
Every licensee shall maintain records of its premium finance transactions and the said records shall be open to examination and investigation by the commissioner: Provided, however, That said licensee shall be assessed and make payment of such fees and expenses incurred as a result of examination and investigation as set forth in K.S.A. 40-223. The commissioner may, at any time, require any licensee to bring such records as he may direct to the commissioner's office for examination.
Every licensee shall preserve its records of such premium finance transactions, including cards used in a card system, for at least three (3) years after making the final entry in respect to any premium finance agreement. The preservation of records in photographic form shall constitute compliance with this requirement.
History:
L. 1968, ch. 287, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 26 - Insurance Premium Financing › 40-2609 Premium finance agreement.

40-2609.
Premium finance agreement.
No premium finance agreement shall be issued or delivered in this state until the form of the same has been filed with the commissioner of insurance, nor if the commissioner of insurance gives written notice within thirty (30) days of such filing to the licensee proposing to issue such premium finance agreement, showing wherein the form of such premium finance agreement does not comply with the requirements of the laws of this state; but the failure of any licensee to comply with this section shall not constitute a defense to any action brought on its premium finance agreement. A premium finance agreement shall: (a) Be dated, signed by or on behalf of the insured, and the printed portion thereof shall be in at least 8-point type,
(b) contain the name and place of business of the insurance agent negotiating the related insurance contract, the name and residence or the place of business of the insured as specified by him, the name and place of business of the premium finance company to which payments are to be made, a description of the insurance contracts involved and the amount of the premium therefor; and
(c) set forth the following items where applicable:
(1) The total amount of the premiums,
(2) the amount of the down payment,
(3) the principal balance (difference between items (1) and (2)),
(4) the annual percentage rate and the dollar amount of the total charges (including any additional charge),
(5) the balance payable by the insured (sum of items (3) and (4)), and
(6) the number of installments required, the amount of each installment expressed in dollars, and the due date or period thereof. The items set out in subsection (c) of this section need not be stated in the sequence or order in which they appear in such clause, and additional items may be included to explain the computations made in determining the amount to be paid by the insured.
History:
L. 1968, ch. 287, § 9; L. 1971, ch. 172, § 1; April 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 26 - Insurance Premium Financing › 40-2610 Service charges; computation; maximum; refund on prepayment.

40-2610.
Service charges; computation; maximum; refund on prepayment.
A premium finance company shall not charge, contract for, receive, or collect a service charge other than as permitted by this act.
The service charge shall be computed on the balance of the premiums due (after subtracting the down payment made by the insured in accordance with the premium finance agreement) from the effective date of the insurance coverage, for which the premiums are being advanced, to and including the date when the final installment of the premium finance agreement is payable.
The total service charges shall be a maximum of $12 per $100 per year, plus an additional charge of $10 per premium finance agreement, which need not be refunded on prepayment. No insurance premium finance company shall induce an insured to become obligated under more than one premium finance agreement for the purpose of obtaining more than one additional charge of $10. The insured may prepay the premium finance agreement at any time and if the premium finance agreement is prepaid in full (by cash, renewal or refinancing) one month or more before the final payment is due, any unearned service charge shall be refunded on the basis of the rule commonly known as the rule of seventy-eighths (78ths), which is computed as follows:
The amount refunded shall be the proportion of the service charge which the sum of the monthly balances scheduled to follow the date of prepayment in full bears to the sum of the scheduled monthly balances of the premium finance agreement.
History:
L. 1968, ch. 287, § 10; L. 1975, ch. 246, § 1; L. 1980, ch. 139, § 1; L. 1991, ch. 136, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 26 - Insurance Premium Financing › 40-2611 Delinquency charge.

40-2611.
Delinquency charge.
A premium finance agreement may provide for the payment by the insured of a delinquency charge of $5 plus an amount not to exceed 2% of the delinquent installment on any installment which is in default for a period of five days or more.
History:
L. 1968, ch. 287, § 11; L. 1991, ch. 136, § 4; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 26 - Insurance Premium Financing › 40-2613 Agreement as secured transaction.

