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KANSAS AUTOMOBILE INSURANCE PLAN
 
  Address: Mail Applications To:
Phone: 1-785-273-6300
Fax: 1-785-273-9065
 
  2704 NW Topeka Blvd., Suite B
Topeka, KS. 66617
P.O. Box 8789
Topeka, KS. 66608
 
     
 
 
  Continue to: Kansas Automobile Insurance Plan Continue to: Kansas Automobile Assigned Claims Plan  
 
 
 
***IMPORTANT NOTICE – EFFECTIVE 9/1/22***


Change in Commercial Automobile Insurance Procedure (CAIP) Servicing Carrier


Effective September 1, 2022, National Specialty Insurance Company (National Specialty) will be replacing National Continental Insurance Company (NCIC) as the CAIP Servicing Carrier for the Kansas Automobile Insurance Plan. The National Specialty policies will be serviced by AIPSO. This change will apply only to policies issued by NCIC.

For Policies with an Effective Date on or after September 1, 2022, please direct inquiries to:

The Kansas Automobile Insurance Plan
P.O. Box 8789
Topeka, KS 66617
Phone 785-273-6300 – Fax 785-273-9065
Email: caip@kaipins.org

OR

National Specialty Insurance Company
Serviced by AIPSO
302 Central Ave
Johnston, RI 02919
Phone 401-946-2310 – Fax 401-528-1350
Email: caip-aio@aipso.com


In-Force Policies Prior to September 1, 2022

Any policy in-force with National Continental Insurance Company (NCIC) with an effective date of August 31, 2022, or prior will non-renew on the first anniversary following September 1, 2022. As part of the non-renewal process, NCIC will notify the insured and producer that the Plan policy they issued will not be renewed at least 60 days in advance of the renewal date. The insured will be advised to contact their producer to determine if they can obtain coverage in the voluntary market. If the insured is unable to obtain coverage in the voluntary market, the insured may re-apply to the Plan for coverage.


For In-Force Policies with an Effective Date of August 31, 2022, or earlier, direct inquiries to:

The Kansas Automobile Insurance Plan
P.O. Box 8789
Topeka, KS 66617
Phone 785-273-6300 – Fax 785-273-9065
Email: caip@kaipins.org

OR

National Continental Insurance Company
CAIP Underwriting
P.O. Box 94762
Cleveland, OH 44101
Phone 800-937-2247 - Fax 877-874-8508


For further information, please visit the Plan site at www.kaipins.org or https://www.aipso.com/Plan-Sites/Kansas.

Background

CAIP has been the primary pooling mechanism for the Plan's commercial residual market risks since 1982. Historically, a limited number of companies act as servicing carriers for eligible risks on behalf of all insurers writing commercial automobile business in the voluntary market. These carriers record CAIP experience as direct business and then cede 100% to the appropriate state Plan. The Plan's subscriber companies assume their proportionate share of the pool's operating results.

The sustained decline in the residual market's volume of commercial auto business saw the number of CAIP servicing carriers reduce to one, NCIC, as of January 2010. Recently, AIPSO was notified that NCIC would not apply to be a CAIP servicing carrier for a new term for any Plan.

To address the issue, AIPSO's Board of Directors recommended AIPSO serve as the sole servicing provider for all 44 CAIP state Plans effective September 1, 2022. The transition to AIPSO as the servicing provider has been approved by each state Plans' Board of Governors/Governing Committees and respective Insurance Department Regulators.

National Specialty Policies Serviced by AIPSO

As the service provider, AIPSO will issue and service Plan commercial auto policies through an arrangement with National Specialty, the servicing carrier of record. Policies will be issued in the name of National Specialty on behalf of each state Plan in order to comply with applicable statutory requirements that only licensed insurance companies may issue policies.

In-Force Policies Prior to September 1, 2022

Any policy in-force with NCIC with an effective date of August 31, 2022, or prior will non-renew on the first anniversary following the September 1, 2022, effective date.

NCIC will notify the insured and producer that the Plan policy they issued will not be renewed (in accordance with Plan language for each state). The insured will be advised to contact their producer to determine if they can obtain coverage in the voluntary market. If the insured is unable to obtain coverage in the voluntary market, the insured may re-apply to the Plan for coverage.

For additional detail and contact information, please visit the specific state Plan's website on AIPSO.com: https://www.aipso.com/Plan-Sites/Kansas


***Important Notice***
Kansas Electronic Payment Process Is Now In Use

For Producers: E-Pay Helpful Hints!

 

The new E-Pay and Paperless process is now in use for Private Passenger applications.  As you become more familiar with this new process, you will see the benefit of how quickly the policy can be issued by using electronic payment, Credit/Debit card or Producer Sweep, and an electronic delivery method, either by Fax, or by Scan and Upload.  No more waiting days for mail delivery, this process allows you to transmit the application as soon as it has been signed. 

Plan Rules require that the signed electronic application be transmitted (by using either Fax or Scan and Upload) within 2 working days of submission of the application in EASi. To take best advantage of automatic delivery, producers should not submit the application in the EASi system until the applicant is present to sign it.  If they are not present to sign, you can tell the applicant what the deposit premium amount will be by looking at the EASi Summary Information screen.  Tell them you cannot Submit the application until they come in to review and sign.  Instead of clicking Submit, you should Save and Exit the application in EASi.  This will keep all your information for that application saved in EASi until the applicant arrives to sign, at which time you can Submit, enter the payment information, print out the application and have the applicant sign.

