SB 218--
Session of 1997
By Committee on Financial Institutions and Insurance

9 AN ACT concerning insurance; transactions; amending K.S.A. 40-214 and 10 repealing the existing section. 11 12 Be it enacted by the Legislature of the State of Kansas: 13 Section 1. K.S.A. 40-214 is hereby amended to read as follows: 40- 14 214. It shall be unlawful for any person, company, corporation or fraternal 15 benefit society to transact the business of insurance, indemnity or sure- 16 tyship, or do any act toward transacting such business, unless such person, 17 company, corporation or fraternal benefit society shall have been duly 18 authorized under the laws of this state to transact such business and shall 19 have received proper written authority from the commissioner of insur- 20 ance in conformity with the provisions of the laws of this state relative to 21 insurance, indemnity and suretyship, and further, it shall be unlawful for 22 any insurance company to effect contracts of insurance in this state on 23 the life or person of residents of this state or on property located in this 24 state except through persons duly licensed and certified in accordance 25 with the insurance laws of this state and subject to the provisions of K.S.A. 26 40-245 and amendments thereto. Personal telephone contact for the pur- 27 pose of requesting the expiration date and insurer of a current contract 28 or contracts of insurance shall not be considered an act toward transacting 29 the business of insurance for purposes of this section. Neither the enroll- 30 ment of individuals under a group policy nor the inclusion of insurance 31 in a credit transaction under an arrangement for its purchase by the cred- 32 itor in compliance with the applicable provisions of the uniform consumer 33 credit code shall constitute the effecting of a contract of insurance. 34 It shall be unlawful for any insurance company organized under the 35 laws of this state to do business in any other state or territory of the United 36 States without being first legally admitted and authorized to do business 37 under the laws of such state or territory, and the insurance commissioner 38 may revoke the license of any insurance company organized under the 39 laws of this state and doing business in another state or territory without 40 being first authorized so to do, and may require said company to pay the 41 taxes upon the business so unlawfully written to the state or territory in 42 which the business was written as provided by the laws of said state or 43 territory. A company shall be considered admitted and authorized for the SB 218

 1  purposes of this section when it has been legally authorized to operate in
 2  such other state or territory as a nonadmitted insurer.
 3    Sec. 2.  K.S.A. 40-214 is hereby repealed.
 4    Sec. 3.  This act shall take effect and be in force from and after its
 5  publication in the statute book.