40-2613.
Agreement as secured transaction.
No filing of the premium finance agreement shall be necessary to perfect the validity of such agreement as a secured transaction as against creditors, subsequent purchasers, pledgees, encumbrances, successors or assigns.
History:
L. 1968, ch. 287, § 13; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 27 - Uniform Unauthorized Insurers Act › 40-2701 Purpose of act; legislative declaration.

40-2701.
Purpose of act; legislative declaration.
The purpose of this act is to subject certain insurers to the jurisdiction of the commissioner of insurance and the courts of this state in suits by or on behalf of the state. The legislature hereby declares that it is concerned with the protection of residents of this state against acts by insurers not authorized to do an insurance business in this state, by the maintenance of fair and honest insurance markets, by protecting authorized insurers which are subject to regulation from unfair competition by unauthorized insurers and by protecting against the evasion of the insurance regulatory laws of this state. In furtherance of such state interests, the legislature herein provides methods for substituted service of process upon such insurers in any proceeding, suit or action in any court and substituted service of any notice, order, pleading or process upon such insurers in any proceeding by the commissioner of insurance to enforce or effect full compliance with the insurance laws of this state. In so doing, the state exercises its powers to protect residents of this state and to define what constitutes transacting an insurance business in this state, and also exercises powers and privileges available to this state by virtue of public law 79-15, 79th Congress of the United States, chapter 20, 1st Sess., S. 340, 59 Stat. 33; 15 U.S.C. §§ 1011 to 1015, inclusive, as amended, which declares that the business of insurance and every person engaged therein shall be subject to the laws of the several states.
It is not the purpose of this act to alter, modify or abrogate the provisions of K.S.A. 40-214 as they apply to insurers authorized to transact the business of insurance in this state by the commissioner of insurance; nor to alter, modify or abrogate the provisions of article 20 of chapter 40 of the Kansas Statutes Annotated, and any amendments thereto, relating to the service of process upon unauthorized insurers in actions by or on behalf of insureds or beneficiaries under insurance contracts; nor to alter, modify or abrogate the provisions of K.S.A. 40-2415 to K.S.A. 40-2421, inclusive, relative to the unauthorized insurer's false advertising process act.
History:
L. 1969, ch. 240, § 1; April 19.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 27 - Uniform Unauthorized Insurers Act › 40-2703 Violation of act; action to enjoin or restrain acts; jurisdiction.

40-2703.
Violation of act; action to enjoin or restrain acts; jurisdiction.
Whenever the commissioner of insurance believes, from evidence satisfactory to him, that any insurer is violating or about to violate the provisions of K.S.A. 40-2702, the commissioner of insurance may, through the attorney general of this state, cause a complaint to be filed in a district court of proper venue to enjoin and restrain such insurer from continuing such violation or engaging therein or doing any act in furtherance thereof. Said district court shall have jurisdiction of any such proceeding and shall have the power to make and enter an order or judgment awarding such preliminary or final injunctive relief as in its judgment is proper.
History:
L. 1969, ch. 240, § 3; April 19.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 27 - Uniform Unauthorized Insurers Act › 40-2705 Deposit of bond or procurement of certificate by unauthorized insurer before pleading in action; continuance; setting aside service.

40-2705.
Deposit of bond or procurement of certificate by unauthorized insurer before pleading in action; continuance; setting aside service.
(a) Before any unauthorized insurer files or causes to be filed any pleading in any court action, suit or proceeding, or any notice, order, pleading or process in an administrative proceeding before the commissioner of insurance, instituted against such person or insurer by services made as provided in K.S.A. 40-2704, and amendments thereto, such insurer shall either:
(1) Deposit with the clerk of the court in which such action, suit or proceeding is pending, or with the commissioner of insurance in administrative proceedings before the commissioner, cash or securities, or file with such clerk or commissioner a bond with good and sufficient sureties, to be approved by the judge or commissioner of insurance, respectively, in an amount to be fixed by the court or commissioner, as the case may be, sufficient to secure the payment of any final judgment which may be rendered in such action or administrative proceeding; or
(2) Procure a certificate of authority to transact the business of insurance in this state. In considering the application of an insurer for a certificate of authority, for the purposes of this paragraph, the commissioner of insurance need not assert the provisions of K.S.A. 40-253, and amendments thereto, against such insurer with respect to its application, if the commissioner determines that such company would otherwise comply with the requirements for such certificate of authority.
(b) The commissioner of insurance, in any administrative proceeding in which service is made as provided in K.S.A. 40-2704, and amendments thereto, in the commissioner's discretion, may order such postponement as may be necessary to afford the defendant reasonable opportunity to comply with the provisions of subsection (a) and to defend such action.
(c) Nothing in subsection (a) shall be construed to prevent an unauthorized insurer from filing a motion to quash a writ or to set aside service thereof, made in the manner provided in K.S.A. 40-2704, and amendments thereto, on the grounds that such unauthorized insurer has not done any of the acts enumerated in K.S.A. 40-2702, and amendments thereto.
History:
L. 1969, ch. 240, § 5; L. 1992, ch. 314, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 27 - Uniform Unauthorized Insurers Act › 40-2707 Penalties.

