Article 37a.--REGULATION OF BROKER CONTROLLED INSURERS
40-37a06.Failure to comply with law, remedies for benefit of insurer;rights of policyholders, claimants, creditors and other third partiesunaffected.(a) (1) If the commissioner believes the controllingproducer orany other person has not complied with this act, or any regulation or orderpromulgated hereunder, the commissioner may, after a hearing conducted underthe provisions of the Kansas administrative procedures act, order thecontrolling producer to cease placing business with thecontrolled insurer; and
(2) if it was found that because of such noncompliance, the controlledinsurer or any policyholder thereof has suffered any loss or damage, thecommissioner may maintain a civil action or intervene in an action brought byor on behalf of the insurer or policyholder for recovery of compensatorydamages for the benefit of the insurer or policyholder or other appropriaterelief.
(b) If an order for liquidation or rehabilitation of the controlled insurerhas been entered pursuant to K.S.A. 40-3605 et seq. andamendments thereto, and the receiver appointed underthat order believes that the controlling producer or anyother person has notmaterially complied with this act, or any regulation or order promulgatedhereunder, and the insurer suffered any loss or damage therefrom, the receivermay maintain a civil action for recovery of damages or other appropriatesanctions for the benefit of the insurer.
(c) Nothing contained in this section shall affect the right of thecommissioner to impose any other penalties provided for in chapter 40 of theKansasStatutes Annotated.
(d) Nothing contained in this section is intended to or shall in any manneralter or affect the rights of policyholders, claimants, creditors or otherthird parties.
History: L. 1992, ch. 14, § 6;L. 2005, ch. 163, § 7; July 1.
Article 37a.--REGULATION OF BROKER CONTROLLED INSURERS
40-37a06.Failure to comply with law, remedies for benefit of insurer;rights of policyholders, claimants, creditors and other third partiesunaffected.(a) (1) If the commissioner believes the controllingproducer orany other person has not complied with this act, or any regulation or orderpromulgated hereunder, the commissioner may, after a hearing conducted underthe provisions of the Kansas administrative procedures act, order thecontrolling producer to cease placing business with thecontrolled insurer; and
(2) if it was found that because of such noncompliance, the controlledinsurer or any policyholder thereof has suffered any loss or damage, thecommissioner may maintain a civil action or intervene in an action brought byor on behalf of the insurer or policyholder for recovery of compensatorydamages for the benefit of the insurer or policyholder or other appropriaterelief.
(b) If an order for liquidation or rehabilitation of the controlled insurerhas been entered pursuant to K.S.A. 40-3605 et seq. andamendments thereto, and the receiver appointed underthat order believes that the controlling producer or anyother person has notmaterially complied with this act, or any regulation or order promulgatedhereunder, and the insurer suffered any loss or damage therefrom, the receivermay maintain a civil action for recovery of damages or other appropriatesanctions for the benefit of the insurer.
(c) Nothing contained in this section shall affect the right of thecommissioner to impose any other penalties provided for in chapter 40 of theKansasStatutes Annotated.
(d) Nothing contained in this section is intended to or shall in any manneralter or affect the rights of policyholders, claimants, creditors or otherthird parties.
History: L. 1992, ch. 14, § 6;L. 2005, ch. 163, § 7; July 1.
Article 37a.--REGULATION OF BROKER CONTROLLED INSURERS
40-37a06.Failure to comply with law, remedies for benefit of insurer;rights of policyholders, claimants, creditors and other third partiesunaffected.(a) (1) If the commissioner believes the controllingproducer orany other person has not complied with this act, or any regulation or orderpromulgated hereunder, the commissioner may, after a hearing conducted underthe provisions of the Kansas administrative procedures act, order thecontrolling producer to cease placing business with thecontrolled insurer; and
(2) if it was found that because of such noncompliance, the controlledinsurer or any policyholder thereof has suffered any loss or damage, thecommissioner may maintain a civil action or intervene in an action brought byor on behalf of the insurer or policyholder for recovery of compensatorydamages for the benefit of the insurer or policyholder or other appropriaterelief.
(b) If an order for liquidation or rehabilitation of the controlled insurerhas been entered pursuant to K.S.A. 40-3605 et seq. andamendments thereto, and the receiver appointed underthat order believes that the controlling producer or anyother person has notmaterially complied with this act, or any regulation or order promulgatedhereunder, and the insurer suffered any loss or damage therefrom, the receivermay maintain a civil action for recovery of damages or other appropriatesanctions for the benefit of the insurer.
(c) Nothing contained in this section shall affect the right of thecommissioner to impose any other penalties provided for in chapter 40 of theKansasStatutes Annotated.
(d) Nothing contained in this section is intended to or shall in any manneralter or affect the rights of policyholders, claimants, creditors or otherthird parties.
History: L. 1992, ch. 14, § 6;L. 2005, ch. 163, § 7; July 1.
