40-276a.Automobile liability insurance policies;denial of renewal; notice; conditions; exceptions.(a) Any insurance company that denies renewal of an automobile liabilityinsurance policy in this state shall give at least 30days written notice to the named insured, at his last known address, or causesuch notice to be given by a licensed agent of its intention not torenew such policy. Noinsurance company shall deny the renewal of an automobile liability insurancepolicy except in one or more of the following circumstances or as permittedin subsection (b):
(1) When such insurance company is required or has beenpermitted by the commissioner of insurance, in writing, to reduce its premiumvolume in order to preserve the financial integrity of such insurer;
(2) when such insurance company ceases to transact suchbusiness in this state;
(3) when such insurance company is able to show competentmedical evidence that the insured has a physical or mental disablement thatimpairs his ability to drive in a safe and reasonable manner;
(4) when unfavorable underwriting factors, pertinent to therisk, are existent, and of a substantial nature, which could not havereasonably been ascertained by the company at the initial issuance ofthe policy or the last renewal thereof;
(5) when the policy has been continuously in effect for aperiod of five years. Such five-yearperiod shall begin at the first policy anniversary datefollowing the effective date of the policy, except that ifsuch policy is renewed or continued in force after the expiration of suchperiod or any subsequent five-year period, the provisions of this subsectionshall apply in any such subsequent period; or
(6) when any of the reasons specified as reasons forcancellation in K.S.A. 40-277 are existent, except that (A) when failuretorenew is based upon termination of agency contract, obligation to renew will besatisfied if the insurer has manifested its willingness to renew, and(B) obligation to renew is terminated on the effective dateof any other automobile liability insurance procured by the named insured withrespect to any automobile designated in both policies.
Renewal of a policy shall not constitute awaiver or estoppel with respect to grounds for cancellation which existedbefore the effective date of such renewal. Nothing in this section shallrequire an insurance company torenew an automobile liability insurance policy if such renewal would becontrary to restrictions of membership in the company which are contained inthe articles of incorporation or the bylaws of such company.
(b) (1) No insurance company shall refuse to renew a policy until afterJune 30, 2002, based on an insured's failure to maintain membership in a bonafide association, until both the insurance company and bona fide associationhave complied with the requirements of this subsection. No insurance companyshall refuse to renew any coverage continuously in effect before July 1, 2002,unless:
(A) The application for insurance and the insurance policy shall clearlydisclose that both the payment of dues and current membership in the bona fideassociation are prerequisites to obtaining or renewing the insurance;
(B) the bona fide association has filed a certification with the commissionerof insurance verifying the eligibility of the insurance company to refuse torenew an insurance policy based on the membership in the bona fide association;and
(C) any money paid to the bona fide association as a membership fee:
(i) Shall not be used by the insurance company directly or indirectly todefray any costs or expenses in connection with the sale or purchase of theinsurance; and
(ii) shall be set independently of any factor used by the insurance companyto make any judgment or determination about the eligibility of any individualto purchase or renew such insurance. For the purposes of this provision, theindividual may be a member of the bona fide organization or an employee ordependent of such a member.
(2) (A) Upon request the bona fide association shall file a statement withthe commissioner of insurance verifying that the bona fide association meetsthe requirements of this paragraph.
(B) For the purposes of this subsection, "bona fide association" means anassociation which:
(i) Has been in active existence for at least five consecutive yearsimmediately preceding the date the statement is filed;
(ii) has been formed and maintained in good faith for purposes other thanobtaining or providing insurance and does not condition membership in theassociation on the purchase of insurance;
(iii) has articles of incorporation and bylaws or other similar governingdocuments;
(iv) has a relationship with one or more specific insurance companies andidentifies each such insurance company; and
(v) and does not condition membership in the association or set membershipfees on the eligibility of any individual to purchase or renew the insuranceor on any factor that the insurance company could not lawfully consider whensetting rates. For the purposes of this provision, the individual may be amember of the bona fide organization or an employee or dependent of such amember.
(3) Membership fees collected by the bona fide association shall not bedeemed to be premiums of the insurance company that issued the coverage unlessthe bona fide association:
(A) Uses any portion of such membership fees directly or indirectly to defrayany costs or expenses in connection with the sale or purchase of the insurance;or
(B) sets or adjusts membership fees for any member of the bona fideassociation based on any factor used by the insurance company that issues theinsurance to make any judgment or determination about the eligibility of anyindividual to purchase or renew the insurance. For the purposes of thisprovision, the individual may be a member of the bona fide organization or anemployee or dependent of such a member.
(4) If the membership fees are determined to constitute premiums pursuant toparagraph (3) of this subsection, the insurance company shall not refuse torenew a policy as otherwise permitted by this subsection.
History: L. 1972, ch. 176, § 1;L. 2002, ch. 58, § 1; July 1.
