40-3011. Additional powers of commissioner; revocation of authority; appeals; judicial review; notice of effect of act.
40-3011
40-3011. Additional powers of commissioner; revocation of authority;appeals; judicial review; notice of effect of act.In addition to the duties and powers enumerated in this act:(a) The commissioner shall: (1)Upon request of the board of directors, provide the association witha statement of the premiums in this and any other appropriatestate for each memberinsurer;
(2) when an impairment is declared and the amount of the impairment isdetermined, serve a demand upon the impaired insurer to make good theimpairment within a reasonable time; notice to the impaired insurer shallconstitute notice to its shareholders, if any; the failure of the insurerto promptly comply with such demand shall not excuse the association fromthe performance of its powers and duties under this act;
(3) in any liquidation or rehabilitation proceeding involving a domesticinsurer, be appointed as the liquidator or rehabilitator.
(b) The commissioner may suspend or revoke, after notice and hearingin accordance with the provisions of the Kansas administrative procedure act,the certificate of authority to transact insurance in this state of anymember insurer which fails to pay an assessment when due or fails to complywith the plan of operation. As an alternative the commissioner may levy aforfeiture on any member insurer which fails to pay an assessment when due.Such forfeiture shall not exceed 5% of the unpaid assessmentper month, but no forfeiture shall be less than $100per month.
(c) Any action of the board of directors or the association may beappealed to the commissioner by any member insurer if such appeal is takenwithin 60 days of the final action being appealed.If a member company is appealing an assessment, the amount assessed shallbe paid to the association and available to meet association obligationsduring the pendancy of an appeal. If the appeal on the assessment isupheld, the amount paid in error shall be returned to the member insurer.
(d) The liquidator, rehabilitator or conservator of any impairedinsurer may notify all interested persons of the effect of this act.
History: L. 1972, ch. 190, § 11;L. 1986, ch. 180, § 9; L. 1986, ch. 318, § 42;L. 1988, ch. 356, § 115; July 1, 1989.