reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b02 State, District of Columbia, territorial and municipal obligations.

40-2b02.
State, District of Columbia, territorial and municipal obligations.
Any life insurance company heretofore or hereafter organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in bonds or other evidences of indebtedness issued, assumed or guaranteed by the District of Columbia, or by any state, insular or territorial possession of the United States of America, or by any county, city, town, school, road, drainage or other district, located within any state, or insular or territorial possession of the United States of America, or by any political or civil subdivision or governmental authority of any such state, or insular or territorial possession, or by any agency or instrumentality of any such state, or insular or territorial possession, political or civil subdivision, or governmental authority.
History:
L. 1972, ch. 179, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b03 Canadian government, provincial and municipal obligations.

40-2b03.
Canadian government, provincial and municipal obligations.
Any life insurance company heretofore or hereafter organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in bonds or other evidences of indebtedness issued, assumed or guaranteed by the Dominion of Canada, or by any province thereof, or by any municipality, district, agency or instrumentality thereof.
History:
L. 1972, ch. 179, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b06 Preferred and guaranteed stocks; investments; limitations.

40-2b06. Preferred and guaranteed stocks; investments; limitations.
Any life insurance company organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in preferred stocks of, or stocks guaranteed by, a corporation incorporated under the laws of the United States of America, or of any state, district, insular or territorial possession thereof, or of the Dominion of Canada, or any province thereof, in an amount not to exceed 25% of its admitted assets as shown by the company's last annual report, as filed with the state commissioner of insurance, or a more recent quarterly financial statement filed within 45 days following the end of the calendar quarter to which the interim statement pertains in the form and manner prescribed by the commissioner in rules and regulations.
History:
L. 1972, ch. 179, § 6; L. 1983, ch. 156, § 6; L. 1987, ch. 160, § 9; L. 2022, ch. 17, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b08 Equipment trust obligations or conditional sales contracts.

40-2b08.
Equipment trust obligations or conditional sales contracts.
Any life insurance company heretofore or hereafter organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in bonds, certificates or other evidences of indebtedness secured by any transportation or other equipment used in the United States of America or Dominion of Canada, that provide a right to receive determined rental, purchase or other fixed obligatory payments adequate to retire the obligations and also provide for vesting of title to such equipment free from encumbrance in a corporate trustee, or for creation of a first lien on such equipment.
History:
L. 1972, ch. 179, § 8; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b10 Real estate.

40-2b10.
Real estate.
No life insurance company organized under the laws of this state shall purchase, hold or convey real estate, except for the purposes and in the manner herein set forth:
(a) Such as shall be requisite for its convenient present and future accommodation in the transaction of its business. In the erection or purchase of any buildings for such purpose, additional space may be included for home office rental income;
(b) such as shall have been mortgaged to it in good faith, by way of security for loans previously contracted or for money due;
(c) such as shall have been conveyed to it in satisfaction of debts previously contracted in their legitimate business or for money due;
(d) such as shall have been purchased at sales upon judgments, decrees or mortgages obtained or made for such debts; or
(e) such as shall have been acquired for development or income purposes.
It shall not be lawful for any such company to purchase, hold or convey real estate in any other case or for any other purpose, except nothing in this section shall be deemed to prohibit any such company from purchasing the principal residence owned and inhabited by an employee or prospective employee who is being transferred by the company to a different community; and all such real estate as may be acquired as aforesaid, and which shall not be necessary for the accommodation of such company in the transaction of its business, except real estate acquired for development or income purposes, shall be sold and disposed of within five years after such company shall have acquired title thereto, unless the company shall procure a certificate from the commissioner of insurance that the interests of the company will suffer materially by a forced sale thereof in which event the sale may be postponed for such period as the commissioner of insurance shall direct in such certificate. If the company so elects, real estate other than farm properties, which has been acquired under subsections (c) and (d) may be held by it for income purposes. The company's aggregate investment in real estate as herein provided shall not exceed 20% of the admitted assets of the company, as shown by its last annual report as filed with the commissioner of insurance or a more recent quarterly financial statement as filed with the commissioner, on a form prescribed by the national association of insurance commissioners, within 45 days following the end of the calendar quarter to which the interim statement pertains.
History:
L. 1972, ch. 179, § 10; L. 1982, ch. 201, § 3; L. 1983, ch. 156, § 9; L. 1987, ch. 160, § 11; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b11 Policy loans.

