Session of 2023
SENATE BILL No. 15
By Committee on Financial Institutions and Insurance
1-10
AN ACT concerning insurance; relating to penalties; failure of agents or
brokers to pay premiums; removing the requirement of a documented
written demand for premiums as part of a prima facie case; amending
K.S.A. 40-247 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 40-247 is hereby amended to read as follows: 40-
247. (a) An insurance agent or broker who acts in negotiating or renewing
or continuing a contract of insurance including any type of annuity by an
insurance company lawfully doing business in this state, and who receives
any money or substitute for money as a premium for such a contract from
the insured, whether such agent or broker shall be entitled to an interest in
same or otherwise, shall be deemed to hold such premium in trust for the
company making the contract. If such agent or broker fails to pay the same
over to the company after written demand made upon such agent or
broker, less such agent's or broker's commission and any deductions, to
which by the written consent of the company such agent or broker may be
entitled, such failure shall be prima facie evidence that such agent or
broker has used or applied the premium for a purpose other than paying
the same over to the company.
(b) (1) An agent or broker who violates the provisions of this section
shall be guilty of a:
(A) Severity level 7, nonperson felony if the value of the insurance
premium is $25,000 or more;
(B) severity level 9, nonperson felony if the value of the insurance
premium is at least $1,000 but less than $25,000; or
(C) class A nonperson misdemeanor if the value of the insurance
premium is less than $1,000.
(2) If the value of the insurance premium is less than $1,000 and such
agent or broker has, within five years immediately preceding commission
of the crime, been convicted of violating this section two or more times
shall be guilty of a severity level 9, nonperson felony.
Sec. 2. K.S.A. 40-247 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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