Chapter 40, INSURANCE

40-4908. Same; waiver of examinations. (a) The commissioner shall waive examinations for an individual who applies for an insurance agent license in this state who was previously licensed for the same lines of authority in another state when the applicant establishes that: (1) (A…

40-4909. Uniform insurance agents licensing act; suspension, denial of, revocation or refusal to renew license; grounds; hearing; powers of commissioner. (a) The commissioner may deny, suspend, revoke or refuse renewal of any license issued under this act if the commissioner find…

40-4910. Same; commissions, service fees or brokerage fees prohibited; exceptions. (a) No insurance company or insurance agent shall pay a commission, service fee, brokerage or other valuable consideration to a person for selling, soliciting or negotiating insurance in this state…

40-4911. Same; agents receipt of compensation. A licensed insurance agent may receive compensation for or on account of negotiating contracts of insurance or placing or soliciting or effecting contracts of insurance. Nothing in this chapter shall abridge or restrict freedom of co…

40-4912. Same; appointment of agents. (a) Any company authorized to transact business in this state may, upon determining that the insurance agent is of good business reputation and, if an individual, has had experience in insurance or will immediately receive a course of instruc…

40-4913. Same; termination of agent; notification of commissioner; records; maintenance of and availability to commissioner; sharing; conditions. (a) (1) Each insurer shall notify the commissioner whenever such insurer terminates a business relationship with an insurance agent if…

40-4914. Same; waiver of conditions for nonresident insurance agent license; conditions. (a) Subject to the provisions of K.S.A. 40-4908, and amendments thereto, the commissioner shall waive any license application requirements for a nonresident insurance agent license if: (1) Th…

40-4915. Same; insurance agent license; renewal; penalty for nonrenewal. (a) Notwithstanding the provisions of K.S.A. 40-4903 and 40-4906, and amendments thereto, any person who is currently licensed as an insurance agent on the day before the effective date of this act and whose…

40-4916. Same; rules and regulations. In accordance with the provisions of the rules and regulations filing act, K.S.A. 77-415 et seq., and amendments thereto, the commissioner may adopt, amend and revoke rules and regulations governing the administration and enforcement of this …

40-4917. Same; disposition of moneys. The commissioner shall remit all moneys received by or for the commissioner under the provisions of this act to the state treasurer at least monthly. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount th…

40-4918. Same; contracts; acquisition of services. The commissioner may enter into any contracts or purchase any services necessary to implement the provisions of this act. History: L. 2001, ch. 91, § 18; July 1.

40-5001. Viatical settlements act of 2002; citation. K.S.A. 40-5001 through 40-5016 inclusive, and K.S.A. 40-5007a, 40-5009a and 40-5012a, and amendments thereto, may be cited as the viatical settlements act of 2002. History: L. 2002, ch. 158, § 1; L. 2008, ch. 96, § 4; July 1. S…

40-5002. Same; definitions. As used in this act, the following words and phrases shall have the meanings ascribed to them in this section: (a) "Advertising" means any written, electronic or printed communication or any communication by means of recorded telephone messages or tran…

40-5003. Viatical settlement act of 2002; license applications; renewal; fee; information required; powers of commissioner. (a) No person shall operate as a viatical settlement provider or viatical settlement broker without first obtaining a license from the commissioner or the i…

40-5004. Same; suspension, revocation, refusal to issue or renew license; grounds; hearing; powers of commissioner. (a) The commissioner may refuse to issue, suspend, revoke or refuse to renew the license of a viatical settlement provider or viatical settlement broker in the even…

40-5005. Same; approval of forms. No person shall use a viatical settlement contract or provide to a viator a disclosure statement form in this state unless filed with and approved by the commissioner. The commissioner shall disapprove a viatical settlement contract form or discl…

40-5006. Same; annual statements of licensee; identity of viator confidential; exceptions. (a) (1) Each licensee shall file with the commissioner on or before March 1 of each year an annual statement containing such information as the commissioner may prescribe by rule and regula…

40-5007a. Same; examinations; record keeping requirements; powers of commissioner. (a) (1) The commissioner may conduct an examination under this act of a licensee as often as the commissioner in such commissioner's sole discretion deems appropriate. (2) For purposes of completin…

40-5008. Same; required disclosures. (a) With each application for a viatical settlement, a viatical settlement provider or viatical settlement broker shall provide the viator with at least the following disclosures no later than the time the application for the viatical settleme…

40-5009a. Same; viatical settlement contract; required documents; confidentiality of medical information; viator's rights; payment of proceeds; contacts with viator; limitations. (a) (1) A viatical settlement provider entering into a viatical settlement contract shall first obtai…

40-5010. Same; two year prohibition on entering into viatical settlement; exceptions. No person at any time prior to, or at the time of, the application for or issuance of a policy, or during a two-year period commencing with the date of issuance of the policy, shall enter into a…

40-5011. Same; requirements on advertising. The purpose of this section is to provide prospective viators with clear and unambiguous statements in the advertisement of viatical settlements and to assure the clear, truthful and adequate disclosure of the benefits, risks, limitatio…

40-5012a. Same; violations; required notice provisions; notification of commissioner; availability of records to commissioner; sharing of records; conditions. (a) No person shall: (1) Commit a fraudulent viatical settlement act. (2) Knowingly or intentionally interfere with the e…

40-5013. Same; penalties. (a) If the commissioner determines after notice and opportunity for a hearing that any person has engaged or is engaging in any act or practice constituting a violation of any provision of this act, the Kansas insurance statutes or any rule and regulatio…

40-5014. Same; violation of act also unfair or deceptive trade practice. Any violation of this act shall also be considered an unfair or deceptive act or practice under K.S.A. 40-2404, and amendments thereto, and subject to the penalties contained in K.S.A. 40-2401 et seq., and a…

40-5015. Same; rules and regulations. The commissioner shall have the authority to: (a) Promulgate rules and regulations necessary to implement the provisions of this act; (b) establish standards for evaluating reasonableness of payments under viatical settlement contracts for pe…

40-5016. Same; continuation of preexisting viatical settlement business. A viatical settlement provider or viatical settlement broker transacting business in this state may continue to do so pending approval or disapproval of the viatical settlement provider or viatical settlemen…

40-5101. Citation of act. K.S.A. 40-5101 through 40-5114, and amendments thereto, shall be known as the Kansas insurance score act. History: L. 2003, ch. 88, § 2; July 1.