40-2b11.
Policy loans.
Any life insurance company heretofore or hereafter organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in loans upon the security of the policies of the company and constituting a lien thereon in an amount not exceeding the legal reserve thereon.
History:
L. 1972, ch. 179, § 11; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b12 Collateral loans.

40-2b12. Collateral loans.
Any life insurance company heretofore or hereafter organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in loans secured by collateral consisting of a pledge of bonds, mortgages, securities, stock or evidence of indebtedness qualified in article 2b of chapter 40 of the Kansas Statutes Annotated, and amendments thereto. Except, the amount of the loan shall not exceed 80% of the market value of the asset securing the loan. In addition, all restrictions, limitations or conditions placed on any investment authorized within article 2b of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, shall apply to the collateral pledged to the payment of loans authorized in this section.
History:
L. 1972, ch. 179, § 12; L. 2014, ch. 43, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b13 Leeway clause.

40-2b13. Leeway clause.
Any life insurance company heretofore or hereafter organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in investments whether or not qualified and permitted under this act and notwithstanding any conditions or limitations prescribed therein, in an aggregate amount not more than 10% of its admitted assets as shown by the company's last annual report as filed with the insurance commissioner or a more recent quarterly financial statement filed with the commissioner, except that investments shall not be permitted in insolvent organizations or organizations in default with respect to the payment of principal or interest.
History:
L. 1972, ch. 179, § 13; L. 1983, ch. 156, § 10; L. 2015, ch. 7, § 11; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b15 Savings and loan shares or deposits.

40-2b15.
Savings and loan shares or deposits.
Any life insurance company heretofore or hereafter organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in shares or savings deposits in a federally insured savings and loan association.
History:
L. 1972, ch. 179, § 15; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b16 Bank certificates of deposit.

40-2b16.
Bank certificates of deposit.
Any life insurance company heretofore or hereafter organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in certificates of deposit in a federally insured bank.
History:
L. 1972, ch. 179, § 16; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b17 International bank for reconstruction and development, inter-American development bank and African development bank.

40-2b17.
International bank for reconstruction and development, inter-American development bank and African development bank.
Any life insurance company organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in bonds or other evidences of indebtedness issued, assumed or guaranteed by the international bank for reconstruction and development, the inter-American development bank or by the African development bank.
History:
L. 1972, ch. 179, § 17; L. 1986, ch. 175, § 2; April 24.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b18 Real estate investment trusts.

40-2b18.
Real estate investment trusts.
Any life insurance company heretofore or hereafter organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in shares of beneficial interest in or obligations issued by a real estate investment trust qualified under sections 856 through 858 of the federal internal revenue code which meet the following qualifications:
(a) The obligations shown on the last published annual statement of such trust must meet the qualifications specified for corporate obligations in subsections (a) through (d) of K.S.A. 40-2b05;
(b) cash dividends have been paid during each of the last three (3) years preceding the date of acquisition;
(c) the shares are registered on a national securities exchange regulated under the securities exchange act of 1934 as amended;
(d) the trust shall have earnings in three (3) of the last five (5) years preceding date of acquisition;
(e) no insurance company shall own more than five percent (5%) of the total number of shares of any one such trust, nor invest more than two percent (2%) of its admitted assets in shares of any one such trust.
Shares in each trust which has over one-half (1/2) of its assets invested in ownership of real estate or which has such ownership as its stated investment objective shall be considered a real estate investment for purposes of conforming with the limitation on real estate ownership imposed in K.S.A. 40-2b10.
History:
L. 1972, ch. 179, § 18; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b19 Prior lawful investments.

