Kansas’ Key Insurance Placed Into Liquidation

Key Insurance, a Kansas-based insurer specializing in non-standard auto, was placed into liquidation 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.

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.

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.

Topics Kansas