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40-2901. Purpose and construction. The purpose of this act is to provide a mechanism for the payment of covered claims under certain insurance policies, to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, and to provide an association to assess the cost of such protection among insurers. This act shall be liberally construed to effect such purpose which shall constitute an aid and guide to interpretation.

History: L. 1970, ch. 185, ยง 1; March 27.

CASE ANNOTATIONS

1. Relationship of uninsured motorist coverage held by plaintiff asserting personal injury claim against defendant whose insurance carrier insolvent determined. Hetzel v. Clarkin, 244 Kan. 698, 772 P.2d 800 (1989).

2. Uninsured motorist insurer may not pursue subrogation interest against Kansas insurance guaranty fund or insured whose company insolvent. Bartee v. R.T.C. Transportation, Inc., 245 Kan. 499, 508, 509, 781 P.2d 1084 (1989).

3. When uninsured motorist carrier may exercise subrogation rights against insured of insolvent carrier examined. Maston v. Harper, 18 Kan. App. 2d 739, 740, 741, 742, 743, 745, 859 P.2d 405 (1993).

4. Whether partial payment of claim by insolvent insurer alters KIGA's liability where shortfall still exists examined. Kansas Dept. of Health & Environment v. Kansas Ins. Guaranty Ass'n, 254 Kan. 863, 866, 868, 869 P.2d 692 (1994).

5. Plaintiff's insurer may exercise rights to subrogation against defendant where insurer is insolvent; recovery is limited to amounts which exceed limits of policy or for which there was no coverage. Exploration Place, Inc. v. Midwest Drywall Co., 277 Kan. 898, 89 P.3d 536 (2004).


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