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Home | History & How The Plan Works | The Law | Governing Committee Members | Forms | Articles of Agreement | Company Only | Governing Committee Only | KAIP Website | Contact Us |
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History The
Kansas No-Fault Automobile Insurance Law effective January 1, 1974 provides
for the establishment and operation of the Kansas Automobile Assigned Claims
Plan. This portion of the law,
drafted by an all-industry committee, was implemented by then Insurance
Commissioner Fletcher Bell pursuant to Regulation 40-3-35.
The Plan is administered by the Governing Committee of the Kansas
Automobile Assigned Claims Plan. There
are three companies with substantial operation in Kansas that serve as
servicing carriers for the Plan. Those
carriers as of January 1, 2013 were Farmers Insurance Company Inc., Farmers
Alliance Mutual Insurance Company and Upland Mutual Insurance Company. An
operational budget is approved by the Governing Committee on an annual basis
during the fall annual meeting.
The assessment of insurers and self-insurers are made on the basis of their
Private Passenger Non-Fleet Bodily Injury Liability writings in Kansas.
For each 1,000 car years written, $75.00 is assessed with a minimum
of $60.00.
CLAIMS PROCEDURE Claims for benefits are
filed either in person or by mail to the Kansas Automobile Assigned Claims
Plan. (Appendix I) The Kansas Automobile
Assigned Claims Plan reviews each application for benefits to eliminate
those obviously ineligible. Eligible claims are assigned to one of three (3)
Servicing Insurers by means of a form letter. The assignment is made in
accordance with an Assignment Control Register Number.
BUDGET – ASSESSSMENT The budget covers
estimated administrative expense, estimated benefit payments, and expenses
by the Servicing Insurers. Insurers and
Self-Insures admitted to write automobile liability in Kansas are assessed
on the basis of the latest available Private Passenger Non-Fleet Bodily
Injury Liability car year writings in Kansas. There is a minimum fee of
$60.00. Assessments are due
January first of each year. Payments are mailed directly to the Kansas
Automobile Assigned Claims Plan office within 30 days after receipt of the
annual assessment. A $25.00 late
fee will be added to payment made after March 1. The data for car years
written is gathered by the Automobile Insurance Plan Services Office in
Johnston, Rhode Island for use through the Kansas Automobile Insurance Plan.
Where several companies in a group are writing in Kansas and have indicated
such preference, we will send the total assessment for the group to one
company – again utilizing the data and mailing list of the Kansas Automobile
Insurance Plan. All budget expenditures
are reviewed quarterly by the Governing Committee and audit annually. Annual
reports are submitted to the Insurance Commissioner and the subscribing
companies. At the Governing
Committee’s discretion any funds remaining at the end of any calendar year
are to be used to reduce the next year’s assessment.
PERSONS ENTITLED TO BENEFITS The purpose of the
KANSAS AUTOMOBILE ASSIGNED CLAIMS PLAN is to provide statutory
PERSONAL INJURY PROTECTION BENEFITS
to any person who suffers injury in this state provided
PERSONAL INJURY PROTECTIONS BENEFITS
are not available to the injured
person. For example, the
Plan will provide Personal Injury Protection Benefits to a non-car owning
pedestrian who is not otherwise insured and is struck by an uninsured
or unidentified motorist in Kansas. The Plan will not
provide benefits for:
1.
Injury
sustained by the named insured and relatives residing in the same household
while occupying another motor vehicle owned by the named insured and not
insured under the policy, or for injury sustained by any person operating
the insured’s motor vehicle without the expressed or implied consent of the
insured; and
2.
To any person
suffering injury, if such person:
(a)
Caused injury
to himself/herself, if such person;
(b)
Was an
intentional converter of a motor vehicle at the time the injury was
sustained;
(c)
Was injured as
a result of conduct within the course of a business of repairing, serving or
otherwise maintaining motor vehicles, unless such conduct occurred off the
business premises; or;
(d)
Was injured as
a result of conduct in the course of loading and unloading a motor vehicle,
unless the conduct occurred whole occupying, entering into or alighting from
such motor vehicle.
Administration
The Plan shall be administrated by a
Governing Board and a Manager.
The Governing Board (hereinafter referred to as the Committee) shall be
appointed by the Commissioner of Insurance and shall consist of the
following members:
1. Nine (9) who shall be appointed as follows: Three (3) of such Members shall be
representatives of foreign insurance companies, two (2) Members
shall be
representatives of domestic insurance companies, two (2) Members
shall be
licensed independent insurance agents and two (2) Members
representatives of the
general public interest.
All members shall be appointed for a term specified by the
Commissioner of Insurance.
Annually, on a date fixed by the Committee,
there shall be held a meeting of representatives of all subscribers for the
purpose of receiving reports by the Committee and the Manager regarding the
operations of the Plan and for discussion of matters pertaining to the Plan.
Twenty days’ notice of such meeting shall be give in writing to all
Members of the Plan, the Commission of Insurance and Members of the
Committee. The notice of each
annual meeting shall be accompanied by an agenda for such meeting.
Cost of Administration All cost of
administration of the Plan including administrative costs, cost of claims
payments, and all related claims expense shall be borne by the Members of
the Plan on a pro rata basis.
Assessments on all Members shall be made at the discretion of the Committee
to meet the cost of administration and to reimburse the Servicing Insurers
for their expense of assigned claims payable and related claims expense. |
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