40-3513. Payments or rebates as inducements or compensation for or in connection with placement of insurance prohibited; penalties for violations. - Kansas Statutes

40-3513

Chapter 40.--INSURANCE Article 35.--MORTGAGE GUARANTY INSURANCE COMPANIES

      40-3513.   Payments or rebates as inducements or compensation for orin connection with placement of insurance prohibited; penalties forviolations.(a) A mortgage guaranty insurance company shall not pay or cause to bepaid either directly or indirectly, to any owner, purchaser, lessor,lessee, mortgagee or prospective mortgagee of the real property whichsecures the authorized real estate security or which is the fee of aninsured lease, or any interest therein, or any person who is acting asan agent, representative, attorney or employee of such owner, purchaseror mortgagee, any commission, or any part of its premium charges or anyother consideration as an inducement for or as compensation on anymortgage guaranty insurance business.

      (b)   In connection with the placement of any mortgage guarantyinsurance, a mortgage guaranty insurance company shall not cause orpermit any commission, fee, remuneration, or other compensation to bepaid to, or received by any insured lender or lessor; any subsidiary oraffiliate of any insured; any officer, director or employee of anyinsured or any member of their immediate family; any corporation,partnership, trust, trade association in which any insured is a member,or other entity in which any insured or any such officer, director, oremployee or any member of their immediate family has a financialinterest; or any designee, trustee, nominee, or other agent orrepresentative of any of the foregoing.

      (c)   Any mortgage guaranty insurance company which pays anycommission or makes any unlawful rebate in violation of the provisionsof this article shall be subject to the penalties prescribed in K.S.A.40-2407 and 40-2411.

      History:   L. 1977, ch. 154, § 13; Jan. 1, 1978.