Printable Format40-214. Conditions under which insurance may be written; certificate of authority; revocation, when; unlawful acts. It shall be unlawful for any person, company, corporation or fraternal benefit society to transact the business of insurance, indemnity or suretyship, or do any act toward transacting such business, unless such person, company, corporation or fraternal benefit society shall have been duly authorized under the laws of this state to transact such business and shall have received proper written authority from the commissioner of insurance in conformity with the provisions of the laws of this state relative to insurance, indemnity and suretyship, and further, it shall be unlawful for any insurance company to effect contracts of insurance in this state on the life or person of residents of this state or on property located in this state except through persons duly licensed and certified in accordance with the insurance laws of this state and subject to the provisions of K.S.A. 40-245, and amendments thereto. Neither the enrollment of individuals under a group policy nor the inclusion of insurance in a credit transaction under an arrangement for its purchase by the creditor in compliance with the applicable provisions of the uniform consumer credit code shall constitute the effecting of a contract of insurance.
It shall be unlawful for any insurance company organized under the laws of this state to do business in any other state or territory of the United States without being first legally admitted and authorized to do business under the laws of such state or territory, and the insurance commissioner may revoke the license of any insurance company organized under the laws of this state and doing business in another state or territory without being first authorized so to do, and may require said company to pay the taxes upon the business so unlawfully written to the state or territory in which the business was written as provided by the laws of said state or territory. A company shall be considered admitted and authorized for the purposes of this section when it has been legally authorized to operate in such other state or territory as a nonadmitted insurer.
History: L. 1927, ch. 231, 40-214; L. 1929, ch. 196, § 1; L. 1959, ch. 209, § 1; L. 1974, ch. 184, § 2; L. 1979, ch. 133, § 1; July 1.
Source or prior law:
L. 1871, ch. 93, §§ 18, 23, 45; L. 1885, ch. 131, §§ 6, 15; L. 1898, ch. 23, § 14; L. 1899, ch. 149, § 12; L. 1901, ch. 230, §§ 4, 18; L. 1903, ch. 334, § 2; L. 1905, ch. 159, § 3; L. 1905, ch. 270, § 1; L. 1907, ch. 228, §§ 2, 14; L. 1909, ch. 153, §§ 4, 12, 23; L. 1913, ch. 206, §§ 4, 15, 23; L. 1917, ch. 127, § 2; L. 1921, ch. 202, §§ 5, 8; R.S. 1923, 17-1803, 40-115, 40-121, 40-302, 40-365, 40-375, 40-604, 40-614, 40-622, 40-717, 40-802, 40-814, 40-1005, 40-1008.
Law Review and Bar Journal References:
Credit card offers of insurance may be violative of statute, 9 K.L.R. 475 (1961) (Quoting a Feb. 3, 1961, opinion of the attorney general).
Attorney General's Opinions:
Bail bonding companies; "pocket bonds." 87-11.
Cooperative societies; bylaws and regulations; premiums; certain rebates or other inducements prohibited. 92-150.
CASE ANNOTATIONS
1. State empowered to bring quo warranto proceedings against insurance company. The State, ex rel., v. Ins. Co., 30 Kan. 585, 588, 2 P. 840.
2. License not revocable because agent divides commissions with nonresident agent. Maxwell v. Church, 62 Kan. 487, 63 P. 738.
3. Policy assignable although company has lost authority since issuing same. Bank v. Renn, 63 Kan. 334, 339, 65 P. 698.
4. Liability of agents causing insurance of goods in unauthorized company; application to fire insurance companies. Latham v. Harrod, 71 Kan. 565, 81 P. 214.
5. Mutual burial associations must comply with the statute. The State v. Burial Association, 73 Kan. 179, 84 P. 757.
6. The title of this act embraces this section. Harrod v. Latham, 77 Kan. 466, 95 P. 11.
7. Company guaranteeing payment of bank deposits must obtain certificate. Guaranty Co. v. Barnes, 81 Kan. 422, 424, 426, 105 P. 697.
8. State cannot abridge right to remove case to federal court; company may remove case even though consent to suit filed. Insurance Co. v. Surety Co., 94 Kan. 305, 307, 146 P. 412.
9. Powers of agent limited to those conferred by company, Eikelberger v. Ins. Co., 107 Kan. 9, 10, 190 P. 611.
10. Duties of commissioner under K.S.A. 40-703 ministerial; plaintiff entitled to certificate. Fidelity Life Ass'n v. Hobbs, 161 Kan. 163, 168, 166 P.2d 1001.
11. Legislature empowered, owing to public interest, to regulate insurance rates. German Alliance Ins. Co. v. Lewis, 189 F. 769. Affirmed: 233 U.S. 389, 414, 415, 416, 34 S. Ct. 612, 58 L.Ed. 1011.