40-276a.Automobile liability insurance policies;denial of renewal; notice; conditions; exceptions.(a) Any insurance company that denies renewal of an automobile liabilityinsurance policy in this state shall give at least 30days written notice to the named insured, at his last known address, or causesuch notice to be given by a licensed agent of its intention not torenew such policy. Noinsurance company shall deny the renewal of an automobile liability insurancepolicy except in one or more of the following circumstances or as permittedin subsection (b):
(1) When such insurance company is required or has beenpermitted by the commissioner of insurance, in writing, to reduce its premiumvolume in order to preserve the financial integrity of such insurer;
(2) when such insurance company ceases to transact suchbusiness in this state;
(3) when such insurance company is able to show competentmedical evidence that the insured has a physical or mental disablement thatimpairs his ability to drive in a safe and reasonable manner;
(4) when unfavorable underwriting factors, pertinent to therisk, are existent, and of a substantial nature, which could not havereasonably been ascertained by the company at the initial issuance ofthe policy or the last renewal thereof;
(5) when the policy has been continuously in effect for aperiod of five years. Such five-yearperiod shall begin at the first policy anniversary datefollowing the effective date of the policy, except that ifsuch policy is renewed or continued in force after the expiration of suchperiod or any subsequent five-year period, the provisions of this subsectionshall apply in any such subsequent period; or
(6) when any of the reasons specified as reasons forcancellation in K.S.A. 40-277 are existent, except that (A) when failuretorenew is based upon termination of agency contract, obligation to renew will besatisfied if the insurer has manifested its willingness to renew, and(B) obligation to renew is terminated on the effective dateof any other automobile liability insurance procured by the named insured withrespect to any automobile designated in both policies.
Renewal of a policy shall not constitute awaiver or estoppel with respect to grounds for cancellation which existedbefore the effective date of such renewal. Nothing in this section shallrequire an insurance company torenew an automobile liability insurance policy if such renewal would becontrary to restrictions of membership in the company which are contained inthe articles of incorporation or the bylaws of such company.
(b) (1) No insurance company shall refuse to renew a policy until afterJune 30, 2002, based on an insured's failure to maintain membership in a bonafide association, until both the insurance company and bona fide associationhave complied with the requirements of this subsection. No insurance companyshall refuse to renew any coverage continuously in effect before July 1, 2002,unless:
(A) The application for insurance and the insurance policy shall clearlydisclose that both the payment of dues and current membership in the bona fideassociation are prerequisites to obtaining or renewing the insurance;
(B) the bona fide association has filed a certification with the commissionerof insurance verifying the eligibility of the insurance company to refuse torenew an insurance policy based on the membership in the bona fide association;and
(C) any money paid to the bona fide association as a membership fee:
(i) Shall not be used by the insurance company directly or indirectly todefray any costs or expenses in connection with the sale or purchase of theinsurance; and
(ii) shall be set independently of any factor used by the insurance companyto make any judgment or determination about the eligibility of any individualto purchase or renew such insurance. For the purposes of this provision, theindividual may be a member of the bona fide organization or an employee ordependent of such a member.
(2) (A) Upon request the bona fide association shall file a statement withthe commissioner of insurance verifying that the bona fide association meetsthe requirements of this paragraph.
(B) For the purposes of this subsection, "bona fide association" means anassociation which:
(i) Has been in active existence for at least five consecutive yearsimmediately preceding the date the statement is filed;
(ii) has been formed and maintained in good faith for purposes other thanobtaining or providing insurance and does not condition membership in theassociation on the purchase of insurance;
(iii) has articles of incorporation and bylaws or other similar governingdocuments;
(iv) has a relationship with one or more specific insurance companies andidentifies each such insurance company; and
(v) and does not condition membership in the association or set membershipfees on the eligibility of any individual to purchase or renew the insuranceor on any factor that the insurance company could not lawfully consider whensetting rates. For the purposes of this provision, the individual may be amember of the bona fide organization or an employee or dependent of such amember.
(3) Membership fees collected by the bona fide association shall not bedeemed to be premiums of the insurance company that issued the coverage unlessthe bona fide association:
(A) Uses any portion of such membership fees directly or indirectly to defrayany costs or expenses in connection with the sale or purchase of the insurance;or
(B) sets or adjusts membership fees for any member of the bona fideassociation based on any factor used by the insurance company that issues theinsurance to make any judgment or determination about the eligibility of anyindividual to purchase or renew the insurance. For the purposes of thisprovision, the individual may be a member of the bona fide organization or anemployee or dependent of such a member.
(4) If the membership fees are determined to constitute premiums pursuant toparagraph (3) of this subsection, the insurance company shall not refuse torenew a policy as otherwise permitted by this subsection.
History: L. 1972, ch. 176, § 1;L. 2002, ch. 58, § 1; July 1.
