Kansas Administrative Code

(Authorized by K.S.A. 40-103, 40- 216, 40-2208, K.S.A. 1965 Supp. 40-401, 40- 428(e); effective Jan. 1, 1966; revoked May 1, 1986.)

Militarysalespractices.TheKan- sas insurance department’s “policy and procedure relating to military sales practices,” dated June 26, 2007, is hereby adopted by reference. (Authorized by K.S.A. 40-103 and L. 2007, Ch. 103, Sec. 1; im- plementingL.2007,Ch.103,Sec.1;effective,T-40-…

(Authorized by K.S.A. 40-103; effec- tive Jan. 1, 1966; amended Jan. 1, 1969; amended, E-76-29, June 19, 1975; amended May 1, 1976; revoked May 1, 1986.)

(Authorized by K.S.A. 40-103, 40- 216, 40-415, 40-434; effective Jan. 1, 1966; re- voked May 1, 1986.)

(Authorized by K.S.A. 40-103, 40- 235,40-2401etseq.;effectiveJan.1,1966;amend- ed Jan. 1, 1971; revoked May 1, 1986.)

Life insurance companies and fraternal benefit associations; lapse of poli- cies providing for automatic term insurance or fractional paid-up insurance; notice to policyholders required. (a) Each life insur- ance company and fraternal benefit association writing contracts of insu…

Life insurance policies; premium deposit fund provisions; requirements. Pre- mium deposit fund provisions shall not be includ- ed in or attached to life insurance contracts issued in this state unless: 291 Life Insurance 40-2-11 (a) The provisions allow withdrawal of all or any p…

Life insurance companies; extra premium payments; limits. Premium depos- it fund provision and other funds which provide for extra premium payments exceeding the cost of insurance, shall be limited to an amount which, together with the policy reserve, would pay the net single pol…

Insurance companies; capital, surplus and deposit requirements. A certifi- cate of authority shall not be issued or renewed with respect to companies writing insurance spec- ified in K.S.A. chapter 40, articles 9, 11, 12 and 16, without compliance with the applicable Kan- sas cap…

(Authorized by K.S.A. 40-103, 40- 2404a; implementing K.S.A. 40-941, 40-1122, 40-928, 40-1113, 40-2403; effective Jan. 1, 1966; amended May 1, 1979; amended May 1, 1981; amended May 1, 1986; revoked Nov. 29, 1993.)

Property insurance; possession of policy in person other than insured; copy for insured. (a) The agent of the insurer shall provide to the insured a certificate or copy of each property insurance policy when: (1) The property insurance policy is issued to the insured, mortgagee, …

Fire and casualty insurance companies; rating plans; requirements. (a) “Individual risk rating plans” shall mean individ- ual risk premium modification plans, schedule rating plans, and similar plans applicable to com- mercial lines of property and casualty insurance that include…

Fire and casualty insurance companies; rating plans; duplication prohib- ited. Risk modification, as described in K.A.R. 40-3-12, shall not be applied to duplicate factors 306 INSURANCE DEPARTMENT 40-3-14 already fully recognized in the otherwise appli- cable rate. (Authorized by…

Mutual fire and tornado in- surance companies; extended coverage en- dorsement. (a) For the purpose of this regula- tion, “extended coverage endorsement” means that endorsement insuring the perils of wind- storm, hail, explosion, riot, riot attending a strike, civil commotion, ai…

Fire and casualty insurance con- tracts; cancellation at option of insurer; no- tice required. (a) Each policy or contract, that is issued by fire or casualty insurers within the state of Kansas, and that provides for cancellation at the option of the insurer, shall contain a pro…

Fire and casualty insurance policies and applications; “warranties” pro- hibited. (a) As used in this regulation, the word “warranty” means a promise that certain facts are truly as they are represented to be and that they will remain so, subject to any specified limitations. (b)…

Liability insurance contracts; li- ability of insuring company. A company shall not issue a liability contract in this state which provides, in effect, that an action may not be maintained against the insuring company unless for recovery of money actually paid by the insured in f…

