KANSAS STATUTES AND CODES

40-466. Same; limitations on provisions of transfer agreement.

40-466

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

40-466. Same; limitations on provisions of transferagreement.(a) The provisions of this act may not be waived by any payee.

(b) Any transfer agreement entered into by a payee who resides in this stateon or after the effectivedate of this act shall provide that disputes under such transfer agreement,including any claim thatthe payee has breached the agreement, shall be determined in and under the lawsof this state. Nosuch transfer agreement shall authorize the transferee or any other party toconfess judgment orconsent to entry of judgment against the payee.

(c) No transfer of structured settlement payment rights shall extend to anypayments that arelife-contingent unless, prior to the date on which the payee signs the transferagreement, thetransferee has established and has agreed to maintain procedures reasonablysatisfactory to theannuity issuer and the structured settlement obligor for:

(1) Periodically confirming the payee's survival; and

(2) giving the annuity issuer and the structured settlement obligorprompt written notice inthe event of the payee's death.

(d) No payee who proposes to make a transfer of structured settlement paymentrights shall incur anypenalty, forfeit any application fee or other payment, or otherwise incur anyliability to the proposedtransferee or any assignee based on any failure of such transfer to satisfy theconditions of this act.

(e) No provision of this act shall be construed to authorize any transfer ofstructured settlementpayment rights in contravention of any law or to imply the validity of anytransfer under atransfer agreement entered into prior to the effective date of this act.

(f) Compliance with the requirements ofK.S.A. 2009 Supp.40-462, andamendments thereto,and fulfillment of theconditions ofK.S.A. 2009 Supp.40-463, and amendments thereto, shall be solelytheresponsibility of the transfereein any transfer of structured settlement payment rights. Neither the structuredsettlement obligor northe annuity issuer shall bear any responsibility for, or any liability arisingfrom, non-compliance withsuch requirements or failure to fulfill such conditions.

History: L. 2005, ch. 57, § 6; July 1.