History: L. 1967, ch. 270, § 1; July 1.
(b) "Person" shall mean any person, firm, partnership, corporation, or association which conducts an automobile club service business in this state.
(c) "Club agent" is a person other than the automobile club itself, who acts or aids in any manner in the solicitation, delivery, or negotiation of any service contract, or of the renewal or continuance thereof.
(d) "Commissioner" as used in this act, means the commissioner of insurance of the state of Kansas.
History: L. 1967, ch. 270, § 2; July 1.
(1) Automobile clubs that were authorized to operate in Kansas as of January 1, 1967, shall be required to maintain a deposit in the amount of two dollars ($2) per Kansas member or ten thousand dollars ($10,000), whichever is greater, subject to a maximum of fifty thousand dollars ($50,000).
(2) Automobile clubs that are authorized to operate in Kansas subsequent to January 1, 1967, shall be required to maintain a deposit in the amount of two dollars ($2) per member or fifteen thousand dollars ($15,000), whichever is greater, subject to a maximum of fifty thousand dollars ($50,000). Such deposit must be in one of the following forms:
(A) Securities as stipulated in K.S.A. 40-227 having a market value equal to the required deposit amount.
(B) A surety bond in principal sum equal to the required deposit amount issued by a surety authorized to transact surety business in this state.
(b) Such deposit shall be for the protection, use and benefit of all persons whose application for Kansas membership in an automobile club has been accepted by such club or its representative. Such deposit shall be subject to the following conditions and, if a bond, shall be so expressly conditioned:
(1) The club will faithfully furnish and render to such persons any and all of the automobile club services sold or offered for sale by it.
(2) The club will pay any fines, fees or penalties imposed upon it under or pursuant to this act.
(c) If such bond is filed, any Kansas member defrauded or injured by any wrongful act, misrepresentation or failure on the part of an automobile club with respect to the selling or rendering of any of its services may bring suit on such bond in his own name.
(d) A deposit of securities, in lieu of such bond, shall be subject to the conditions applying to the bond and is also subject to execution on judgments against the club.
(e) The name of the automobile club shall be submitted to the commissioner for approval before the commencement of business under the provisions of this act. The commissioner may reject any name so submitted when the proposed name would interfere with the transactions of an automobile club already doing business in this state or is so similar to one already approved as to confuse or is likely to mislead the public in any respect. In such case a name not liable to such objections shall be chosen.
History: L. 1967, ch. 270, § 3; July 1.
(b) The commissioner shall not issue a certificate of authority to any automobile club until:
(1) It files with him the following: (A) A formal application for the certificate in such form and detail as the commissioner requires, executed under oath by its president or other principal officer.
(B) A certified copy of its charter or articles of incorporation and its bylaws, if any.
(C) A verified statement showing all assets and liabilities and the number of members in all states or territories in which it operates as of December 31 of the preceding year.
(D) The location of the office of the automobile club in this state, if any, and the name of its registered agent in this state, which application shall be subscribed and sworn to by the president or a vice-president and the secretary or assistant secretary of the automobile club. Such application shall be accompanied by the irrevocable written consent of the automobile club that actions may be commenced against it in the proper court in any county in the state in which the cause of the action may arise or in which the plaintiff may reside by the service of process on the named resident agent mailed to him at his office. All notices and orders from the commissioner may also be served by mail upon the named registered agent.
(E) A copy of the service contract to be used, such contract complying with the provisions of K.S.A. 40-2507.
(F) Any other relevant document that is requested by the commissioner of insurance.
(2) It pays to the commissioner a license fee of one hundred sixty-five dollars ($165).
(3) It complies with the deposit requirements set forth in K.S.A. 40-2503.
(4) Its name is approved by the commissioner under the provisions of K.S.A. 40-2503(e).
(c) The commissioner shall issue a certificate of authority to an automobile club upon compliance with subsection (b) above and upon receipt of proof satisfactory to the commissioner that the owners, members of the board of directors, officers and managers are of good reputation.
History: L. 1967, ch. 270, § 4; July 1.
History: L. 1967, ch. 270, § 5; July 1.
Hearings under this section shall be conducted in accordance with the provisions of the Kansas administrative procedure act.
History: L. 1967, ch. 270, § 6; L. 1986, ch. 318, § 39; L. 1988, ch. 356, § 113; July 1, 1989.
(b) The service contract shall not be issued or delivered in this state until the form thereof and the charges made, as well as any revisions thereof, are filed with the commissioner.
(c) A service contract shall not be issued or delivered in this state unless it contains the following: (1) The corporate or other name of the club.
(2) The location of its home office and its usual place of business in this state, if any, giving street number and city.
(3) Provisions clearly and plainly specifying: (A) A description of the services or benefits to which the member is entitled.
(B) The territory wherein such services are to be rendered.
(C) The date when such service will commence and terminate.
History: L. 1967, ch. 270, § 7; July 1.
(b) Any person desiring to engage in automobile club services, as an agent, shall first apply to the insurance commissioner in the manner herein prescribed, for an automobile club agent registration, to authorize such person to engage in and transact business as an automobile services club agent. Such applicant shall be vouched for by an official or representative of an authorized automobile club for whom such person proposes to negotiate contracts of automobile club memberships. The notice of appointment as club agent shall be upon such form as the commissioner may prescribe and shall contain the name, address, age, sex and social security number of such club agent, and also contain proof satisfactory to the commissioner that such applicant is of good reputation and that such applicant has received training from the club or is otherwise qualified in the field of automobile club service contracts and the laws of this state pertaining thereto. Upon termination of any club agent's employment by an automobile club, such automobile club shall within 30 days notify the commissioner of such termination.
(c) The application fee for registration of club agents shall be $15 and the registration for such club agents shall be renewable on a biennial basis upon the payment of a fee of $15. Such registration shall expire on May 1 of the second year of the registration period unless sooner revoked or suspended.
(d) Such registration may, upon notice and hearing, be suspended or revoked by the commissioner if any registered club agent violates any of the provisions or requirements of this act.
(e) The procedure used at the hearing will be the same as that provided for in K.S.A. 40-242, and amendments thereto, subject to the provisions contained in K.S.A. 40-243, and amendments thereto.
History: L. 1967, ch. 270, § 8; L. 1974, ch. 192, § 1; L. 1993, ch. 12, § 1; July 1.
History: L. 1967, ch. 270, § 9; July 1.
History: L. 1967, ch. 270, § 10; July 1.
History: L. 1967, ch. 270, § 11; July 1.
History: L. 1967, ch. 270, § 12; July 1.
History: L. 1967, ch. 270, § 13; July 1.