Key Insurance, a Kansas-based insurer specializing in non-standard auto, was placed into liquidation this week after a court ruled the company insolvent.
The Shawnee County District Court ordered the liquidation of Key on March 31 after reviewing significant evidence that Key’s liabilities exceed its admitted assets. The court found that Key’s consistent underwriting losses, existing claims and negative policyholders’ surplus “demonstrate a substantially deteriorating financial position equating to insolvency.”
The court appointed Kansas Insurance Commissioner Vicki Schmidt as liquidator, and Schmidt appointed Jodi Adolf and Bruce Baty as the special deputy receivers to carry out the day-to-day responsibilities of the liquidator with respect to the liquidation of Key.
“The Department will be working closely with the deputy liquidator and the guaranty associations in the states Key Insurance Company did business to pay claims and process unearned premium refunds,” Schmidt said in a statement.
Overland Park-based Key is licensed in six states: Alabama, Arizona, Kansas, Missouri, Nevada and Oklahoma. The company had approximately 30,000 remaining policies in force nationwide, with approximately 13,000 of those in Kansas.
The company reported -$16.3 million in net income in 2024, according to an NAIC filing. The company had assets of -$57.9 million at end of year 2024, compared to liabilities of $65.3 million.
“Key is in such condition that further transaction of business would be hazardous, financially or otherwise, to its policyholders, creditors, and others,” the Shawnee County District Court order said.
The Kansas Department of Insurance (KDI) is encouraging Key customers to view the frequently asked questions page about the liquidation.
All policies in effect at the time of the liquidation order shall be cancelled the sooner of: (1) 30 days from the date of entry of the liquidation order, (2) the expiration of the policy coverage, or (3) the date when the customer has replaced the insurance coverage with equivalent insurance in another insurer or otherwise terminated the policy. All policies will be cancelled on or before April 30.
Key customers who need to file a claim can do so on the company’s website. Drivers who have been in an accident with a Key insured should reach out to their insurance company to submit a claim.
Certain Key policy claims may qualify for coverage from a state insurance guaranty association in the state of the policyholder’s residence, KDI said on the Key FAQ page. State insurance guaranty associations provide protection to policyholders and claimants in the event of a member insurer’s liquidation.
Nevada customers can submit an inquiry with the state’s Department of Motor Vehicles with concerns related to Key’s insolvency. Nevada customers unable to find replacement coverage can contact the Nevada Division of Insurance for assistance by calling toll-free: (888) 872-3234 or via email: insinfo@doi.nv.gov
Topics Kansas
Was this article valuable?
Here are more articles you may enjoy.
Bayer Seeks Roundup Settlement, Explores Monsanto Bankruptcy: Reports 
FEMA Chief Says Agency Will Raise State Burden for Disasters to 50% 
Central US Severe Weather Outbreak Caused Billions in Damages, AccuWeather Says 
EPA to Rollback Limits on ‘Forever Chemicals’ in Drinking Water 
