Printable Format40-1207. Premiums, premium deposits; limitation on liability of policyholder; acceptance of notes for premiums in certain cases; determination of unearned premium reserves on certain policies. Such policies shall provide for a premium or premium deposit payable in cash, and in no event shall the holder of any such policy be liable for a greater amount than the premium or premium deposit expressed in the policy. Any insurance company organized and existing as a mutual fire insurance company of the state of Kansas shall have the authority and right to accept notes for premium on farm property. The unearned premium reserve on policies written on the installment note plan shall be determined by the amount of cash collected in excess of the percentage earned on policies written for a cash premium, and in no case shall the cash collected on such installment note policies be less than the percentage earned on policies written for a cash premium.
History: L. 1927, ch. 231, 40-1207; L. 1939, ch. 211, § 4; L. 1947, ch. 280, § 1; L. 1971, ch. 170, § 1; L. 1979, ch. 143, § 2; July 1.
Source or prior law:
L. 1921, ch. 202, § 10; R.S. 1923, 40-1010.
CASE ANNOTATIONS
1. Cited in holding president's advances payable only out of surplus. Hosmer v. Mutual Reserve Ins. Co., 139 Kan. 472, 474, 32 P.2d 505.
2. Cited; note for insurance premium containing assignment of losses collected not negotiable. Citizens State Bank v. Pauly, 152 Kan. 152, 155, 102 P.2d 966.
3. Premium payments must be in cash and policies must so provide. Fidelity Savings State Bank v. Grimes, 156 Kan. 55, 56, 57, 131 P.2d 894.
4. Section applicable to action by foreign receiver against Kansas policyholders; statute is remedial restriction affecting right of remedy; valid. Keehn v. Stapleton, 161 Kan. 476, 479, 489, 169 P.2d 811.