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Session of 2000
          HOUSE BILL No. 2640           By Committee on Governmental Organization and Elections           1-19          

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  9             AN  ACT amending the Kansas automobile injury reparations act; amend-
10             ing K.S.A. 1999 Supp. 40-3118 and repealing the existing section.
11      
12       Be it enacted by the Legislature of the State of Kansas:
13             Section  1. K.S.A. 1999 Supp. 40-3118 is hereby amended to read as
14       follows: 40-3118. (a) No motor vehicle shall be registered or reregistered
15       in this state unless the owner, at the time of registration, has in effect a
16       policy of motor vehicle liability insurance covering such motor vehicle, as
17       provided in this act, or is a self-insurer thereof, or the motor vehicle is
18       used as a driver training motor vehicle, as defined in K.S.A. 72-5015, and
19       amendments thereto, in an approved driver training course by a school
20       district or an accredited nonpublic school under an agreement with a
21       motor vehicle dealer, and such policy of motor vehicle liability insurance
22       is provided by the school district or accredited nonpublic school. As used
23       in this section, the term "financial security" means such policy or self-
24       insurance. The director shall require that the owner certify and provide
25       verification of financial security, in the manner prescribed by K.S.A. 8-
26       173, and amendments thereto, that the owner has such financial security,
27       and the owner of each motor vehicle registered in this state shall maintain
28       financial security continuously throughout the period of registration. In
29       addition, when an owner certifies that such financial security is a motor
30       vehicle liability insurance policy meeting the requirements of this act, the
31       director may require that the owner or owner's insurance company pro-
32       duce records to prove the fact that such insurance was in effect at the
33       time the vehicle was registered and has been maintained continuously
34       from that date. Failure to produce such records shall be prima facie ev-
35       idence that no financial security exists with regard to the vehicle con-
36       cerned. It shall be the duty of insurance companies, upon the request of
37       the director, to notify the director within 30 calendar days of the date of
38       the receipt of such request by the director of any insurance that was not
39       in effect on the date of registration and maintained continuously from
40       that date.
41             (b) Except as otherwise provided in K.S.A. 40-276, 40-276a and 40-
42       277, and amendments thereto, and except for termination of insurance
43       resulting from nonpayment of premium or upon the request for cancel-

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  1       lation by the insured, no motor vehicle liability insurance policy, or any
  2       renewal thereof, shall be terminated by cancellation or failure to renew
  3       by the insurer until at least 30 days after mailing a notice of termination,
  4       by certified or registered mail or United States post office certificate of
  5       mailing, to the named insured at the latest address filed with the insurer
  6       by or on behalf of the insured. Time of the effective date and hour of
  7       termination stated in the notice shall become the end of the policy period.
  8       Every such notice of termination sent to the insured for any cause what-
  9       soever shall include on the face of the notice a statement that financial
10       security for every motor vehicle covered by the policy is required to be
11       maintained continuously throughout the registration period, that the op-
12       eration of any such motor vehicle without maintaining continuous finan-
13       cial security therefor is a class B misdemeanor and shall be subject to a
14       fine of not less than $300 and not more than $1,000 and that the regis-
15       tration for any such motor vehicle for which continuous financial security
16       is not provided is subject to suspension and the driver's license of the
17       owner thereof is subject to suspension.
18             (c) The director of vehicles shall verify a sufficient number of insur-
19       ance certifications at least 20% of the persons required to maintain evi-
20       dence of insurance under subsection (d), each calendar year as the director
21       deems necessary to insure compliance with the provisions of this act. The
22       owner or owner's insurance company shall verify the accuracy of any
23       owner's certification upon request, as provided in subsection (a).
24             (d) In addition to any other requirements of this act,:
25             (1) The director shall require a person to acquire insurance and for
26       such person's insurance company to maintain on file with the division
27       evidence of such insurance for a period of one year five years when a
28       person has been convicted in this or another state of any of the violations
29       enumerated in K.S.A. 8-285, and amendments thereto.
30             The director shall also require any driver whose driving privileges have
31       been suspended pursuant to this section to maintain such evidence of
32       insurance as required above.
33             The company of the insured shall immediately mail notice to the di-
34       rector whenever any policy required by this subsection to be on file with
35       the division is terminated by the insured or the insurer for any reason.
36       The receipt by the director of such termination shall be prima facie evi-
37       dence that no financial security exists with regard to the person
38       concerned.
39             No cancellation notice shall be sent to the director if the insured adds
40       or deletes a vehicle, adds or deletes a driver, renews a policy or is issued
41       a new policy by the same company. No cancellation notice shall be sent
42       to the director prior to the date the policy is terminated if the company
43       allows a grace period for payment until such grace period has expired and

