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Terms Used In Kansas Statutes 40-4207

  • Fiduciary: A trustee, executor, or administrator.
  • Member: means an individual or person on behalf of a group of individuals who enters into a membership agreement with a prepaid service plan which agrees to provide legal or dental services to the member: (1) For a predetermined monthly membership fee; (2) at a reduced rate in exchange for such a monthly membership fee; or (3) a combination of both a predetermined monthly fee and a reduced rate in exchange for such a monthly membership fee. See Kansas Statutes 40-4201
  • Prepaid service plan: means any person, company, corporation, partnership or other legal entity who collects periodic fees on a prepaid basis from residents of this state in connection with for-profit legal or dental coverage other than: (1) An employer on behalf of its employees or the employees of one or more subsidiary or affiliated corporations of such employer; (2) a union or association on behalf of its members; (3) an organization transacting business in this state pursuant to article 19a of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, including their sales representatives when engaged in the performance of their duties as such; (4) an insurance company duly authorized to conduct insurance pursuant to Kan. See Kansas Statutes 40-4201

All membership fees collected by a prepaid service plan on behalf of members shall be held by the prepaid service plan in a fiduciary capacity and shall be deposited promptly after receipt in a bank account established and maintained by the prepaid service plan. The prepaid service plan shall maintain records clearly recording the deposits in and withdrawals from such account on behalf of or for each member. The prepaid service plan shall keep copies of all such records.