40-5511. Evidence of financial responsibility. - Kansas Statutes

40-5511

Chapter 40.--INSURANCE Article 55.--PUBLIC ADJUSTERS LICENSING ACT

      40-5511.   Evidence of financialresponsibility.(a) Prior to issuance of a public adjuster license and fortheduration of thelicense, the commissioner may require the applicant to furnish evidence offinancialresponsibility, in a format prescribed by the commissioner, by means of:

      (1)   A surety bond executed and issued by an insurer authorized to issuesurety bonds inthis state, which bond:

      (A)   Shall be in such reasonable amount as the commissioner may require;

      (B)   shall be in favor of the commissioner and shall specifically authorizerecovery by thecommissioner on behalf of any person in this state who sustains damages as theresult oferroneous acts, failure to act, conviction of fraud or conviction of unfairpractices in theapplicant's capacity as a public adjuster; and

      (C)   shall not be terminated unless at least 30-days prior written notice hasbeen filed bythe insurer with the commissioner and given to the licensee.

      (2)   An irrevocable letter of credit issued by a qualified financialinstitution, which letterof credit:

      (A)   Shall be in such reasonable amount as the commissioner may require;

      (B)   shall be to an account of the commissioner and subject to lawful levy ofexecution onbehalf of any person to whom the public adjuster has been found to be legallyliable as the resultof erroneous acts, failure to act, fraudulent acts or unfair practices in theapplicant's capacity as apublic adjuster; and

      (C)   shall not be terminated unless at least 30-days prior written notice hasbeen filed bythe issuer with the commissioner and given to the licensee.

      (b)   Where the commissioner has required an applicant to furnish evidence offinancialresponsibility pursuant to subsection (a):

      (1)   The issuer of the evidence of financial responsibility shall notify thecommissionerupon termination of the bond or letter of credit, unless otherwise directed bythe commissioner;

      (2)   the commissioner may ask for the evidence of the public adjuster'sfinancialresponsibility at any time the commissioner deems relevant; and

      (3)   the authority to act as a public adjuster shall terminate automaticallyif the evidence offinancial responsibility terminates or becomes impaired.

      History:   L. 2009, ch. 83, § 11; Apr. 23.