Fire and casualty insurance; pri- vate passenger automobiles; rating informa- tion. Each company writing insurance on private passenger automobiles in Kansas shall include, in all filings submitted to this department, proce- dures that meet the following conditions: (a) Obtain fr…

Fire and casualty insurance; auto physical damage policies; insured’s duty to protect property from further loss. The wording, “and any further loss due to the insured’s failure to protect, shall not be recoverable under this policy,” or wording of similar import, shall be delete…

Foreign stock or mutual fire and casualty companies; deposit requirements. Capital stock or mutual fire and casualty insurance companies not organized under the laws of this state shall comply with the deposit requirements contained in articles 9, 10, 11, 12, 15 and 16 of chapter…

(Authorized by K.S.A. 40-103, 40-2404a; implementing K.S.A. 40-216, 5-201 to 5-213, 40-2404, 5-401; effective Jan. 1, 1966; amended May 1, 1979; amended May 1, 1986; re- voked May 28, 2004.)

Fire and casualty insurance; medical payments coverage; interpretation. Each insurance company providing “medical pay- ments insurance,” pursuant to K.S.A. 40-1110, that affords coverage for reasonable expenses incurred for necessary “funeral services” shall be required to interp…

Marine, inland marine, and transportation insurance. (a) Risks and cover- age that may be classified under Kansas insurance laws as marine, inland marine, or transportation insurance shall be those specified in this regula- tion. This regulation shall not limit the insuring power…

Fire and casualty insurance ex- cept accident and health; binder forms re- quired to be filed. Binders or other temporary contracts of insurance are subject to K.S.A. 40- 216. These forms shall be filed with and approved by the commissioner in accordance with applica- ble statuto…

Fire and casualty insurance; in- land marine rules, rates, and rating plans; general custom of industry defined. (a) The following types of risks shall be the inland marine classes that are, by general custom of the industry, written according to manual rates or rating plans: (1)…

Same; writing of risks rated dif- ferently from normal market; requirements. (a) As used in this regulation, “normal market” shall mean insurance companies that sell poli- cies to preferred or standard risks. Preferred or standard risks are applicants or policyholders who qualify…

Modification of rate filing re- quirements for individual risks. Rates modified for individual risks pursuant to K.S.A. 40-954(d) and amendments thereto shall be retained in the insurer’s underwriting file for five years after the rate is no longer applicable to the insured. Thes…

(Authorized by K.S.A. 40-103; im- plementing K.S.A. 40-1113a, 40-928(g); effective Jan. 1, 1968; amended May 1, 1979; amended May 1, 1986; amended May 16, 1997; revoked May 19, 2000.)

Fire and casualty insurance; au- tomobile liability policies; limits of liability. When an insurance company effects a unilateral reduction in the limits of liability contained in a policy of automobile liability insurance as defined in K.S.A. 40-276, the action shall be deemed a…

(Authorized by K.S.A. 40-103; im- plementing K.S.A. 40-281; effective Jan. 1, 1968; amended May 1, 1986; revoked June 22, 2001.)

(Authorized by K.S.A. 40-103, 40- 209, 40-901, 40-902, 40-1102, 40-1104, 40-1204, 40-1207; effective Jan. 1, 1966; revoked May 1, 1979.)

Fire and casualty insurance; as- signed risk plans; forms and procedures. (a) Each insurance company authorized to transact fire and casualty business in this state shall inform its certified agents of the following: (1) The Kansas assigned risk plans, their avail- ability,eligib…

Fire and casualty insurance; au- tomobile liability policies; notices of cancel- lation or nonrenewal; requirements. (a) Each company writing a private passenger automobile liability policy, with the exception of a policy writ- ten through the Kansas automobile insurance plan, sh…

Fire and casualty insurance; modification of form filing requirements. (a) Bond forms. Bonds that cannot practicably be filed before they are used shall not be required to be filed with the commissioner if they are re- quired by any of the following: (1) Law; (2) court order; or …

(Authorized by K.S.A. 40-103, 40- 2116; implementing K.S.A. 40-2101; effective, E-69-3, Oct. 7, 1968; amended, E-69-5, Jan. 8, 1969; effective Jan. 1, 1970; amended, E-70-41, Sept. 1, 1970; amended Jan. 1, 1970; amended May 1, 1988; amended Nov. 29, 1993; amended July 30, 1999; r…

(Authorized by K.S.A. 40-103; im- plementing K.S.A. 40-295, 40-296, 40-297; effec- tive, E-71-29, July 16, 1971; effective Jan. 1, 1972; amended May 1, 1979; amended May 1, 1986; re- voked Sept. 28, 2007.)

