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66-1,128. Motor carrier liability insurance requirements; self-insurance, when. (a) Except as provided in subsection (c) or pursuant to federal statutes, no certificate, permit, or license shall be issued by the commission to any public motor carrier of property, household goods or passengers or private motor carrier of property, until the applicant has filed with the commission a liability insurance policy approved by the commission, in such reasonable amounts as the commission determines by rules and regulations is necessary to adequately protect the interest of the public with due regard to the number of persons and amount of property involved. Such amounts shall not be less than $100,000 for personal injury or death to any one person in any one accident, $300,000 for injury or death to two or more persons in any one accident and $50,000 for loss to property of others in any one accident, which liability insurance shall bind the obligors to pay compensation for injuries to persons and loss of or damage to property resulting from the negligent operation of such carrier.

(b) The liability insurance policy required to be filed by any resident applicant shall be in an insurance company or association authorized to transact business in this state. Such policy of any nonresident applicant may be afforded by an insurance company not authorized to do business in this state which has given the commissioner of insurance of this state a power of attorney authorizing such commissioner to accept service on its behalf of notice or process in any action upon such policy. Such company not authorized to do business in this state shall have on file with such commissioner a form as prescribed by subsection (b) of K.S.A. 40-3106, and amendments thereto. A certificate of any insurance company or association, in a form approved by the commission certifying that there is in effect the liability insurance required by this section, may be filed in lieu of the insurance policy itself. In the event such certificate is filed, such company shall furnish to the commission upon its request a duplicate original of the insurance policy and all endorsements thereon. No other or additional bonds or licenses than those prescribed in this act shall be required of any motor carrier by any city or town or other agency of the state.

(c) Any public motor carrier of property, household goods or passengers or private motor carrier of property in whose name more than 25 motor vehicles are registered may qualify as a self-insurer by obtaining a certificate of self-insurance from the commissioner of insurance. Upon application of any such carrier, the commissioner of insurance may issue a certificate of self-insurance, if the commissioner is satisfied that such carrier is possessed and will continue to be possessed of ability to pay any judgment obtained against such carrier arising out of the ownership, operation, maintenance or use of any motor vehicle registered in such carrier's name.

(d) Upon notice and a hearing in accordance with the provisions of the Kansas administrative procedure act, the commissioner of insurance may cancel a certificate of self-insurance upon reasonable grounds. Failure to pay any judgment against a self-insurer, arising out of the ownership, operation, maintenance or use of a motor vehicle registered in such self-insurer's name, within 30 days after such judgment shall have become final, shall constitute reasonable grounds for the cancellation of a certificate of self-insurance.

History: L. 1931, ch. 236, § 21; L. 1949, ch. 337, § 1; L. 1953, ch. 296, § 1; L. 1959, ch. 258, § 11; L. 1975, ch. 341, § 1; L. 1978, ch. 268, § 1; L. 1982, ch. 276, § 1; L. 1988, ch. 356, § 241; L. 1993, ch. 263, § 6; L. 2001, ch. 92, § 12; L. 2003, ch. 124, § 26; L. 2008, ch. 45, § 4; April 10.

Source or Prior Law:

66-1,102.

Cross References to Related Sections:

Insurance where no permit is required, see 66-1314.

Law Review and Bar Journal References:

Liability of a spouse for personal injuries, 1 K.L.R. 63, 70 (1952).

1953-55 survey of insurance law, Richard A. Barber, 4 K.L.R. 209 (1955).

Discovery of automobile liability insurance limits, Joseph P. Jenkins, 14 K.L.R. 59, 81 (1965).

Joinder provisions under civil code, Earl B. Shurtz, 14 K.L.R. 171, 178, 186 (1965).

"Automobile Liability Insurance and the Deceased Insured: A Serbonian Bog," Joseph P. Jenkins, 18 K.L.R. 651, 652 (1970).

"Survey of Kansas Law: Insurance," Charles H. Oldfather, Jr., 27 K.L.R. 255, 266 (1979).

"Survey of Kansas Law: Insurance Law," 29 K.L.R. 531, 532, 533 (1981).

