Session of 1998
By Representatives Huff, Beggs, Benlon, Dreher, Freeborn, Lane, P.
Long, Phelps, Powers, Ray, Shultz, Stone, Swenson and Wilson
          10             AN ACT amending the Kansas automotive injury reparations act; requir-
11             ing verification of insurance certifications; amending K.S.A. 1997
12             Supp. 40-3118 and repealing the existing section.
14       Be it enacted by the Legislature of the State of Kansas:
15           Section 1. K.S.A. 1997 Supp. 40-3118 is hereby amended to read as
16       follows: 40-3118. (a) No motor vehicle shall be registered or reregistered
17       in this state unless the owner, at the time of registration, has in effect a
18       policy of motor vehicle liability insurance covering such motor vehicle, as
19       provided in this act, or is a self-insurer thereof, or the motor vehicle is
20       used as a driver training motor vehicle, as defined in K.S.A. 72-5015, and
21       amendments thereto, in an approved driver training course by a school
22       district or an accredited nonpublic school under an agreement with a
23       motor vehicle dealer, and such policy of motor vehicle liability insurance
24       is provided by the school district or accredited nonpublic school. As used
25       in this section, the term ``financial security'' means such policy or self-
26       insurance. The director shall require that the owner certify that the owner
27       has such financial security, and the owner of each motor vehicle registered
28       in this state shall maintain financial security continuously throughout the
29       period of registration. When an owner certifies that such financial security
30       is a motor vehicle liability insurance policy meeting the requirements of
31       this act, the director may require that the owner or owner's insurance
32       company produce records to prove the fact that such insurance was in
33       effect at the time the vehicle was registered and has been maintained
34       continuously from that date. Failure to produce such records shall be
35       prima facie evidence that no financial security exists with regard to the
36       vehicle concerned. It shall be the duty of insurance companies, upon the
37       request of the director, to notify the director within 30 calendar days of
38       the date of the receipt of such request by the director of any insurance
39       that was not in effect on the date of registration and maintained contin-
40       uously from that date.
41           (b) Except as otherwise provided in K.S.A. 40-276, 40-276a and 40-
42       277, and amendments thereto, and except for termination of insurance
43       resulting from nonpayment of premium or upon the request for cancel-

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  1       lation by the insured, no motor vehicle liability insurance policy, or any
  2       renewal thereof, shall be terminated by cancellation or failure to renew
  3       by the insurer until at least 30 days after mailing a notice of termination,
  4       by certified or registered mail or United States post office certificate of
  5       mailing, to the named insured at the latest address filed with the insurer
  6       by or on behalf of the insured. Time of the effective date and hour of
  7       termination stated in the notice shall become the end of the policy period.
  8       Every such notice of termination sent to the insured for any cause what-
  9       soever shall include on the face of the notice a statement that financial
10       security for every motor vehicle covered by the policy is required to be
11       maintained continuously throughout the registration period, that the op-
12       eration of any such motor vehicle without maintaining continuous finan-
13       cial security therefor is a class B misdemeanor and that the registration
14       for any such motor vehicle for which continuous financial security is not
15       provided is subject to suspension and the driver's license of the owner
16       thereof is subject to suspension.
17           (c) The director of vehicles shall verify a sufficient number of at least
18       5% of the insurance certifications each calendar year as the director
19       deems necessary to insure compliance with the provisions of this act. The
20       owner or owner's insurance company shall verify the accuracy of any
21       owner's certification upon request, as provided in subsection (a).
22           (d) In addition to any other requirements of this act, the director shall
23       require a person to acquire insurance and for such person's insurance
24       company to maintain on file with the division evidence of such insurance
25       for a period of one year when a person has been convicted in this or
26       another state of any of the violations enumerated in K.S.A. 8-285, and
27       amendments thereto.
28           The director shall also require any driver whose driving privileges have
29       been suspended pursuant to this section to maintain such evidence of
30       insurance as required above.
31           The company of the insured shall immediately mail notice to the di-
32       rector whenever any policy required by this subsection to be on file with
33       the division is terminated by the insured or the insurer for any reason.
34       The receipt by the director of such termination shall be prima facie evi-
35       dence that no financial security exists with regard to the person con-
36       cerned.
37           No cancellation notice shall be sent to the director if the insured adds
38       or deletes a vehicle, adds or deletes a driver, renews a policy or is issued
39       a new policy by the same company. No cancellation notice shall be sent
40       to the director prior to the date the policy is terminated if the company
41       allows a grace period for payment until such grace period has expired and
42       the policy is actually terminated.
43           For the purposes of this act, the term ``conviction'' includes pleading

