reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3420 Professional corporation which reorganizes as not-for-profit corporation is continuing concern for purposes of obtaining basic coverage under health care provider insurance availability act.

40-3420.
Professional corporation which reorganizes as not-for-profit corporation is continuing concern for purposes of obtaining basic coverage under health care provider insurance availability act.
(a) Any professional corporation organized under the professional corporation law of Kansas that reorganizes as a Kansas not-for-profit corporation and seeks to comply with the provisions of the health care provider insurance availability act shall be considered to be a continuing concern for the purposes of obtaining basic coverage pursuant to the health care provider insurance availability act and shall not be considered to be an inactive health care provider. Any insurer issuing basic coverage to such corporation shall provide coverage for all claims made during the term of the policy issued which arose while the not-for-profit corporation was operating in this state as a professional corporation under the professional corporation law of Kansas.
(b) This section shall be part of and supplemental to the health care provider insurance availability act.
History:
L. 1982, ch. 207, § 2; April 29.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3422 Appeal bond.

40-3422. Appeal bond.
In any medical malpractice liability action, as defined by K.S.A. 60-3401, and amendments thereto, the proceedings shall be stayed on appeal by the filing of a supersedeas bond in the amount of the judgment for which the fund is liable. Such supersedeas bond shall be signed by the chairperson of the board of governors, or the chairperson's designee, as administrator of the health care stabilization fund without surety or other security.
History:
L. 1986, ch. 229, § 31; L. 1994, ch. 155, § 10; L. 2014, ch. 56, § 20; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3423 Annuities purchased by fund.

40-3423.
Annuities purchased by fund.
The health care stabilization fund may own or assign any annuity purchased by the fund pursuant to K.S.A. 60-3407, 60-3409 or 60-3411 or pursuant to K.S.A. 40-3410 and amendments thereto in settlements of the liability of the fund.
History:
L. 1986, ch. 229, § 32; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3424 Fund liability for judgments or settlements against inactive healthcare providers.

40-3424. Fund liability for judgments or settlements against inactive healthcare providers.
(a) For all claims made on and after July 1, 2014, the amount of fund liability for a judgment or settlement against a resident or nonresident inactive healthcare provider shall be equal to the minimum professional liability insurance policy limits required pursuant to K.S.A. 40-3402, and amendments thereto, and in effect on the date of the incident giving rise to a claim, plus the level of coverage selected by the healthcare provider pursuant to K.S.A. 40-3403(l), and amendments thereto, at the time of the incident giving rise to a claim.
(b) The aggregate fund liability for all judgments and settlements arising from all claims made in any fiscal year against a resident or nonresident inactive healthcare provider shall not exceed $3,000,000 in any fiscal year.
For all claims made for incidents occurring on or after January 1, 2022, the aggregate fund liability for all judgments and settlements made in any fiscal year against a resident or nonresident inactive healthcare provider shall not exceed three times the coverage amount in subsection (a).
History:
L. 2014, ch. 56, § 1; L. 2017, ch. 35, § 4; L. 2021, ch. 108, § 18; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 34 - Healthcare Provider Insurance › 40-3425 Fund not liable for certain claims.

40-3425. Fund not liable for certain claims.
(a) Notwithstanding any provision of article 34 of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, to the contrary, the fund shall in no event be liable for any claim against a healthcare provider if:
(1) The healthcare provider's liability for the incident giving rise to the claim is the result of professional services rendered as a charitable healthcare provider; or
(2) the healthcare provider's liability for the incident giving rise to the claim is covered under the federal tort claims act pursuant to chapter 171 of title 28 of the United States code.
(b) This section shall be part of and supplemental to the healthcare provider insurance availability act.
History:
L. 2017, ch. 35, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3503 Capital and surplus requirements.

40-3503.
Capital and surplus requirements.
A mortgage guaranty insurance company shall not transact the business of mortgage guaranty insurance unless, if said company is a stock insurance company, it has paid-in capital of at least one million dollars ($1,000,000) and surplus of at least one million dollars ($1,000,000), or if said company is a mutual insurance company, it has a minimum surplus of two million dollars ($2,000,000).
History: L. 1977, ch. 154, § 3; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3504 Requirements prior to issuance of policies.

