40-2,126. Interest due on insurance settlements, when. - Kansas Statutes

40-2,126

Chapter 40.--INSURANCE Article 2.--GENERAL PROVISIONS

      40-2,126.   Interest due on insurance settlements, when.Except as otherwise provided by K.S.A. 40-447, 40-3110 and 44-512a,and amendments thereto, each insurance company, fraternal benefit societyand any reciprocal or interinsurance exchange licensed to transact thebusiness of insurance in this state which fails or refuses to pay anyamount due under any contract of insurance withinthe time prescribed herein shall pay interest on the amount due. Ifpayment is to be made to the claimant and the same is not paid within 30calendar days after the amount of the payment is agreed to between theclaimant and the insurer, interest at the rate of 18% per annum shall be payable from thedate of such agreement. If payment is to be made to any other personfor providing repair or other services to the claimant and the same is notpaid within 30 calendar days following the date of completion of suchservices and receipt of the billing statement, interest at the rate of 18%per annum shall be payable on the amount agreed to between the claimant and the insurerfrom the date of receipt of the billing statement.

      History:   L. 1989, ch. 130, § 1; July 1.