Session of 1999
         
HOUSE BILL No. 2091
         
By Committee on Insurance
          
1-21
          
  9             AN  ACT concerning motor vehicle insurance; relating to failure to main-
10             tain financial security; amending K.S.A. 40-3107 and K.S.A. 1998
11             Supp. 40-3104 and 40-3118 and repealing the existing sections.
12      
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. K.S.A. 40-3107 is hereby amended to read as follows: 40-
15       3107. Every policy of motor vehicle liability insurance issued by an insurer
16       to an owner residing in this state shall:
17             (a) Designate by explicit description or by appropriate reference of
18       all vehicles with respect to which coverage is to be granted;
19             (b) insure the person named and any other person, as insured, using
20       any such vehicle with the expressed or implied consent of such named
21       insured, against loss from the liability imposed by law for damages arising
22       out of the ownership, maintenance or use of any such vehicle within the
23       United States of America or the Dominion of Canada, subject to the limits
24       stated in such policy;
25             (c) state the name and address of the named insured, the coverage
26       afforded by the policy, the premium charged and the policy period;
27             (d) contain an agreement or be endorsed that insurance is provided
28       in accordance with the coverage required by this act;
29             (e) contain stated limits of liability, exclusive of interest and costs,
30       with respect to each vehicle for which coverage is granted, not less than
31       $25,000 because of bodily injury to, or death of, one person in any one
32       accident and, subject to the limit for one person, to a limit of not less
33       than $50,000 because of bodily injury to, or death of, two or more persons
34       in any one accident, and to a limit of not less than $10,000 because of
35       harm to or destruction of property of others in any one accident;
36             (f) include personal injury protection benefits to the named insured,
37       relatives residing in the same household, persons operating the insured
38       motor vehicle, passengers in such motor vehicle and other persons struck
39       by such motor vehicle and suffering bodily injury while not an occupant
40       of a motor vehicle, not exceeding the limits prescribed for each of such
41       benefits, for loss sustained by any such person as a result of injury. The
42       owner of a motorcycle, as defined by K.S.A. 8-1438 and amendments
43       thereto or motor-driven cycle, defined by K.S.A. 8-1439 and amendments

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  1       thereto, who is the named insured, shall have the right to reject in writing
  2       insurance coverage including such benefits for injury to a person which
  3       occurs while the named insured is operating or is a passenger on such
  4       motorcycle or motor-driven cycle; and unless the named insured requests
  5       such coverage in writing, such coverage need not be provided in or sup-
  6       plemental to a renewal policy when the named insured has rejected the
  7       coverage in connection with a policy previously issued by the same in-
  8       surer. The fact that the insured has rejected such coverage shall not cause
  9       such motorcycle or motor-driven cycle to be an uninsured motor vehicle;
10             (g) notwithstanding any omitted or inconsistent language, any con-
11       tract of insurance which an insurer represents as or which purports to be
12       a motor vehicle liability insurance policy meeting the requirements of this
13       act shall be construed to obligate the insurer to meet all the mandatory
14       requirements and obligations of this act;
15             (h) notwithstanding any other provision contained in this section, any
16       insurer may exclude coverage required by subsections (a), (b), (c) and (d)
17       of this section while any insured vehicles are:
18             (1) Rented to others or used to carry persons for a charge, however,
19       such exclusion shall not apply to the use of a private passenger car on a
20       share the expense basis;
21             (2) being repaired, serviced or used by any person employed or en-
22       gaged in any way in the automobile business. This does not apply to the
23       named insured, spouse or relative residents; or the agents, employers,
24       employees or partners of the named insured, spouse or resident relative;
25       and
26             (i) in addition to the provisions of subsection (h) and notwithstanding
27       any other provision contained in subsections (a), (b), (c) and (d) of this
28       section, any insurer may exclude coverage:
29             (1) For any damages for which the United States government might
30       be liable for the insured's use of the vehicle;
31             (2) for any damages to property owned by, rented to, or in charge of
32       or transported by an insured, however, this exclusion shall not apply to
33       coverage for a rented residence or rented private garage;
34             (3) for any obligation of an insured, or the insured's insurer under
35       any type of workers' compensation or disability or similar law;
36             (4) for liability assumed by an insured under any contract or
37       agreement;
38             (5) if two or more vehicle liability policies apply to the same accident,
39       the total limits of liability under all such policies shall not exceed that of
40       the policy with the highest limit of liability;
41             (6) for any damages arising from an intentional act;
42             (7) for any damages to any person who would be covered for such
43       damages under a nuclear energy liability policy;