40-2707.
Penalties.
Any unauthorized insurer who transacts any unauthorized act of insurance business as set forth in this act may, upon conviction thereof, be fined not more than ten thousand dollars ($10,000).
History:
L. 1969, ch. 240, § 7; April 19.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 27 - Uniform Unauthorized Insurers Act › 40-2709 Invalidity of part.

40-2709.
Invalidity of part.
If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision, and to this end the provisions of this act are declared to be severable.
History:
L. 1969, ch. 240, § 9; April 19.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 28 - Taxation Of Companies › 40-2801 Taxation of insurance companies; rate.

40-2801.
Taxation of insurance companies; rate.
Every life, fire and casualty, hail and county mutual fire insurance company organized under the laws of this state, shall annually pay to the state for the privilege of doing business within this state, a tax according to or measured by its net income for the next preceding calendar year. Such tax shall be an amount equal to five percent (5%) of such net income. The provisions of this section shall not apply to net income earned in calendar year 1998 or in any calendar year thereafter.
History:
L. 1970, ch. 184, § 1; L. 1997, ch. 175, § 9; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 28 - Taxation Of Companies › 40-2802 Same; tax in lieu of ad valorem levies.

40-2802.
Same; tax in lieu of ad valorem levies.
The tax levied under the provisions of this act shall be in lieu of ad valorem taxes which might otherwise be imposed by the state or political subdivisions thereof upon shares of capital stock and other intangible assets owned by such company.
History: L. 1970, ch. 184, § 2; January 1, 1971.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 28 - Taxation Of Companies › 40-2803 Same; net income defined for computing tax on life insurance companies.

40-2803.
Same; net income defined for computing tax on life insurance companies.
For the purpose of computing the tax imposed upon life insurance companies under the provisions of this act the term "net income" shall mean the net taxable income for the preceding calendar year of such company as determined under the provisions of section 802 of the internal revenue code of 1954, as heretofore or hereafter amended. The term "net income" shall not include dividends received from stock issued by Kansas Venture Capital, Inc. to the extent such dividends are included in the Kansas taxable income of a corporation, interest income on obligations of this state or a political subdivision thereof which is specifically exempt from income tax under the laws of this state authorizing the issuance of such obligations. The term "net income" shall include the amount of any charitable contribution made to the extent the same is claimed as the basis for the credit allowed pursuant to K.S.A. 79-32,196, and amendments thereto. The term "net income" shall include the amount of any contribution made to the extent the same is claimed as the basis for the credit allowed pursuant to K.S.A. 74-50,154, and amendments thereto. In case the entire business of such company is not transacted within this state, the net income for the purposes of this act shall be determined by multiplying such net income by a fraction, the numerator of which shall be the premiums received from business transacted within this state and the denominator of which is the amount of premiums received by such company from all its business. Insurance companies connected through stock ownership, which operate under common control and management are hereby authorized to make a consolidated return for the purpose of determining "net income" under the provisions of this section and intercompany transactions shall not be considered or included for the purpose of such determination.
History:
L. 1970, ch. 184, § 3; L. 1973, ch. 197, § 1; L. 1986, ch. 332, § 5; L. 1994, ch. 38, § 6; L. 2004, ch. 112, § 71; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 28 - Taxation Of Companies › 40-2805 Same; returns and payment of tax; interest for late return.

