40-2,125.Violation of insurance laws; failure tofile reports;penalties; emergency temporary cease and desist orders; definitions.(a) If the commissioner determines after notice andopportunity for a hearing that any person has engaged or is engaging in anyact or practice constituting a violation of any provision of Kansasinsurance statutes or any rule and regulation or order thereunder, thecommissioner mayin the exercise of discretion, order any one or more of the following:
(1) Payment of a monetary penalty of not more than $1,000 for each and everyact or violation, unless the person knew or reasonably should have known suchperson was in violation of the Kansas insurance statutes or any rule andregulation or order thereunder, in which case the penalty shall be not morethan $2,000 for each and every act or violation;
(2) suspension or revocation of the person's license or certificate if suchperson knew or reasonably should have known that such person was in violationof the Kansas insurance statutes or any rule and regulation or orderthereunder; or
(3) that such person cease and desist from the unlawful act or practice andtake such affirmative action as in the judgment of the commissioner will carryout the purposes of the violated or potentially violated provision.
(b) If any person fails to file any report or other information with thecommissioner as required by statute or fails to respond to any proper inquiryof the commissioner, the commissioner, after notice and opportunity forhearing,may impose a civilpenalty of up to $1,000, for each violation oract, along with anadditional penaltyof up to $500 for each week thereafterthat such report orother information is not provided to the commissioner.
(c) If the commissioner makes written findings of fact thatthere is asituation involving an immediate danger to the public health, safety orwelfare or the public interest will be irreparably harmed by delay inissuing an order under subsection (a)(3), the commissioner may issue anemergency temporary cease and desist order. Such order, even when not anorder within the meaning of K.S.A. 77-502 and amendmentsthereto, shall be subject to the same procedures as an emergency orderissued under K.S.A. 77-536 and amendments thereto. Upon theentry of such an order, the commissioner shall promptly notify the personsubject to the order that: (1) It has been entered, (2) the reasonstherefor and (3) that upon written request within 15 days after service ofthe order the matter will be set for a hearing which shall be conducted inaccordance with the provisions of the Kansas administrative procedure act.If no hearing is requested and none is ordered by the commissioner, theorder will remain in effect until it is modified or vacated by thecommissioner. If a hearing is requested or ordered, the commissioner,after notice of and opportunity for hearing to the person subject to theorder, shall by written findings of fact and conclusions of law vacate,modify or make permanent the order.
(d) For purposes of this section:
(1) "Person" means any individual, corporation, association,partnership, reciprocal exchange, inter-insurer, Lloyd's insurer, fraternalbenefit society and any other legal entity engaged in the business ofinsurance,ratingorganization, third party administrator, nonprofit dental service corporation,nonprofit medical and hospital service corporation, automobile club, premiumfinancing company, health maintenance organization, insurance holding company,mortgage guaranty insurance company, risk retention or purchasing group,prepaid legal and dental service plan, captive insurance company, automobileself-insurer or reinsurance intermediary. The term "person"shall not include insurance agentsand brokers as such terms are defined inK.S.A. 2009 Supp.40-4902 and amendments thereto.
(2) "Commissioner" means the commissioner of insurance of this state.
History: L. 1989, ch. 132, § 1;L. 1997, ch. 24, § 1;L. 2008, ch. 134, § 5; July 1.
40-2,125.Violation of insurance laws; failure tofile reports;penalties; emergency temporary cease and desist orders; definitions.(a) If the commissioner determines after notice andopportunity for a hearing that any person has engaged or is engaging in anyact or practice constituting a violation of any provision of Kansasinsurance statutes or any rule and regulation or order thereunder, thecommissioner mayin the exercise of discretion, order any one or more of the following:
(1) Payment of a monetary penalty of not more than $1,000 for each and everyact or violation, unless the person knew or reasonably should have known suchperson was in violation of the Kansas insurance statutes or any rule andregulation or order thereunder, in which case the penalty shall be not morethan $2,000 for each and every act or violation;
(2) suspension or revocation of the person's license or certificate if suchperson knew or reasonably should have known that such person was in violationof the Kansas insurance statutes or any rule and regulation or orderthereunder; or
(3) that such person cease and desist from the unlawful act or practice andtake such affirmative action as in the judgment of the commissioner will carryout the purposes of the violated or potentially violated provision.
(b) If any person fails to file any report or other information with thecommissioner as required by statute or fails to respond to any proper inquiryof the commissioner, the commissioner, after notice and opportunity forhearing,may impose a civilpenalty of up to $1,000, for each violation oract, along with anadditional penaltyof up to $500 for each week thereafterthat such report orother information is not provided to the commissioner.