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  1             (8) for any obligation of the insured to indemnify another for damages
  2       resulting from bodily injury to the insured's employee by accident arising
  3       out of and in the course of such employee's employment;
  4             (9) for bodily injury to any fellow employee of the insured arising out
  5       of and in the course of such employee's employment;
  6             (10) for bodily injury or property damage resulting from the handling
  7       of property:
  8             (A) Before it is moved from the place where it is accepted by the
  9       insured for movement into or onto the covered auto; or
10             (B) after it is moved from the covered auto to the place where it is
11       finally delivered by the insured;
12             (11) for bodily injury or property damage resulting from the move-
13       ment of property by a mechanical device, other than a hand truck, not
14       attached to the covered auto; and
15             (12) for bodily injury or property damage caused by the dumping,
16       discharge or escape of irritants, pollutants or contaminants; however, this
17       exclusion does not apply if the discharge is sudden and accidental.
18             (j) In addition to the mandatory policy contents and coverages re-
19       quired by this section, every insurer shall be required to offer to any
20       applicant for a motor vehicle insurance policy which contains collision
21       damage coverage a zero deductible option. A "zero deductible" is a pro-
22       vision which waives the insured's deductible where the collision damage
23       is caused by an uninsured motorist.
24             Sec.  2. K.S.A. 1998 Supp. 40-3104 is hereby amended to read as
25       follows: 40-3104. (a) Every owner shall provide motor vehicle liability
26       insurance coverage in accordance with the provisions of this act for every
27       motor vehicle owned by such person, unless such motor vehicle: (1) Is
28       included under an approved self-insurance plan as provided in subsection
29       (f); (2) is used as a driver training motor vehicle, as defined in K.S.A. 72-
30       5015, and amendments thereto, in an approved driver training course by
31       a school district or an accredited nonpublic school under an agreement
32       with a motor vehicle dealer, and such motor vehicle liability insurance
33       coverage is provided by the school district or accredited nonpublic school;
34       (3) is included under a qualified plan of self-insurance approved by an
35       agency of the state in which such motor vehicle is registered and the form
36       prescribed in subsection (b) of K.S.A. 40-3106, and amendments thereto,
37       has been filed; or (4) is expressly exempted from the provisions of this
38       act.
39             (b) An owner of an uninsured motor vehicle shall not permit the
40       operation thereof upon a highway or upon property open to use by the
41       public, unless such motor vehicle is expressly exempted from the provi-
42       sions of this act.
43             (c) No person shall knowingly drive an uninsured motor vehicle upon

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  1       a highway or upon property open to use by the public, unless such motor
  2       vehicle is expressly exempted from the provisions of this act.
  3             (d) Any person operating a motor vehicle upon a highway or upon
  4       property open to use by the public shall display, upon demand, evidence
  5       of financial security to a law enforcement officer. The law enforcement
  6       officer shall issue a citation to any person who fails to display evidence of
  7       financial security upon such demand. The law enforcement officer shall
  8       attach a copy of the insurance verification form prescribed by the secre-
  9       tary of revenue to the copy of the citation forwarded to the court.
10             No citation shall be issued to any person for failure to provide proof of
11       financial security when evidence of financial security meeting the stan-
12       dards of subsection (e) is displayed upon demand of a law enforcement
13       officer. Whenever the authenticity of such evidence is questionable, the
14       law enforcement officer may initiate the preparation of the insurance
15       verification form prescribed by the secretary of revenue by recording
16       information from the evidence of financial security displayed. The officer
17       shall immediately forward the form to the department of revenue, and
18       the department shall proceed with verification in the manner prescribed
19       in the following paragraph. Upon return of a form indicating that insur-
20       ance was not in force on the date indicated on the form, the department
21       shall immediately forward a copy of the form to the law enforcement
22       officer initiating preparation of the form.
23             (e) Unless the insurance company subsequently submits an insurance
24       verification form indicating that insurance was not in force, no person
25       charged with violating subsections (b), (c) or (d) shall be convicted if such
26       person produces in court, within 10 days of the date of arrest or of issu-
27       ance of the citation, evidence of financial security for the motor vehicle
28       operated, which was valid at the time of arrest or of issuance of the ci-
29       tation. For the purpose of this subsection, evidence of financial security
30       shall be provided by a policy of motor vehicle liability insurance, an iden-
31       tification card or certificate of insurance issued to the policyholder by the
32       insurer which provides the name of the insurer, the policy number and
33       the effective and expiration dates of the policy, or a certificate of self-
34       insurance signed by the commissioner of insurance. Upon the production
35       in court of evidence of financial security, the court shall record the in-
36       formation displayed thereon on the insurance verification form prescribed
37       by the secretary of revenue, immediately forward such form to the de-
38       partment of revenue, and stay any further proceedings on the matter
39       pending a request from the prosecuting attorney that the matter be set
40       for trial. Upon receipt of such form the department shall mail the form
41       to the named insurance company for verification that insurance was in
42       force on the date indicated on the form. It shall be the duty of insurance
43       companies to notify the department within 30 calendar days of the receipt

