40-3118. Financial security as prerequisite to motor vehicle registration; certification of owner; documentation; termination of required insurance, notice; verification of certification; insurance co
40-3118
40-3118. Financial security as prerequisite to motorvehicle registration; certification of owner; documentation; termination ofrequired insurance, notice; verification of certification; insurance company tomaintain evidence on file with division, when; suspension of registration anddriving privileges, hearing, reinstatement; prima facie evidence of operationof vehicle without financial security; unlawful acts; refund of unearnedpremium.(a) No motor vehicle shall be registered or reregistered inthis state unless the owner,at the time of registration, has in effect a policy of motor vehicleliability insurance covering such motor vehicle, as provided in thisact, or is a self-insurer thereof, or the motor vehicle is used as adriver training motor vehicle, as defined in K.S.A. 72-5015, and amendmentsthereto, in an approved driver training course by a school district or anaccredited nonpublic school under an agreement with a motor vehicle dealer,and such policy of motor vehicle liability insurance is provided by theschool district or accredited nonpublic school. As used in this section, theterm "financial security" means such policy orself-insurance. The director shall require that the owner certify andprovide verification of financial security, in themanner prescribed by K.S.A. 8-173, and amendments thereto, thatthe owner has such financial security, and the owner of each motorvehicle registered in this state shall maintain financial securitycontinuously throughout the period of registration. In addition, whenan ownercertifies that such financial security is a motor vehicle liabilityinsurance policy meeting the requirements of this act, the director mayrequire that the owner or owner's insurance company produce records toprove the fact that such insurance was in effect at the time the vehiclewas registered and has been maintained continuously from that date. Failureto produce such records shallbe prima facie evidence that no financial security exists with regard tothe vehicle concerned. It shall be the duty of insurance companies,upon the request of the director, to notify the director within 30 calendardays of the dateof the receipt of such requestby the director of any insurance that was not in effect on the date ofregistration and maintained continuously from that date.
(b) Except as otherwise provided in K.S.A. 40-276, 40-276a and40-277, and amendments thereto, and except for termination ofinsurance resulting from nonpayment of premium or upon the request forcancellationby the insured, no motor vehicleliability insurance policy, or any renewal thereof, shall be terminatedby cancellation or failure to renew by the insurer until at least 30days after mailing a notice of termination, by certified orregistered mail or United States post office certificate of mailing, tothe named insured at the latest address filed with the insurer by or onbehalf of the insured.Time of the effective date and hour of termination stated in the noticeshall become the end of the policy period. Every such notice oftermination sent to the insured for any cause whatsoever shall includeon the face of the notice a statement that financial security for everymotor vehicle covered by the policy is required to be maintainedcontinuously throughout the registration period, that the operation ofany such motor vehicle without maintaining continuous financial securitytherefor is a class B misdemeanor and shall be subject to a fine of not lessthan $300 and not more than $1,000 and that the registration for any suchmotor vehicle for which continuous financial security is not provided issubject to suspension and the driver'slicense of the owner thereof is subject to suspension.
(c) The director of vehicles shall verify a sufficientnumber of insurance certifications each calendar year as the director deemsnecessary to insure compliance with the provisions of this act. The owneror owner's insurance company shall verify the accuracy of any owner'scertificationupon request, as provided in subsection (a).
(d) In addition to any other requirements of this act, the directorshall require a person to acquire insurance and for such person's insurancecompany to maintain on file with the division evidence of such insurancefor a period of oneyear when a person has been convicted in thisor another state of any of the violationsenumerated in K.S.A. 8-285, and amendments thereto.
The director shall also require any driver whose driving privilegeshave been suspended pursuant to this section to maintain such evidence ofinsurance as required above.
The company of the insured shall immediately mail notice to thedirector whenever any policy required by this subsection to be on file withthe division is terminated by the insured or the insurer for any reason.The receipt by the director of such termination shall be prima facieevidence that no financial security exists with regard to the person concerned.
No cancellation notice shall be sent to the director if the insured adds ordeletes a vehicle, adds or deletes a driver, renews a policy or is issued anew policy by the same company. No cancellation notice shall be sent to thedirector prior to the date the policy is terminated if the company allows agrace period for payment until such grace period has expired and the policy isactually terminated.
