40-3104.Motor vehicle liability insurance coverage required; prohibitedvehicle operation; verification; self-insurance; display of proof offinancial security; penalties for failure to maintain financial security;reinstatement fees.(a) Every owner shall provide motor vehicle liability insurance coveragein accordance with the provisions of this act for every motor vehicleowned by such person, unless such motor vehicle: (1) Is included under anapproved self-insurance plan as provided in subsection (f); (2) is usedas a driver training motor vehicle, as defined in K.S.A. 72-5015, andamendments thereto, in an approved driver training course by a schooldistrict or an accredited nonpublic school under an agreement with a motorvehicle dealer, and such motor vehicle liability insurance coverage isprovided by the school district or accredited nonpublic school; (3) isincluded under a qualified plan of self-insurance approved by an agency ofthe state in which such motor vehicle is registered and the form prescribedin subsection (b) of K.S.A. 40-3106, and amendments thereto, has been filed;or (4) is expressly exempted from the provisions of this act.
(b) An owner of an uninsured motor vehicle shall not permit theoperation thereof upon a highway or upon property open to use by thepublic, unless such motor vehicle is expressly exempted from theprovisions of this act.
(c) No person shall knowingly drive an uninsured motor vehicle upona highway or upon property open to use by the public, unless such motorvehicle is expressly exempted from the provisions of this act.
(d) Any person operating a motor vehicle upon a highway or uponproperty open to use by the public shall display, upon demand, evidence offinancial security to a law enforcement officer. The law enforcement officershall issue a citation to any person who fails to display evidence of financialsecurity upon such demand. The law enforcement officer shall attach a copy ofthe insurance verification form prescribed by the secretary of revenue to thecopy of the citation forwarded to the court.
No citation shall be issued to any person for failure to provide proofof financial security when evidence of financial security meeting thestandards of subsection (e) is displayed upon demand of a law enforcementofficer. Whenever the authenticity of such evidence is questionable, thelaw enforcement officer may initiate the preparation of the insuranceverification form prescribed by the secretary of revenue by recordinginformation from the evidence of financial security displayed. The officershall immediately forward the form to the department of revenue, and thedepartment shall proceed with verification in the manner prescribed in thefollowing paragraph. Upon return of a form indicating that insurance wasnot in force on the date indicated on the form, the department shallimmediately forward a copy of the form to the law enforcement officerinitiating preparation of the form.
(e) Unless the insurance company subsequently submits an insuranceverification form indicating that insurance was not in force, no personcharged with violating subsections (b), (c) or (d) shall be convicted if suchperson produces in court, within 10 days of the date of arrest or ofissuanceof the citation, evidence of financial security for the motor vehicle operated,which was valid at the time of arrest or of issuance of the citation. For thepurpose of this subsection, evidence of financial security shall be provided bya policy of motor vehicle liability insurance, an identification card orcertificate of insurance issued to the policyholder by the insurer whichprovides the name of the insurer, the policy number and the effective andexpiration dates of the policy, or a certificate of self-insurance signed bythe commissioner of insurance. Upon the production in court of evidence offinancial security, the court shall record the information displayed thereon onthe insurance verification form prescribed by the secretary of revenue,immediately forward such form to the department of revenue, and stay anyfurther proceedings on the matter pending a request from the prosecutingattorney that the matter be set for trial. Upon receipt of such form thedepartment shall mail the form to the named insurance company for verificationthat insurance was in force on the date indicated on the form. It shall be theduty of insurance companies to notify the department within 30 calendar days ofthe receipt of such forms of any insurance that was not in force on the datespecified. Upon return of any form to the department indicating that insurancewas not in force on such date, the department shall immediately forward a copyof such form to the office of the prosecuting attorney or the city clerk of themunicipality in which such prosecution is pending when the prosecuting attorneyis not ascertainable. Receipt of any completed form indicating that insurancewas not in effect on the date specified shall be prima facie evidence offailure to provide proof of financial security and violation of this section.A request that the matter be set for trial shall be made immediately followingthe receipt by the prosecuting attorney of a copy of the form from thedepartment of revenue indicating that insurance was not in force. Any chargeof violating subsection (b), (c) or (d) shall be dismissed if no request for atrial setting has been made within 60 days of the date evidence of financialsecurity was produced in court.