"Medical Malpractice Legislation: The Kansas Response to the Medical Malpractice Crisis," Karen Wedel and Jerome Weber, 23 W.L.J. 566, 572 (1984).

"Transportation in Transition: KCC Regulation of Motor Carriers into the 1980's," Mary Piper Wettig, 57, No. 5, J.K.B.A. 19, 21 (1988).

"New Developments in Kansas Insurance Law," Robert H. Jerry, II, 37 K.L.R. 841, 892 (1989).

CASE ANNOTATIONS

1. Evidence defendant in damage action was contract carrier held properly admitted. Sponable v. Thomas, 139 Kan. 710, 715, 33 P.2d 721.

2. Section provides for policy indemnifying against liability; liability matures at time of accident; action properly brought directly against insurer. Dunn v. Jones, 143 Kan. 218, 222, 224, 57 P.2d 16.

3. Action for injury held founded on negligence not battery. Hackenberger v. Travelers Mutual Cas. Co., 144 Kan. 607, 608, 62 P.2d 545.

4. Policy required is liability policy; insured and insurer properly joined as defendants. Twichell v. Hetzell, 145 Kan. 139, 142, 144, 64 P.2d 557.

5. Information sufficient to charge offense for noncompliance with section. State v. Reed, 145 Kan. 459, 462, 65 P.2d 1083.

6. Construed with 66-152f; private motor carrier overloaded bridge, insurance carrier liable for damages. State Highway Comm. v. American Mut. Liability Ins. Co., 146 Kan. 187, 191, 69 P.2d 1091.

7. Two insurance policies; liability of companies joint and several; policy covered vehicles not described therein. Dekat v. American Automobile Fire Ins. Co., 146 Kan. 955, 957, 958, 959, 73 P.2d 1080.

8. Court writes statute into the insurance policy. Fisher v. Central Surety & Ins. Corp., 149 Kan. 38, 45, 47, 86 P.2d 583.

9. Policy containing waiver of description clause; burden of proof on plaintiff to show coverage. Smith v. Republic Underwriters, 152 Kan. 305, 306, 103 P.2d 858.

10. Evidence disclosed contributory negligence as matter of law; defendant's recovery barred. Goodman v. Wisby, 152 Kan. 341, 103 P.2d 804.

11. Evidence supported finding truck being used pursuant to permit; lease of truck. Marshall v. Home Mutual Ins. Co., 154 Kan. 488, 490, 119 P.2d 529.

12. Liability of insurer hereunder discussed; earlier decision clarified; dicta. Burks v. Aldridge, 154 Kan. 731, 734, 121 P.2d 276.

13. Private carrier's truck not being used in business of carrier; process; liability of insuror. Schoonover v. Clark, 155 Kan. 835, 837, 130 P.2d 619.

14. Allegations necessary in petition against insurance carrier discussed but not decided. Laurence v. Travelers Mutual Cas. Co., 155 Kan. 884, 885, 130 P.2d 622.

15. Claim filed with receiver of insurance carrier and partially allowed; action against insured maintainable. Hudson v. Ketchum, 156 Kan. 332, 334, 337, 133 P.2d 171.

16. Nonliability of insurer of interstate carrier licensed and insured hereunder discussed. Harrison v. Travelers Mutual Cas. Co., 156 Kan. 492, 494, 134 P.2d 681.

17. Discussed; action direct against insurer under city ordinance not permissible. Lang v. Underwriters at Lloyd's, 157 Kan. 314, 316, 318, 139 P.2d 414.

18. Damage action; insurer proper party defendant; sufficiency of evidence truck operating under permit. Waugh v. Kansas City Public Service Co., 157 Kan. 690, 692, 696, 143 P.2d 788.

19. Statute is a part of the liability insurance policy. Henderson v. National Mutual Cas. Co., 164 Kan. 109, 110, 117, 118, 187 P.2d 508.

20. Damage action; petition not setting out insurance policy not demurrable, when. Graves v. National Mutual Cas. Co., 164 Kan. 267, 270, 271, 272, 188 P.2d 945.

21. Insurance carrier's liability is in tort; properly joined in action against joint tort-feasors. Fitzgerald v. Thompson, 167 Kan. 87, 89, 204 P.2d 756.