40-276a.Automobile liability insurance policies;denial of renewal; notice; conditions; exceptions.(a) Any insurance company that denies renewal of an automobile liabilityinsurance policy in this state shall give at least 30days written notice to the named insured, at his last known address, or causesuch notice to be given by a licensed agent of its intention not torenew such policy. Noinsurance company shall deny the renewal of an automobile liability insurancepolicy except in one or more of the following circumstances or as permittedin subsection (b):
(1) When such insurance company is required or has beenpermitted by the commissioner of insurance, in writing, to reduce its premiumvolume in order to preserve the financial integrity of such insurer;
(2) when such insurance company ceases to transact suchbusiness in this state;
(3) when such insurance company is able to show competentmedical evidence that the insured has a physical or mental disablement thatimpairs his ability to drive in a safe and reasonable manner;
(4) when unfavorable underwriting factors, pertinent to therisk, are existent, and of a substantial nature, which could not havereasonably been ascertained by the company at the initial issuance ofthe policy or the last renewal thereof;
(5) when the policy has been continuously in effect for aperiod of five years. Such five-yearperiod shall begin at the first policy anniversary datefollowing the effective date of the policy, except that ifsuch policy is renewed or continued in force after the expiration of suchperiod or any subsequent five-year period, the provisions of this subsectionshall apply in any such subsequent period; or
(6) when any of the reasons specified as reasons forcancellation in K.S.A. 40-277 are existent, except that (A) when failuretorenew is based upon termination of agency contract, obligation to renew will besatisfied if the insurer has manifested its willingness to renew, and(B) obligation to renew is terminated on the effective dateof any other automobile liability insurance procured by the named insured withrespect to any automobile designated in both policies.
Renewal of a policy shall not constitute awaiver or estoppel with respect to grounds for cancellation which existedbefore the effective date of such renewal. Nothing in this section shallrequire an insurance company torenew an automobile liability insurance policy if such renewal would becontrary to restrictions of membership in the company which are contained inthe articles of incorporation or the bylaws of such company.
(b) (1) No insurance company shall refuse to renew a policy until afterJune 30, 2002, based on an insured's failure to maintain membership in a bonafide association, until both the insurance company and bona fide associationhave complied with the requirements of this subsection. No insurance companyshall refuse to renew any coverage continuously in effect before July 1, 2002,unless:
(A) The application for insurance and the insurance policy shall clearlydisclose that both the payment of dues and current membership in the bona fideassociation are prerequisites to obtaining or renewing the insurance;
(B) the bona fide association has filed a certification with the commissionerof insurance verifying the eligibility of the insurance company to refuse torenew an insurance policy based on the membership in the bona fide association;and
(C) any money paid to the bona fide association as a membership fee:
(i) Shall not be used by the insurance company directly or indirectly todefray any costs or expenses in connection with the sale or purchase of theinsurance; and
(ii) shall be set independently of any factor used by the insurance companyto make any judgment or determination about the eligibility of any individualto purchase or renew such insurance. For the purposes of this provision, theindividual may be a member of the bona fide organization or an employee ordependent of such a member.
(2) (A) Upon request the bona fide association shall file a statement withthe commissioner of insurance verifying that the bona fide association meetsthe requirements of this paragraph.
(B) For the purposes of this subsection, "bona fide association" means anassociation which:
(i) Has been in active existence for at least five consecutive yearsimmediately preceding the date the statement is filed;
(ii) has been formed and maintained in good faith for purposes other thanobtaining or providing insurance and does not condition membership in theassociation on the purchase of insurance;
(iii) has articles of incorporation and bylaws or other similar governingdocuments;
(iv) has a relationship with one or more specific insurance companies andidentifies each such insurance company; and
(v) and does not condition membership in the association or set membershipfees on the eligibility of any individual to purchase or renew the insuranceor on any factor that the insurance company could not lawfully consider whensetting rates. For the purposes of this provision, the individual may be amember of the bona fide organization or an employee or dependent of such amember.
(3) Membership fees collected by the bona fide association shall not bedeemed to be premiums of the insurance company that issued the coverage unlessthe bona fide association:
(A) Uses any portion of such membership fees directly or indirectly to defrayany costs or expenses in connection with the sale or purchase of the insurance;or
(B) sets or adjusts membership fees for any member of the bona fideassociation based on any factor used by the insurance company that issues theinsurance to make any judgment or determination about the eligibility of anyindividual to purchase or renew the insurance. For the purposes of thisprovision, the individual may be a member of the bona fide organization or anemployee or dependent of such a member.
(4) If the membership fees are determined to constitute premiums pursuant toparagraph (3) of this subsection, the insurance company shall not refuse torenew a policy as otherwise permitted by this subsection.
History: L. 1972, ch. 176, § 1;L. 2002, ch. 58, § 1; July 1.
