KANSAS OFFICE of
  REVISOR of STATUTES

  

Home >> Statutes >> Back


Click to open printable format in new window.Printable Format
 | Next

40-3118. Financial security as prerequisite to motor vehicle registration; certification of owner; documentation; termination of required insurance, notice; verification of certification; insurance company to maintain evidence on file with division, when; suspension of registration and driving privileges, hearing, reinstatement; prima facie evidence of operation of vehicle without financial security; unlawful acts; refund of unearned premium; proof of financial security by electronic means, restrictions. (a) No motor vehicle shall be registered or reregistered in this state unless the owner, at the time of registration, has in effect a policy of motor vehicle liability insurance covering such motor vehicle, as provided in this act, or is a self-insurer thereof, or the motor vehicle is used as a driver training motor vehicle, as defined in K.S.A. 72-4005, and amendments thereto, in an approved driver training course by a school district or an accredited nonpublic school under an agreement with a motor vehicle dealer, and such policy of motor vehicle liability insurance is provided by the school district or accredited nonpublic school. As used in this section, the term "financial security" means such policy or self-insurance. The director shall require that the owner certify and provide verification of financial security, in the manner prescribed by K.S.A. 8-173, and amendments thereto, that the owner has such financial security, and the owner of each motor vehicle registered in this state shall maintain financial security continuously throughout the period of registration. In addition, when an owner certifies that such financial security is a motor vehicle liability insurance policy meeting the requirements of this act, the director may require that the owner or owner's insurance company produce records to prove the fact that such insurance was in effect at the time the vehicle was registered and has been maintained continuously from that date. Such records may be produced by displaying such records on a cellular phone or any other type of portable electronic device. Any person to whom such records are displayed on such cellular phone or other type of portable electronic device shall be prohibited from viewing any other content or information stored on such cellular phone or other type of portable electronic device. Failure to produce such records shall be prima facie evidence that no financial security exists with regard to the vehicle concerned. It shall be the duty of insurance companies, upon the request of the director, to notify the director within 30 calendar days of the date of the receipt of such request by the director of any insurance that was not in effect on the date of registration and maintained continuously from that date.

(b) Except as otherwise provided in K.S.A. 40-276, 40-276a and 40-277, and amendments thereto, and except for termination of insurance resulting from nonpayment of premium or upon the request for cancellation by the insured, no motor vehicle liability insurance policy, or any renewal thereof, shall be terminated by cancellation or failure to renew by the insurer until at least 30 days after mailing a notice of termination, by certified or registered mail, United States post office certificate of mailing, or any other mail tracking method currently used, approved or accepted by the United States postal service to the named insured at the latest address filed with the insurer by or on behalf of the insured. Time of the effective date and hour of termination stated in the notice shall become the end of the policy period. Every such notice of termination sent to the insured for any cause whatsoever shall include on the face of the notice a statement that financial security for every motor vehicle covered by the policy is required to be maintained continuously throughout the registration period, that the operation of any such motor vehicle without maintaining continuous financial security therefor is a class B misdemeanor and shall be subject to a fine of not less than $300 and not more than $1,000 and that the registration for any such motor vehicle for which continuous financial security is not provided is subject to suspension and the driver's license of the owner thereof is subject to suspension.

(c) The director of vehicles shall verify a sufficient number of insurance certifications each calendar year as the director deems necessary to insure compliance with the provisions of this act. The owner or owner's insurance company shall verify the accuracy of any owner's certification upon request, as provided in subsection (a).

(d) (1) In addition to any other requirements of this act, the director shall require a person to acquire insurance and for such person's insurance company to maintain on file with the division evidence of such insurance for a period of one year when a person has been convicted in this or another state of any of the violations enumerated in K.S.A. 8-285, and amendments thereto.

(2) The director shall also require any driver whose driving privileges have been suspended pursuant to this section to maintain such evidence of insurance as required above.

(3) The company of the insured shall immediately mail notice to the director whenever any policy required by this subsection to be on file with the division is terminated by the insured or the insurer for any reason. The receipt by the director of such termination shall be prima facie evidence that no financial security exists with regard to the person concerned.

(4) No cancellation notice shall be sent to the director if the insured adds or deletes a vehicle, adds or deletes a driver, renews a policy or is issued a new policy by the same company. No cancellation notice shall be sent to the director prior to the date the policy is terminated if the company allows a grace period for payment until such grace period has expired and the policy is actually terminated.

(5) For the purposes of this act, the term "conviction" includes pleading guilty or nolo contendere, being convicted or being found guilty of any violation enumerated in this subsection without regard to whether sentence was suspended or probation granted. A forfeiture of bail, bond or collateral deposited to secure a defendant's appearance in court, which forfeiture has not been vacated, shall be equivalent to a conviction.

(6) The requirements of this subsection shall apply whether or not such person owns a motor vehicle.

