Coverage temporarily effective, when; written receipt for premium may exclude, void or limit coverage; refund of unearned premium

40-451. Coverage temporarily effective, when; written receipt for premium may exclude, void or limit coverage; refund of unearned premium. (a) When an application for an individual life insurance policy and an initial premium therefor has been received by an insurance company or agent acting on behalf of such company, the coverage for which application is made shall, subject to the limitations in subsection (b), be deemed to be temporarily in effect until the insurance company or agent has, in the event of an adverse underwriting decision, as defined in K.S.A. 40-2,111, and amendments thereto, notified in writing the applicant of such adverse underwriting decision and returned any unearned premium in accordance with K.S.A. 40-2,112, and amendments thereto. (b) When an application for an individual life insurance policy and an initial premium therefor has been received, the receipt for the premium shall be in writing and may: (1) Exclude coverage if the proposed insured commits suicide; (2) void coverage if the application contains material misrepresentation or is fraudulently completed; (3) limit the coverage otherwise provided by subsection (a) by specifying for each proposed insured the amount and type of temporary coverage granted; and (4) void coverage if a check or draft received in payment of the premium is not honored for payment when presented. (c) When an application for an individual life insurance policy and an initial premium therefor has been received, the receipt for the premium shall be in writing and provide for a refund of any unearned premium pursuant to K.S.A. 40-2,112, and amendments thereto. History: L. 1992, ch. 236, § 1; July 1. Law Review and Bar Journal References: "Insurance Law: Temporary Life Insurance Under a Conditional Receipt—The Battle Between the Kansas Supreme Court and the Kansas Legislature: Is What You Get Only What You Read or All That You Expect? [Thomas v. Thomas, 824 P.2d 971 (Kan. 1992)]," Jill M. Crumpacker, 32 W.L.J. 104 (1992). CASE ANNOTATIONS 1. Insurance policy was in effect when application completed and initial premium received for limited suicide coverage purposes. Stauffer v. Jackson Nat. Life Ins. Co., 75 F. Supp. 2d 1271, 1275 (1999). 2. Section inapplicable to extraterritorial insurance contract; group life insurance policy provides for application of Ohio law. Arocho v. Goodyear Tire & Rubber Co., 88 F. Supp. 2d 1175, 1182 (2000). 3. Life insurance coverage commences upon receipt by company of application and initial premium and continues until applicant has been notified of adverse underwriting decision. National Inspection & Repair, Inc. v. Valley Forge Life Ins. Co., 274 Kan. 825, 56 P.3d 807 (2002). Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Session Documents Archived School Finance Documents USEFUL LINKS Session Laws Kansas Administrative Regulations OTHER LEGISLATIVE SITES Kansas Legislature Administrative Services Division of Post Audit Research Department Contact Us PDF Help www.ksrevisor.gov 2026