40-3610. Same; persons required to cooperate with commissioner; definitions; civil and criminal penalties and supervision or revocation of licenses for failure to cooperate or obstruction or interfere

40-3610

Chapter 40.--INSURANCE
Article 36.--IMPAIRED OR INSOLVENT INSURERS

      40-3610.   Same; persons required to cooperate with commissioner;definitions; civil and criminal penalties and supervision or revocation oflicenses for failure to cooperate or obstruction or interference withcommissioner.(a) Any officer, manager, director, trustee, owner, employee oragent of any insurer, or any other persons with authority over or in charge ofany segment of the insurer's affairs, shall cooperate with the commissioner inany proceeding under this act or any investigation preliminary to theproceeding. The term "person" as used in this section, shall include anyperson who exercises control directly or indirectly over activities of theinsurer through any holding company or other affiliate of the insurer. "Tocooperate" shall include, but shall not be limited to, the following:

      (1)   To reply promptly in writing to any inquiry from the commissionerrequesting such a reply; and

      (2)   to make available to the commissioner any books, accounts, documents orother records or information or property of or pertaining to the insurer and inthe insurer's possession, custody or control.

      (b)   No person shall obstruct or interfere with the commissioner in theconduct of any delinquency proceeding or any investigation preliminary orincidental thereto.

      (c)   This section shall not be construed to abridge otherwise existing legalrights, including the right to resist a petition for liquidation or otherdelinquency proceedings, or other orders.

      (d)   Any person included within subsection (a) who fails to cooperate withthe commissioner, or any person who obstructs or interferes with thecommissioner in the conduct of any delinquency proceeding or any investigationpreliminary or incidental thereto, or who violates any order the commissionerissued validly under this act may:

      (1)   Be sentenced to pay a fine not exceeding $10,000 or to imprisonment fora term of not more than one year, or both; or

      (2)   after a hearing held in accordance with the Kansas administrativeprocedure act, be subject to the imposition by the commissioner of a civilpenalty not to exceed $10,000 and shall be subject further to the revocation orsuspension of any insurance licenses issued by the commissioner.

      History:   L. 1991, ch. 125, § 6; July 1.