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  1       of such forms of any insurance that was not in force on the date specified.
  2       Upon return of any form to the department indicating that insurance was
  3       not in force on such date, the department shall immediately forward a
  4       copy of such form to the office of the prosecuting attorney or the city
  5       clerk of the municipality in which such prosecution is pending when the
  6       prosecuting attorney is not ascertainable. Receipt of any completed form
  7       indicating that insurance was not in effect on the date specified shall be
  8       prima facie evidence of failure to provide proof of financial security and
  9       violation of this section. A request that the matter be set for trial shall be
10       made immediately following the receipt by the prosecuting attorney of a
11       copy of the form from the department of revenue indicating that insur-
12       ance was not in force. Any charge of violating subsection (b), (c) or (d)
13       shall be dismissed if no request for a trial setting has been made within
14       60 days of the date evidence of financial security was produced in court.
15             (f) Any person in whose name more than 25 motor vehicles are reg-
16       istered in Kansas may qualify as a self-insurer by obtaining a certificate
17       of self-insurance from the commissioner of insurance. The certificate of
18       self-insurance issued by the commissioner shall cover such owned vehi-
19       cles and those vehicles, registered in Kansas, leased to such person if the
20       lease agreement requires that motor vehicle liability insurance on the
21       vehicles be provided by the lessee. Upon application of any such person,
22       the commissioner of insurance may issue a certificate of self-insurance,
23       if the commissioner is satisfied that such person is possessed and will
24       continue to be possessed of ability to pay any liability imposed by law
25       against such person arising out of the ownership, operation, maintenance
26       or use of any motor vehicle described in this subsection. A self-insurer
27       shall provide liability coverage subject to the provisions of subsection (e)
28       of K.S.A. 40-3107, and amendments thereto, arising out of the ownership,
29       operation, maintenance or use of a self-insured motor vehicle in those
30       instances where the lessee or the rental driver, if not the lessee, does not
31       have a motor vehicle liability insurance policy or insurance coverage pur-
32       suant to a motor vehicle liability insurance policy or certificate of insur-
33       ance or such insurance policy for such leased or rented vehicle. Such
34       liability coverage shall be provided to any person operating a self-insured
35       motor vehicle with the expressed or implied consent of the self-insurer.
36             Upon notice and a hearing in accordance with the provisions of the
37       Kansas administrative procedure act, the commissioner of insurance may
38       cancel a certificate of self-insurance upon reasonable grounds. Failure to
39       provide liability coverage or personal injury protection benefits required
40       by K.S.A. 40-3107 and 40-3109, and amendments thereto, or pay any
41       liability imposed by law arising out of the ownership, operation, mainte-
42       nance or use of a motor vehicle registered in such self-insurer's name, or
43       to otherwise comply with the requirements of this subsection shall con-