40-3504.
Requirements prior to issuance of policies.
No mortgage guaranty insurance company may issue policies until it has obtained from the commissioner of insurance a certificate of authority and has complied with the other applicable provisions of chapter 40 of the Kansas Statutes Annotated.
History: L. 1977, ch. 154, § 4; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3505 Insuring of certain risks prohibited.

40-3505.
Insuring of certain risks prohibited.
(a) A mortgage guaranty insurance company shall not insure loans secured by a single risk in excess of ten percent (10%) of its aggregate capital, surplus and contingency reserve.
(b) No mortgage guaranty insurance company shall have more than twenty percent (20%) of its total insurance in force in any one standard metropolitan statistical area ("SMSA"), as defined by the United States department of commerce. The provisions of this subsection shall not apply to a mortgage guaranty insurance company until it has possessed a certificate of authority in this state for three (3) years.
History: L. 1977, ch. 154, § 5; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3506 Preparation of information and advertisements concerning real estate investments of financial institutions; prohibited conduct.

40-3506.
Preparation of information and advertisements concerning real estate investments of financial institutions; prohibited conduct.
No mortgage guaranty insurance company or any agent or representative of a mortgage guaranty insurance company shall prepare or distribute or assist in preparing or distributing any brochure, pamphlet, report or any form of advertising to the effect that the real estate investments of any financial institution are "insured investments," unless the brochure, pamphlet, report or advertising clearly states that the loans are insured by mortgage guaranty insurance companies possessing a certificate of authority to transact mortgage guaranty insurance in this state or are insured by an agency of the federal government, as the case may be.
History: L. 1977, ch. 154, § 6; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3507 Investments; prohibitions.

40-3507.
Investments; prohibitions.
A mortgage guaranty insurance company shall not invest in notes or other evidences of indebtedness secured by mortgage or other lien upon real property. This section shall not apply to obligations secured by real property, which obligations or contracts of sale are acquired in the course of the good faith settlement of claims under policies of insurance issued by the mortgage guaranty insurance company, or in the good faith disposition of real property so acquired.
History: L. 1977, ch. 154, § 7; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3509 Certificate of authority; eligibility for; time for compliance.

40-3509.
Certificate of authority; eligibility for; time for compliance.
(a) A mortgage guaranty insurance company which anywhere transacts any class of insurance other than mortgage guaranty insurance is not eligible for the issuance of a certificate of authority to transact mortgage guaranty insurance in this state nor for the renewal thereof.
(b) A mortgage guaranty insurance company which anywhere transacts the classes of insurance defined in K.S.A. 40-3502(b)(2) or (3) is not eligible for a certificate of authority to transact in this state the class of mortgage guaranty insurance defined in K.S.A. 40-3502(b)(1) except a mortgage guaranty insurance company which transacts a class of insurance defined in K.S.A. 40-3502(b)(1) may write up to five percent (5%) of its insurance in force on residential property designed for occupancy by five (5) or more families.
(c) Any insurance company that is authorized to write mortgage guaranty insurance as defined in this act on January 1, 1977, shall have until May 1, 1983, to comply with the provisions of this section.
History: L. 1977, ch. 154, § 9; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3510 Discrimination in issuing or extending insurance prohibited; requirements on lender by insurance company authorized; examination of borrower and appraisal report required prior to writing insurance.

40-3510.
Discrimination in issuing or extending insurance prohibited; requirements on lender by insurance company authorized; examination of borrower and appraisal report required prior to writing insurance.
(a) No mortgage guaranty insurance company may discriminate in the issuance or extension of mortgage guaranty insurance on the basis of the applicant's sex, marital status, race, color, creed or national origin.
(b) Nothing in this act shall be construed as limiting the right of any mortgage guaranty insurance company to impose reasonable requirements upon the lender with regard to the terms of any note or bond or other evidence of indebtedness secured by a mortgage or deed of trust, such as requiring a stipulated down payment by the borrower.
(c) No policy of mortgage guaranty insurance excluding policies of reinsurance, shall be written unless and until the insurer or the lender, in compliance with underwriting directives from the insurer and subject to periodic underwriting audits by the insurer shall have conducted a reasonable and thorough examination of: (1) The evidence supporting credit worthiness of the borrower; and (2) the appraisal report reflecting market evaluation of the property and shall have determined that prudent underwriting standards have been met.
History:
L. 1977, ch. 154, § 10; L. 1995, ch. 55, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3511 Issuance of insurance to lending institutions; extension of coverage to individual loans; consideration as group policies; owner-occupied, single-family dwelling, borrower not liable to company for deficiency arising from foreclosure sale.

