40-246b.Excess coverage license to effect insurance or reinsurance innonadmitted companies; application; fee; affidavit; records; revocation orsuspension of license; agent authorized to place business with excesscoverage licensees; required information.The commissioner of insurance may issue to any duly licensed resident agent ofthis state, who has been licensed as a fire or casualty, or both, residentagent in this or any other state or combination thereof, for three consecutiveyears immediately prior to application for the type of license hereinprescribed,upon proper application, an excess coveragelicense to negotiate the types of contracts of fire insurance enumerated inK.S.A. 40-901, and amendments thereto, and the type of casualty insurancecontracts enumerated inK.S.A. 40-1102, and amendments thereto, or reinsurance, or to place risks,or to effect insuranceor reinsurance for persons or corporations other than such agent, with insurersnot authorized to do business in this state. An agent, as defined in K.S.A.40-241e, and amendments thereto, may place the kind or kinds ofbusiness specified in this act for which such agent is licensed pursuant toK.S.A. 40-240 and 40-241, and amendments thereto, with an insurer notauthorized to do business inthis state by placing such business with a person licensed pursuant to theprovisions of this act and may share in the applicable commissions on suchbusiness. Before any such license shall be issued, the applicantshall submit proper application on a form prescribed by thecommissioner, which application shall be accompanied by a feeof$50. Such license shall be renewable each year on May 1, upon the payment ofa $50 fee. Excess lines agentslicensed by thedepartment on the effective dateof this act shall be exempt from the experience requirement.
The agent so licensed shall on or before March 1 of each year, file withthe insurance department of this state, a sworn affidavit or statement tothe effect that, after diligent effort, such agent has been unable to securethe amount of insurance required to protect the property, person, or firmdescribed in such agent's affidavit orstatement from loss or damage in regularly admitted companies during thepreceding year. Mere rate differential shall not be grounds for placinga particular risk in a nonadmitted carrier when an admitted carrier wouldaccept such risk at a different rate. The licensed excess coverage agentmust, prior to placing insurance with an insurer not authorized to do businessin this state, obtain the written consent of the prospective named insuredand provide such insured the following information in a form promulgatedby the commissioner:
(a) A statement that the coverage will be obtained from an insurernot authorized to do business in this state;
(b) a statement that the insurer's name appears on the list of companiesmaintained by the commissioner pursuant to K.S.A. 40-246e, and amendmentsthereto;
(c) a notice that the insurer's financial condition, policy forms, ratesand trade practices are not subject to the review or jurisdiction of thecommissioner;
(d) a statement that the protection of the guaranty associations is notafforded to policyholders of the insurer; and
(e) a statement or notice with respect to any other information deemednecessary by the commissioner pertinent to insuring with an insurer notauthorized to do business in this state.
In the event the insured desires that coverage be bound with an insurernot admitted to this state and it is not possible to obtain the writtenconsent of the insured prior to binding the coverage, the excess lines agentmay bind the coverage after advising the insured of the information setout above and shall obtain written confirmation that the insured desiresthat coverage be placed with an insurer not admitted to this state within30 days after binding coverage.
When business comes to a licensed excess lines agent for placement withan insurer not authorized to do business in this state from an agent notlicensed as an excess lines agent, it shall be the responsibility of thelicensed excess lines agent to ascertain that the insured has been providedthe preceding information and has consented to being insured with an insurernot authorized to do business in this state. Each excess lines agent shallkeep a separate record book in such agent's office showing the transactionsof fire and casualty insurance and reinsurance placed in companies notauthorized to do business in this state, the amount of gross premiumscharged thereon, the insurer in which placed, the date,term and number of the policy, the location and nature of the risk, thename of the assured and such other information as the commissioner mayrequire and such record shall be available at all times for inspection bythe commissioner of insurance or the commissioner's authorized representatives.Thecommissioner may revoke or suspend any license issued pursuant to theprovisions of this act in the same manner and for the same reasonsprescribed by K.S.A. 40-242, and amendments thereto.
Any policy issued under the provisions of this statute shall have stampedor endorsed in a prominent manner thereon, the following: This policy isissued by an insurer not authorized to do business in Kansas and, as such,the form, financial condition and rates are not subject to review by thecommissionerof insurance and the insured is not protected by any guaranty fund.
If business is placed with a nonadmitted company that is subsequentlydetermined to be insolvent, the excess lines agent placing such businesswith such company is relieved of any responsibility to the insured as itrelates to such insolvency, if the excess lines agent has satisfactorilycomplied with all requirements of this section pertaining to notificationof the insured, has properly obtained the written consent of the insuredand has used due diligence in selecting the insurer. It shall be presumedthat due diligence was used in selecting the insurer if such insurer wason the list compiled pursuant to K.S.A. 40-246e, and amendments thereto, atthe time coveragefirst became effective.
History: L. 1955, ch. 242, § 1; L. 1975, ch. 242, §1; L. 1982, ch. 198, § 1;L. 1996, ch. 45, § 3;L. 2004, ch. 159, § 2; May 27.