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  1       stitute reasonable grounds for the cancellation of a certificate of self-
  2       insurance. Reasonable grounds shall not exist unless such objectionable
  3       activity occurs with such frequency as to indicate a general business
  4       practice.
  5             Self-insureds shall investigate claims in a reasonably prompt manner,
  6       handle such claims in a reasonable manner based on available information
  7       and effectuate prompt, fair and equitable settlement of claims in which
  8       liability has become reasonably clear.
  9             As used in this subsection, "liability imposed by law" means the stated
10       limits of liability as provided under subsection (e) of K.S.A. 40-3107, and
11       amendments thereto.
12             Nothing in this subsection shall preclude a self-insurer from pursuing
13       all rights of subrogation against another person or persons.
14             (g)  (1) Any person violating any provision of this section shall be
15       guilty of a class B A misdemeanor and shall be subject to a fine of not
16       less than $200 $500 nor more than $1,000 $2,500 or confinement in the
17       county jail for a term of not more than six months one year, or both such
18       fine and confinement.
19             (2) Any person convicted of violating any provision of this section
20       within three years of any such prior conviction shall be guilty of a class A
21       misdemeanor severity level 7, nonperson felony.
22             (h) In addition to any other penalties provided by this act for failure
23       to have or maintain financial security in effect, the director, upon receipt
24       of a report required by K.S.A. 8-1607 or 8-1611, and amendments
25       thereto, or a denial of such insurance by the insurance company listed on
26       the form prescribed by the secretary of revenue pursuant to subsection
27       (d) of this section, shall, upon notice and hearing as provided by K.S.A.
28       40-3118, and amendments thereto:
29             (1) Suspend:
30             (A) The license of each driver in any manner involved in the accident;
31             (B) the license of the owner of each motor vehicle involved in such
32       accident, unless the vehicle was stolen at the time of the accident, proof
33       of which must be established by the owner of the motor vehicle. Theft
34       by a member of the vehicle owner's immediate family under the age of
35       18 years shall not constitute a stolen vehicle for the purposes of this
36       section;
37             (C) if the driver is a nonresident, the privilege of operating a motor
38       vehicle within this state; or
39             (D) if such owner is a nonresident, the privilege of such owner to
40       operate or permit the operation within this state of any motor vehicle
41       owned by such owner; and
42             (2) revoke the registration of all vehicles owned by the owner of each
43       motor vehicle involved in such accident.

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  1             (i) The suspension or revocation requirements in subsection (h) shall
  2       not apply:
  3             (1) To the driver or owner if the owner had in effect at the time of
  4       the accident an automobile liability policy as required by K.S.A. 40-3107,
  5       and amendments thereto, with respect to the vehicle involved in the
  6       accident;
  7             (2) to the driver, if not the owner of the vehicle involved in the ac-
  8       cident, if there was in effect at the time of the accident an automobile
  9       liability policy with respect to such driver's driving of vehicles not owned
10       by such driver;
11             (3) to any self-insurer as defined by subsection (u) of K.S.A. 40-3103,
12       and amendments thereto;
13             (4) to the driver or owner of any vehicle involved in the accident
14       which was exempt from the provisions of this act pursuant to K.S.A. 40-
15       3105, and amendments thereto;
16             (5) to the owner of a vehicle described in subsection (a)(2).
17             (j) For the purposes of provisions (1) and (2) of subsection (i) of this
18       section, the director may require verification by an owner's or driver's
19       insurance company or agent thereof that there was in effect at the time
20       of the accident an automobile liability policy as required in this act.
21             Any suspension or revocation effected hereunder shall remain in effect
22       until satisfactory proof of financial security has been filed with the director
23       as required by subsection (d) of K.S.A. 40-3118, and amendments thereto,
24       and such person has been released from liability or is a party to an action
25       to determine liability pursuant to which the court temporarily stays such
26       suspension pending final disposition of such action, has entered into an
27       agreement for the payment of damages, or has been finally adjudicated
28       not to be liable in respect to such accident and evidence of any such fact
29       has been filed with the director and has paid the reinstatement fee herein
30       prescribed. Such reinstatement fee shall be $25 $250 except that if the
31       registration of a motor vehicle of any owner is revoked within one year
32       following a prior revocation of the registration of a motor vehicle of such
33       owner under the provisions of this act such fee shall be $75 $750.
34             (k) The provisions of this section shall not apply to motor carriers of
35       property or passengers regulated by the corporation commission of the
36       state of Kansas.
37             (l) The provisions of subsection (d) shall not apply to vehicle dealers,
38       as defined in K.S.A. 8-2401, and amendments thereto, for vehicles being
39       offered for sale by such dealers.
40             Sec.  3. K.S.A. 1998 Supp. 40-3118 is hereby amended to read as
41       follows: 40-3118. (a) No motor vehicle shall be registered or reregistered
42       in this state unless the owner, at the time of registration, has in effect a
43       policy of motor vehicle liability insurance covering such motor vehicle, as

