KANSAS INSURANCE DEPARTMENT
K.A.R. 40-3-6. Fire and casualty
insurance; rates and forms; unfair discrimination; fictitious
classification prohibited. (a) Each No insurer writing Kansas risks
shall not write fire, casualty, inland marine, or surety coverages
coverage upon any firm, corporation, individual, or association of
individuals at any preferred rate, coverage, or premium based on any fictitious
grouping or classification of risks.
(b) Each
insurer shall not pay dividends nor distribute profits to insureds belonging to
any fictitious group or classification on a basis that is more favorable than
if they were insured individually.
(c) A fictitious
grouping or classification of risks means shall mean risks
which do not that meet the following conditions:
(1)
accord Are inconsistent
with the classification or grouping of risks recognized by an insurer's
approved rate and policy form filings for individual risks;
(2) do not possess the necessary homogeneous characteristics for group rating and classification; and
(3) do not
comply with the provisions of the Kansas insurance code. (Authorized by K.S.A.
40-103, 40- 2404a 40-961; implementing K.S.A. 40-927, 40-941,
40-1112, 40-1122, 40-2404, 40-1113, 40-928 40-953, 40-954; effective
Jan. 1, 1966; amended Jan. 1, 1967; amended May 1, 1979; amended May 1, 1986; amended P-___________________.)