(f) Any person in whose name more than 25 motor vehicles are registered inKansas may qualify as a self-insurer by obtaining a certificate ofself-insurance from the commissioner of insurance. The certificate ofself-insurance issued by the commissioner shall cover such owned vehicles andthose vehicles, registered in Kansas, leased to such person if the leaseagreement requires that motor vehicle liability insurance on the vehicles beprovided by the lessee. Upon application of any such person, the commissionerof insurance may issue a certificate of self-insurance, if the commissioner issatisfied that such person is possessed and will continue to be possessed ofability to pay any liability imposed by law againstsuch person arising out of theownership, operation, maintenance or use of any motor vehicle describedin this subsection. A self-insurer shall provide liability coverage subjectto the provisions of subsection (e) of K.S.A. 40-3107, and amendmentsthereto, arising out of the ownership, operation, maintenance or use of aself-insured motor vehicle in those instances where the lessee or the rentaldriver, if not the lessee, does not have a motor vehicle liability insurancepolicy or insurance coverage pursuant to a motor vehicle liability insurancepolicy or certificate of insurance or such insurance policy for such leased orrentedvehicle. Such liability coverage shall be provided to any person operating aself-insured motor vehicle with the expressed or implied consent of theself-insurer.
Upon notice and a hearing in accordance with the provisions of the Kansasadministrative procedure act, the commissioner of insurance may cancel acertificate of self-insurance upon reasonable grounds. Failure toprovide liability coverage or personalinjury protection benefits required by K.S.A. 40-3107 and 40-3109, andamendments thereto, or pay any liability imposed by law arising out of theownership, operation,maintenance or use of a motor vehicle registered in such self-insurer's name,or tootherwise comply with the requirements of this subsection shall constitutereasonable grounds for the cancellation of a certificate of self-insurance.Reasonable grounds shall not exist unless such objectionable activity occurswith such frequency as to indicate a general business practice.
Self-insuredsshall investigate claims in a reasonably prompt manner, handle such claims in areasonable manner based on available information and effectuate prompt, fairand equitable settlement of claims in which liability has become reasonablyclear.
As used in this subsection, "liability imposed by law" means the statedlimits of liability as provided under subsection (e) of K.S.A. 40-3107, andamendments thereto.
Nothing in this subsection shall preclude a self-insurer from pursuing allrights of subrogation against another person or persons.
(g) (1) Any person violating any provision of this section shall beguilty of aclass B misdemeanor and shall be subject to a fine of not lessthan $300 normore than $1,000 or confinement in the county jail for aterm of not more thansix months, or both such fine and confinement.
(2) Any person convictedof violating any provision of this section within three years of any such priorconviction shall be guilty of a class A misdemeanorandshall be subject to a fine of not less than $800 nor more than $2,500.
(h) In addition to any other penalties provided by this act forfailure to have or maintain financial security in effect, the director,upon receipt of a report required by K.S.A. 8-1607 or 8-1611, and amendmentsthereto, or a denial of such insurance by the insurance company listed on theform prescribed by the secretary of revenue pursuant to subsection (d) of thissection, shall, upon notice and hearing as provided by K.S.A. 40-3118, andamendments thereto:
(1) Suspend:
(A) The license of each driver in any manner involved in theaccident;
(B) the license of the owner of each motor vehicle involved insuchaccident, unless the vehicle was stolen at the time of the accident, proof ofwhich must be established by the owner of the motor vehicle. Theft by a memberof the vehicle owner's immediate family under the age of 18 years shall notconstitute a stolen vehicle for the purposes of this section;
(C) if the driver is a nonresident, the privilege of operating amotorvehicle within this state; or
(D) if such owner is a nonresident, the privilege of such ownertooperate or permit the operation within this state of any motor vehicleowned by such owner; and
(2) revoke the registration of all vehicles owned by the owner of eachmotor vehicle involved in such accident.
(i) The suspension or revocation requirements in subsection (h) shallnot apply:
(1) To the driver or owner if the owner had in effect at the time ofthe accident an automobile liability policy as required by K.S.A. 40-3107,and amendments thereto, with respect to the vehicle involved in the accident;
(2) to the driver, if not the owner of the vehicle involved in theaccident, if there was in effect at the time of the accident anautomobile liability policy with respect to such driver's driving ofvehicles not owned by such driver;
(3) to any self-insurer as defined by subsection (u) of K.S.A. 40-3103, andamendments thereto;
(4) to the driver or owner of any vehicle involved in the accidentwhich was exempt from the provisions of this act pursuant to K.S.A.40-3105, and amendments thereto;
(5) to the owner of a vehicle described in subsection (a)(2).
(j) (1) For the purposes of provisions (1) and (2) of subsection (i)of thissection, the director may require verification by an owner's or driver'sinsurance company or agent thereof that there was in effect at the time of theaccident an automobile liability policy as required in this act.
(2) Subject to the provisions of subsection (k), any suspension orrevocationeffectedhereunder shall remain in effect until such person:
(A) Has filed satisfactory proof of financial security withthedirector as required bysubsection (d) of K.S.A. 40-3118 and amendments thereto;
(B) has paid the reinstatement fee herein prescribed; and
(C) (i) has been released from liability;
(ii) is a party to an action to determine liability pursuant to which thecourt temporarilystays such suspension pending final disposition of such action;
(iii) has entered into an agreement for the payment of damages; or
(iv) has been finally adjudicated not to be liable in respect to suchaccident and evidenceof any such fact has been filed with the director.