40-246b.Excess coverage license to effect insurance or reinsurance innonadmitted companies; application; fee; affidavit; records; revocation orsuspension of license; agent authorized to place business with excesscoverage licensees; required information.The commissioner of insurance may issue to any duly licensed resident agent ofthis state, who has been licensed as a fire or casualty, or both, residentagent in this or any other state or combination thereof, for three consecutiveyears immediately prior to application for the type of license hereinprescribed,upon proper application, an excess coveragelicense to negotiate the types of contracts of fire insurance enumerated inK.S.A. 40-901, and amendments thereto, and the type of casualty insurancecontracts enumerated inK.S.A. 40-1102, and amendments thereto, or reinsurance, or to place risks,or to effect insuranceor reinsurance for persons or corporations other than such agent, with insurersnot authorized to do business in this state. An agent, as defined in K.S.A.40-241e, and amendments thereto, may place the kind or kinds ofbusiness specified in this act for which such agent is licensed pursuant toK.S.A. 40-240 and 40-241, and amendments thereto, with an insurer notauthorized to do business inthis state by placing such business with a person licensed pursuant to theprovisions of this act and may share in the applicable commissions on suchbusiness. Before any such license shall be issued, the applicantshall submit proper application on a form prescribed by thecommissioner, which application shall be accompanied by a feeof$50. Such license shall be renewable each year on May 1, upon the payment ofa $50 fee. Excess lines agentslicensed by thedepartment on the effective dateof this act shall be exempt from the experience requirement.
The agent so licensed shall on or before March 1 of each year, file withthe insurance department of this state, a sworn affidavit or statement tothe effect that, after diligent effort, such agent has been unable to securethe amount of insurance required to protect the property, person, or firmdescribed in such agent's affidavit orstatement from loss or damage in regularly admitted companies during thepreceding year. Mere rate differential shall not be grounds for placinga particular risk in a nonadmitted carrier when an admitted carrier wouldaccept such risk at a different rate. The licensed excess coverage agentmust, prior to placing insurance with an insurer not authorized to do businessin this state, obtain the written consent of the prospective named insuredand provide such insured the following information in a form promulgatedby the commissioner:
(a) A statement that the coverage will be obtained from an insurernot authorized to do business in this state;
(b) a statement that the insurer's name appears on the list of companiesmaintained by the commissioner pursuant to K.S.A. 40-246e, and amendmentsthereto;
(c) a notice that the insurer's financial condition, policy forms, ratesand trade practices are not subject to the review or jurisdiction of thecommissioner;
(d) a statement that the protection of the guaranty associations is notafforded to policyholders of the insurer; and
(e) a statement or notice with respect to any other information deemednecessary by the commissioner pertinent to insuring with an insurer notauthorized to do business in this state.
In the event the insured desires that coverage be bound with an insurernot admitted to this state and it is not possible to obtain the writtenconsent of the insured prior to binding the coverage, the excess lines agentmay bind the coverage after advising the insured of the information setout above and shall obtain written confirmation that the insured desiresthat coverage be placed with an insurer not admitted to this state within30 days after binding coverage.
When business comes to a licensed excess lines agent for placement withan insurer not authorized to do business in this state from an agent notlicensed as an excess lines agent, it shall be the responsibility of thelicensed excess lines agent to ascertain that the insured has been providedthe preceding information and has consented to being insured with an insurernot authorized to do business in this state. Each excess lines agent shallkeep a separate record book in such agent's office showing the transactionsof fire and casualty insurance and reinsurance placed in companies notauthorized to do business in this state, the amount of gross premiumscharged thereon, the insurer in which placed, the date,term and number of the policy, the location and nature of the risk, thename of the assured and such other information as the commissioner mayrequire and such record shall be available at all times for inspection bythe commissioner of insurance or the commissioner's authorized representatives.Thecommissioner may revoke or suspend any license issued pursuant to theprovisions of this act in the same manner and for the same reasonsprescribed by K.S.A. 40-242, and amendments thereto.
Any policy issued under the provisions of this statute shall have stampedor endorsed in a prominent manner thereon, the following: This policy isissued by an insurer not authorized to do business in Kansas and, as such,the form, financial condition and rates are not subject to review by thecommissionerof insurance and the insured is not protected by any guaranty fund.
If business is placed with a nonadmitted company that is subsequentlydetermined to be insolvent, the excess lines agent placing such businesswith such company is relieved of any responsibility to the insured as itrelates to such insolvency, if the excess lines agent has satisfactorilycomplied with all requirements of this section pertaining to notificationof the insured, has properly obtained the written consent of the insuredand has used due diligence in selecting the insurer. It shall be presumedthat due diligence was used in selecting the insurer if such insurer wason the list compiled pursuant to K.S.A. 40-246e, and amendments thereto, atthe time coveragefirst became effective.
History: L. 1955, ch. 242, § 1; L. 1975, ch. 242, §1; L. 1982, ch. 198, § 1;L. 1996, ch. 45, § 3;L. 2004, ch. 159, § 2; May 27.