40-2805.
Same; returns and payment of tax; interest for late return.
(a) Every insurance company subject to taxation under the provisions of this act shall pay the tax imposed and make a return thereof under oath to the commissioner of insurance under such rules and regulations and in such form and manner as the commissioner may by regulation prescribe.
(b) The return shall be filed and the tax paid on the same date as the insurance company's federal income tax return is filed with the internal revenue service except that in the event said federal tax return is filed with the internal revenue service subsequent to the fifteenth day of April, the tax, payable under this act, shall bear interest at the rate per annum prescribed by K.S.A. 79-2968(b), calculated from the fifteenth day of April until date of payment. If, subsequent to said filing, a change occurs affecting the amount of any tax previously imposed thereunder, such change shall be reported, and the necessary adjustments made, at the time the next return hereunder is filed with the commissioner of insurance.
History:
L. 1970, ch. 184, § 5; L. 1980, ch. 308, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 28 - Taxation Of Companies › 40-2806 Same; failure to file return or pay tax; interest and penalties; waiver or reduction.

40-2806.
Same; failure to file return or pay tax; interest and penalties; waiver or reduction.
(a) If any company, without intent to evade the tax imposed by this act, shall fail to file a return or pay the tax, if one is due, at the time required by or under the provisions of this act, but shall voluntarily file a correct return of income or pay the tax due within sixty (60) days thereafter, there shall be added to the tax an additional amount equal to ten percent of the unpaid balance of tax due plus interest at the rate prescribed by K.S.A. 79-2968(a) for each month or fraction of a month from the date the tax was due until paid. No additional penalty and interest shall be imposed if the total amount thereof does not exceed one dollar ($1).
(b) If any company fails voluntarily to file a return of income, if one is due, within sixty (60) days after the time required by or under the provisions of this act, there shall be added to the tax an additional amount equal to twenty-five percent of the unpaid balance of tax due, plus interest at the rate prescribed by K.S.A. 79-2968(a) for each month or fraction of a month from the date the tax was due until paid except that no additional penalty and interest shall be imposed if the total amount thereof does not exceed one dollar ($1).
(c) If any company which has failed to file a return or has filed an incorrect or insufficient return, and after notice from the commissioner refuses or neglects within twenty (20) days to file a proper return, or files a fraudulent return, the commissioner shall determine the income of such taxpayer according to the best information available and assess the tax together with a penalty of fifty percent of the unpaid balance of tax due plus interest at the rate prescribed by K.S.A. 79-2968(a) for each month from the date the tax was originally due to the date of payment.
(d) Whenever, in the judgment of the commissioner, the failure of the taxpayer to comply with provisions of subsections (a), (b) and (c) of this section, was due to reasonable causes, the commissioner may, in the commissioner's discretion, waive or reduce any of the penalties upon making a record of its reasons therefor.
History:
L. 1970, ch. 184, § 6; L. 1980, ch. 308, § 8; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 28 - Taxation Of Companies › 40-2807 Same; preservation of reports and returns; disclosure of contents unlawful, when; acceptance of employment by commissioner or employees; publication of statistics; inspection of returns by state officials; inspection of returns by federal or other state agencies.

