Kansas
Insurance Department
K.A.R. 40-3-25. Same; writing of risks rated
differently from normal market; requirements. (a) As
used in this regulation, “normal market” shall mean insurance
companies that sell policies to preferred or standard risks. Preferred or standard risks are applicants or
policyholders who qualify for coverage at favorable premiums due to their
underwriting characteristics.
(b) Each
company issuing a fire and casualty insurance policy in this state with a
premium rate that results from the insured's inability to obtain coverage in
the normal market shall include a statement on the application or policy form,
signed by the applicant or named insured, that contains the following statements,
as applicable, or statements with similar wording:
(1) “I
am unable to obtain _______________________________ (state kind) insurance at
normal rates and hereby request the issuance of this policy at rates in excess
of normal rates.”
(2) “I
have been unable to procure similar insurance at normal rates although my risk
has been submitted to at least three other insurance companies authorized to
transact insurance business in Kansas.”
(3) For
automobile liability insurance, the statements in the following paragraphs
shall be included:
(A) “(1)
I have been unable to procure similar insurance at normal rates, or (2) I have
been unable to procure similar insurance at normal rates because my previous
insurance company nonrenewed or canceled my insurance.”
(B) “I understand that liability limits
sufficient to meet the financial responsibility requirements of the state may
be available through the Kansas automobile insurance plan.” The preceding statement
shall not apply if the policy is issued through the Kansas automobile insurance
plan.
(4) For
workers compensation and employers' liability insurance, the following
statement shall be included: “I understand that I may obtain workers
compensation and employers liability insurance through the Kansas workers compensation
insurance plan.” The preceding statement shall not apply if the policy is
issued through the Kansas workers compensation insurance plan.
(5) For fire and extended coverage insurance,
the following statement shall be included: “I understand that I may be able to obtain
adequate fire and extended coverage insurance through the Kansas all-industry
placement facility.” The preceding statement shall not apply if the policy is
issued through the Kansas all-industry placement facility.
(6) For a health care provider required
to comply with K.S.A. 40-3402 and amendments thereto, the following statement
shall be included: “I understand that I
may be able to obtain adequate basic professional liability coverage through
the