40-447. Payment of life insurance proceeds; interest required to be paid, when.
40-447
40-447. Payment of life insurance proceeds; interest required to be paid, when.(a) Notwithstanding any other provision of law, each insurer admitted totransact life insurance in the state of Kansas which fails or refuses topay the proceeds of, or payments under, any policy of life insurance issuedby it within 10 days after the date of receipt of dueproof of death in themanner and form requested by the policy, shall pay interest on any moneyspayable and unpaid after the expiration of such 10-dayperiod at an annualrate of not less than the current rate of interest on death proceeds lefton deposit with the insurer plus 1% computed from the date of said receipt.
(b) Nothing in this section shall be construed to allow any insurer admittedto transact life insurance in this state to withhold payment of money payableunder a life insurance policy to any beneficiary for a period longer thanreasonably necessary to transmit such payment.
(c) In any case in which interest on the proceeds of, or payments under,any policy of life insurance becomes payable pursuant to subsection (a),the insurer shall notify the named beneficiary or beneficiaries at theirlast known address that interest will be paid on the proceeds of, or paymentsunder, such policy from the date of receipt of due proof of death ofthe named insured. Such noticeshall specify the rate of interest to be paid.
(d) This section shall not require the payment of interest in any casein which the beneficiary elects in writing delivered to the insurer to receivethe proceeds of, or payments under, the policy by any means other than alump sum payment thereof.
(e) The commissioner of insurance may adopt such rules and regulationsnecessary to provide for the enforcement and administration of this act.
History: L. 1977, ch. 155, § 1;L. 1987, ch. 164, § 1; July 1.