40-5102. Applicability of act. (a) This act shall apply only to personal insurance and not to commercial insurance. A personal insurance policy must be individually underwritten for personal, family or household use. No other type of insurance shall be included as personal insura…

40-5103. Definitions. As used in this act: (a) "Adverse action" means any of the following in connection with the underwriting of personal insurance: (1) A denial or cancellation of coverage; or (2) a reduction or other adverse or unfavorable change in the terms of coverage of an…

40-5104. Prohibited acts. No insurer authorized to do business in the state of Kansas which uses credit information to underwrite or rate risks, shall: (a) Use an insurance score that is calculated using income, address, zip code, race, religion, color, sex, disability, national …

40-5105. Re-underwriting or re-rating consumer, when; overpayment of premium. (a) If it is determined through the dispute resolution process set forth in the federal fair credit reporting act, 15 U.S.C. § 1681i(a)(5), that the credit information of a current insured was incorrect…

40-5106. Disclosure requirements. If an insurer writing personal insurance uses credit information in underwriting or rating a consumer, the insurer or its agent shall disclose that it may obtain credit information in connection with such application. The insurer shall further no…

40-5107. Adverse action; notice to consumer, contents. (a) If an insurer takes an adverse action based upon credit information, the insurer shall provide written notification to the consumer a notice that: (1) An adverse action has been taken, in accordance with the requirements …

40-5108. Insurance score models, filing required; trade secret. (a) Each insurer that uses insurance scores to underwrite and rate risks shall file the procedure required by paragraph (b) of K.S.A. 40-5107, and amendments thereto, and such insurer's insurance scoring models or ot…

40-5109. Studies; report to legislature. (a) The commissioner of insurance shall gather data, hold public hearings, make inquiries and publish studies relating to the purpose of this act. (b) The commissioner shall report to the president and minority leader of the senate and the…

40-5110. Indemnification, when required. (a) An insurer shall indemnify, defend, and hold agents harmless from and against all liability, fees, and costs arising out of or relating to the actions, errors, or omissions of an agent who obtains or uses credit information or insuranc…

40-5111. Prohibition against use of certain information; exceptions. (a) No consumer reporting agency shall provide or sell data or lists that include any information, in whole or in part, which was submitted in conjunction with an insurance inquiry about a consumer's credit info…

40-5112. Powers of commissioner. Whenever an insurer is found to be in violation of any provision of this act, the commissioner shall proceed under K.S.A. 40-2,125, and amendments thereto. History: L. 2003, ch. 88, § 13; July 1.

40-5113. Rules and regulations. The commissioner of insurance is hereby authorized to adopt such rules and regulations as may be necessary to carry out the provisions of this act. History: L. 2003, ch. 88, § 14; July 1.

40-5114. Severability. (a) If any provision of this act is declared invalid due to an interpretation of or a future change in the federal fair credit reporting act, the remaining portions of the act shall be deemed to be severable and shall remain in full force and effect. (b) If…

40-5115. Credit information; use by insurers; extraordinary life circumstances; limitations. (a) (1) Notwithstanding any other law, rule or regulation, an insurer that uses credit information shall, upon written request from an applicant for insurance coverage or an insured, prov…

40-5201. Assumption reinsurance agreement act; applicability; waiver of requirements, when allowed; exceptions. (a) (1) This act applies to any insurer authorized in this state which either assumes or transfers the obligations or risks, or both, on contracts of insurance pursuant…

40-5202. Same; definitions. For the purposes of this act: (a) "Assuming insurer" means the insurer that acquires an insurance obligation or risk, or both, from the transferring insurer pursuant to an assumption reinsurance agreement. (b) "Assumption reinsurance agreement" means a…

40-5203. Same; notice to policyholders; contents. (a) The transferring insurer shall provide or cause to be provided to each policyholder a notice of transfer by first-class mail, addressed to the policyholder's last known address or to the address to which premium notices or oth…

40-5204. Same; prior approval by commissioner required; duties of licensed foreign insurer. (a) Prior approval by the commissioner is required for any transaction where an insurer domiciled in this state assumes or transfers obligations or risks, or both, on contracts of insuranc…

40-5205. Same; rights of policyholders. (a) Policyholders shall have the right to reject the transfer and novation of their contracts of insurance. Policyholders electing to reject the assumption transaction shall return to the transferring insurer the pre-addressed, postage-paid…

40-5206. Same; novation of insurance contract, when. If a policyholder consents to the transfer pursuant to K.S.A. 40-5205, and amendments thereto, or if the transfer is effected under K.S.A. 40-5207, and amendments thereto, there shall be a novation of the contract of insurance …

40-5207. Same; effect of similar law in another state. If an insurer domiciled in this state or in a jurisdiction having a substantially similar law is deemed by the domiciliary commissioner to be in hazardous financial condition or an administrative proceeding has been institute…

40-5208. Same; continuation of certain protections. Residents of this state whose policies were previously subject to the protections set forth in K.S.A. 40-2901 et seq., and amendments thereto, or K.S.A. 40-3001 et seq., and amendments thereto, and whose policies are transferred…