§ 40-3003 — Persons provided coverage; policies and contracts specified

(a) This act shall provide coverage for the policies, plans and contracts specified in subsection (b), for:
(1) Persons who, regardless of where they reside, except for nonresident certificate holders under group policies or contracts, are the beneficiaries, assignees, payees or providers of the persons covered under paragraph (2); and
(2) persons who are policyholders or contract holders of or certificate holders or enrollees under such policies or contracts other than structured settlement annunities, and who are:
(A) Residents;
(B) not residents, but only with respect to an annuity contract awarded pursuant to K.S.A. 60-3407 or 60-3409, and amendments thereto, an annuity contract for future economic loss procured pursuant to a settlement agreement in a medical malpractice liability action, as defined by K.S.A. 60-3401, and amendments thereto, or fixed-return accounts of the Kansas public employees deferred compensation plan under K.S.A. 74-49b08 through 74-49b14, and amendments thereto; or
(C) not residents, but only under all of the following conditions:
(i) The member insurers that issued such policies or contracts are domiciled in this state;
(ii) the states in which such persons reside have one or more associations similar to the association created by this act; and
(iii) the persons are not eligible for coverage by an association in any other state due to the fact that the insurer or health maintenance organization was not licensed in the state at the time specified in the state's guaranty association law.
(3) (A) Paragraphs (1) and (2) shall not apply to structured settlement annuities.
(B) Except as provided in paragraphs (4) and (5), this act shall provide coverage to a person who is a payee under a structured settlement annuity, or beneficiary of a payee if the payee is deceased, if the payee:
(i) (a) Is a resident, regardless of where the contract holder resides; or
(b) is not a resident, but only under both of the following conditions:
(1) The contract holder of the structured settlement annuity is a resident; or
(2) the contract holder of the structured settlement annuity is not a resident, but:
(A) The insurer that issued the structured settlement annuity is domiciled in this state; and
(B) the state in which the contract holder resides has an association similar to the association created by this act; and
(ii) neither the payee or beneficiary nor the contract holder is eligible for coverage by the association of the state in which the payee or contract holder resides.
(4) This act shall not provide coverage to a person who:
(A) Is a payee or beneficiary of a contract holder resident of this state, if the payee or beneficiary is afforded any coverage by the association of another state; or
(B) acquires rights to receive payments though a structured settlement factoring transaction as defined in 26 U.S.C. § 5891(c)(3)(A), regardless of whether the transaction occurred before or after such section became effective.
(5) This act is intended to provide coverage to a person who is a resident of this state and, in special circumstances, to a nonresident. In order to avoid duplicate coverage, if a person who would otherwise receive coverage under this act is provided coverage under the laws of any other state, the person shall not be provided coverage under this act. In determining the application of the provisions of this paragraph in situations where a person could be covered by the association of more than one state, whether as a policyholder, contract holder, payee, enrollee, beneficiary or assignee, this act shall be construed in conjunction with other state laws to result in coverage by only one association.
(b) (1) This act shall provide coverage to the persons specified in subsection (a) for policies or contracts of direct, nongroup life insurance, health insurance or annuities and supplemental contracts or unallocated annuity contracts covering individuals participating in a governmental deferred compensation plan established under section 457 of the U.S. internal revenue code pursuant to K.S.A. 74-49b08 through 74-49b14, and amendments thereto, whether or not a resident, or the beneficiaries of each such individual if deceased, and for certificates under direct group policies and contracts issued by member insurers, except as limited by this act.
(2) As used in this act, health insurer includes health maintenance organization subscriber contracts and certificates.

Legislative History

L. 1972, ch. 190, § 3; L. 1984, ch. 161, § 4; L. 1986, ch. 229, § 23; L. 1986, ch. 180, § 2; L. 1986, ch. 181, § 1; L. 1998, ch. 19, § 1; L. 2001, ch. 21, § 1; L. 2011, ch. 17, § 1; L. 2024, ch. 74, § 7; July 1.