(3) The reinstatement fee shall be $100 except that if theregistration of a motor vehicleof any owner is revoked within one year following a prior revocation of theregistration ofa motor vehicle of such owner under the provisions of this act such fee shallbe $300.
(k) (1) Whenever any person whose license has been suspended or revokedpursuant to this section is involved in an accident and has entered into anagreement with any driver, or such driver's insurer, who has been damaged orwhose vehicle has been damaged to pay for such damage and such person defaultson payments under such agreement, the driver or the driver's insurer, asappropriate, shall notify the director within 60 days of the date of default.
(2) Upon receipt of the notice of default, the director shall immediatelysuspend such person's license and registration. If such person is anonresident, the director shall immediately suspend such nonresident'sprivilege to operate a motor vehicle in this state.
(3) Except as provided in paragraph (4), such person's driver's license,registration and nonresident's operating privilege shall remain so suspendedand shall not be renewed, nor shall any such license or registration bethereafter issued in the name of such person, including any suchperson not previously licensed, unless and until:
(A) The director receives notice payments under the agreement referred to inparagraph (1) have been resumed and that payments under such agreement are nolonger in default;
(B) such person has filed satisfactory proof of financial responsibility withthe director as required by subsection (d) of K.S.A. 40-3118 and amendmentsthereto; and
(C) the reinstatement fee required by subsection (j) has been paid.
(4) Upon due notice to the director that the conditions of paragraph (3) havebeen fulfilled, such person may obtain from the director an order restoringsuch person's driver's license, registration and nonresident's operatingprivilege to operate a motor vehicle in this state conditioned upon suchperson's continued compliance with the agreement referred to in paragraph (1).
(5) In the event such person fails to make any further payment under theagreement referred to in paragraph (1) when such payment is due, the director,upon receipt of notice of such default, shall immediately suspend the license,registration or nonresident's operating privilege of such person until allpayments have been made under the agreement referred to in paragraph (1). Nosuspension of such person's license, registration or nonresident's privilege tooperate a motor vehicle in this state shall be reinstated pursuant to paragraph(4).
(l) The provisions of this section shall not apply to motorcarriersof property or passengers regulated by the corporation commission of thestate of Kansas.
(m) The provisions of subsection (d) shall not apply tovehicledealers, as defined in K.S.A. 8-2401, and amendments thereto, forvehicles being offered for sale by such dealers.
History: L. 1974, ch. 193, § 4; L. 1977, ch. 164, § 1; L.1979, ch. 149, § 1; L. 1981, ch. 197, § 1; L. 1982, ch. 206, §2; L. 1984, ch. 174, § 2; L. 1985, ch. 165, § 1; L. 1986, ch. 182, §1; L. 1987, ch. 174, § 1; L. 1987, ch. 173, § 2; L. 1988, ch. 161, §2; L. 1988, ch. 356, § 116; L. 1989, ch. 142, § 1; L. 1990, ch. 171, §1;L. 1994, ch. 291, § 74;L. 1996, ch. 46, § 1;L. 1996, ch. 240, § 1;L. 1999, ch. 162, § 11;L. 2006, ch. 186, § 7; July 1.
40-3104.Motor vehicle liability insurance coverage required; prohibitedvehicle operation; verification; self-insurance; display of proof offinancial security; penalties for failure to maintain financial security;reinstatement fees.(a) Every owner shall provide motor vehicle liability insurance coveragein accordance with the provisions of this act for every motor vehicleowned by such person, unless such motor vehicle: (1) Is included under anapproved self-insurance plan as provided in subsection (f); (2) is usedas a driver training motor vehicle, as defined in K.S.A. 72-5015, andamendments thereto, in an approved driver training course by a schooldistrict or an accredited nonpublic school under an agreement with a motorvehicle dealer, and such motor vehicle liability insurance coverage isprovided by the school district or accredited nonpublic school; (3) isincluded under a qualified plan of self-insurance approved by an agency ofthe state in which such motor vehicle is registered and the form prescribedin subsection (b) of K.S.A. 40-3106, and amendments thereto, has been filed;or (4) is expressly exempted from the provisions of this act.
(b) An owner of an uninsured motor vehicle shall not permit theoperation thereof upon a highway or upon property open to use by thepublic, unless such motor vehicle is expressly exempted from theprovisions of this act.
(c) No person shall knowingly drive an uninsured motor vehicle upona highway or upon property open to use by the public, unless such motorvehicle is expressly exempted from the provisions of this act.
(d) Any person operating a motor vehicle upon a highway or uponproperty open to use by the public shall display, upon demand, evidence offinancial security to a law enforcement officer. The law enforcement officershall issue a citation to any person who fails to display evidence of financialsecurity upon such demand. The law enforcement officer shall attach a copy ofthe insurance verification form prescribed by the secretary of revenue to thecopy of the citation forwarded to the court.