40-2807.
Same; preservation of reports and returns; disclosure of contents unlawful, when; acceptance of employment by commissioner or employees; publication of statistics; inspection of returns by state officials; inspection of returns by federal or other state agencies.
(a) All reports and returns required by this act and rules and regulations adopted pursuant thereto shall be preserved for three (3) years and thereafter until the commissioner orders them to be destroyed.
(b) Except in accordance with proper judicial order, or as otherwise provided by law, it shall be unlawful for the commissioner, any deputy, agent, clerk or other officer or employee to divulge, or to make known in any way, the amount of income or any particulars set forth or disclosed in any such report or return; and it shall be unlawful for the commissioner, any deputy, agent, clerk or other officer or employee engaged in the administration of this act to engage in the business or profession of tax accounting or to accept employment, with or without consideration, from any person, firm or corporation for the purpose, directly or indirectly, of preparing tax returns or reports required by the laws of the state of Kansas, by any other state or by the United States government, or to accept any employment for the purpose of advising, preparing material or data, or the auditing of books or records to be used in an effort to defeat or cancel any tax or part thereof that has been assessed by the state of Kansas, any other state or by the United States government.
(c) Nothing herein shall be construed to prohibit the publication of statistics, so classified as to prevent the identification of particular reports or returns and the items thereof, or the inspection of returns by the attorney general or other legal representatives of the state.
(d) Notwithstanding the provisions of this section, the commissioner may, in his discretion, permit the commissioner of internal revenue of the United States, or the proper official of any state imposing an income tax, or the authorized representative of either, to inspect the returns made under this act: Provided, That the commissioner may make available or furnish to the taxing officials of any other state or the commissioner of internal revenue of the United States or other taxing officials of the federal government, or their authorized representatives, information contained in reports or returns or any audit thereof or the report of any investigation made with respect thereto, filed pursuant to this act, as he may consider proper, but such information shall not be used for any other purpose than that of the administration of tax laws of such state or of the United States.
History: L. 1970, ch. 184, § 7; January 1, 1971.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 28 - Taxation Of Companies › 40-2808 Same; rules and regulations.

40-2808.
Same; rules and regulations.
The commissioner of insurance is hereby charged with the administration of this act and is hereby authorized to adopt such rules and regulations as may be necessary to properly administer and enforce the provisions thereof.
History: L. 1970, ch. 184, § 8; January 1, 1971.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 28 - Taxation Of Companies › 40-2809 Same; disposition of revenue.

40-2809.
Same; disposition of revenue.
The commissioner of insurance shall remit all tax moneys collected under the provisions of this act to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund.
History:
L. 1970, ch. 184, § 9; L. 1978, ch. 401, § 5; L. 2001, ch. 5, § 120; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 28 - Taxation Of Companies › 40-2810 Same; political subdivisions prohibited from imposing tax.

40-2810.
Same; political subdivisions prohibited from imposing tax.
No political subdivision of this state shall levy or impose any license, privilege, premium or gross receipts tax or fee or any occupation tax based upon income, premiums or gross receipts upon any insurance company subject to taxation under the provisions of this act.
History: L. 1970, ch. 184, § 10; January 1, 1971.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 28 - Taxation Of Companies › 40-2811 Same; exemption of certain companies, lodges, societies and associations.

40-2811.
Same; exemption of certain companies, lodges, societies and associations.
Nothing contained in this act shall apply to any of the organizations specified in K.S.A. 40-202.
History: L. 1970, ch. 184, § 11; January 1, 1971.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 28 - Taxation Of Companies › 40-2812 Application of K.S.A. 40-2803 and 40-2804.

40-2812.
Application of K.S.A. 40-2803 and 40-2804.
The provisions of this act shall be applicable to all taxable years commencing after December 31, 1972.
History:
L. 1973, ch. 197, § 3; April 19.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 28 - Taxation Of Companies › 40-2813 Credit against tax for making certain property accessible to persons with a disability; amount; carryover.

40-2813.
Credit against tax for making certain property accessible to persons with a disability; amount; carryover.
For all taxable years commencing after December 31, 1997, any taxpayer who makes expenditures for the purpose of making all or any portion of an existing building or facility accessible to persons with a disability, which building or facility is on real property located in this state and used in a trade or business or held for the production of income, shall be entitled to claim a tax credit in an amount equal to 50% of such expenditures or, the amount of $10,000, whichever is less, against the premium tax or privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto. Such tax credit shall be deducted from the taxpayer's tax liability for the taxable year following the year in which the expenditures are made by the taxpayer. If the amount of such tax credit exceeds the taxpayer's tax liability for such taxable year, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the fourth taxable year succeeding the taxable year in which the expenditures are made. Terms used in this section shall have the same meanings as ascribed thereto in K.S.A. 79-32,175, and amendments thereto.
History: L. 1994, ch. 173, § 3; L. 1998, ch. 136, § 1; April 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2901 Purpose and construction.

40-2901.
Purpose and construction.
The purpose of this act is to provide a mechanism for the payment of covered claims under certain insurance policies, to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, and to provide an association to assess the cost of such protection among insurers. This act shall be liberally construed to effect such purpose which shall constitute an aid and guide to interpretation.
History:
L. 1970, ch. 185, § 1; March 27.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2902 Same; application.

