40-3807. Same; disposition of funds held by administrator; records; withdrawals of funds.
40-3807
40-3807. Same; disposition of funds held by administrator;records; withdrawals of funds.All insurance charges or premiums collected by an administrator onbehalf of or for an insurer or insurers, and return premiums receivedfrom such insurer or insurers, shall be held by the administrator in afiduciary capacity. Such funds shall be immediately remitted to theperson or persons entitled thereto, or shall be deposited promptly in abank account established and maintained by the administrator. Ifcharges or premiums so deposited have been collected on behalf of or formore than one (1) insurer, the administrator shall maintain recordsclearly recording the deposits in and withdrawals from such account onbehalf of or for each insurer. The administrator shall keep copies ofall such records and, upon request of an insurer, shall furnish suchinsurer with copies of such records pertaining to deposits andwithdrawals on behalf of or for such insurer. The administrator shallnot pay any claim by withdrawals from such account. Withdrawals fromthe funds deposited in such account shall be made, as provided in thewritten agreement between the administrator and the insurer, for (1)remittance to an insurer entitled thereto, (2) deposit in an accountmaintained in the name of such insurer, (3) transfer to and deposit in aclaims paying account, with claims to be paid as provided in K.S.A.40-3809, (4) payment to a group policyholder for remittance to theinsurer entitled thereto, (5) payment to the administrator of itscommission, fees or charges, or (6) remittance of return premiums to theperson or persons entitled thereto.
History: L. 1978, ch. 174, § 7; July 1.