Printable Format40-213. 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.
Source or prior law:
L. 1909, ch. 158, ยง 1; R.S. 1923, 40-225.
CASE ANNOTATIONS
1. Premium note valid when policy delivered. Sutton v. Wright, 94 Kan. 499, 500, 147 P. 62.
2. Holder with knowledge policy not issued takes note subject to defense. State Bank v. Weiser, 117 Kan. 389, 392, 232 P. 613.
3. Cited; holder with knowledge notes taken for premium; defense of illegality proper. Fidelity Savings State Bank v. Grimes, 156 Kan. 55, 58, 59, 131 P.2d 894.