22. Liability under 66-1305 same as hereunder; carrier properly joined as joint tort feasor. Billups v. American Surety Co., 170 Kan. 666, 674, 675, 676, 228 P.2d 731.

23. Trucks brought mud on highway causing accident; insurance company proper defendant. Cuddy v. Tyrrell, 171 Kan. 232, 237, 232 P.2d 607.

24. Order restricting private carrier permit violated; insurer not relieved of liability. Briggs v. Burk, 172 Kan. 375, 376, 377, 382, 383, 239 P.2d 981.

25. 55-509 relating to liquid fuel carriers incorporates this section by reference. Johnson v. Killion, 178 Kan. 154, 157, 158, 283 P.2d 433.

26. Overruling of demurrer of insurance carrier in res ipsa loquitur action not error. Lamb v. Hartford Accident & Indemnity Co., 180 Kan. 157, 166, 300 P.2d 387.

27. Liability of insuror is tort liability. Streebin v. Capitol Truck Lines, 182 Kan. 527, 531, 532, 322 P.2d 776.

28. Order striking insurance policy from petition held not appealable. Streebin v. Capitol Truck Lines, 182 Kan. 527, 531, 532, 322 P.2d 776.

29. Carrier without permit; liability hereunder not incorporated into insurance policy. Sterling v. Hartenstein, 185 Kan. 50, 51, 52, 53, 55, 56, 57, 59, 60, 341 P.2d 90.

30. Insurance company required to produce policy, when; insurer and carrier may be joined as defendants, when. Sterling v. Hartenstein, 185 Kan. 50, 51, 52, 53, 55, 56, 57, 59, 60, 341 P.2d 90.

31. Insurer issuing liability policy directly liable even though carrier not licensed, when. Sterling v. Hartenstein, 185 Kan. 50, 51, 52, 53, 55, 56, 57, 59, 60, 341 P.2d 90.

32. Cited in holding automobile insurance policy cannot be canceled without actual notice to insured. Koehn v. Central National Ins. Co., 187 Kan. 192, 202, 354 P.2d 352.

33. Insurer not liable to employee of private permit holder; employee remedy under workmen's compensation act; exclusion clause in policy. Hanson v. Zollars, 189 Kan. 699, 700, 701, 371 P.2d 357.

34. Permit holder insured; action for damages; claim not barred; equitable estoppel precluded assertion of statute of limitations. Safeway Stores v. Wilson, 190 Kan. 7, 372 P.2d 551.

35. Statute is for benefit of cargo owner not insurer and does not change terms and conditions of cargo insurance. Waugh v. American Casualty Co., 190 Kan. 725, 732, 378 P.2d 170.

36. Section held constitutional in action by contract carrier. Louis v. Boynton, 53 F.2d 471.

37. Various constitutional objections considered and section held valid. Continental Baking Co. v. Woodring, 55 F.2d 347. Affirmed: 286 U.S. 352, 52 S. Ct. 595, 76 L.Ed. 1155.

38. Insurance policy containing reimbursement clause held valid and enforceable; statute construed. Travelers Mut. Casualty Co. v. Herman, 116 F.2d 151, 152, 153, 154.

39. Rule of corporation commission cannot change statutory liability; contract carrier not engaged as carrier when accident occurred; no liability. Foster v. Commercial Standard Ins. Co., 121 F.2d 117, 118.

40. Act constitutional; private carrier's liability bond covers entire route; liability. Flowers v. Fidelity & Casualty Co., 156 F.2d 586, 587, 588, 589.

41. Lease construed; lessee and insurance carrier held liable for driver's negligence. Marriott v. National Mut. Cas. Co., 195 F.2d 462, 463, 466.

42. Policy covered injuries of motor carrier's passenger; not prohibited by statute. Ziegler v. Akin, 261 F.2d 88, 90, 91.

43. Insured not engaged as carrier when accident occurred; insurer held not liable. Commercial Standard Ins. Co. v. Foster, 31 F. Supp. 873.

44. Action may be maintained against insurance company alone though insured not made party. Boyles v. Farmers Mut. Hail Ins. Co., 78 F. Supp. 706, 707, 708.

