40-447.
Payment of life insurance proceeds; interest required to be paid, when.
(a) Notwithstanding any other provision of law, each insurer admitted to transact life insurance in the state of Kansas which fails or refuses to pay the proceeds of, or payments under, any policy of life insurance issued by it within 10 days after the date of receipt of due proof of death in the manner and form requested by the policy, shall pay interest on any moneys payable and unpaid after the expiration of such 10-day period at an annual rate of not less than the current rate of interest on death proceeds left on deposit with the insurer plus 1% computed from the date of said receipt.
(b) Nothing in this section shall be construed to allow any insurer admitted to transact life insurance in this state to withhold payment of money payable under a life insurance policy to any beneficiary for a period longer than reasonably necessary to transmit such payment.
(c) In any case in which interest on the proceeds of, or payments under, any policy of life insurance becomes payable pursuant to subsection (a), the insurer shall notify the named beneficiary or beneficiaries at their last known address that interest will be paid on the proceeds of, or payments under, such policy from the date of receipt of due proof of death of the named insured. Such notice shall specify the rate of interest to be paid.
(d) This section shall not require the payment of interest in any case in which the beneficiary elects in writing delivered to the insurer to receive the proceeds of, or payments under, the policy by any means other than a lump sum payment thereof.
(e) The commissioner of insurance may adopt such rules and regulations necessary to provide for the enforcement and administration of this act.
History:
L. 1977, ch. 155, § 1; L. 1987, ch. 164, § 1; July 1.
Notes of Decisions
Evans v. Provident Life & Accident Ins., 815 P.2d 550 (Kan. 1991).
· cites it 8× “K.S.A. 1990 Supp. 40-447(a) provides, in pertinent part: "Notwithstanding any other provision of law, each insurer admitted to transact life insurance in the state of Kansas which fails or refuses to pay the proceeds of, or payments under, any policy of life insurance issued by…”
Evans v. Provident Life & Accident Ins., 803 P.2d 1033 (Kan. Ct. App. 1990).
· cites it 12× “Evans contends that the trial court erred in setting the rates of prejudgment and postjudgment interest at seven percent, pursuant to K.S.A. 1989 Supp. 40-447, rather than at ten percent, pursuant to K.”
Aetna U.S. Healthcare v. Higgs, 962 F. Supp. 1412 (D. Kan. 1997).
· cites it 6× “Finally, the court agrees with plaintiff that interest is due on the proceeds under K.S.A. § 40-447. Plaintiff is thus directed to deposit with the court the entire $27,000 in proceeds, plus interest at the rate specified in section 40-447 accruing from 10 days after plaintiffs…”
Primerica Life Ins. Co. v. Frantz, 371 F. Supp. 3d 960 (D. Kan. 2019).
· cites it 2× “Plaintiff shall deposit into the court's registry the entire proceeds of the policy at issue ($ 150,000) plus any applicable interest that has accrued under Kan. Stat. Ann. § 40-447 or other applicable law to the date of the deposit.”
Hudgens v. CNA/Cont'l Cas. Co., 845 P.2d 694 (Kan. 1993).
“which fails or refuses to pay any amount due under any contract of insurance within the time proscribed herein shall pay interest on the amount due.”
Burns (D. Kan. 2026).
· cites it 20× “Whether a Public Policy Exception Exists Based on K.S.A. § 40-447 Defendants’ third and more compelling argument for dismissal is that the statute that Plaintiff relies upon, K.”
Burns (D. Kan. 2025).
· cites it 7× “Approximately a month later, on May 22, 2025, Plaintiff filed the instant Motion for Leave to File Second Amended Complaint seeking to add additional details concerning the nature of the employment relationship between he and the Defendants, as well as establish a basis for his…”
State Farm Life Ins. Co. v. Romero (D. Kan. 2024).
· cites it 2× “Upon the deposit of funds, the Clerk is ordered to deposit the funds in a money market account or other instrument at the prevailing rate of interest at a federally approved financial institution.”
— K.S.A. § 40-447(a) — 2 cases
Evans v. Provident Life & Accident Ins., 815 P.2d 550 (Kan. 1991).
“K.S.A. 1990 Supp. 40-447(a) provides, in pertinent part: "Notwithstanding any other provision of law, each insurer admitted to transact life insurance in the state of Kansas which fails or refuses to pay the proceeds of, or payments under, any policy of life insurance issued by…”
Evans v. Provident Life & Accident Ins., 803 P.2d 1033 (Kan. Ct. App. 1990).
“Evans contends that the trial court erred in setting the rates of prejudgment and postjudgment interest at seven percent, pursuant to K.S.A. 1989 Supp. 40-447, rather than at ten percent, pursuant to K.”
— K.S.A. § 40-447(b) — 1 case
Evans v. Provident Life & Accident Ins., 803 P.2d 1033 (Kan. Ct. App. 1990).
“Evans contends that the trial court erred in setting the rates of prejudgment and postjudgment interest at seven percent, pursuant to K.S.A. 1989 Supp. 40-447, rather than at ten percent, pursuant to K.”
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