40-1139. Financial responsibility requirements.
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/ks/chapter-40/40-1139A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
40-1139. Financial responsibility requirements.
(a)A title insurance agent that handles escrow, settlement or closing accounts shall file with the commissioner a $100,000 surety bond or irrevocable letter of credit in a form acceptable to the commissioner. Such surety bond or irrevocable letter of credit shall be issued by an insurance company or financial institution that is authorized to conduct business in this state securing the applicant's or the title insurance agent's faithful performance of all duties and obligations set out in K.S.A. 40-1135 through 40-1141 , and amendments thereto.
(b)The surety bond shall provide that such bond may not be terminated without 30 days prior written notice to the commissioner.
(c)The irrevocable letter of credit shall:
(1)Be issued by a bank that is insured by the federal deposit insurance corporation or its successor; and
(2)initially be issued for a term of at least one year and by its terms is automatically renewed at each expiration date for at least an additional one-year term unless at least 30 days prior written notice of intention not to renew is provided to the commissioner of insurance.
(d)The surety bond or irrevocable letter of credit shall be for the benefit of any person suffering a loss if the title insurance agent converts or misappropriates money received or held in escrow, deposit or trust accounts while acting as a title insurance agent providing any escrow or settlement services.