No citation shall be issued to any person for failure to provide proofof financial security when evidence of financial security meeting thestandards of subsection (e) is displayed upon demand of a law enforcementofficer. Whenever the authenticity of such evidence is questionable, thelaw enforcement officer may initiate the preparation of the insuranceverification form prescribed by the secretary of revenue by recordinginformation from the evidence of financial security displayed. The officershall immediately forward the form to the department of revenue, and thedepartment shall proceed with verification in the manner prescribed in thefollowing paragraph. Upon return of a form indicating that insurance wasnot in force on the date indicated on the form, the department shallimmediately forward a copy of the form to the law enforcement officerinitiating preparation of the form.
(e) Unless the insurance company subsequently submits an insuranceverification form indicating that insurance was not in force, no personcharged with violating subsections (b), (c) or (d) shall be convicted if suchperson produces in court, within 10 days of the date of arrest or ofissuanceof the citation, evidence of financial security for the motor vehicle operated,which was valid at the time of arrest or of issuance of the citation. For thepurpose of this subsection, evidence of financial security shall be provided bya policy of motor vehicle liability insurance, an identification card orcertificate of insurance issued to the policyholder by the insurer whichprovides the name of the insurer, the policy number and the effective andexpiration dates of the policy, or a certificate of self-insurance signed bythe commissioner of insurance. Upon the production in court of evidence offinancial security, the court shall record the information displayed thereon onthe insurance verification form prescribed by the secretary of revenue,immediately forward such form to the department of revenue, and stay anyfurther proceedings on the matter pending a request from the prosecutingattorney that the matter be set for trial. Upon receipt of such form thedepartment shall mail the form to the named insurance company for verificationthat insurance was in force on the date indicated on the form. It shall be theduty of insurance companies to notify the department within 30 calendar days ofthe receipt of such forms of any insurance that was not in force on the datespecified. Upon return of any form to the department indicating that insurancewas not in force on such date, the department shall immediately forward a copyof such form to the office of the prosecuting attorney or the city clerk of themunicipality in which such prosecution is pending when the prosecuting attorneyis not ascertainable. Receipt of any completed form indicating that insurancewas not in effect on the date specified shall be prima facie evidence offailure to provide proof of financial security and violation of this section.A request that the matter be set for trial shall be made immediately followingthe receipt by the prosecuting attorney of a copy of the form from thedepartment of revenue indicating that insurance was not in force. Any chargeof violating subsection (b), (c) or (d) shall be dismissed if no request for atrial setting has been made within 60 days of the date evidence of financialsecurity was produced in court.
(f) Any person in whose name more than 25 motor vehicles are registered inKansas may qualify as a self-insurer by obtaining a certificate ofself-insurance from the commissioner of insurance. The certificate ofself-insurance issued by the commissioner shall cover such owned vehicles andthose vehicles, registered in Kansas, leased to such person if the leaseagreement requires that motor vehicle liability insurance on the vehicles beprovided by the lessee. Upon application of any such person, the commissionerof insurance may issue a certificate of self-insurance, if the commissioner issatisfied that such person is possessed and will continue to be possessed ofability to pay any liability imposed by law againstsuch person arising out of theownership, operation, maintenance or use of any motor vehicle describedin this subsection. A self-insurer shall provide liability coverage subjectto the provisions of subsection (e) of K.S.A. 40-3107, and amendmentsthereto, arising out of the ownership, operation, maintenance or use of aself-insured motor vehicle in those instances where the lessee or the rentaldriver, if not the lessee, does not have a motor vehicle liability insurancepolicy or insurance coverage pursuant to a motor vehicle liability insurancepolicy or certificate of insurance or such insurance policy for such leased orrentedvehicle. Such liability coverage shall be provided to any person operating aself-insured motor vehicle with the expressed or implied consent of theself-insurer.
Upon notice and a hearing in accordance with the provisions of the Kansasadministrative procedure act, the commissioner of insurance may cancel acertificate of self-insurance upon reasonable grounds. Failure toprovide liability coverage or personalinjury protection benefits required by K.S.A. 40-3107 and 40-3109, andamendments thereto, or pay any liability imposed by law arising out of theownership, operation,maintenance or use of a motor vehicle registered in such self-insurer's name,or tootherwise comply with the requirements of this subsection shall constitutereasonable grounds for the cancellation of a certificate of self-insurance.Reasonable grounds shall not exist unless such objectionable activity occurswith such frequency as to indicate a general business practice.
Self-insuredsshall investigate claims in a reasonably prompt manner, handle such claims in areasonable manner based on available information and effectuate prompt, fairand equitable settlement of claims in which liability has become reasonablyclear.
As used in this subsection, "liability imposed by law" means the statedlimits of liability as provided under subsection (e) of K.S.A. 40-3107, andamendments thereto.