For the purposes of this act, the term "conviction" includes pleadingguilty or nolo contendere, being convicted or being found guilty ofany violation enumerated in this subsection without regard to whethersentence was suspended or probation granted. A forfeiture of bail, bond orcollateral deposited to secure a defendant's appearance in court, whichforfeiture has not been vacated, shall be equivalent to a conviction.
The requirements of this subsection shall apply whether or not suchperson owns a motor vehicle.
(e) Whenever the director shall receive prima facie evidence, asprescribed by this section, that continuous financial security coveringany motor vehicle registered in this state is not in effect, thedirector shall notify the owner by registered or certified mail orUnited States post office certificate of mailing that, at the end of 30 daysafter the notice is mailed, the registration for suchmotor vehicle and the driving privileges of the owner of the vehicle shallbe suspended or revoked, pursuant to such rules and regulations asthe secretary of revenue shall adopt, unless within 10 days after the noticeis mailed: (1) Such ownershall demonstrate proof of continuous financial security covering suchvehicle to the satisfaction of the director; or (2) such owner shall mail awritten request which ispostmarked within 10 days after the notice is mailed requesting a hearingwith thedirector.Upon receipt of a timely request for a hearing, the director shall affordsuch person an opportunity for hearing within the time and in the mannerprovided in K.S.A. 8-255, and amendments thereto. If, within theten-dayperiod or at the hearing, such owner is unable to demonstrate proof ofcontinuous financial security covering the motor vehicle in question,the director shall revoke the registration of such motorvehicle and suspend the driving privileges of the owner of the vehicle.
(f) Whenever the registration of a motor vehicleor the driving privilegesof the owner of the vehicle are suspended or revoked for failure of theowner to maintain continuous financial security, such suspension orrevocation shall remain in effect until satisfactory proof of insurance hasbeenfiled with the director as required by subsection (d) and a reinstatement feein the amountherein prescribedis paid to the division of vehicles. Such reinstatement fee shall be inthe amount of $100 except that if the registration of a motorvehicle ofany owner is revoked within one year following a prior revocation of theregistration of a motor vehicle of suchowner under the provisions of thisact such fee shall be in the amount of $300. The division ofvehicles shall remit such fees to thestate treasurer in accordance with theprovisions of K.S.A.75-4215, and amendments thereto. Upon receipt of each such remittance, thestate treasurer shall deposit the entire amount in the state treasuryto the credit of the state highway fund.
(g) In no case shall any motor vehicle, the registration of which hasbeen revoked for failure to have continuous financialsecurity, be reregisteredin the name of the owner thereof, the owner's spouse, parent or child orany member of the same household, until the owner complies with subsection(f). In the event the registration plate has expired, no new plate shallbe issued until the motor vehicle owner complies with the reinstatementrequirements as required by this act.
(h) Evidence that an owner of a motor vehicle, registered orrequired to be registered in this state, has operated or permitted suchmotor vehicle to be operated in this state without having in force andeffect the financial security required by this act for such vehicle,together with proof of records of the division of vehicles indicatingthat the owner did not have such financial security, shall be primafacie evidence that the owner did at the time and place alleged,operate or permit such motor vehicle to be operated without having infull force and effect financial security required by the provisions ofthis act.
(i) Any owner of a motor vehicle registered or required to beregistered in this state who shall make a false certification concerningfinancial security for the operation of such motor vehicle as requiredby this act, shall be guilty of a class A misdemeanor. Any person,firmor corporation giving false information to the director concerninganother's financial security for the operation of a motor vehicleregistered or required to be registered in this state, knowing or havingreason to believe that such information is false, shall be guilty of aclass A misdemeanor.
(j) The director shall administer and enforce the provisions of thisact relating to the registration of motor vehicles, and the secretary ofrevenue shall adopt such rules and regulations as may be necessary forits administration.
(k) Whenever any person has made application for insurance coverage andsuch applicant has submitted payment or partial payment with such application,the insurance company, if payment accompanied the application and ifinsurance coverage is denied, shallrefund the unearned portion of the paymentto the applicant or agent with the notice of denial of coverage. If paymentdid not accompany the application to the insurance company but was madeto the agent, the agent shall refund the unearned portion of the paymentto the applicant upon receipt of the company's notice of denial.
(l) For the purpose of this act, "declination of insurancecoverage" meansa final denial, in whole or in part, by an insurance company or agentof 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; July 1.