8-2405. Insurance required of dealers; limitations on cancellation.
8-2405
8-2405. Insurance required of dealers; limitations on cancellation.
No dealer's license shall be issued or renewed unless the
applicant or holder of the license shall have on file with the division
an approved insurance policy, issued by an insurance carrier authorized
to transact business within
the state of Kansas. The term of the policy shall be continuous
and shall remain in full force and effect until canceled under proper
notice. All policies must be issued in the name of the holder
or applicant for the vehicle dealer's license and
shall provide public
liability and property damage insurance for the operation of any
vehicle by prospective purchasers, owned or being offered for sale by the dealer when
being operated by the owner or seller, the seller's
agent, servants,
employees, prospective customers or other persons. The limits of
liability shall correspond to the amount required by law in this state
for bodily injury or death of any one person, bodily injury or death in
any one accident and property damage. Such insurance may not be
cancelled unless 30 days' notice by the insurance
carrier has been given in writing to the director. Upon the effective
date of cancellation of any insurance policy required
under this section,
the license to engage in business as a dealer shall be void.
History: L. 1980, ch. 36, § 5; L. 1981, ch. 48, § 5; L. 1983,
ch. 44, § 1;
L. 1991, ch. 33, § 22; July 1.