Well, tested this today.
Its possible to be homed in a sector / system where you are KOS. This causes quite interesting situations, especially if you're still in a bus.

To try:
start a new char as serco
find an UIT who's loved by serco
go outside a station (beyond the KOS) and kill him. quickly, before the bots come.
Do it again, since you died.
Find yourself homed in your station, but KOS by serco.
curse the game.

A suggestion would be to move such players to the nearest Neutral Star, or perhaps to Corvus directly?

Yes, I just wrote it to put you in the (relatively) nearest non-hate station. That will go into the next update.