(c) If the commissioner makes written findings of fact thatthere is asituation involving an immediate danger to the public health, safety orwelfare or the public interest will be irreparably harmed by delay inissuing an order under subsection (a)(3), the commissioner may issue anemergency temporary cease and desist order. Such order, even when not anorder within the meaning of K.S.A. 77-502 and amendmentsthereto, shall be subject to the same procedures as an emergency orderissued under K.S.A. 77-536 and amendments thereto. Upon theentry of such an order, the commissioner shall promptly notify the personsubject to the order that: (1) It has been entered, (2) the reasonstherefor and (3) that upon written request within 15 days after service ofthe order the matter will be set for a hearing which shall be conducted inaccordance with the provisions of the Kansas administrative procedure act.If no hearing is requested and none is ordered by the commissioner, theorder will remain in effect until it is modified or vacated by thecommissioner. If a hearing is requested or ordered, the commissioner,after notice of and opportunity for hearing to the person subject to theorder, shall by written findings of fact and conclusions of law vacate,modify or make permanent the order.
(d) For purposes of this section:
(1) "Person" means any individual, corporation, association,partnership, reciprocal exchange, inter-insurer, Lloyd's insurer, fraternalbenefit society and any other legal entity engaged in the business ofinsurance,ratingorganization, third party administrator, nonprofit dental service corporation,nonprofit medical and hospital service corporation, automobile club, premiumfinancing company, health maintenance organization, insurance holding company,mortgage guaranty insurance company, risk retention or purchasing group,prepaid legal and dental service plan, captive insurance company, automobileself-insurer or reinsurance intermediary. The term "person"shall not include insurance agentsand brokers as such terms are defined inK.S.A. 2009 Supp.40-4902 and amendments thereto.
(2) "Commissioner" means the commissioner of insurance of this state.
History: L. 1989, ch. 132, § 1;L. 1997, ch. 24, § 1;L. 2008, ch. 134, § 5; July 1.
40-2,125.Violation of insurance laws; failure tofile reports;penalties; emergency temporary cease and desist orders; definitions.(a) If the commissioner determines after notice andopportunity for a hearing that any person has engaged or is engaging in anyact or practice constituting a violation of any provision of Kansasinsurance statutes or any rule and regulation or order thereunder, thecommissioner mayin the exercise of discretion, order any one or more of the following:
(1) Payment of a monetary penalty of not more than $1,000 for each and everyact or violation, unless the person knew or reasonably should have known suchperson was in violation of the Kansas insurance statutes or any rule andregulation or order thereunder, in which case the penalty shall be not morethan $2,000 for each and every act or violation;
(2) suspension or revocation of the person's license or certificate if suchperson knew or reasonably should have known that such person was in violationof the Kansas insurance statutes or any rule and regulation or orderthereunder; or
(3) that such person cease and desist from the unlawful act or practice andtake such affirmative action as in the judgment of the commissioner will carryout the purposes of the violated or potentially violated provision.
(b) If any person fails to file any report or other information with thecommissioner as required by statute or fails to respond to any proper inquiryof the commissioner, the commissioner, after notice and opportunity forhearing,may impose a civilpenalty of up to $1,000, for each violation oract, along with anadditional penaltyof up to $500 for each week thereafterthat such report orother information is not provided to the commissioner.
(c) If the commissioner makes written findings of fact thatthere is asituation involving an immediate danger to the public health, safety orwelfare or the public interest will be irreparably harmed by delay inissuing an order under subsection (a)(3), the commissioner may issue anemergency temporary cease and desist order. Such order, even when not anorder within the meaning of K.S.A. 77-502 and amendmentsthereto, shall be subject to the same procedures as an emergency orderissued under K.S.A. 77-536 and amendments thereto. Upon theentry of such an order, the commissioner shall promptly notify the personsubject to the order that: (1) It has been entered, (2) the reasonstherefor and (3) that upon written request within 15 days after service ofthe order the matter will be set for a hearing which shall be conducted inaccordance with the provisions of the Kansas administrative procedure act.If no hearing is requested and none is ordered by the commissioner, theorder will remain in effect until it is modified or vacated by thecommissioner. If a hearing is requested or ordered, the commissioner,after notice of and opportunity for hearing to the person subject to theorder, shall by written findings of fact and conclusions of law vacate,modify or make permanent the order.
(d) For purposes of this section:
(1) "Person" means any individual, corporation, association,partnership, reciprocal exchange, inter-insurer, Lloyd's insurer, fraternalbenefit society and any other legal entity engaged in the business ofinsurance,ratingorganization, third party administrator, nonprofit dental service corporation,nonprofit medical and hospital service corporation, automobile club, premiumfinancing company, health maintenance organization, insurance holding company,mortgage guaranty insurance company, risk retention or purchasing group,prepaid legal and dental service plan, captive insurance company, automobileself-insurer or reinsurance intermediary. The term "person"shall not include insurance agentsand brokers as such terms are defined inK.S.A. 2009 Supp.40-4902 and amendments thereto.
(2) "Commissioner" means the commissioner of insurance of this state.
History: L. 1989, ch. 132, § 1;L. 1997, ch. 24, § 1;L. 2008, ch. 134, § 5; July 1.