40-3511.
Issuance of insurance to lending institutions; extension of coverage to individual loans; consideration as group policies; owner-occupied, single-family dwelling, borrower not liable to company for deficiency arising from foreclosure sale.
Policies of mortgage guaranty insurance may be issued to lending institutions, with such lending institutions as the named insured. Coverage under such policies may be extended to individual loans by certificates of insurance. Such policies shall be considered as group policies for the purpose of complying with K.S.A. 40-214 and such policies and certificates of insurance shall be filed with the commissioner of insurance in the manner prescribed by K.S.A. 40-216. With respect to owner-occupied, single-family dwellings, the mortgage guaranty insurance policy shall provide that the borrower shall not be liable to the insurance company for any deficiency arising from a foreclosure sale.
History: L. 1977, ch. 154, § 11; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3512 Limitation on outstanding liability; temporary waiver.

40-3512.
Limitation on outstanding liability; temporary waiver.
Unless a waiver is granted by the insurance commissioner, a mortgage guaranty insurance company shall not at any time have outstanding a total liability, net of reinsurance, under its aggregate mortgage guaranty insurance policies exceeding 25 times its capital, surplus and contingency reserve. Subject to a waiver which may be granted by the commissioner, in the event that any mortgage guaranty insurance company has outstanding total liability exceeding 25 times its capital, surplus and contingency reserve, it shall cease transacting new mortgage guaranty business until such time as its total liability no longer exceeds 25 times its capital, surplus and contingency reserve. Total outstanding liability shall also be calculated on a consolidated basis for all mortgage guaranty insurance companies which are part of a holding company system as defined in K.S.A. 40-3302, and amendments thereto. Upon the request of a mortgage guaranty insurance company, the commissioner may waive the requirements in this section for such time and under such conditions as the commissioner may order, except that no such waiver shall exceed two years.
History:
L. 1977, ch. 154, § 12; L. 2010, ch. 108, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3513 Payments or rebates as inducements or compensation for or in connection with placement of insurance prohibited; penalties for violations.

40-3513.
Payments or rebates as inducements or compensation for or in connection with placement of insurance prohibited; penalties for violations.
(a) A mortgage guaranty insurance company shall not pay or cause to be paid either directly or indirectly, to any owner, purchaser, lessor, lessee, mortgagee or prospective mortgagee of the real property which secures the authorized real estate security or which is the fee of an insured lease, or any interest therein, or any person who is acting as an agent, representative, attorney or employee of such owner, purchaser or mortgagee, any commission, or any part of its premium charges or any other consideration as an inducement for or as compensation on any mortgage guaranty insurance business.
(b) In connection with the placement of any mortgage guaranty insurance, a mortgage guaranty insurance company shall not cause or permit any commission, fee, remuneration, or other compensation to be paid to, or received by any insured lender or lessor; any subsidiary or affiliate of any insured; any officer, director or employee of any insured or any member of their immediate family; any corporation, partnership, trust, trade association in which any insured is a member, or other entity in which any insured or any such officer, director, or employee or any member of their immediate family has a financial interest; or any designee, trustee, nominee, or other agent or representative of any of the foregoing.
(c) Any mortgage guaranty insurance company which pays any commission or makes any unlawful rebate in violation of the provisions of this article shall be subject to the penalties prescribed in K.S.A. 40-2407 and 40-2411.
History: L. 1977, ch. 154, § 13; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3514 Maintaining funds on deposit with insurance company's own insured prohibited; presumptions; other prohibited practices.

40-3514.
Maintaining funds on deposit with insurance company's own insured prohibited; presumptions; other prohibited practices.
(a) Except for commercial checking accounts and normal deposits in support of an active bank line of credit, a mortgage guaranty insurance company, the holding company or any affiliate thereof is prohibited from maintaining funds on deposit with the lender for which the mortgage guaranty insurance company has insured loans.
(b) Any deposit account bearing interest at rates less than what is currently being paid other depositors on similar deposits or any deposit in excess of amounts insured by an agency of the federal government shall be presumed to be an account in violation of this section. Furthermore, a mortgage guaranty insurance company shall not use compensating balances, special deposit accounts or engage in any practice which unduly delays its receipt of moneys due or which involves the use of its financial resources for the benefit of any owner, mortgagee of the real property or any interest therein or any person who is acting as agent, representative, attorney or employee of such owner, purchaser or mortgagee as a means of circumventing any part of this section.
History: L. 1977, ch. 154, § 14; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3515 Insurance company as member of holding company system; prohibited underwriting activities as condition of certificate of authority; other proscribed activities.

