Session of 2000
By Committee on Judiciary

10             AN  ACT concerning actions and garnishment proceedings against insur-
11             ance companies; service of process; amending K.S.A. 1999 Supp. 40-
12             218 and repealing the existing section.
14       Be it enacted by the Legislature of the State of Kansas:
15             Section  1. K.S.A. 1999 Supp. 40-218 is hereby amended to read as
16       follows: 40-218. Every insurance company, or fraternal benefit society,
17       on applying for authority to transact business in this state, and as a con-
18       dition precedent to obtaining such authority, shall file in the insurance
19       department its written consent, irrevocable, that any action or garnish-
20       ment proceeding may be commenced against such company or fraternal
21       benefit society in the proper court of any county in this state in which
22       the cause of action shall arise or in which the plaintiff may reside by the
23       service of process on the commissioner of insurance of this state, and
24       stipulating and agreeing that such service shall be taken and held in all
25       courts to be as valid and binding as if due service had been made upon
26       the president or chief officer of such corporation. Such consent shall be
27       executed by the president and secretary of the company, authenticated
28       by the seal of the corporation, and shall be accompanied by a duly cer-
29       tified copy of the order or resolution of the board of directors, trustees
30       or managers authorizing the president and secretary to execute the same.
31       The summons, accompanied by a fee of $25, shall be directed to the
32       commissioner of insurance, and shall require the defendant to answer by
33       a certain day, not less than 40 days from its date.
34             Service on the commissioner of insurance of any process, notice or
35       demand against an insurance company or fraternal benefit society shall
36       be made by delivering to and leaving with the commissioner or the com-
37       missioner's designee, the original of the process and two copies of the
38       process and the petition, notice of or demand, or the clerk of the court
39       may send the original process and two copies of both the process and
40       petition, notice or demand directly to the commissioner by certified mail,
41       return receipt requested. In the event that any process, notice or demand
42       is served on the commissioner, the commissioner shall immediately cause
43       a copy thereof to be forwarded by certified mail, return receipt requested


  1       to the insurance company or fraternal benefit society address to its gen-
  2       eral agent if such agent resides in this state or to the secretary of the
  3       insurance company or fraternal benefit society sued at its registered or
  4       principal office in any state in which it is domesticated. The commissioner
  5       of insurance shall make return of the summons to the court from whence
  6       it issued, showing the date of its receipt, the date of forwarding such
  7       copies, and the name and address of each person to whom a copy was
  8       forwarded. Such return shall be under the hand and seal of office, and
  9       shall have the same force and effect as a due and sufficient return made
10       on process directed to a sheriff. The commissioner of insurance shall keep
11       a suitable record in which shall be docketed every action commenced
12       against an insurance company, the time when commenced, the date and
13       manner of service; also the date of the judgment, its amount and costs,
14       and the date of payment thereof, which shall be certified from time to
15       time by the clerk of the court. 
16       Sec.  2. K.S.A. 1999 Supp. 40-218 is hereby repealed.
17        Sec.  3. This act shall take effect and be in force from and after its
18       publication in the statute book.