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  1       the policy is actually terminated.;
  2             (2) any person convicted of violating K.S.A. 40-3104, and amend-
  3       ments thereto, or an ordinance of any city in this state, which is in sub-
  4       stantial conformity with such statute, within three years of any such prior
  5       conviction shall also be required by the director to acquire an insurance
  6       policy which:
  7             (A) Is issued for a period of at least six months;
  8             (B) meets the minimum coverages required by this act; and
  9             (C) is not cancelable by the insured for any reason.
10             The insurer shall be subject to the provisions of K.S.A. 40-276 through
11       40-278, and amendments thereto;
12             (3) any person convicted of violating K.S.A. 40-3104, and amend-
13       ments thereto, or an ordinance of any city in this state, which is in sub-
14       stantial conformity with such statute three times within the immediately
15       preceding five years shall be prohibited from registering any motor vehicle
16       owned by such person under the provisions of K.S.A. 8-127, et seq., and
17       amendments thereto.
18             For the purposes of this act, the term "conviction" includes pleading
19       guilty or nolo contendere, being convicted or being found guilty of any
20       violation enumerated in this subsection without regard to whether sen-
21       tence was suspended or probation granted. A forfeiture of bail, bond or
22       collateral deposited to secure a defendant's appearance in court, which
23       forfeiture has not been vacated, shall be equivalent to a conviction.
24             The requirements of this subsection shall apply whether or not such
25       person owns a motor vehicle.
26             (e) Whenever the director shall receive prima facie evidence, as pre-
27       scribed by this section, that continuous financial security covering any
28       motor vehicle registered in this state is not in effect, the director shall
29       notify the owner by registered or certified mail or United States post
30       office certificate of mailing that, at the end of 30 days after the notice is
31       mailed, the registration for such motor vehicle and the driving privileges
32       of the owner of the vehicle shall be suspended or revoked, pursuant to
33       such rules and regulations as the secretary of revenue shall adopt, unless
34       within 10 days after the notice is mailed: (1) Such owner shall demonstrate
35       proof of continuous financial security covering such vehicle to the satis-
36       faction of the director; or (2) such owner shall mail a written request
37       which is postmarked within 10 days after the notice is mailed requesting
38       a hearing with the director. Upon receipt of a timely request for a hearing,
39       the director shall afford such person an opportunity for hearing within
40       the time and in the manner provided in K.S.A. 8-255 and amendments
41       thereto. If, within the ten-day period or at the hearing, such owner is
42       unable to demonstrate proof of continuous financial security covering the
43       motor vehicle in question, the director shall revoke the registration of

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  1       such motor vehicle and suspend the driving privileges of the owner of
  2       the vehicle.
  3             (f) Whenever the registration of a motor vehicle or the driving priv-
  4       ileges of the owner of the vehicle are suspended or revoked for failure of
  5       the owner to maintain continuous financial security, such suspension or
  6       revocation shall remain in effect until satisfactory proof of insurance has
  7       been filed with the director as required by subsection (d) and a reinstate-
  8       ment fee in the amount herein prescribed is paid to the division of ve-
  9       hicles. Such reinstatement fee shall be in the amount of $100 except that
10       if the registration of a motor vehicle of any owner is revoked within one
11       year following a prior revocation of the registration of a motor vehicle of
12       such owner under the provisions of this act such fee shall be in the amount
13       of $300. The division of vehicles shall, at least monthly, deposit such fees
14       with the state treasurer, who shall credit such moneys to the state highway
15       fund.
16             (g) In no case shall any motor vehicle, the registration of which has
17       been revoked for failure to have continuous financial security, be rere-
18       gistered in the name of the owner thereof, the owner's spouse, parent or
19       child or any member of the same household, until the owner complies
20       with subsection (f). In the event the registration plate has expired, no new
21       plate shall be issued until the motor vehicle owner complies with the
22       reinstatement requirements as required by this act.
23             (h) Evidence that an owner of a motor vehicle, registered or required
24       to be registered in this state, has operated or permitted such motor ve-
25       hicle to be operated in this state without having in force and effect the
26       financial security required by this act for such vehicle, together with proof
27       of records of the division of vehicles indicating that the owner did not
28       have such financial security, shall be prima facie evidence that the owner
29       did at the time and place alleged, operate or permit such motor vehicle
30       to be operated without having in full force and effect financial security
31       required by the provisions of this act.
32             (i) Any owner of a motor vehicle registered or required to be regis-
33       tered in this state who shall make a false certification concerning financial
34       security for the operation of such motor vehicle as required by this act,
35       shall be guilty of a class A misdemeanor. Any person, firm or corporation
36       giving false information to the director concerning another's financial se-
37       curity for the operation of a motor vehicle registered or required to be
38       registered in this state, knowing or having reason to believe that such
39       information is false, shall be guilty of a class A misdemeanor.
40             (j) The director shall administer and enforce the provisions of this act
41       relating to the registration of motor vehicles, and the secretary of revenue
42       shall adopt such rules and regulations as may be necessary for its
43       administration.

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  1             (k) Whenever any person has made application for insurance cover-
  2       age and such applicant has submitted payment or partial payment with
  3       such application, the insurance company, if payment accompanied the
  4       application and if insurance coverage is denied, shall refund the unearned
  5       portion of the payment to the applicant or agent with the notice of denial
  6       of coverage. If payment did not accompany the application to the insur-
  7       ance company but was made to the agent, the agent shall refund the
  8       unearned portion of the payment to the applicant upon receipt of the
  9       company's notice of denial.
10             (l) For the purpose of this act, "declination of insurance coverage"
11       means a final denial, in whole or in part, by an insurance company or
12       agent of requested insurance coverage. 
13       Sec.  2. K.S.A. 1999 Supp. 40-3118 is hereby repealed.
14        Sec.  3. This act shall take effect and be in force from and after its
15       publication in the statute book.