Nothing in this subsection shall preclude a self-insurer from pursuing allrights of subrogation against another person or persons.
(g) (1) Any person violating any provision of this section shall beguilty of aclass B misdemeanor and shall be subject to a fine of not lessthan $300 normore than $1,000 or confinement in the county jail for aterm of not more thansix months, or both such fine and confinement.
(2) Any person convictedof violating any provision of this section within three years of any such priorconviction shall be guilty of a class A misdemeanorandshall be subject to a fine of not less than $800 nor more than $2,500.
(h) In addition to any other penalties provided by this act forfailure to have or maintain financial security in effect, the director,upon receipt of a report required by K.S.A. 8-1607 or 8-1611, and amendmentsthereto, or a denial of such insurance by the insurance company listed on theform prescribed by the secretary of revenue pursuant to subsection (d) of thissection, shall, upon notice and hearing as provided by K.S.A. 40-3118, andamendments thereto:
(1) Suspend:
(A) The license of each driver in any manner involved in theaccident;
(B) the license of the owner of each motor vehicle involved insuchaccident, unless the vehicle was stolen at the time of the accident, proof ofwhich must be established by the owner of the motor vehicle. Theft by a memberof the vehicle owner's immediate family under the age of 18 years shall notconstitute a stolen vehicle for the purposes of this section;
(C) if the driver is a nonresident, the privilege of operating amotorvehicle within this state; or
(D) if such owner is a nonresident, the privilege of such ownertooperate or permit the operation within this state of any motor vehicleowned by such owner; and
(2) revoke the registration of all vehicles owned by the owner of eachmotor vehicle involved in such accident.
(i) The suspension or revocation requirements in subsection (h) shallnot apply:
(1) To the driver or owner if the owner had in effect at the time ofthe accident an automobile liability policy as required by K.S.A. 40-3107,and amendments thereto, with respect to the vehicle involved in the accident;
(2) to the driver, if not the owner of the vehicle involved in theaccident, if there was in effect at the time of the accident anautomobile liability policy with respect to such driver's driving ofvehicles not owned by such driver;
(3) to any self-insurer as defined by subsection (u) of K.S.A. 40-3103, andamendments thereto;
(4) to the driver or owner of any vehicle involved in the accidentwhich was exempt from the provisions of this act pursuant to K.S.A.40-3105, and amendments thereto;
(5) to the owner of a vehicle described in subsection (a)(2).
(j) (1) For the purposes of provisions (1) and (2) of subsection (i)of thissection, the director may require verification by an owner's or driver'sinsurance company or agent thereof that there was in effect at the time of theaccident an automobile liability policy as required in this act.
(2) Subject to the provisions of subsection (k), any suspension orrevocationeffectedhereunder shall remain in effect until such person:
(A) Has filed satisfactory proof of financial security withthedirector as required bysubsection (d) of K.S.A. 40-3118 and amendments thereto;
(B) has paid the reinstatement fee herein prescribed; and
(C) (i) has been released from liability;
(ii) is a party to an action to determine liability pursuant to which thecourt temporarilystays such suspension pending final disposition of such action;
(iii) has entered into an agreement for the payment of damages; or
(iv) has been finally adjudicated not to be liable in respect to suchaccident and evidenceof any such fact has been filed with the director.
(3) The reinstatement fee shall be $100 except that if theregistration of a motor vehicleof any owner is revoked within one year following a prior revocation of theregistration ofa motor vehicle of such owner under the provisions of this act such fee shallbe $300.
(k) (1) Whenever any person whose license has been suspended or revokedpursuant to this section is involved in an accident and has entered into anagreement with any driver, or such driver's insurer, who has been damaged orwhose vehicle has been damaged to pay for such damage and such person defaultson payments under such agreement, the driver or the driver's insurer, asappropriate, shall notify the director within 60 days of the date of default.
(2) Upon receipt of the notice of default, the director shall immediatelysuspend such person's license and registration. If such person is anonresident, the director shall immediately suspend such nonresident'sprivilege to operate a motor vehicle in this state.
(3) Except as provided in paragraph (4), such person's driver's license,registration and nonresident's operating privilege shall remain so suspendedand shall not be renewed, nor shall any such license or registration bethereafter issued in the name of such person, including any suchperson not previously licensed, unless and until:
(A) The director receives notice payments under the agreement referred to inparagraph (1) have been resumed and that payments under such agreement are nolonger in default;
(B) such person has filed satisfactory proof of financial responsibility withthe director as required by subsection (d) of K.S.A. 40-3118 and amendmentsthereto; and
(C) the reinstatement fee required by subsection (j) has been paid.
(4) Upon due notice to the director that the conditions of paragraph (3) havebeen fulfilled, such person may obtain from the director an order restoringsuch person's driver's license, registration and nonresident's operatingprivilege to operate a motor vehicle in this state conditioned upon suchperson's continued compliance with the agreement referred to in paragraph (1).