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  1       provided in this act, or is a self-insurer thereof, or the motor vehicle is
  2       used as a driver training motor vehicle, as defined in K.S.A. 72-5015, and
  3       amendments thereto, in an approved driver training course by a school
  4       district or an accredited nonpublic school under an agreement with a
  5       motor vehicle dealer, and such policy of motor vehicle liability insurance
  6       is provided by the school district or accredited nonpublic school. As used
  7       in this section, the term "financial security" means such policy or self-
  8       insurance. The director shall require that the owner certify that the owner
  9       has such financial security, and the owner of each motor vehicle registered
10       in this state shall maintain financial security continuously throughout the
11       period of registration. When an owner certifies that such financial security
12       is a motor vehicle liability insurance policy meeting the requirements of
13       this act, the director may require that the owner or owner's insurance
14       company produce records to prove the fact that such insurance was in
15       effect at the time the vehicle was registered and has been maintained
16       continuously from that date. Failure to produce such records shall be
17       prima facie evidence that no financial security exists with regard to the
18       vehicle concerned. It shall be the duty of insurance companies, upon the
19       request of the director, to notify the director within 30 calendar days of
20       the date of the receipt of such request by the director of any insurance
21       that was not in effect on the date of registration and maintained contin-
22       uously from that date.
23             (b) Except as otherwise provided in K.S.A. 40-276, 40-276a and 40-
24       277, and amendments thereto, and except for termination of insurance
25       resulting from nonpayment of premium or upon the request for cancel-
26       lation by the insured, no motor vehicle liability insurance policy, or any
27       renewal thereof, shall be terminated by cancellation or failure to renew
28       by the insurer until at least 30 days after mailing a notice of termination,
29       by certified or registered mail or United States post office certificate of
30       mailing, to the named insured at the latest address filed with the insurer
31       by or on behalf of the insured. Time of the effective date and hour of
32       termination stated in the notice shall become the end of the policy period.
33       Every such notice of termination sent to the insured for any cause what-
34       soever shall include on the face of the notice a statement that financial
35       security for every motor vehicle covered by the policy is required to be
36       maintained continuously throughout the registration period, that the op-
37       eration of any such motor vehicle without maintaining continuous finan-
38       cial security therefor is a class B A misdemeanor and that the registration
39       for any such motor vehicle for which continuous financial security is not
40       provided is subject to suspension and the driver's license of the owner
41       thereof is subject to suspension.
42             (c) The director of vehicles shall verify a sufficient number of insur-
43       ance certifications each calendar year as the director deems necessary to

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  1       insure compliance with the provisions of this act. The owner or owner's
  2       insurance company shall verify the accuracy of any owner's certification
  3       upon request, as provided in subsection (a).
  4             (d) In addition to any other requirements of this act, the director shall
  5       require a person to acquire insurance and for such person's insurance
  6       company to maintain on file with the division evidence of such insurance
  7       for a period of one year when a person has been convicted in this or
  8       another state of any of the violations enumerated in K.S.A. 8-285, and
  9       amendments thereto.
10             The director shall also require any driver whose driving privileges have
11       been suspended pursuant to this section to maintain such evidence of
12       insurance as required above.
13             The company of the insured shall immediately mail notice to the di-
14       rector whenever any policy required by this subsection to be on file with
15       the division is terminated by the insured or the insurer for any reason.
16       The receipt by the director of such termination shall be prima facie evi-
17       dence that no financial security exists with regard to the person
18       concerned.
19             No cancellation notice shall be sent to the director if the insured adds
20       or deletes a vehicle, adds or deletes a driver, renews a policy or is issued
21       a new policy by the same company. No cancellation notice shall be sent
22       to the director prior to the date the policy is terminated if the company
23       allows a grace period for payment until such grace period has expired and
24       the policy is actually terminated.
25             For the purposes of this act, the term "conviction" includes pleading
26       guilty or nolo contendere, being convicted or being found guilty of any
27       violation enumerated in this subsection without regard to whether sen-
28       tence was suspended or probation granted. A forfeiture of bail, bond or
29       collateral deposited to secure a defendant's appearance in court, which
30       forfeiture has not been vacated, shall be equivalent to a conviction.
31             The requirements of this subsection shall apply whether or not such
32       person owns a motor vehicle.
33             (e) Whenever the director shall receive prima facie evidence, as pre-
34       scribed by this section, that continuous financial security covering any
35       motor vehicle registered in this state is not in effect, the director shall
36       notify the owner by registered or certified mail or United States post
37       office certificate of mailing that, at the end of 30 days after the notice is
38       mailed, the registration for such motor vehicle and the driving privileges
39       of the owner of the vehicle shall be suspended or revoked, pursuant to
40       such rules and regulations as the secretary of revenue shall adopt, unless
41       within 10 days after the notice is mailed: (1) Such owner shall demonstrate
42       proof of continuous financial security covering such vehicle to the satis-
43       faction of the director; or (2) such owner shall mail a written request