40-3515.
Insurance company as member of holding company system; prohibited underwriting activities as condition of certificate of authority; other proscribed activities.
(a) If it is a member of a holding company system as defined in K.S.A. 40-3302, a mortgage guaranty insurance company licensed to transact business in this state shall not, as a condition of its certificate of authority, knowingly underwrite mortgage guaranty insurance on mortgages originated by the holding company system or an affiliate or on mortgages originated by any mortgage lender to which credit is extended, directly or indirectly, by the holding company system or any affiliate.
(b) A mortgage guaranty insurance company, the holding company system of which it is a part or any affiliate shall not as a condition of the mortgage guaranty insurance company's certificate of authority, pay any commissions, remuneration, rebates or engage in activities proscribed in K.S.A. 40-3513 and 40-3514.
History: L. 1977, ch. 154, § 15; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3516 Unearned premium reserve requirement.

40-3516.
Unearned premium reserve requirement.
A mortgage guaranty insurance company shall compute and maintain an unearned premium reserve as set forth by regulation adopted by the commissioner of insurance.
History: L. 1977, ch. 154, § 16; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3517 Case basis and other loss reserves requirements.

40-3517.
Case basis and other loss reserves requirements.
A mortgage guaranty insurance company shall compute and maintain adequate case basis and other loss reserves which accurately reflect loss frequency and loss severity and shall include components for claims reported and unpaid, and for claims incurred but not reported, including estimated losses on:
(a) Insured loans which have resulted in the conveyance of property which remains unsold;
(b) Insured loans in the process of foreclosure;
(c) Insured loans in default for four (4) months or for any lesser period which is defined as default for such purposes in the policy provisions; and
(d) Insured leases in default for four (4) months or for any lesser period which is defined as default for such purposes in policy provisions.
History: L. 1977, ch. 154, § 17; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3518 Contingency reserve requirement; withdrawals.

40-3518.
Contingency reserve requirement; withdrawals.
Each mortgage guaranty insurance company shall establish a contingency reserve out of net premiums remaining (gross premiums less premiums returned to policyholders net of reinsurance) after establishment of the unearned premium reserve. The mortgage guaranty insurance company shall contribute to the contingency reserve an amount equal to fifty percent (50%) of such remaining earned premiums. Contributions to the contingency reserve made during each calendar year shall be maintained for a period of one hundred twenty (120) months, except that withdrawals may be made by the company in any year in which the actual incurred losses exceed thirty-five percent (35%) of the corresponding earned premiums, and no such releases shall be made without prior approval by the commissioner of the mortgage guaranty insurance company's state of domicile.
History: L. 1977, ch. 154, § 18; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3519 Reinsurance; establishment and maintenance of reserves in appropriate proportions by insurance company and reinsurer.

40-3519.
Reinsurance; establishment and maintenance of reserves in appropriate proportions by insurance company and reinsurer.
Whenever a mortgage guaranty insurance company obtains reinsurance from an insurance company which is properly licensed to provide reinsurance or from an appropriate governmental agency, the mortgage guaranty insurer and the reinsurer shall establish and maintain the reserves required in this act in appropriate proportions in relation to the risk retained by the original insurer and ceded to the assuming reinsurer so that the total reserves established shall not be less than the reserves required by this act.
History: L. 1977, ch. 154, § 19; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 35 - Mortgage Guaranty Insurance Companies › 40-3520 Establishment of reserves in accord with law of another state where insurance company licensed.

40-3520.
Establishment of reserves in accord with law of another state where insurance company licensed.
(a) Whenever the laws of any other jurisdiction in which a mortgage guaranty insurance company subject to the requirement of this act is also licensed to transact mortgage guaranty insurance require a larger unearned premium reserve or contingency reserve in the aggregate than that set forth herein, the establishment of such larger unearned premium reserve or contingency reserve in the aggregate shall be deemed to be in compliance with this act.
(b) Unearned premium reserves and contingency reserves shall be computed and maintained on risks insured after the effective date of this act as required by K.S.A. 40-3516 and 40-3518. Unearned premium reserves and contingency reserves on risks insured before the effective date of this act may be computed and maintained as required previously.
History: L. 1977, ch. 154, § 20; January 1, 1978.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3602 Insolvent insurers; offset of unearned premiums by agent; contract provisions with agent, application.