(e) Whenever the director shall receive prima facie evidence, as prescribed by this section, that continuous financial security covering any motor vehicle registered in this state is not in effect, the director shall notify the owner by registered or certified mail or United States post office certificate of mailing that, at the end of 30 days after the notice is mailed, the registration for such motor vehicle and the driving privileges of the owner of the vehicle shall be suspended or revoked, pursuant to such rules and regulations as the secretary of revenue shall adopt, unless within 10 days after the notice is mailed: (1) Such owner shall demonstrate proof of continuous financial security covering such vehicle to the satisfaction of the director. Such proof of continuous financial security may be provided by the owner by displaying such proof on a cellular phone or other portable electronic device; or (2) such owner shall mail a written request which is postmarked within 10 days after the notice is mailed requesting a hearing with the director. Any person to whom such proof of continuous financial security is displayed on a cellular phone or other portable electronic device shall view only such evidence of continuous financial security. Such person shall be prohibited from viewing any other content or information stored on such cellular phone or other portable electronic device. Upon receipt of a timely request for a hearing, the director shall afford such person an opportunity for hearing within the time and in the manner provided in K.S.A. 8-255, and amendments thereto. If, within the ten-day period or at the hearing, such owner is unable to demonstrate proof of continuous financial security covering the motor vehicle in question, the director shall revoke the registration of such motor vehicle and suspend the driving privileges of the owner of the vehicle.

(f) Whenever the registration of a motor vehicle or the driving privileges of the owner of the vehicle are suspended or revoked for failure of the owner to maintain continuous financial security, such suspension or revocation shall remain in effect until satisfactory proof of insurance has been filed with the director as required by subsection (d) and a reinstatement fee in the amount herein prescribed is paid to the division of vehicles. Such reinstatement fee shall be in the amount of $100 except that if the registration of a motor vehicle of any owner is revoked within one year following a prior revocation of the registration of a motor vehicle of such owner under the provisions of this act such fee shall be in the amount of $300. The division of vehicles shall remit such fees to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state highway fund.

(g) In no case shall any motor vehicle, the registration of which has been revoked for failure to have continuous financial security, be reregistered in the name of the owner thereof, the owner's spouse, parent or child or any member of the same household, until the owner complies with subsection (f). In the event the registration plate has expired, no new plate shall be issued until the motor vehicle owner complies with the reinstatement requirements as required by this act.

(h) Evidence that an owner of a motor vehicle, registered or required to be registered in this state, has operated or permitted such motor vehicle to be operated in this state without having in force and effect the financial security required by this act for such vehicle, together with proof of records of the division of vehicles indicating that the owner did not have such financial security, shall be prima facie evidence that the owner did at the time and place alleged, operate or permit such motor vehicle to be operated without having in full force and effect financial security required by the provisions of this act.

(i) Any owner of a motor vehicle registered or required to be registered in this state who shall make a false certification concerning financial security for the operation of such motor vehicle as required by this act, shall be guilty of a class A misdemeanor. Any person, firm or corporation giving false information to the director concerning another's financial security for the operation of a motor vehicle registered or required to be registered in this state, knowing or having reason to believe that such information is false, shall be guilty of a class A misdemeanor.

(j) The director shall administer and enforce the provisions of this act relating to the registration of motor vehicles, and the secretary of revenue shall adopt such rules and regulations as may be necessary for its administration.

(k) Whenever any person has made application for insurance coverage and such applicant has submitted payment or partial payment with such application, the insurance company, if payment accompanied the application and if insurance coverage is denied, shall refund the unearned portion of the payment to the applicant or agent. Such refund may:

(1) Accompany the notice of denial of coverage; or

(2) be separately returned in not more than 10 days from the date of such notice.

If payment did not accompany the application to the insurance company but was made to the agent, the agent shall refund the unearned portion of the payment to the applicant upon receipt of the company's notice of denial.

(l) For the purpose of this act, "declination of insurance coverage" means a final denial, in whole or in part, by an insurance company or agent of requested insurance coverage.

History: L. 1974, ch. 193, § 18; L. 1974, ch. 194, § 1; L. 1975, ch. 247, § 1; L. 1976, ch. 221, § 1; L. 1977, ch. 164, § 3; L. 1979, ch. 149, § 2; L. 1981, ch. 198, § 1; L. 1982, ch. 206, § 1; L. 1984, ch. 174, § 3; L. 1985, ch. 48, § 18; L. 1987, ch. 174, § 2; L. 1996, ch. 51, § 3; L. 1999, ch. 162, § 12; L. 2001, ch. 5, § 123; L. 2013, ch. 19, § 4; L. 2014, ch. 19, § 1; L. 2015, ch. 83, § 2; July 1.

Source or prior law:

L. 1973, ch. 198, § 18.

Law Review and Bar Journal References:

"Comparative Negligence in Kansas—Legal Issues and Probable Answers," Victor E. Schwartz, 13 W.L.J. 397 (1974).