40-2902.
Same; application.
This act shall apply to the kinds of direct insurance specified in K.S.A. 40-901 and 40-1102 except for the kinds of insurance specified in subsections (a), (e), (f), (g), (h) and (i) of K.S.A. 40-1102: Provided, That this act shall apply to accident and sickness coverages written pursuant to K.S.A. 40-1110.
History:
L. 1970, ch. 185, § 2; March 27.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2903 Same; definitions.

40-2903.
Same; definitions.
As used in this act: (a) "Association" means the Kansas insurance guaranty association created by this act.
(b) "Commissioner" means the commissioner of insurance of this state.
(c) "Covered claim" means an unpaid claim, including one for unearned premiums, which arises out of and is within the coverage and not in excess of the applicable limits of an insurance policy to which this act applies issued by an insurer, if such insurer becomes an insolvent insurer after the effective date of this act and:
(1) The claimant or insured is a resident of this state at the time of the insured event. For entities other than an individual, the residence of a claimant, insured or policyholder is the state in which the principal place of business of such claimant, insured or policyholder is located at the time of the insured events; or
(2) the claim is a first party claim for damage to property that is permanently located in this state.
"Covered claim" shall not include:
(1) Any amount due any reinsurer, insurer, insurance pool or underwriting association, as subrogation recoveries or otherwise;
(2) any amount awarded as punitive or exemplary damages unless such damages were covered under the policy of the insolvent insurer;
(3) any claim by an affiliate of the insolvent insurer.
(d) "Domiciliary state" means:
(1) The state in which an insurer is incorporated or organized; or
(2) in the case of an alien insurer, the state of entry of such insurer.
(e) "Insolvent insurer" means:
(1) An insurer licensed by the commissioner to transact insurance in this state either at the time the policy was issued or when the insured event occurred; and
(2) determined to be insolvent by a court of competent jurisdiction and against whom a final order of liquidation has been entered by a court of competent jurisdiction in the insurer's domiciliary state.
(f) "Member insurer" means any person who (1) is authorized to write any kind of insurance to which this act applies under K.S.A. 40-2902, and amendments thereto, including the exchange of reciprocal or inter-insurance contracts; and
(2) is licensed by the commissioner to transact insurance in this state. This act shall not apply to those persons transacting business pursuant to the provisions of K.S.A. 40-202, and amendments thereto.
(g) "Net direct written premiums" means first gross premiums written in this state on insurance policies to which this act applies, less return premiums thereon and dividends paid or credited to policyholders on such direct business. "Net direct written premiums" does not include premiums on contracts between insurers or reinsurers.
(h) "Person" means any individual, corporation, partnership, association or voluntary organization.
(i) The provisions of this section, as amended on July 1, 2006, shall apply to all claims which have not been paid prior to April 14, 2005.
History:
L. 1970, ch. 185, § 3; L. 2005, ch. 92, § 1; L. 2006, ch. 122, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2904 Same; creation of nonprofit association, membership; functions.

40-2904.
Same; creation of nonprofit association, membership; functions.
There is created a nonprofit unincorporated legal entity to be known as the Kansas insurance guaranty association. All insurers defined as member insurers in K.S.A. 40-2903(e) shall be and remain members of the association as a condition of their authority to transact insurance in this state. The association shall perform its functions under a plan of operation established and approved under K.S.A. 40-2907 and shall exercise its powers through a board of directors established under K.S.A. 40-2905.
History:
L. 1970, ch. 185, § 4; March 27.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2905 Board of directors; selection; vacancies; expenses.

40-2905.
Board of directors; selection; vacancies; expenses.
(a) The board of directors of the association shall consist of nine (9) persons, of which three (3) members shall serve terms of one (1) year; three (3) members shall serve terms of two (2) years; and, three (3) members shall serve terms of three (3) years. The members of the board shall be selected by member insurers subject to the approval of the commissioner. The successor of each member serving on the board on July 1, 1976, shall be selected to serve for a term of three (3) years. Vacancies on the board shall be filled for the remaining period of the term in the same manner as initial appointments. If no members are selected within sixty (60) days after the effective date of this act, the commissioner may appoint the initial members of the board of directors.
(b) In approving selections to the board, the commissioner shall consider among other things whether all member insurers are fairly represented.
(c) Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors.
History:
L. 1970, ch. 185, § 5; L. 1976, ch. 220, § 1; April 2.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2906a Certificate of contribution as asset of insurer; offset against premium tax liability.

