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40-2406. Same; hearing conducted by commissioner. (a) Whenever the commissioner has reason to believe that any such person has been engaged or is engaging in this state in any unfair method of competition or any unfair or deceptive act or practice, whether or not defined in K.S.A. 40-2404, and amendments thereto, and that a proceeding by the commissioner in respect thereto would be in the interest of the public, the commissioner shall issue and serve upon such person a statement of the charges in that respect and conduct a hearing thereon in accordance with the provisions of the Kansas administrative procedure act.

(b) If, after such hearing, the commissioner determines that the person charged has engaged in any unfair method of competition or any unfair or deceptive act or practice, any costs incurred as a result of conducting any administrative hearing authorized under the provisions of this section shall be assessed against such person or the company or companies represented by such person as an agent, broker or adjuster who is a participating party to the matters giving rise to the hearing. As used in this subsection, "costs" shall include witness fees, mileage allowances, any costs associated with reproduction of documents which become a part of the hearing record and the expense of making a record of the hearing.

History: L. 1955, ch. 247, § 6; L. 1972, ch. 189, § 5; L. 1982, ch. 205, § 1; L. 1986, ch. 318, § 37; L. 1988, ch. 356, § 110; July 1, 1989.

Law Review and Bar Journal References:

Cited in note on review of administrative decisions, 17 W.L.J. 312, 313 (1978).

"Torts—Insurance—First Party Bad Faith—Is There an Adequate Remedy in Kansas After Spencer v. Aetna Life & Casualty Insurance Co.?" Karen S. Kressin, 29 K.L.R. 277, 281 (1981).

"Potential Liability of Real Estate Brokers and Salesmen for Misrepresentation and Nondisclosure in Kansas," Craig Altenhofen, 52 J.K.B.A. 9, 16 (1983).

CASE ANNOTATIONS

1. Tort of bad faith not recognized in Kansas. Spencer v. Aetna Life & Casualty Ins. Co., 227 Kan. 914, 923, 925, 611 P.2d 149.

2. All power under act vested in insurance commissioner; no language purporting to create private cause of action. Earth Scientists v. United States Fidelity Ex Guar., 619 F. Supp. 1465, 1468, 1469 (1985).


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