"No-Fault Automobile Insurance," Barry W. McCormick and Lynn Franklin Taylor II, 23 K.L.R. 141, 171 (1974).

"Recent Developments in Kansas Insurance Law: A Survey, Some Analysis, and Some Suggestions," Robert H. Jerry II, 32 K.L.R. 287, 330, 347 (1984).

CASE ANNOTATIONS

1. Insurer of motor vehicle not liable for personal injury protection (PIP) benefits to permissive user required to maintain own liability coverage. Dreiling v. State Farm Mut. Auto. Ins. Co., 227 K. 851, 610 P.2d 611.

2. Any insurance policy provision which attempts to dilute, condition or limit minimum coverage requirements of the K.A.I.R.A. is void and invalid; policies may allow or exclude coverage above statutory limits. DeWitt v. Young, 229 K. 474, 478, 625 P.2d 478.

3. Uninsured motorist may recover under another's policy if uninsured motorist is an "insured" under that policy. Merritt v. Farmers Ins. Co., 7 K.A.2d. 705, 710, 647 P.2d 1355 (1982).

4. Insurance contract may grant rights beyond statute; proof of mailing of notice requires actual receipt by insured. Richmeier v. Williams, 9 K.A.2d 222, 675 P.2d 372 (1984).

5. Cited; 40-3104(g)(4) not violative of due process requirements of 14th Amendment. Barnes v. Kansas Dept. of Revenue, 238 K. 820, 821, 828, 714 P.2d 975 (1986).

6. Insurer not required to provide proof of actual receipt by insured of cancellation notice under (b). Feldt v. Union Ins. Co., 240 K. 108, 111, 726 P.2d 1341 (1986).

7. Authority of department of revenue to delete suspension order under 40-3104 examined. State v. Damman, 244 K. 487, 489, 769 P.2d 662 (1989).

8. Statute not applicable to rescission or cancellation of collision or nonliability features of policy applying to insured and insurer only. Dunn v. Safeco Ins. Co., 14 K.A.2d 732, 738, 798 P.2d 955 (1990).

9. Insurer has right to rescind policy or binder ab initio for fraud or misrepresentation as to insured but not injured third party. Continental Western Ins. Co. v. Clay, 248 K. 889, 896, 811 P.2d 1202 (1991).

10. No requirement that notice of cancellation actually be received by the insured unless policy language provides otherwise. Bell v. Patrons Mut. Ins. Ass'n, 15 K.A.2d 791, 793, 816 P.2d 407 (1991).

11. Reformation of insurance policy to exclude coverage for accident and injury to third party allowed; insurance binder fraudulently obtained after accident. Slaby v. Cox, 250 K. 429, 431, 436, 827 P.2d 18 (1992).

12. Insurer required to verify insurance for DUI diversion participant even if driving privileges not restricted. Rutschman v. Kansas Dept. of Revenue, 23 K.A.2d 311, 312, 929 P.2d 801 (1996).

13. Defendant was under indefinite suspension of driving privileges which could end only upon submission of proof of insurance and payment of fee; K.S.A. 8-262(a)(2) inapplicable. State v. Lawson, 261 K. 964, 967, 933 P.2d 684 (1997).

14. License suspension hereunder void; notice did not inform licensee of right to request hearing thereon. State v. Adkins, 24 K.A.2d 337, 945 P.2d 880 (1997).

15. Defendant not eligible for reinstatement or entitled to return of license at time of arrest; noncompliance with 8-241. State v. Peterson, 265 K. 732, 734, 962 P.2d 1076 (1998).

16. Insured who allowed automobile insurance to lapse for nonpayment not entitled to written notice of nonrenewal. Unruh v. Prudential Property and Cas. Ins. Co., 3 F.Supp. 2d 1204, 1207 (1998).

17. Insurer not required to give notice of cancellation of policy by one insured to all coinsured parties. State Farm Mut. Ins. Co. v. Benton, 33 K.A.2d 869, 113 P.3d 266 (2004).

18. Notice to nonrenew an automobile insurance policy that complies with the statute and policy is sufficient to effectively nonrenew coverage under the facts of the case. Nationwide Mutual Ins. Co. v. Briggs, 298 K. 873, 317 P.3d 770 (2014).


 | Next

LEGISLATIVE COORDINATING COUNCIL
  04/25/2023 Meeting Notice Agenda
  LCC Policies

REVISOR OF STATUTES
  2023 Valid Section Numbers
  Chapter 72 Statute Transfer List
  Kansas School Equity & Enhancement Act
  Gannon v. State
  Information for Special Session 2021
  General Info., Legal Analysis & Research
  2022 Amended & Repealed Statutes
  2021 Amended & Repealed Statutes
  2020 Amended & repealed Statutes
  2019 Amended & Repealed Statutes

USEFUL LINKS
Session Laws

OTHER LEGISLATIVE SITES
Kansas Legislature
Administrative Services
Division of Post Audit
Research Department