40-2906a.
Certificate of contribution as asset of insurer; offset against premium tax liability.
(a) Unless a longer period has been allowed by the commissioner, a member insurer shall at its option have the right to show a certificate of contribution as an asset in the form approved by the commissioner pursuant to subsection (c) of K.S.A. 40-2906, and amendments thereto, at percentages of the original face amount approved by the commissioner, for calendar years as follows:
(1) One hundred percent for the calendar year of issuance;
(2) eighty percent for the first calendar year after the year of issuance;
(3) sixty percent for the second calendar year after the year of issuance;
(4) forty percent for the third calendar year after the year of issuance; and
(5) twenty percent for the fourth calendar year after the year of issuance.
(b) The insurer may offset the amount written off by it in a calendar year under subsection (a) against its premium tax liability to this state accrued with respect to business transacted in such year.
(c) Any sums acquired by refund pursuant to subsection (b) of K.S.A. 40-2906, and amendments thereto, from the association which have theretofore been written off by contributing insurers and offset against premium taxes as provided in subsection (b) of this section, and is not then needed for purposes of this act, shall be paid by the association to the commissioner to be remitted by the commissioner to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund.
(d) The provisions of K.S.A. 40-2914, and amendments thereto, shall not apply to amounts written off under subsection (a) of this section.
History:
L. 1976, ch. 220, § 3; L. 2001, ch. 5, § 121; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2908 Same; powers and duties of commissioner.

40-2908.
Same; powers and duties of commissioner.
(a) The commissioner shall:
(1) Notify the association of the existence of an insolvent insurer not later than three regular business days after the commissioner receives notice of the determination of the insolvency.
(2) Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.
(b) The commissioner may:
(1) Require that the association notify the insureds of the insolvent insurer and any other interested party of the determination of insolvency and of their rights under this act. Such notification shall be by mail at the insurer's or interested party's last known address, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation shall be sufficient.
(2) Suspend or revoke, pursuant to the provisions of K.S.A. 40-223, and amendments thereto, the certificate of authority to transact insurance in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may levy a fine on any member insurer which fails to pay an assessment when due. Such fine shall not exceed 5% of the unpaid assessment per month, except that no fine shall be less than $100 per month.
(3) Revoke the designation of any servicing facility if the commissioner finds claims are being handled unsatisfactorily.
History:
L. 1970, ch. 185, § 8; L. 1986, ch. 318, § 41; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2909 Same; assignment of rights to association upon recovery under act; cooperation; actions against insurer; claims against insolvent insurer.

40-2909.
Same; assignment of rights to association upon recovery under act; cooperation; actions against insurer; claims against insolvent insurer.
(a) Any person recovering under this act shall be deemed to have assigned his rights under the policy to the association to the extent of his recovery from the association. Every insured or claimant seeking the protection of this act shall cooperate with the association to the same extent as such person would have been required to cooperate with the insolvent insurer. The association shall have no cause of action against the insured of the insolvent insurer for any sums it has paid out, except such causes of action as the insolvent insurer would have had if such sums had been paid out by the insolvent insurer. In the case of an insolvent insurer operating on a plan with assessment liability, payments of claims of the association shall not operate to reduce the liability of insureds to the receiver, liquidator, or statutory successor for unpaid assessments.
(b) The receiver, liquidator or statutory successor of an insolvent insurer shall be bound by settlements of covered claims by the association or a similar organization in another state. The court having jurisdiction shall grant such claims priority equal to that which the claimant would have been entitled in the absence of this act against the assets of the insolvent insurer. The expenses of the association or similar organization in handling claims shall be accorded the same priority as the liquidator's expenses. For purposes of this subsection, expenses for the investigation or defense of claims against insureds under policies with an insolvent insurer shall be considered expenses of the association or other similar organization in handling claims.
(c) The association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the association and estimates of anticipated claims on the association which shall preserve the rights of the association against the assets of the insolvent insurer.
(d) The association shall have the right to recover from any person who is an affiliate of the insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under this act.
History: L. 1970, ch. 185, § 9; L. 2005, ch. 92, § 3; April 14.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2910 Same; claims; exhaustion of rights under policy; recovery reductions.