45. Insurance policy stricken from petition as improper pleading; action against insurer is in tort. Jones v. Thunderbird Transportation Company, 178 F. Supp. 9, 10, 11.

46. Suit against insurer proper under statute even though insurance policy provides otherwise. Jones v. Thunderbird Transportation Company, 178 F. Supp. 9, 10, 11.

47. Discussed; insurance carrier improperly joined as party defendant. Bayless v. Bayless, 193 Kan. 79, 81, 82, 84, 392 P.2d 132.

48. Limits of liability in policy properly presented when policy attached to motion for new trial. McClellan v. Blasdel, 193 Kan. 410, 412, 413, 393 P.2d 1012.

49. Insurer's liability rests upon negligence of carrier; immaterial whether liability is incurred upon public highway or private property. Amon v. Lueck, 194 Kan. 89, 90, 397 P.2d 365.

50. Liability of insurer pursuant to 66-1314 same as under this section. Klein v. Wells, 194 Kan. 528, 536, 400 P.2d 1002.

51. Travel for purely personal reasons of driver not covered by policy of common carrier. Mid-Continent Casualty Company v. Everett, 340 F.2d 65, 67, 70.

52. Employee of licensed motor carrier not member of "public"; insurer not required to defend insured in action for damages by insured's employee. Brown v. Green, 204 Kan. 802, 805, 806, 807, 466 P.2d 299.

53. Error to dismiss insurer from action involving liability where insurer filed policy with KCC as required by law. Schmidt v. Farmers Elevator Mutual Ins. Co., 208 Kan. 308, 314, 491 P.2d 947.

54. Mentioned; wrongful death action; joinder of uninsured motorist carrier; procedure erroneous. Winner v. Ratzlaff, 211 Kan. 59, 65, 505 P.2d 606.

55. Statute is remedial, not substantive; two-year statute of limitations (60-513 (4)) applicable. Kirtland v. Tri-State Insurance Co., 220 Kan. 631, 632, 556 P.2d 199.

56. Referred to in upholding constitutionality of Health Care Provider Insurance Availability Act (40-3401 et seq.). State, ex rel. Schneider v. Liggett, 223 Kan. 610, 615, 576 P.2d 221.

57. Two fire insurance companies insured same interest and only one had proper endorsement; suit against both insurers maintainable; reliance on agent. Liberty Mutual Ins. Co. v. American Mut. Ins. Co., 2 Kan. App. 2d 293, 295, 578 P.2d 284.

58. Automobile Injury Reparations Act distinguished from this section as to direct action against insurance company. White v. Goodville Mut. Cas. Co., 226 Kan. 191, 193, 194, 196, 596 P.2d 1229.

59. Where insurance company is party to lawsuit, mention of relationship with other defendants not prejudicial per se. Klinzmann v. Beale, 9 Kan. App. 2d 20, 28, 670 P.2d 67 (1983).

60. Cited in holding blood test from arrested driver, taken under appropriate conditions, admissible in civil action. Divine v. Groshong, 235 Kan. 127, 128, 679 P.2d 700 (1984).

61. No error in excluding defendant insurance company at trial before jury where comparative fault and damages sole issues. Nirschl v. Webb, 239 Kan. 90, 94, 716 P.2d 173 (1986).

62. Direct actions against insurers in negligence actions involving common motor carriers requires allegation of filing and approval of policy with KCC. Dechand v. Insurance Co. of State of PA., 732 F.Supp. 1120 (1990).

63. Cited; whether 40-3107 permits direct action against insurer of negligent insured in automobile collision cases examined. King v. American Family Ins. Co., 19 Kan. App. 2d 620, 622, 874 P.2d 691 (1994).

64. Issue whether personally owned vehicle with KCC business permit covered by businesses' insurance carrier. Warner v. Stover, 283 Kan. 453, 462, 463, 153 P.3d 1245 (2007).

65. Vehicle liability insurer of truck driver and trucking company not directly liable to estate of automobile passenger, absent evidence that insurance policy was filed and approved with the Kansas Corporation Commission. Cooper v. Old Dominion Freight Line, Inc., 781 F. Supp. 2d 1177 (D. Kan. 2011).


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