40-453. Life insurance; insurable interest. - Kansas Statutes

40-453

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

      40-453.   Life insurance; insurable interest.(a) Determination of the existence and extent of the insurableinterest under any life insurance policy shall be made at the time the contractof insurance becomes effective but need not exist at the time the loss occurs. In the case of life insurance policies issued or renewed for a specific term,an insurable interest shall not exist for any policy term with respect to anyperson previously insured by the policy who has, in writing, requested theinsurer to terminate or nonrenew the insurance applicable to such person'slife.

      (b)   Notwithstanding the provisions of subsection (a), an employer's or atrust's insurable interest in any employee, director or previous employeecannotbe terminated by such employee, director or previous employee with respect toemployee benefit plans described in 29 U.S.C. 1002(3).

      History:   L. 1993, ch. 190, § 2; April 22.