(5) In the event such person fails to make any further payment under theagreement referred to in paragraph (1) when such payment is due, the director,upon receipt of notice of such default, shall immediately suspend the license,registration or nonresident's operating privilege of such person until allpayments have been made under the agreement referred to in paragraph (1). Nosuspension of such person's license, registration or nonresident's privilege tooperate a motor vehicle in this state shall be reinstated pursuant to paragraph(4).
(l) The provisions of this section shall not apply to motorcarriersof property or passengers regulated by the corporation commission of thestate of Kansas.
(m) The provisions of subsection (d) shall not apply tovehicledealers, as defined in K.S.A. 8-2401, and amendments thereto, forvehicles being offered for sale by such dealers.
History: L. 1974, ch. 193, § 4; L. 1977, ch. 164, § 1; L.1979, ch. 149, § 1; L. 1981, ch. 197, § 1; L. 1982, ch. 206, §2; L. 1984, ch. 174, § 2; L. 1985, ch. 165, § 1; L. 1986, ch. 182, §1; L. 1987, ch. 174, § 1; L. 1987, ch. 173, § 2; L. 1988, ch. 161, §2; L. 1988, ch. 356, § 116; L. 1989, ch. 142, § 1; L. 1990, ch. 171, §1;L. 1994, ch. 291, § 74;L. 1996, ch. 46, § 1;L. 1996, ch. 240, § 1;L. 1999, ch. 162, § 11;L. 2006, ch. 186, § 7; July 1.
40-3104.Motor vehicle liability insurance coverage required; prohibitedvehicle operation; verification; self-insurance; display of proof offinancial security; penalties for failure to maintain financial security;reinstatement fees.(a) Every owner shall provide motor vehicle liability insurance coveragein accordance with the provisions of this act for every motor vehicleowned by such person, unless such motor vehicle: (1) Is included under anapproved self-insurance plan as provided in subsection (f); (2) is usedas a driver training motor vehicle, as defined in K.S.A. 72-5015, andamendments thereto, in an approved driver training course by a schooldistrict or an accredited nonpublic school under an agreement with a motorvehicle dealer, and such motor vehicle liability insurance coverage isprovided by the school district or accredited nonpublic school; (3) isincluded under a qualified plan of self-insurance approved by an agency ofthe state in which such motor vehicle is registered and the form prescribedin subsection (b) of K.S.A. 40-3106, and amendments thereto, has been filed;or (4) is expressly exempted from the provisions of this act.
(b) An owner of an uninsured motor vehicle shall not permit theoperation thereof upon a highway or upon property open to use by thepublic, unless such motor vehicle is expressly exempted from theprovisions of this act.
(c) No person shall knowingly drive an uninsured motor vehicle upona highway or upon property open to use by the public, unless such motorvehicle is expressly exempted from the provisions of this act.
(d) Any person operating a motor vehicle upon a highway or uponproperty open to use by the public shall display, upon demand, evidence offinancial security to a law enforcement officer. The law enforcement officershall issue a citation to any person who fails to display evidence of financialsecurity upon such demand. The law enforcement officer shall attach a copy ofthe insurance verification form prescribed by the secretary of revenue to thecopy of the citation forwarded to the court.
No citation shall be issued to any person for failure to provide proofof financial security when evidence of financial security meeting thestandards of subsection (e) is displayed upon demand of a law enforcementofficer. Whenever the authenticity of such evidence is questionable, thelaw enforcement officer may initiate the preparation of the insuranceverification form prescribed by the secretary of revenue by recordinginformation from the evidence of financial security displayed. The officershall immediately forward the form to the department of revenue, and thedepartment shall proceed with verification in the manner prescribed in thefollowing paragraph. Upon return of a form indicating that insurance wasnot in force on the date indicated on the form, the department shallimmediately forward a copy of the form to the law enforcement officerinitiating preparation of the form.