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  1       guilty or nolo contendere, being convicted or being found guilty of any
  2       violation enumerated in this subsection without regard to whether sen-
  3       tence was suspended or probation granted. A forfeiture of bail, bond or
  4       collateral deposited to secure a defendant's appearance in court, which
  5       forfeiture has not been vacated, shall be equivalent to a conviction.
  6           The requirements of this subsection shall apply whether or not such
  7       person owns a motor vehicle.
  8           (e) Whenever the director shall receive prima facie evidence, as pre-
  9       scribed by this section, that continuous financial security covering any
10       motor vehicle registered in this state is not in effect, the director shall
11       notify the owner by registered or certified mail or United States post
12       office certificate of mailing that, at the end of 30 days after the notice is
13       mailed, the registration for such motor vehicle and the driving privileges
14       of the owner of the vehicle shall be suspended or revoked, pursuant to
15       such rules and regulations as the secretary of revenue shall adopt, unless
16       within 10 days after the notice is mailed: (1) Such owner shall demonstrate
17       proof of continuous financial security covering such vehicle to the satis-
18       faction of the director; or (2) such owner shall mail a written request
19       which is postmarked within 10 days after the notice is mailed requesting
20       a hearing with the director. Upon receipt of a timely request for a hearing,
21       the director shall afford such person an opportunity for hearing within
22       the time and in the manner provided in K.S.A. 8-255 and amendments
23       thereto. If, within the ten-day period or at the hearing, such owner is
24       unable to demonstrate proof of continuous financial security covering the
25       motor vehicle in question, the director shall revoke the registration of
26       such motor vehicle and suspend the driving privileges of the owner of
27       the vehicle.
28           (f) Whenever the registration of a motor vehicle or the driving priv-
29       ileges of the owner of the vehicle are suspended or revoked for failure of
30       the owner to maintain continuous financial security, such suspension or
31       revocation shall remain in effect until satisfactory proof of insurance has
32       been filed with the director as required by subsection (d) and a reinstate-
33       ment fee in the amount herein prescribed is paid to the division of ve-
34       hicles. Such reinstatement fee shall be in the amount of $25 except that
35       if the registration of a motor vehicle of any owner is revoked within one
36       year following a prior revocation of the registration of a motor vehicle of
37       such owner under the provisions of this act such fee shall be in the amount
38       of $75. The division of vehicles shall, at least monthly, deposit such fees
39       with the state treasurer, who shall credit such moneys to the state highway
40       fund.
41           (g) In no case shall any motor vehicle, the registration of which has
42       been revoked for failure to have continuous financial security, be rereg-
43       istered in the name of the owner thereof, the owner's spouse, parent or

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  1       child or any member of the same household, until the owner complies
  2       with subsection (f). In the event the registration plate has expired, no new
  3       plate shall be issued until the motor vehicle owner complies with the
  4       reinstatement requirements as required by this act.
  5           (h) Evidence that an owner of a motor vehicle, registered or required
  6       to be registered in this state, has operated or permitted such motor ve-
  7       hicle to be operated in this state without having in force and effect the
  8       financial security required by this act for such vehicle, together with proof
  9       of records of the division of vehicles indicating that the owner did not
10       have such financial security, shall be prima facie evidence that the owner
11       did at the time and place alleged, operate or permit such motor vehicle
12       to be operated without having in full force and effect financial security
13       required by the provisions of this act.
14           (i) Any owner of a motor vehicle registered or required to be regis-
15       tered in this state who shall make a false certification concerning financial
16       security for the operation of such motor vehicle as required by this act,
17       shall be guilty of a class A misdemeanor. Any person, firm or corporation
18       giving false information to the director concerning another's financial se-
19       curity for the operation of a motor vehicle registered or required to be
20       registered in this state, knowing or having reason to believe that such
21       information is false, shall be guilty of a class A misdemeanor.
22           (j) The director shall administer and enforce the provisions of this act
23       relating to the registration of motor vehicles, and the secretary of revenue
24       shall adopt such rules and regulations as may be necessary for its admin-
25       istration.
26           (k) Whenever any person has made application for insurance cover-
27       age and such applicant has submitted payment or partial payment with
28       such application, the insurance company, if payment accompanied the
29       application and if insurance coverage is denied, shall refund the unearned
30       portion of the payment to the applicant or agent with the notice of denial
31       of coverage. If payment did not accompany the application to the insur-
32       ance company but was made to the agent, the agent shall refund the
33       unearned portion of the payment to the applicant upon receipt of the
34       company's notice of denial.
35           (l) For the purpose of this act, ``declination of insurance coverage''
36       means a final denial, in whole or in part, by an insurance company or
37       agent of requested insurance coverage.
38           Sec. 2. K.S.A. 1997 Supp. 40-3118 is hereby repealed.
39           Sec. 3. This act shall take effect and be in force from and after its
40       publication in the statute book.