34-236. Insurance.
34-236
34-236. Insurance.(a) Every public warehouseman shall at all times keep the grain stored insuchwarehouseman's warehouse insured in some reliableinsurance company authorized to dobusiness in the state of Kansas. Such grain is to be insured for its fullmarket value, less the deductible amount provided herein, against loss byfire, internal explosion, lightning, and tornado and failure to do so shallmake the public warehouseman liable for the same on suchwarehouseman's bond or letter of credit for thebenefit of the owner or owners and the owners of warehouse receipts andstorage receipts issued by any public warehouse shall have a first lien, tothe extent of the value of the grain at the time of destruction at theplace where stored, on all such insurance for any loss or injury sustainedby them on account of the destruction or injury of such grain by fire,internal explosion, lightning or tornado or any other cause covered by suchinsurance policy.
(b) Fraud or criminal act of the warehouseman to which the holder of awarehouse receipt or other interested person is not a party shall notdeprive the holder of a warehouse receipt or storage receipt or otherinterested person of such person's right of recovery under suchpolicy of insurance. Nothing in this act shall be construed torequire the insurer to pay any loss or damage in excess of the amount ofinsurance effective under its policy or to pay for any loss or damage notinsured against by its policy. In case of a fire, lightning or tornado,which shall destroy all or part of the grain stored in any publicwarehouse, the public warehouseman shall, upon demand by the owner of thegrain, or holder of any warehouse receipt, or receipts, for such grain, andupon being presented with the warehouse receipt, or receipts, makesettlement for the value of the grain covered by the warehouse receipt, orreceipts, after deducting the warehouse charges, at the market value ofsame, basing said value at the average price paid for grain of the samegrade at the station where the public warehouse is located on the date ofthe destruction. Without in any way limiting the warehouseman's liabilityunder this section, the warehouseman may carry a standard form of insurancepolicy approved for grain warehousemen with a total deductible provision onthe contents not to exceed $10,000,except that the secretary upon a finding that it is necessaryto protectthe public may order that a warehouseman's total deductible provision be anamount less than $10,000 as specified by the secretary.
History: L. 1931, ch. 194, § 14;L. 1945, ch. 211, § 1;L. 1970, ch. 156, § 3;L. 1973, ch. 180, § 1;L. 1989, ch. 121, § 4;L. 1997, ch. 160, § 26;L. 2000, ch. 30, § 4; Mar. 30.