40-246b.Excess coverage license to effect insurance or reinsurance innonadmitted companies; application; fee; affidavit; records; revocation orsuspension of license; agent authorized to place business with excesscoverage licensees; required information.The commissioner of insurance may issue to any duly licensed resident agent ofthis state, who has been licensed as a fire or casualty, or both, residentagent in this or any other state or combination thereof, for three consecutiveyears immediately prior to application for the type of license hereinprescribed,upon proper application, an excess coveragelicense to negotiate the types of contracts of fire insurance enumerated inK.S.A. 40-901, and amendments thereto, and the type of casualty insurancecontracts enumerated inK.S.A. 40-1102, and amendments thereto, or reinsurance, or to place risks,or to effect insuranceor reinsurance for persons or corporations other than such agent, with insurersnot authorized to do business in this state. An agent, as defined in K.S.A.40-241e, and amendments thereto, may place the kind or kinds ofbusiness specified in this act for which such agent is licensed pursuant toK.S.A. 40-240 and 40-241, and amendments thereto, with an insurer notauthorized to do business inthis state by placing such business with a person licensed pursuant to theprovisions of this act and may share in the applicable commissions on suchbusiness. Before any such license shall be issued, the applicantshall submit proper application on a form prescribed by thecommissioner, which application shall be accompanied by a feeof$50. Such license shall be renewable each year on May 1, upon the payment ofa $50 fee. Excess lines agentslicensed by thedepartment on the effective dateof this act shall be exempt from the experience requirement.
The agent so licensed shall on or before March 1 of each year, file withthe insurance department of this state, a sworn affidavit or statement tothe effect that, after diligent effort, such agent has been unable to securethe amount of insurance required to protect the property, person, or firmdescribed in such agent's affidavit orstatement from loss or damage in regularly admitted companies during thepreceding year. Mere rate differential shall not be grounds for placinga particular risk in a nonadmitted carrier when an admitted carrier wouldaccept such risk at a different rate. The licensed excess coverage agentmust, prior to placing insurance with an insurer not authorized to do businessin this state, obtain the written consent of the prospective named insuredand provide such insured the following information in a form promulgatedby the commissioner:
(a) A statement that the coverage will be obtained from an insurernot authorized to do business in this state;
(b) a statement that the insurer's name appears on the list of companiesmaintained by the commissioner pursuant to K.S.A. 40-246e, and amendmentsthereto;
(c) a notice that the insurer's financial condition, policy forms, ratesand trade practices are not subject to the review or jurisdiction of thecommissioner;
(d) a statement that the protection of the guaranty associations is notafforded to policyholders of the insurer; and
(e) a statement or notice with respect to any other information deemednecessary by the commissioner pertinent to insuring with an insurer notauthorized to do business in this state.
In the event the insured desires that coverage be bound with an insurernot admitted to this state and it is not possible to obtain the writtenconsent of the insured prior to binding the coverage, the excess lines agentmay bind the coverage after advising the insured of the information setout above and shall obtain written confirmation that the insured desiresthat coverage be placed with an insurer not admitted to this state within30 days after binding coverage.
When business comes to a licensed excess lines agent for placement withan insurer not authorized to do business in this state from an agent notlicensed as an excess lines agent, it shall be the responsibility of thelicensed excess lines agent to ascertain that the insured has been providedthe preceding information and has consented to being insured with an insurernot authorized to do business in this state. Each excess lines agent shallkeep a separate record book in such agent's office showing the transactionsof fire and casualty insurance and reinsurance placed in companies notauthorized to do business in this state, the amount of gross premiumscharged thereon, the insurer in which placed, the date,term and number of the policy, the location and nature of the risk, thename of the assured and such other information as the commissioner mayrequire and such record shall be available at all times for inspection bythe commissioner of insurance or the commissioner's authorized representatives.Thecommissioner may revoke or suspend any license issued pursuant to theprovisions of this act in the same manner and for the same reasonsprescribed by K.S.A. 40-242, and amendments thereto.
Any policy issued under the provisions of this statute shall have stampedor endorsed in a prominent manner thereon, the following: This policy isissued by an insurer not authorized to do business in Kansas and, as such,the form, financial condition and rates are not subject to review by thecommissionerof insurance and the insured is not protected by any guaranty fund.
If business is placed with a nonadmitted company that is subsequentlydetermined to be insolvent, the excess lines agent placing such businesswith such company is relieved of any responsibility to the insured as itrelates to such insolvency, if the excess lines agent has satisfactorilycomplied with all requirements of this section pertaining to notificationof the insured, has properly obtained the written consent of the insuredand has used due diligence in selecting the insurer. It shall be presumedthat due diligence was used in selecting the insurer if such insurer wason the list compiled pursuant to K.S.A. 40-246e, and amendments thereto, atthe time coveragefirst became effective.
History: L. 1955, ch. 242, § 1; L. 1975, ch. 242, §1; L. 1982, ch. 198, § 1;L. 1996, ch. 45, § 3;L. 2004, ch. 159, § 2; May 27.
