KANSAS STATUTES AND CODES

40-3903. Counties; payment of proceeds of fire insurance policies; procedure; release of proceeds.

40-3903

Chapter 40.--INSURANCE Article 39.--CITIES AND COUNTIES, PAYMENT OF PROCEEDS OF FIRE INSURANCE POLICIES

40-3903. Counties; payment of proceeds of fire insurance policies;procedure; release of proceeds.(a) The governing body of any county is hereby authorized to establish,by resolution, a procedure for the payment of not to exceed 15% of the proceedsof any insurance policy basedupon acovered claimpayment made for damage or loss to a building or other structure, causedby or arising out of any fire, explosion orwindstorm.The resolution shall not applyto cities which have adopted an ordinance under the provisions of K.S.A.40-3901, and amendments thereto. The resolution shall apply only to acovered claimpayment which is in excess of 75% of the face value of the policy coveringa building or other insured structure.

(b) The insurer first shall pay all amounts due the holder ofa firstreal estate mortgage against the building or other structure pursuant tothe terms of the policy and endorsements thereto and then shall withholdfrom the covered claim payment of the sum not to exceed the amount authorizedpursuant to subsection (a) and shall pay such moneys to the countyto deposit into an interest-bearing account, unless the city has issueda certificate pursuant to K.S.A. 40-3906, and amendments thereto.

(c) The county shall release the insured's proceeds and any interest whichhas accrued on such proceeds received under subsection (b) within 30 daysafter receipt of such moneys, unless the county has instituted legalproceedings,using the procedure under K.S.A. 12-1752, and amendments thereto, insofaras thesame can be made applicable. If the county has instituted legal proceedings, all moneys in excess ofthat necessary for the removal of the building or structure,less salvage value, shall be paid to the insured.

History: L. 1982, ch. 192, § 4;L. 1997, ch. 102, § 3; July 1.