40-3602.
Insolvent insurers; offset of unearned premiums by agent; contract provisions with agent, application.
(a) Subject to the limitations specified in K.S.A. 40-2906 and amendments thereto, an insurance agent shall have the right to offset unearned premiums for their insureds on payment of the agent's account to an insolvent insurer as defined in K.S.A. 40-2903 and amendments thereto.
(b) The provisions of any contract between an insurance agent and an insolvent insurer shall apply for the duration of all policies in effect and until all accounts are settled with the insolvent insurer.
History:
L. 1986, ch. 167, § 1; April 24.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3605 Citation of act.

40-3605.
Citation of act.
(a) This act may be cited as the insurers supervision, rehabilitation and liquidation act.
(b) This act shall not be interpreted to limit the powers granted the commissioner by other provisions of law.
(c) This act shall be liberally construed.
History:
L. 1991, ch. 125, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3606 Application of act.

40-3606.
Application of act.
This act shall apply to all insurance companies, fraternal benefit societies, health maintenance organizations, reciprocal insurance exchanges, mutual nonprofit hospital and medical service corporations, captive insurance companies, group funded pools except municipal group funded pools governed by K.S.A. 12-2616 through 12-2629 and amendments thereto, prepaid service plans operating under article 19a of chapter 40 of the Kansas Statutes Annotated, regardless of whether such entities are authorized to do business in this state, and such entities which are in the process of organization.
History:
L. 1991, ch. 125, § 2; L. 1997, ch. 8, § 12; L. 2000, ch. 147, § 41; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3608 Delinquency proceedings; commencement and jurisdiction to determine; authority of court; actions to be brought in district court of Shawnee county.

40-3608.
Delinquency proceedings; commencement and jurisdiction to determine; authority of court; actions to be brought in district court of Shawnee county.
(a) No delinquency proceeding shall be commenced under this section by anyone other than the commissioner and no court shall have jurisdiction to entertain, hear or determine any such proceeding commenced by any other person.
(b) No court shall have jurisdiction to entertain, hear or determine any complaint praying for the dissolution, liquidation, rehabilitation, sequestration, conservation or receivership of any insurer; or praying for an injunction or restraining order or other relief preliminary to, incidental to or relating to such proceedings other than in accordance with this act.
(c) In addition to other grounds for jurisdiction provided by law, a court having jurisdiction of the subject matter has jurisdiction over a person served pursuant to K.S.A. 60-101 et seq. and amendments thereto, Kansas rules of civil procedure, or other applicable provisions of law in an action brought by the receiver of a domestic insurer or an alien insurer domiciled in this state:
(1) If the person served is an agent, broker or other person who has at any time written policies of insurance for or has acted in any manner whatsoever on behalf of an insurer against which a delinquency proceeding has been instituted, in any action resulting from or incident to such a relationship with the insurer;
(2) if the person served is a reinsurer who has at any time entered into a contract of reinsurance with an insurer against which a delinquency proceeding has been instituted, or is an agent or broker of or for the reinsurer, in any action on or incident to the reinsurance contract;
(3) if the person served is or has been an officer, director, manager, trustee, organizer, promoter or other person in a position of comparable authority or influence over an insurer against which a delinquency proceeding has been instituted, in any action resulting from or incident to such a relationship with the insurer;
(4) if the person served is or was at the time of the institution of the delinquency proceeding against the insurer holding assets in which the receiver claims an interest on behalf of the insurer, in any action concerning the assets; or
(5) if the person served is obligated to the insurer in any way whatsoever, in any action on or incident to the obligation.
(d) If the court on motion of any party finds that any action should as a matter of substantial justice be tried in a forum outside this state, the court may enter an appropriate order to stay further proceedings on the action in this state.
(e) All actions herein authorized shall be brought in the district court of Shawnee county, Kansas.
History:
L. 1991, ch. 125, § 4; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3609 Same; relief granted by court upon application of receiver; limitation.

