40-2419. Same; service upon unauthorized insurer.

40-2419

Chapter 40.--INSURANCE
Article 24.--REGULATION OF CERTAIN TRADE PRACTICES

      40-2419.   Same; service upon unauthorized insurer.Any of the following acts in this state, effected by mail or in anyother manner, by any such unauthorized foreign or alien insurer:

      (1)   The issuance or delivery of contracts or certificates ofinsurance to residents of this state;

      (2)   the solicitation of applications for such contracts orcertificates of insurance;

      (3)   the collection of premiums, whether paid by an employee or anemployer or by any other person, membership fees, assessments or otherconsiderations for such contracts or certificates of insurance; or

      (4)   any other transaction of insurance business, is equivalent toand shall constitute an appointment by such insurer of the commissionerand his successor or successors in office, to be its true and lawfulattorney, upon whom may be served all statements of charges, notices andlawful process in any proceeding instituted in respect to themisrepresentations set forth in K.S.A. 40-2417 under theprovisions of the unfair trade practice law, or in any action, suit orproceeding for the recovery of any penalty therein provided, and anysuch act shall be signification of its agreement that such service ofstatement of charges, notices or process is of the same legal force andvalidity as personal service of such statement of charges, notices orprocess in this state, upon such insurer.

      Service of a statement of charges and notices under said unfair tradepractice law shall be made by any deputy or employee of the insurancedepartment delivering to and leaving with the commissioner or someperson in apparent charge of his office, two (2) copies thereof. Serviceof process issued by any court in any action, suit or proceeding tocollect any penalty under said act provided, shall be made by deliveringand leaving with the commissioner, or some person in apparent charge ofhis office, two (2) copies thereof. The commissioners shall forthwithcause to be mailed by registered mail one of the copies of suchstatement of charges, notices or process to the defendant at its lastknown principal place of business, and shall keep a record of allstatements of charges, notices and process so served. Such service ofstatement of charges, notices or process shall be sufficient providedthey shall have been so mailed and the defendant's receipt or receiptissued by the post office with which the letter is registered, showingthe name of the sender of the letter and the name and address of theperson to whom the letter is addressed, and the affidavit of the personmailing such letter showing a compliance herewith are filed with thecommissioner in the case of any statement of charges or notices, or withthe clerk of the court in which such action is pending in the case ofany process, on or before the date the defendant is required to appearor within such further time as may be allowed.

      Service of statement of charges, notices and process in any suchproceeding, action or suit shall in addition to the manner provided inthis section be valid if served upon any person within this state who onbehalf of such insurer is (1) soliciting insurance, or (2) making,issuing or delivering any contract or certificate of insurance, or (3)collecting or receiving in this state any premium for insurance; and acopy of such statement of charges, notices or process is sent within ten(10) days thereafter by registered mail by or on behalf of thecommissioner to the defendant at the last known principal place ofbusiness of the defendant, and the defendant's receipt, or the receiptissued by the post office with which the letter is registered, showingthe name of the sender of the letter, the name and address of the personto whom the letter is addressed, and the affidavit of the person mailingthe same showing a compliance herewith, are filed with the commissionerin the case of any statement of charges or notices, or with the clerk ofthe court in which such action is pending in the case of any process, onor before the date the defendant is required to appear or within suchfurther time as the court may allow.

      No cease or desist order or judgment by default under this sectionshall be entered until the expiration of thirty (30) days from the dateof the filing of the affidavit of compliance.

      Service of process and notice under the provisions of this act shallbe in addition to all other methods of service provided by law, andnothing in this act shall limit or prohibit the right to serve anystatement of charges, notices or process upon any insurer in any othermanner now or hereafter permitted by law.

      History:   L. 1963, ch. 265, § 5; July 1.