40-2705. Deposit of bond or procurement of certificate by unauthorized insurer before pleading in action; continuance; setting aside service.
40-2705
40-2705. Deposit of bond or procurement of certificate by unauthorizedinsurer before pleading in action; continuance; setting aside service.(a) Before any unauthorized insurer files or causes to be filed any pleading inany court action, suit or proceeding, or any notice, order, pleading or processin an administrative proceeding before the commissioner of insurance,instituted against such person or insurer by services made as provided inK.S.A. 40-2704, and amendments thereto, such insurer shall either:
(1) Deposit with the clerk of the court in which such action, suit orproceeding is pending, or with the commissioner of insurance in administrativeproceedings before the commissioner, cash or securities, or file with suchclerk or commissioner a bond with good and sufficient sureties, to be approvedby the judge or commissioner of insurance, respectively, in an amount to befixed by the court or commissioner, as the case may be, sufficient to securethe payment of any final judgment which may be rendered in such action oradministrative proceeding; or
(2) Procure a certificate of authority to transact the business of insurancein this state. In considering the application of an insurer for a certificateof authority, for the purposes of this paragraph, the commissioner of insuranceneed not assert the provisions of K.S.A. 40-253, and amendments thereto,against such insurer with respect to its application, if the commissionerdetermines that such company would otherwise comply with the requirements forsuch certificate of authority.
(b) The commissioner of insurance, in any administrative proceeding in whichservice is made as provided in K.S.A. 40-2704, and amendments thereto, in thecommissioner's discretion, may order such postponement as may be necessary toafford the defendant reasonable opportunity to comply with the provisions ofsubsection (a) and to defend such action.
(c) Nothing in subsection (a) shall be construed to prevent an unauthorizedinsurer from filing a motion to quash a writ or to set aside service thereof,made in the manner provided in K.S.A. 40-2704, and amendments thereto, on thegrounds that such unauthorized insurer has not done any of the acts enumeratedin K.S.A. 40-2702, and amendments thereto.
History: L. 1969, ch. 240, § 5; L. 1992, ch. 314, § 6; July 1.