40-2910.
Same; claims; exhaustion of rights under policy; recovery reductions.
(a) Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer which is also a covered claim shall be required to exhaust first his right under such policy. A claim under an insurance policy shall include a claim under any kind of insurance, whether such claim is a first party or third party claim, and shall include, without limitation, accident and health insurance, workers' compensation, Blue Cross and Blue Shield and all other coverages except for policies of an insolvent insurer. Any amount payable on a covered claim under this act shall be reduced by the amount of any recovery under such other insurance policy.
(b) Any person having a claim which may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first from the association of the place of residence of the insured except that if it is a first party claim for damage to property with a permanent location, from the association of the location of the property, and if it is a workmen's compensation claim, from the association of the residence of the claimant. Any recovery under this act shall be reduced by the amount of the recovery from any other insurance guaranty association or its equivalent.
(c) The provisions of this section, as amended, shall apply to all claims which have not been paid prior to the effective date of this act.
History: L. 1970, ch. 185, § 10; L. 2005, ch. 92, § 4; April 14.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2911 Same; detection and prevention of insurer insolvencies; reports and recommendations.

40-2911.
Same; detection and prevention of insurer insolvencies; reports and recommendations.
To aid in the detection and prevention of insurer insolvencies: (a) The board of directors may, upon majority vote, make reports and recommendations to the commissioner upon any matter germane to the solvency, liquidation, rehabilitation or conservation of any member insurer. Such reports and recommendations shall not be considered public documents.
(b) The board of directors may, upon majority vote, make recommendations to the commissioner for the detection and prevention of insurer insolvencies.
(c) The board of directors shall, at the conclusion of any insurer insolvency in which the association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency, based on the information available to the association, and submit such report to the commissioner.
History:
L. 1970, ch. 185, § 11; March 27.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2912 Same; association subject to examination and regulation by commissioner; financial report.

40-2912. Same; association subject to examination and regulation by commissioner; financial report.
The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the commissioner.
History:
L. 1970, ch. 185, § 12; L. 2017, ch. 37, § 2; April 20.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2913 Same; tax exemptions.

40-2913.
Same; tax exemptions.
The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions except taxes levied on real or personal property.
History:
L. 1970, ch. 185, § 13; March 27.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2914 Same; rates and premiums of policies to include amounts of assessments to association.

40-2914.
Same; rates and premiums of policies to include amounts of assessments to association.
The rates and premiums charged for insurance policies to which this act applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer less any amounts returned to the member insurer by the association and such rates shall not be deemed excessive because they contain an amount reasonably calculated to recoup assessments paid by the member insurer.
History:
L. 1970, ch. 185, § 14; March 27.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2915 Same; liability of parties for actions.

40-2915.
Same; liability of parties for actions.
There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the association or its agents or employees, the board of directors, or the commissioner or his representatives for any action taken by them in the performance of their powers and duties under this act.
History:
L. 1970, ch. 185, § 15; March 27.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 29 - Kansas Insurance Guaranty Association Act › 40-2916 Same; stay of proceedings to permit defense by association; application to set aside judgment or finding.

40-2916.
Same; stay of proceedings to permit defense by association; application to set aside judgment or finding.
All proceedings in which the insolvent insurer is a party in any court in this state shall be stayed for sixty (60) days from the date the insolvency is determined to permit proper defense by the association of all pending causes of action. As to any covered claims arising from a judgment under any decision, verdict or finding based on the default of the insolvent insurer or its failure to defend an insured, the association either on its own behalf or on behalf of such insured may apply to have such judgment, order, decision, verdict or finding set aside by the same court or administrator that made such judgment, order, decision, verdict or finding and shall be permitted to defend against such claim on the merits.
History:
L. 1970, ch. 185, § 16; March 27.