Fire and casualty insurance; Kansas automobile injury reparations act; Kansas automobile assigned claims plan; re- quirements; review of plan; approval; disap- proval; procedure; amendments. (a) The Kan- sasautomobileassignedclaimsplanshallconsistof every insurer and self-insurer…

Same; Kansas automobile injury reparations act; motor vehicle liability insur- ance policy defined. For the purpose of com- pliance with K.S.A. 40-3118a, “policy of motor vehicle liability insurance” shall mean a contract meeting the requirements of K.S.A. 40-3104, is- sued by an…

Fire and casualty insurance; cancellation of automobile liability insurance policies; premium finance plan defined. The reference to “premium finance plan” contained in K.S.A. 40-277 shall mean a premium financing plan as defined in K.A.R. 40-1-10, an installment payment plan rec…

Mortgage guaranty insurance; unearned premium reserves. Each mortgage guaranty insurance company, defined by K.S.A. 40-3502(a), shall compute and maintain an un- earned premium reserve in an amount not less than the unearned premium or reserves required by the provisions of K.S.A…

Fire and casualty insurance; crediting against future personal injury pro- tection benefits; terms defined. The phrase “the amount of such judgment, settlement, or re- covery,” as contained in and applied to, the second sentence of K.S.A. 40-3113a(b), means amounts which are dupl…

(Authorized by K.S.A. 40-103, 40-216, 40-926, 40-1111, K.S.A. 1978 Supp. 40-928, 40- 1113; effective Jan. 1, 1966; revoked May 1, 1979.)

Fire and casualty insurance; unfair rate discrimination; certain acts and practices included. (a) Unfair rate discrimina- 314 INSURANCE DEPARTMENT 40-3-41 tion practices between individuals of the same rating class, as prohibited by K.S.A. 40-953 and amendments thereto, shall inc…

Fire and casualty insurance; automobile business defined; application of automobile business liability insurance. (a) The term “automobile business” contained in K.S.A. 40-3107(h)(2) shall mean a business which sells, leases, repairs, services, transports, stores, or parks motor …

Title insurance; unfair induce- ments; prohibited acts. (a) As used in this reg- ulation: (1) “Title entity” means a title insurance com- pany, title insurance agent, title insurance agency or any other organization directly involved in the sale, underwriting, or servicing of tit…

Title insurance; controlled busi- ness; definitions; requirements. (a) For pur- poses of K.S.A. 40-2404(14)(f) through (i) and amendments thereto, the following terms shall have the meanings specified in this subsection: (1) “Closed title order” shall mean an order for which a po…

Automobile insurance; under- writing information; restrictions. (a) Except as otherwise specified in subsection (b), information regarding motor vehicle accidents, traffic viola- tions, or related convictions occurring more than three years before the date of the application shal…

Fireandcasualtyinsurance;rate filings; investment income; requirements. (a) Every rate filing required by K.S.A. 40-955 and amendments thereto shall include specific con- sideration of earnings or losses resulting from the investment of assets equal to the unearned premi- ums and…

(Authorized by K.S.A. 40-103 and L. 1990, Ch. 154, Secs. 1 and 2; implementing L. 1990, Ch. 154, Secs. 1 and 2; effective May 6, 1991; revoked March 10, 2006.)

Fire and casualty insurance; rat- ing organizations; kinds of insurance affect- ed. (a) Each rating organization shall develop and file only prospective loss costs for the following kinds of insurance and coverage: (1) All lines of business specified in K.S.A. 40- 901 and amendme…