(e) Unless the insurance company subsequently submits an insuranceverification form indicating that insurance was not in force, no personcharged with violating subsections (b), (c) or (d) shall be convicted if suchperson produces in court, within 10 days of the date of arrest or ofissuanceof the citation, evidence of financial security for the motor vehicle operated,which was valid at the time of arrest or of issuance of the citation. For thepurpose of this subsection, evidence of financial security shall be provided bya policy of motor vehicle liability insurance, an identification card orcertificate of insurance issued to the policyholder by the insurer whichprovides the name of the insurer, the policy number and the effective andexpiration dates of the policy, or a certificate of self-insurance signed bythe commissioner of insurance. Upon the production in court of evidence offinancial security, the court shall record the information displayed thereon onthe insurance verification form prescribed by the secretary of revenue,immediately forward such form to the department of revenue, and stay anyfurther proceedings on the matter pending a request from the prosecutingattorney that the matter be set for trial. Upon receipt of such form thedepartment shall mail the form to the named insurance company for verificationthat insurance was in force on the date indicated on the form. It shall be theduty of insurance companies to notify the department within 30 calendar days ofthe receipt of such forms of any insurance that was not in force on the datespecified. Upon return of any form to the department indicating that insurancewas not in force on such date, the department shall immediately forward a copyof such form to the office of the prosecuting attorney or the city clerk of themunicipality in which such prosecution is pending when the prosecuting attorneyis not ascertainable. Receipt of any completed form indicating that insurancewas not in effect on the date specified shall be prima facie evidence offailure to provide proof of financial security and violation of this section.A request that the matter be set for trial shall be made immediately followingthe receipt by the prosecuting attorney of a copy of the form from thedepartment of revenue indicating that insurance was not in force. Any chargeof violating subsection (b), (c) or (d) shall be dismissed if no request for atrial setting has been made within 60 days of the date evidence of financialsecurity was produced in court.
(f) Any person in whose name more than 25 motor vehicles are registered inKansas may qualify as a self-insurer by obtaining a certificate ofself-insurance from the commissioner of insurance. The certificate ofself-insurance issued by the commissioner shall cover such owned vehicles andthose vehicles, registered in Kansas, leased to such person if the leaseagreement requires that motor vehicle liability insurance on the vehicles beprovided by the lessee. Upon application of any such person, the commissionerof insurance may issue a certificate of self-insurance, if the commissioner issatisfied that such person is possessed and will continue to be possessed ofability to pay any liability imposed by law againstsuch person arising out of theownership, operation, maintenance or use of any motor vehicle describedin this subsection. A self-insurer shall provide liability coverage subjectto the provisions of subsection (e) of K.S.A. 40-3107, and amendmentsthereto, arising out of the ownership, operation, maintenance or use of aself-insured motor vehicle in those instances where the lessee or the rentaldriver, if not the lessee, does not have a motor vehicle liability insurancepolicy or insurance coverage pursuant to a motor vehicle liability insurancepolicy or certificate of insurance or such insurance policy for such leased orrentedvehicle. Such liability coverage shall be provided to any person operating aself-insured motor vehicle with the expressed or implied consent of theself-insurer.
Upon notice and a hearing in accordance with the provisions of the Kansasadministrative procedure act, the commissioner of insurance may cancel acertificate of self-insurance upon reasonable grounds. Failure toprovide liability coverage or personalinjury protection benefits required by K.S.A. 40-3107 and 40-3109, andamendments thereto, or pay any liability imposed by law arising out of theownership, operation,maintenance or use of a motor vehicle registered in such self-insurer's name,or tootherwise comply with the requirements of this subsection shall constitutereasonable grounds for the cancellation of a certificate of self-insurance.Reasonable grounds shall not exist unless such objectionable activity occurswith such frequency as to indicate a general business practice.
Self-insuredsshall investigate claims in a reasonably prompt manner, handle such claims in areasonable manner based on available information and effectuate prompt, fairand equitable settlement of claims in which liability has become reasonablyclear.
As used in this subsection, "liability imposed by law" means the statedlimits of liability as provided under subsection (e) of K.S.A. 40-3107, andamendments thereto.
Nothing in this subsection shall preclude a self-insurer from pursuing allrights of subrogation against another person or persons.
(g) (1) Any person violating any provision of this section shall beguilty of aclass B misdemeanor and shall be subject to a fine of not lessthan $300 normore than $1,000 or confinement in the county jail for aterm of not more thansix months, or both such fine and confinement.
(2) Any person convictedof violating any provision of this section within three years of any such priorconviction shall be guilty of a class A misdemeanorandshall be subject to a fine of not less than $800 nor more than $2,500.
(h) In addition to any other penalties provided by this act forfailure to have or maintain financial security in effect, the director,upon receipt of a report required by K.S.A. 8-1607 or 8-1611, and amendmentsthereto, or a denial of such insurance by the insurance company listed on theform prescribed by the secretary of revenue pursuant to subsection (d) of thissection, shall, upon notice and hearing as provided by K.S.A. 40-3118, andamendments thereto:
(1) Suspend:
(A) The license of each driver in any manner involved in theaccident;
(B) the license of the owner of each motor vehicle involved insuchaccident, unless the vehicle was stolen at the time of the accident, proof ofwhich must be established by the owner of the motor vehicle. Theft by a memberof the vehicle owner's immediate family under the age of 18 years shall notconstitute a stolen vehicle for the purposes of this section;
(C) if the driver is a nonresident, the privilege of operating amotorvehicle within this state; or
(D) if such owner is a nonresident, the privilege of such ownertooperate or permit the operation within this state of any motor vehicleowned by such owner; and
(2) revoke the registration of all vehicles owned by the owner of eachmotor vehicle involved in such accident.
