40-5013. Same; penalties.
40-5013
40-5013. Same; penalties.(a) If the commissioner determines after notice andopportunity for a hearing that any person has engaged or is engaging in anyact or practice constituting a violation of any provision of this act, theKansas insurance statutes or any rule and regulation or order thereunder, thecommissioner may in the exercise of discretion, order any one or more of thefollowing:
(1) Payment of a monetary penalty of not more than $1,000 for each and everyact or violation, unless the person knew or reasonably should have known suchperson was in violation of this act, the Kansas insurance statutes or any ruleand regulation or order thereunder, in which case the penalty shall be not morethan $2,000 for each and every act or violation;
(2) suspension or revocation of the person's license or certificate if suchperson knew or reasonably should have known that such person was in violationof this act, the Kansas insurance statutes or any rule and regulation or orderthereunder; or
(3) that such person cease and desist from the unlawful act or practice andtake such affirmative action as in the judgment of the commissioner will carryout the purposes of the violated or potentially violated provision.
(b) If any person fails to file any report or other information with thecommissioner as required by statute or fails to respond to any proper inquiryof the commissioner, the commissioner, after notice and opportunity forhearing, may impose a penalty of up to $500 for each violation or act, alongwith an additional penalty of up to $100 for each week thereafter that suchreport or other information is not provided to the commissioner.
(c) If the commissioner makes written findings of fact that there is asituation involving an immediate danger to the public health, safety or welfareor the public interest will be irreparably harmed by delay in issuing an orderunder paragraph (3) of subsection (a), the commissioner may issue an emergencytemporary cease and desist order. Such order, even when not an order within themeaning of K.S.A. 77-502, and amendments thereto, shall be subject to the sameprocedures as an emergency order issued under K.S.A. 77-536, and amendmentsthereto. Upon the entry of such an order, the commissioner shall promptlynotify the person subject to the order that: (1) It has been entered; (2) thereasons therefor; and (3) that upon written request within 15 days afterservice of the order the matter will be set for a hearing which shall beconducted in accordance with the provisions of the Kansas administrativeprocedure act. If no hearing is requested and none is ordered by thecommissioner, the order will remain in effect until it is modified or vacatedby the commissioner. If a hearing is requested or ordered, the commissioner,after notice of and opportunity for hearing to the person subject to the order,by written findings of fact and conclusions of law, shall vacate,modify or make permanent the order.
(d) (1) Any person who violates the provisions of this actshall be guilty of a:
(A) Severity level 7, nonperson felony if the value of theviatical settlement contract is $25,000 or more;
(B) severity level 9, nonperson felony if the value of theviatical settlement contract is at least $1,000 but lessthan $25,000; or
(C) class A nonperson misdemeanor if the value of the viatical settlementcontract is less than $1,000.
(2) If the value of the insurance premium is less than$1,000 and such agent orbroker has, within five years immediately preceding commission of the crime,been convicted of violating this section two or more times shall be guilty of aseverity level 9, nonperson felony.
(e) Restitution may be ordered in addition to, but not in lieu of, any otherpenalty imposed under this act.
History: L. 2002, ch. 158, § 13;L. 2006, ch. 194, § 30; May 25.