K.S.A. » Chapter 40

K.S.A. § 40-439

Assignment of rights and privileges under life and accident and health insurance policies

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40-439. Assignment of rights and privileges under life and accident and health insurance policies. No provision in K.S.A. 40-434 and 40-435 or any other law shall be construed as prohibiting a person whose life is insured under a policy of group life or accident and health insurance or the policyowner of an individual life or accident and health policy from making an assignment of all or any part of his rights and privileges under such policy including specifically, but not by way of limitation, any right to designate a beneficiary or beneficiaries thereunder and any right to have an individual policy issued to him in accordance with subsections (8), (9) or (10) of K.S.A. 40-434 and 40-435. Subject to the terms of the policy relating to assignment of such rights and privileges thereunder, such an assignment by an insured or the policyowner, made either before or after the effective date of this section, is valid for the purpose of vesting in the assignee, in accordance with any provisions included therein as to the time at which it is to be effective, all of such rights and privileges so assigned, but without prejudice to the insurer on account of any payment it may make or individual policy it may issue in accordance with subsections (8), (9) or (10) of K.S.A. 40-434 and 40-435 prior to receipt of notice of the assignment.

History: L. 1969, ch. 239, § 1; July 1.

CASE ANNOTATIONS

1. No law shall be construed as prohibiting person from assigning rights under life insurance policy. Johnson County Bank v. Ross, 28 Kan. App. 2d 8, 13 P.3d 351 (2000).

2. Policy restricting assignment of insured's right to collect PIP benefits is in violation of Kansas statutes and public policy. Bolz v. State Farm Mut. Ins. Co., 274 Kan. 420, 52 P.3d 898 (2002).


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Notes of Decisions
Cited in 2 cases, 2000–2002 · leading case: Bolz v. State Farm Mut. Ins. Co.
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Bolz v. State Farm Mut. Ins. Co. (2002) kan · cites it 22× “Bolz asserts that the Kansas Legislature has codified the right of Kansas policyholders to assign both the benefits and claims arising from accident and health insurance contracts, citing K.S.A. 40-439 and K.S.A. 40-440. *424 State Farm argues the public policy favoring free…”
Johnson County Bank v. Ross (2000) kanctapp “K.S.A. 40-439. “A valid assignment must contain clear evidence of the intent to transfer rights, must describe the subject matter of the assignment, must be clear and unequivocal, and must be noticed to the obligor.”
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