Two Auto Club policy cancellation notices failed to provide a written explanation specifically detailing the reasons for cancellation or the opportunity to request the reasons for cancellation from the company. This constitutes a violation of K.S.A. 40-2,122 and K.A.R. 40-3-31(b)(1).
One Auto Club policy reviewed was non-renewed without a substantial change in exposure to justify the adverse action. This constitutes a violation of K.S.A. 40- 276a.
Pursuant to K.S.A. 40-2,125(a)(1), Auto Club shall pay a monetary penalty of Seven Thousand Dollars and No Cents ($7,000.00), due and payable to the Kansas Insurance Commissioner on or before the 14th day from the date of this Order for the above-stated violations of K.S.A. 40-5107(2)(b) and (c); K.S.A. 40- 2,112; K.S.A. 40-5104(b); K.S.A. 40-2,122; K.A.R. 40-3-31(b)(1); K.S.A. 40- 276a; and K.S.A. 40-3118.
IT IS SO ORDERED THIS _4th_ DAY OF JANUARY, 2007, IN THE CITY OF TOPEKA, COUNTY OF SHAWNEE, STATE OF KANSAS.
_/s/ Sandy Praeger______________ Sandy Praeger Commissioner of Insurance
_/s/ John W. Campbell John W. Campbell General Counsel
In the Matter of Auto Club Group of Missouri, Automobile Club Inter-Insurance Exchange & Auto Club Family Insurance Company – Docket No. 3591-MC