(i) The suspension or revocation requirements in subsection (h) shallnot apply:
(1) To the driver or owner if the owner had in effect at the time ofthe accident an automobile liability policy as required by K.S.A. 40-3107,and amendments thereto, with respect to the vehicle involved in the accident;
(2) to the driver, if not the owner of the vehicle involved in theaccident, if there was in effect at the time of the accident anautomobile liability policy with respect to such driver's driving ofvehicles not owned by such driver;
(3) to any self-insurer as defined by subsection (u) of K.S.A. 40-3103, andamendments thereto;
(4) to the driver or owner of any vehicle involved in the accidentwhich was exempt from the provisions of this act pursuant to K.S.A.40-3105, and amendments thereto;
(5) to the owner of a vehicle described in subsection (a)(2).
(j) (1) For the purposes of provisions (1) and (2) of subsection (i)of thissection, the director may require verification by an owner's or driver'sinsurance company or agent thereof that there was in effect at the time of theaccident an automobile liability policy as required in this act.
(2) Subject to the provisions of subsection (k), any suspension orrevocationeffectedhereunder shall remain in effect until such person:
(A) Has filed satisfactory proof of financial security withthedirector as required bysubsection (d) of K.S.A. 40-3118 and amendments thereto;
(B) has paid the reinstatement fee herein prescribed; and
(C) (i) has been released from liability;
(ii) is a party to an action to determine liability pursuant to which thecourt temporarilystays such suspension pending final disposition of such action;
(iii) has entered into an agreement for the payment of damages; or
(iv) has been finally adjudicated not to be liable in respect to suchaccident and evidenceof any such fact has been filed with the director.
(3) The reinstatement fee shall be $100 except that if theregistration of a motor vehicleof any owner is revoked within one year following a prior revocation of theregistration ofa motor vehicle of such owner under the provisions of this act such fee shallbe $300.
(k) (1) Whenever any person whose license has been suspended or revokedpursuant to this section is involved in an accident and has entered into anagreement with any driver, or such driver's insurer, who has been damaged orwhose vehicle has been damaged to pay for such damage and such person defaultson payments under such agreement, the driver or the driver's insurer, asappropriate, shall notify the director within 60 days of the date of default.
(2) Upon receipt of the notice of default, the director shall immediatelysuspend such person's license and registration. If such person is anonresident, the director shall immediately suspend such nonresident'sprivilege to operate a motor vehicle in this state.
(3) Except as provided in paragraph (4), such person's driver's license,registration and nonresident's operating privilege shall remain so suspendedand shall not be renewed, nor shall any such license or registration bethereafter issued in the name of such person, including any suchperson not previously licensed, unless and until:
(A) The director receives notice payments under the agreement referred to inparagraph (1) have been resumed and that payments under such agreement are nolonger in default;
(B) such person has filed satisfactory proof of financial responsibility withthe director as required by subsection (d) of K.S.A. 40-3118 and amendmentsthereto; and
(C) the reinstatement fee required by subsection (j) has been paid.
(4) Upon due notice to the director that the conditions of paragraph (3) havebeen fulfilled, such person may obtain from the director an order restoringsuch person's driver's license, registration and nonresident's operatingprivilege to operate a motor vehicle in this state conditioned upon suchperson's continued compliance with the agreement referred to in paragraph (1).
(5) In the event such person fails to make any further payment under theagreement referred to in paragraph (1) when such payment is due, the director,upon receipt of notice of such default, shall immediately suspend the license,registration or nonresident's operating privilege of such person until allpayments have been made under the agreement referred to in paragraph (1). Nosuspension of such person's license, registration or nonresident's privilege tooperate a motor vehicle in this state shall be reinstated pursuant to paragraph(4).
(l) The provisions of this section shall not apply to motorcarriersof property or passengers regulated by the corporation commission of thestate of Kansas.
(m) The provisions of subsection (d) shall not apply tovehicledealers, as defined in K.S.A. 8-2401, and amendments thereto, forvehicles being offered for sale by such dealers.
History: L. 1974, ch. 193, § 4; L. 1977, ch. 164, § 1; L.1979, ch. 149, § 1; L. 1981, ch. 197, § 1; L. 1982, ch. 206, §2; L. 1984, ch. 174, § 2; L. 1985, ch. 165, § 1; L. 1986, ch. 182, §1; L. 1987, ch. 174, § 1; L. 1987, ch. 173, § 2; L. 1988, ch. 161, §2; L. 1988, ch. 356, § 116; L. 1989, ch. 142, § 1; L. 1990, ch. 171, §1;L. 1994, ch. 291, § 74;L. 1996, ch. 46, § 1;L. 1996, ch. 240, § 1;L. 1999, ch. 162, § 11;L. 2006, ch. 186, § 7; July 1.