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  1       which is postmarked within 10 days after the notice is mailed requesting
  2       a hearing with the director. Upon receipt of a timely request for a hearing,
  3       the director shall afford such person an opportunity for hearing within
  4       the time and in the manner provided in K.S.A. 8-255 and amendments
  5       thereto. If, within the ten-day period or at the hearing, such owner is
  6       unable to demonstrate proof of continuous financial security covering the
  7       motor vehicle in question, the director shall revoke the registration of
  8       such motor vehicle and suspend the driving privileges of the owner of
  9       the vehicle.
10             (f) Whenever the registration of a motor vehicle or the driving priv-
11       ileges of the owner of the vehicle are suspended or revoked for failure of
12       the owner to maintain continuous financial security, such suspension or
13       revocation shall remain in effect until satisfactory proof of insurance has
14       been filed with the director as required by subsection (d) and a reinstate-
15       ment fee in the amount herein prescribed is paid to the division of ve-
16       hicles. Such reinstatement fee shall be in the amount of $25 $250 except
17       that if the registration of a motor vehicle of any owner is revoked within
18       one year following a prior revocation of the registration of a motor vehicle
19       of such owner under the provisions of this act such fee shall be in the
20       amount of $75 $750. The division of vehicles shall, at least monthly, de-
21       posit such fees with the state treasurer, who shall credit such moneys to
22       the state highway fund.
23             (g) In no case shall any motor vehicle, the registration of which has
24       been revoked for failure to have continuous financial security, be rere-
25       gistered in the name of the owner thereof, the owner's spouse, parent or
26       child or any member of the same household, until the owner complies
27       with subsection (f). In the event the registration plate has expired, no new
28       plate shall be issued until the motor vehicle owner complies with the
29       reinstatement requirements as required by this act.
30             (h) Evidence that an owner of a motor vehicle, registered or required
31       to be registered in this state, has operated or permitted such motor ve-
32       hicle to be operated in this state without having in force and effect the
33       financial security required by this act for such vehicle, together with proof
34       of records of the division of vehicles indicating that the owner did not
35       have such financial security, shall be prima facie evidence that the owner
36       did at the time and place alleged, operate or permit such motor vehicle
37       to be operated without having in full force and effect financial security
38       required by the provisions of this act.
39             (i) Any owner of a motor vehicle registered or required to be regis-
40       tered in this state who shall make a false certification concerning financial
41       security for the operation of such motor vehicle as required by this act,
42       shall be guilty of a class A misdemeanor. Any person, firm or corporation
43       giving false information to the director concerning another's financial se-

HB 2091

11

  1       curity for the operation of a motor vehicle registered or required to be
  2       registered in this state, knowing or having reason to believe that such
  3       information is false, shall be guilty of a class A misdemeanor.
  4             (j) The director shall administer and enforce the provisions of this act
  5       relating to the registration of motor vehicles, and the secretary of revenue
  6       shall adopt such rules and regulations as may be necessary for its
  7       administration.
  8             (k) Whenever any person has made application for insurance cover-
  9       age and such applicant has submitted payment or partial payment with
10       such application, the insurance company, if payment accompanied the
11       application and if insurance coverage is denied, shall refund the unearned
12       portion of the payment to the applicant or agent with the notice of denial
13       of coverage. If payment did not accompany the application to the insur-
14       ance company but was made to the agent, the agent shall refund the
15       unearned portion of the payment to the applicant upon receipt of the
16       company's notice of denial.
17             (l) For the purpose of this act, "declination of insurance coverage"
18       means a final denial, in whole or in part, by an insurance company or
19       agent of requested insurance coverage. 
20       Sec.  4. K.S.A. 40-3107 and K.S.A. 1998 Supp. 40-3104 and 40-3118
21       are hereby repealed.
22        Sec.  5. This act shall take effect and be in force from and after its
23       publication in the statute book.