An Act concerning insurance; relating to countersignature requirements of certain policies and contracts; amending K.S.A. 40-246 and repealing the existing section.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 40-246 is hereby amended to read as follows: 40- 246. The commissioner of insurance is prohibited from issuing any license or authority to write policies of insurance, or to solicit and obtain such policies, to any person, agent or corporation, unless such person, agent or corporation is a legal resident of this state at the time such license or authority is issued. Under such regulations and restrictions deemed nec- essary by the commissioner of insurance, licenses may be issued to non- resident agents, who are licensed by the state in which they reside, upon the payment of an annual fee of $10. Whenever any other state imposes on Kansas companies or agents additional or greater fees, obligations or prohibitions, the same shall be imposed on similar companies and agents of such other state. Except for a policy or contract of life insurance, all policies or contracts shall be signed by a resident agent or a nonresident agent of a state which (1) does not require a countersignature, or (2) will permit Kansas residents possessing a nonresident agent's license of that state to countersign. By prior written agreement between a licensed res- ident agent and the issuing company, a facsimile signature, or the printing of the name and address of such licensed resident agent on the policy form or endorsement, shall be deemed to meet the countersignature and signature requirements of this section. Whenever any person, agent or corporation so authorized to issue policies of insurance and solicit and transact insurance business shall remove from this state the authority issued to such person, agent or corporation shall be revoked, and the same shall be null and void.

To the end that the state may receive the full tax imposed by law upon the premium receipts of insurance companies, and to the end, that proper supervision of the business may be vested in the state, it shall be unlawful for any fire, marine or fire and marine insurance company or casualty or surety company or association not incorporated under the laws of this state to make, write, place or cause to be made, written or placed any policy or bonds issued by any company, authorized to contract of insur- ance of any kind or character or any indemnity agreement upon property or persons situated in this state, except bid bonds issued by any company, authorized to issue such bonds and to do business in this state, in con- nection with any public or private construction contract and professional liability insurance policies issued to members of a professional association having in excess of 10,000 members insured when the premium for such policies is paid by the association from the association's funds, unless the same is signed by a resident agent or a nonresident agent of a state which (1) does not require a countersignature, or (2) will permit Kansas resi- dents possessing a nonresident agent's license of that state to countersign, who shall receive the usual and customary commission thereon when the premium is paid.

Nothing contained in this section shall apply to direct insurance cov- ering the rolling stock belonging to and used in the operation and main- tenance of the plant and business of railroad corporations or other com- mon carriers, or property in transit, while in the possession or custody of railroad corporations or other common carriers.

Sec. 2. K.S.A. 40-246 is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after its publication in the statute book.

Approved March 22, 1996.