KANSAS STATUTES AND CODES

40-451. Coverage temporarily effective, when; written receipt for premium may exclude, void or limit coverage; refund of unearned premium.

40-451

Chapter 40.--INSURANCE Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES

40-451. Coverage temporarily effective, when; written receipt for premiummay exclude, void or limit coverage; refund of unearned premium.(a) When an application for an individual life insurance policy and an initialpremium therefor has been received by an insurance company or agent acting onbehalf of such company, the coverage for which application is made shall,subject to the limitations in subsection (b), be deemed to be temporarily ineffect until the insurance company or agent has, in the event of an adverseunderwriting decision, as defined in K.S.A. 40-2,111 and amendments thereto,notified in writing the applicant of such adverse underwriting decision andreturned any unearned premium in accordance with K.S.A. 40-2,112 andamendments thereto.

(b) When an application for an individual life insurance policy and aninitial premium therefor has been received, the receipt for the premium shallbe in writing and may:

(1) Exclude coverage if the proposed insured commits suicide;

(2) void coverage if the application contains material misrepresentation oris fraudulently completed;

(3) limit the coverage otherwise provided by subsection (a) by specifyingfor each proposed insured the amount and type of temporary coverage granted;and

(4) void coverage if a check or draft received in payment of the premium isnot honored for payment when presented.

(c) When an application for an individual life insurance policy and aninitial premium therefor has been received, the receipt for the premium shallbe in writing and provide for a refund of any unearned premium pursuant toK.S.A. 40-2,112 and amendments thereto.

History: L. 1992, ch. 236, § 1; July 1.