K.S.A. » Chapter 40
Kansas Statutes Annotated

K.S.A. § 40-247 (2026)

Insurance agent or broker failure to pay premium to company; criminal penalties

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40-247. Insurance agent or broker failure to pay premium to company; criminal penalties. (a) An insurance agent or broker who acts in negotiating or renewing or continuing a contract of insurance including any type of annuity by an insurance company lawfully doing business in this state, and who receives any money or substitute for money as a premium for such a contract from the insured, whether such agent or broker shall be entitled to an interest in same or otherwise, shall be deemed to hold such premium in trust for the company making the contract. If such agent or broker fails to pay the same over to the company, less such agent's or broker's commission and any deductions, to which by the written consent of the company such agent or broker may be entitled, such failure shall be prima facie evidence that such agent or broker has used or applied the premium for a purpose other than paying the same over to the company.

(b) (1) An agent or broker who violates the provisions of this section shall be guilty of a:

(A) Severity level 7, nonperson felony if the value of the insurance premium is $25,000 or more;

(B) severity level 9, nonperson felony if the value of the insurance premium is at least $1,000 but less than $25,000; or

(C) class A nonperson misdemeanor if the value of the insurance premium is less than $1,000.

(2) If the value of the insurance premium is less than $1,000 and such agent or broker has, within five years immediately preceding commission of the crime, been convicted of violating this section two or more times shall be guilty of a severity level 9, nonperson felony.

History: L. 1927, ch. 231, 40-247; L. 1992, ch. 288, § 10; L. 1993, ch. 291, § 226; L. 1994, ch. 291, § 73; L. 2006, ch. 194, § 28; L. 2023, ch. 41, § 4; July 1.

Notes of Decisions
Cited in 4 cases, 1993–2015 · leading case: United States v. Michael W. Trammell, 133 F.3d 1343 (10th Cir. 1998).
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United States v. Michael W. Trammell, 133 F.3d 1343 (10th Cir. 1998). · cites it 2× “Trammell was indicted in Kansas state court on December 6, 1991, for three counts of failing to pay insurance premiums by an insurance agent, in violation of Kan. Stat. Ann. § 40-247 . Joseph Kisner, supervised by Richard Schodorf, prosecuted the case for the state.”
State v. Trammell, 850 P.2d 249 (Kan. 1993). · cites it 5× “Trammell, was charged in three separate counts with violations of K.S.A. 40-247. The gist of the complaints was that the defendant, acting as an insurance ágent, collected money from prospective customers for the purchase of annuities but failed to pay over the money to the…”
United States v. Trammell (10th Cir. 1998). · cites it 2× “Trammell was indicted in Kansas state court on December 6, 1991, for three counts of failing to pay insurance premiums by an insurance agent, in violation of Kan. Stat. Ann. § 40-247 . Joseph Kisner, supervised by Richard Schodorf, prosecuted the case for the state.”
Redmond v. GMAC Ins. Mgmt. Corp. (In re Brooke Corp.), 539 B.R. 605 (Bankr. D. Kan. 2015). “The statute on which the Trustee relies is K.S.A.2014 Supp. 40-247(a), which provides in relevant part: (a) An insurance agent or broker who acts in negotiating or renewing or continuing a contract of insurance, .”
K.S.A. § 40-247(a): 1 case
Redmond v. GMAC Ins. Mgmt. Corp. (In re Brooke Corp.), 539 B.R. 605 (Bankr. D. Kan. 2015). “The statute on which the Trustee relies is K.S.A.2014 Supp. 40-247(a), which provides in relevant part: (a) An insurance agent or broker who acts in negotiating or renewing or continuing a contract of insurance, .”
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