40-3609. Same; relief granted by court upon application of receiver; limitation.
(a) Except as provided in subsection (c), any receiver appointed in a proceeding under this act may at any time apply for, and the district court of Shawnee county may grant, such restraining orders, preliminary and permanent injunctions and other orders as may be deemed necessary and proper to prevent:
(1) The transaction of further business;
(2) the transfer of property;
(3) interference with the receiver or with a proceeding under this act;
(4) waste of the insurer's assets;
(5) dissipation and transfer of bank accounts;
(6) the institution or further prosecution of any actions or proceedings;
(7) the obtaining of preferences, judgments, attachments, garnishments or liens against the insurer, its assets or its policyholders;
(8) the levying of execution against the insurer, its assets or its policyholders;
(9) the making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer;
(10) the withholding from the receiver of books, accounts, documents or other records relating to the business of the insurer; or
(11) any other threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors or shareholders, or the administration of any proceeding under this act.
(b) Except as provided in subsection (c), the receiver may apply to any court outside the state for the relief described in subsection (a).
(c) No federal home loan bank shall be stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action regarding collateral pledged under:
(1) Any federal home loan bank security agreement; or
(2) any pledge, security, collateral or guarantee agreement or other similar arrangement or credit enhancement relating to such security agreement.
History:
L. 1991, ch. 125, § 5; L. 2014, ch. 3, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3610 Same; persons required to cooperate with commissioner; definitions; civil and criminal penalties and supervision or revocation of licenses for failure to cooperate or obstruction or interference with commissioner.

40-3610.
Same; persons required to cooperate with commissioner; definitions; civil and criminal penalties and supervision or revocation of licenses for failure to cooperate or obstruction or interference with commissioner.
(a) Any officer, manager, director, trustee, owner, employee or agent of any insurer, or any other persons with authority over or in charge of any segment of the insurer's affairs, shall cooperate with the commissioner in any proceeding under this act or any investigation preliminary to the proceeding. The term "person" as used in this section, shall include any person who exercises control directly or indirectly over activities of the insurer through any holding company or other affiliate of the insurer. "To cooperate" shall include, but shall not be limited to, the following:
(1) To reply promptly in writing to any inquiry from the commissioner requesting such a reply; and
(2) to make available to the commissioner any books, accounts, documents or other records or information or property of or pertaining to the insurer and in the insurer's possession, custody or control.
(b) No person shall obstruct or interfere with the commissioner in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto.
(c) This section shall not be construed to abridge otherwise existing legal rights, including the right to resist a petition for liquidation or other delinquency proceedings, or other orders.
(d) Any person included within subsection (a) who fails to cooperate with the commissioner, or any person who obstructs or interferes with the commissioner in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto, or who violates any order the commissioner issued validly under this act may:
(1) Be sentenced to pay a fine not exceeding $10,000 or to imprisonment for a term of not more than one year, or both; or
(2) after a hearing held in accordance with the Kansas administrative procedure act, be subject to the imposition by the commissioner of a civil penalty not to exceed $10,000 and shall be subject further to the revocation or suspension of any insurance licenses issued by the commissioner.
History:
L. 1991, ch. 125, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3611 Same; proceeding commenced prior to effective date of act.

40-3611.
Same; proceeding commenced prior to effective date of act.
Every proceeding heretofore commenced under the laws in effect before the enactment of this act shall be deemed to have commenced under this act for the purpose of conducting the proceeding henceforth, except that in the discretion of the commissioner the proceeding may be continued, in whole or in part, as it would have been continued had this act not been enacted.
History:
L. 1991, ch. 125, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3612 Same; restrictions upon insurers subject to delinquency proceedings.

40-3612.
Same; restrictions upon insurers subject to delinquency proceedings.
No insurer that is subject to any delinquency proceedings, whether formal or informal shall:
(a) Be released from such proceeding, unless such proceeding is converted into a judicial rehabilitation or liquidation proceeding;
(b) be permitted to solicit or accept new business or request or accept the restoration of any suspended or revoked license or certificate of authority;
(c) be returned to the control of its shareholders or private management; or
(d) have any of its assets returned to the control of the shareholders or private management; until all payments of or on account of the insurer's contractual obligations by all guaranty associations, along with all expenses thereof and interest on all such payments and expenses, shall have been repaid to the guaranty associations or a plan of repayment by the insurer shall have been approved by the guaranty association.
History:
L. 1991, ch. 125, § 8; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3614 Same; seizure of insurer; petition of commissioner; order of court; vacation of order; petition for hearing and review of order; failure to give notice to affected person.