 

To see more detailed instructions, producers can access the E-Pay Producer Guide and E-Pay application checklist by visiting  https://www.aipso.com/Plan-Sites/Kansas  


New Business Private Passenger Application System effective
January 1, 2020
The Kansas Auto Insurance Plan has implemented a new Private Passenger application system, known as EASi, which became effective on January 1, 2020. At this same time changes were made to eliminate the random assignment of applications, with all policies now being issued by the Kansas Automobile Insurance Plan (KAIP).
  *** System features include ***  
  • Temporary ID cards  
  • Visibility to your agencies applications for 120 days  
  • The ability to update and save an application days later  
  • Integrated rating within the application entry screens  
     


If you have not yet provided your updated producer information to the Kansas Plan and would like to be registered for EASi, please contact the Plan office at 785-273-6300.

 
***IMPORTANT NOTICE***  Effective January 1, 2011
Effective January 1, 2011 the Kansas Automobile Insurance Plan will have a new mailing address.  The new address will be:

Kansas Automobile Insurance Plan
P.O. Box 8789
Topeka, KS 66608

In addition, the Kansas Automobile Insurance Plan will be moving their office to a new location during 2011.  We will be providing more information on the move in the near future.

 
  What is KAIP? 
 

Often referred to as “the assigned risk plan” the Kansas Automobile Insurance Plan is the state’s residual market for individuals or businesses who are unable to obtain coverage through the regular voluntary insurance markets.

The KAIP was established by the Kansas Legislature on November 20, 1950 under KSA 40-2102 to provide private passenger auto liability insurance to those unable to find coverage in the voluntary markets.  Physical damage coverage was added to the Plan later as the need arose.  Today, KAIP provides insurance coverage for private passenger autos, motor homes, motorcycles, non-owners, and many other personal lines risks.

The Plan was amended in 1984 to provide coverage for commercial autos.  KAIP now insures commercial autos and trucks, long-haul truckers, buses, taxis, limos, garage risks such as auto dealers and service operations, drive-away contractors, pizza delivery and other hired or non-owned risks.

Commercial risks are assigned to a servicing carrier under contract with the Plan to process the business, issue the policies, and pay the claims.  Costs are then assessed to all Kansas member companies under a pooling arrangement based upon commercial volume written in Kansas.

Private passenger auto assignments are direct to the insurance company and become that company’s book of business.  The volume of applications assigned to a company and the costs assessed annually to that company for KAIP operations are based upon that company’s voluntary liability writings in Kansas to the state’s total voluntary writings.

The Plan accepts applications from any agent licensed to write property and casualty insurance in Kansas.  Persons needing personal or commercial insurance should be able to rely on any Kansas agent (also referred to as Producer) for help securing insurance through the Plan.  Agents are expected to maintain an up-to-date manual of KAIP rules and rates and KAIP application forms.  The producing agent is expected to assist the insured with policy changes, claim reporting, and all normal duties expected of an agent.

The Plan is administered by a nine member Governing Board appointed by the Commissioner of Insurance.  Five members are representatives of insurance companies admitted and writing in Kansas, two members are licensed independent insurance agents, and two members represent the general public.  A Plan manager is employed by the Governing Committee (Board) to manage the daily affairs of the Plan.  The Committee meets three times each year with the fall meeting designated as the annual meeting.

Member companies are assessed a share of the Plan’s annual operating budget which is prepared by the Plan manager and approved by the Governing Committee during the fall annual meeting.  The assessment is determined as a percentage of the member company’s private passenger auto liability writings to the state’s total writings with a minimum fee assessed to all admitted members.

HISTORY OF THE PLAN

Known initially as the Kansas Automobile Assigned Risk Plan, the Plan officially began business in 1951 under KSA 40-2102.  The Act empowered the Kansas Insurance Commissioner to establish a plan of involuntary insurance for persons unable to find coverage in the voluntary markets.  The Act required insurers licensed and writing auto liability in Kansas to provide an involuntary plan of insurance for the otherwise uninsurable and that those member companies be assessed for the financial operation of the Plan based upon the volume of voluntary auto liability insurance written compared to the state’s total voluntary writings.  Thus, this non-profit entity is looked upon as a quasi governmental agency/private enterprise undertaking.

All admitted companies were required to subscribe to the Plan through Insurance Commissioner Frank Sullivan’s office by September 8, 1950.

Initially, Kansas statutes required liability insurance limits of $5,000/$10,000 bodily injury and $5,000 property damage on all registered autos.


Notable Events in KAIP History:  

January 1, 1958
The state’s Financial Responsibility Law went into effect.

July 1, 1965
The Kansas legislature raised mandatory bodily injury and property damage limits to $10,000/20,000/5,000.  Pickup trucks were defined as private passenger autos.

July 1, 1968
Uninsured motorists coverage was authorized by statute on a voluntary basis.

January 1, 1974
The Kansas Automobile Injury Reparations Act, commonly known as “the No-Fault law”, was enacted by the Kansas legislature as a means for compensating persons promptly for accidental bodily injury arising out of the ownership, operation, maintenance or use of a motor vehicle in Kansas.  This act also defined the conditions under which a lawsuit could be filed for pain and suffering.  Personal Injury Protection (PIP) were defined.

Mandatory bodily injury and property damage limits of $25,000/50,000/10,000 became law.

July 1, 1981
Uninsured motorists coverage was made mandatory.

January 1, 1984
The Kansas Automobile Insurance Plan was amended to provide coverage for commercial risks.


Plan Managers:

E.S. Vincent
January 1, 1951 to July 1, 1960

Charles Vance
July 1, 1960 to July 1, 1973

James Short
July 1, 1973 to January 1, 1977

Larry Hochstetler
January 1, 1977 to December 1, 1978

Clarence Hufft
December 1, 1978 to March 15, 1991

Donald Boyd
February 11, 1991 to May 5, 2006

Gary Domer
May 6, 2006 to present