40-3614.
Same; seizure of insurer; petition of commissioner; order of court; vacation of order; petition for hearing and review of order; failure to give notice to affected person.
(a) The commissioner may file in the district court of Shawnee county a petition alleging, with respect to a domestic insurer:
(1) That there exists any grounds that would justify a court order for a formal delinquency proceeding against an insurer under this act;
(2) that the interests of policyholders, creditors or the public will be endangered by delay; and
(3) the contents of an order deemed necessary by the commissioner.
(b) Upon a filing under subsection (a), the court may issue forthwith, ex parte and without a hearing, the requested order which shall direct the commissioner to take possession and control of all or a part of the property, books, accounts, documents, other records of an insurer and of the premises occupied by it for transaction of its business; and until further order of the court enjoin the insurer and its officers, managers, agents and employees from disposition of its property and from the transaction of the insurer's business except with the written consent of the commissioner.
(c) The court shall specify in the order what the order's duration shall be, which shall be such time as the court deems necessary for the commissioner to ascertain the condition of the insurer. On motion of either party or on the court's own motion, the court may from time to time hold such hearings as it deems desirable after such notice as it deems appropriate, and may extend, shorten, or modify the terms of the seizure order. The court shall vacate the seizure order if the commissioner fails to commence a formal proceeding under this act after having had a reasonable opportunity to do so. An order of the court pursuant to a formal proceeding under this act shall ipso facto vacate the seizure order.
(d) Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the insurer.
(e) An insurer subject to an ex parte order under this section may petition the court at any time after the issuance of such order for a hearing and review of the order. The court shall hold such a hearing and review not more than 15 days after the request. A hearing under this subsection may be held privately in chambers and it shall be so held, if the insurer proceeded against so requests.
(f) If, at any time after the issuance of such an order, it appears to the court that any person whose interest is, or will be, substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given shall not stay the effect of any order previously issued by the court.
History:
L. 1991, ch. 125, § 10; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3615 Confidentiality of records and documents in proceedings under K.S.A. 40-3613 and 40-3614; exceptions.

40-3615.
Confidentiality of records and documents in proceedings under K.S.A. 40-3613 and 40-3614; exceptions.
In all proceedings and judicial reviews thereof under K.S.A. 40-3613 and 40-3614, all records of the insurer, other documents, and all insurance department files and court records and papers, so far as they pertain to or are a part of the record of the proceedings, shall be and remain confidential except as is necessary to obtain compliance therewith, unless and until the district court of Shawnee county, after hearing arguments from the parties in chambers, shall order otherwise; or unless the insurer requests that the matter be made public. Until such court order, all papers filed with the clerk of the district court of Shawnee county shall be held by such clerk in a confidential file.
History:
L. 1991, ch. 125, § 11; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3617 Same; order of court, contents; effect of filing or recording order; accounting by rehabilitator; effect of entry of order.

40-3617.
Same; order of court, contents; effect of filing or recording order; accounting by rehabilitator; effect of entry of order.
(a) An order to rehabilitate the business of a domestic insurer or an alien insurer domiciled in this state shall appoint the commissioner and such commissioner's successors as the rehabilitator, and shall direct the rehabilitator forthwith to take possession of the assets of the insurer, and to administer such assets under the general supervision of the court. The filing or recording of the order with the clerk of the district court of Shawnee county or register of deeds of the county in which the principal business of the company is conducted, or the county in which its principal office or place of business is located, shall impart the same notice as a deed, bill of sale or other evidence of title duly filed or recorded with that recorder of deeds would have imparted. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator.
(b) Any order issued under this section shall require accounting to the court by the rehabilitator. Accountings shall be at such intervals as the court specifies in this order.
(c) Entry of an order of rehabilitation shall not constitute an anticipatory breach of any contracts of the insurer nor shall it be grounds for retroactive revocation or retroactive cancellation of any contracts of the insurer, unless such revocation or cancellation is done by the rehabilitator pursuant to K.S.A. 40-3618.
History:
L. 1991, ch. 125, § 13; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3619 Same; litigation pending at time of entry of rehabilitation order, stay of action or proceeding; duties of court and rehabilitator; statutes of limitation and defenses of laches; rights of guaranty associations; rights of federal home loan banks.

40-3619. Same; litigation pending at time of entry of rehabilitation order, stay of action or proceeding; duties of court and rehabilitator; statutes of limitation and defenses of laches; rights of guaranty associations; rights of federal home loan banks.
(a) Except as provided in subsection (d), any court in this state before which any action or proceeding in which the insurer is a party, or is obligated to defend a party, is pending when a rehabilitation order against the insurer is entered shall stay the action or proceeding for 90 days and such additional time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take such action respecting the pending litigation as necessary in the interests of justice and for the protection of creditors, policyholders and the public. The rehabilitator shall immediately consider all litigation pending outside this state and shall petition the courts having jurisdiction over such litigation for stays whenever necessary to protect the estate of the insurer.
(b) Except as provided in subsection (d), no statute of limitation or defense of laches shall run with respect to any action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting and denying that petition. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least 60 days after the order or rehabilitation is entered or the petition is denied. The rehabilitator, upon an order for rehabilitation, within one year or such other longer time as applicable law may permit, may institute an action or proceeding on behalf of the insurer upon any cause of action against which the period of limitation fixed by applicable law has not expired at the time of the filing of the petition upon which such order is entered.
(c) Any guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in any court proceeding concerning the rehabilitation of a life or health insurer if such association is or may become liable to act as a result of the rehabilitation.
(d) No federal home loan bank shall be stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action regarding collateral pledged under:
(1) Any federal home loan bank security agreement; or
(2) any pledge, security, collateral or guarantee agreement or other similar arrangement or credit enhancement relating to such security agreement.
History:
L. 1991, ch. 125, § 15; L. 2014, ch. 3, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3620 Same; petition for liquidation of insurer, when; defense against petition, payment of costs and expenses; termination of rehabilitation, petition and order; payment of costs and expenses.

40-3620.
Same; petition for liquidation of insurer, when; defense against petition, payment of costs and expenses; termination of rehabilitation, petition and order; payment of costs and expenses.
(a) Whenever the commissioner believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders or the public, or would be futile, the commissioner may petition the district court of Shawnee county for an order of liquidation. A petition under this subsection shall have the same effect as a petition under K.S.A. 40-3621. The court shall permit the directors of the insurer to take such actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of such costs and other expenses of defense as justice may require.
(b) The rehabilitator may at any time petition the court for an order terminating rehabilitation of an insurer. The court shall also permit the directors of the insurer to petition the court for an order terminating rehabilitation of the insurer and may order payment from the estate of the insurer of such costs and other expenses of such petition as justice may require. If the court finds that rehabilitation has been accomplished and that grounds for rehabilitation under K.S.A. 40-3616 no longer exist, the court shall order that the insurer be restored to possession of such insurer's property and the control of the business. The court may also make that finding and issue that order at any time upon such court's own motion.
History:
L. 1991, ch. 125, § 16; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3621 Liquidation of insurer; petition by commissioner; grounds.

40-3621.
Liquidation of insurer; petition by commissioner; grounds.
The commissioner may petition the district court of Shawnee county for an order directing the commissioner to liquidate a domestic insurer on the basis:
(a) Of any grounds for an order of rehabilitation as specified in K.S.A. 40-3616, whether or not there has been a prior order directing the rehabilitation of the insurer;
(b) that the insurer is insolvent; or
(c) that the insurer is in such condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors or the public.
History:
L. 1991, ch. 125, § 17; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 36 - Impaired Or Insolvent Insurers › 40-3623 Same; continuation of insurance policies in effect at time of order of liquidation.

40-3623.
Same; continuation of insurance policies in effect at time of order of liquidation.
(a) All policies, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force only for the lesser of:
(1) A period of 30 days from the date of entry of the liquidation orders;
(2) the expiration of the policy coverage;
(3) the date when the insured has replaced the insurance coverage with equivalent insurance in another insurer or otherwise terminated the policy; or
(4) the liquidator has effected a transfer of the policy obligation pursuant to K.S.A. 40-3625(a)(9).
(b) An order or liquidation under K.S.A. 40-3622 shall terminate coverages at the time specified in subsection (a) for purposes of any other statute.
(c) Policies of life or health insurance or annuities shall continue in force for such period and under such terms as is provided for by any applicable guaranty association or foreign guaranty association.
(d) Policies of life or health insurance or annuities or any period or coverage of such policies not covered by a guaranty association or foreign guaranty association shall terminate under subsections (a) and (b).
History:
L. 1991, ch. 125, § 19; July 1.