40-2b19.
Prior lawful investments.
All investments owned by any life insurance company at the time this act becomes effective and purchased pursuant to and in accordance with prior investment laws of this state shall be deemed in compliance with this act.
History:
L. 1972, ch. 179, § 19; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b20 Adoption of nominee name; designation of bank or trust company as trustee; defining clearing corporation.

40-2b20. Adoption of nominee name; designation of bank or trust company as trustee; defining clearing corporation.
(a) Any life insurance company organized under any law of this state, with the direction or approval of a majority of its board of directors, may:
(1) Adopt a nominee name unique to such insurance company in which such insurance company's securities may be registered;
(2) designate a state or national bank, a trust company or a federal home loan bank having trust powers to obtain a nominee name for such insurance company in which such insurance company's securities may be registered; or
(3) designate a state or national bank or a trust company having trust powers as trustee to make any investment authorized by this act in the name of such trustee or such trustee's nominee.
(b) Under the provisions of paragraphs (2) and (3) of subsection (a), the designated state or national bank, the trust company or the federal home loan bank may arrange for such securities to be held in a clearing corporation. Such arrangement must be in accordance with a written agreement, approved by the commissioner of insurance, between the insurance company and its designated bank or trust company and must impose the same degree of responsibility on the bank or trust company as if such securities were held in definitive form by such bank or trust company.
(c) As used in this section "clearing corporation" means: (1) A corporation defined in subsection (3) of K.S.A. 84-8-102, and amendments thereto;
(2) any organization or system for the clearance and settlement of securities transactions which is operated or owned by a bank, trust company or other entity that is subject to regulation by the United States federal reserve board or the United States comptroller of the currency; or
(3) any clearing agency registered with the securities and exchange commission pursuant to the securities exchange act of 1934, section 17A.
History:
L. 1972, ch. 179, § 20; L. 1983, ch. 156, § 11; L. 1986, ch. 176, § 2; L. 1995, ch. 87, § 1; L. 2009, ch. 83, § 24; L. 2012, ch. 18, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b24 Investment companies; money market mutual funds.

40-2b24.
Investment companies; money market mutual funds.
(a) Any life insurance company heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in shares of a corporation registered and operated as an open-end regulated investment company in accordance with the investment company act of 1940, as amended.
(b) Investments under this section, other than investments in money market mutual funds as described in subsection (c), shall be further limited as follows:
(1) The insurance company's aggregate investment under this provision and K.S.A. 40-2b07, and amendments thereto, combined shall not exceed 25% of its admitted assets as shown by the company's last annual report as filed with the commissioner of insurance or a more recent quarterly financial statement as filed with the commissioner, on a form prescribed by the national association of insurance commissioners, within 45 days following the end of the calendar quarter to which the interim statement pertains;
(2) the investment company in which the insurance company acquires shares shall have assets of not less than $25,000,000 at the date of purchase;
(3) the insurance company shall not acquire more than 15% of the outstanding shares of any one investment company;
(4) investments in the shares of any one investment company shall not exceed 10% of the admitted assets of the insurance company as shown by the company's last annual report as filed with the commissioner of insurance, as determined on the basis of the cost of such shares to the insurance company at time of purchase.
(c) Investments in money market mutual funds shall not be subject to the limitations contained in subsection (b) when the assets of the fund represent qualified investments described in K.S.A. 40-2b01, 40-2b02, 40-2b03, 40-2b04, 40-2b05 and 40-2b21, and amendments thereto. Investments in money market mutual funds shall be further limited as follows:
(1) The investment company in which the insurance company acquires shares shall have assets of not less than $25,000,000 at the date of purchase; and
(2) investments in the shares of any one investment company shall not exceed 20% of the admitted assets of the insurance company as shown by the company's last annual report as filed with the commissioner of insurance, or a more recent quarterly financial statement as filed with the insurance commissioner, on a form prescribed by the national association of insurance commissioners, within 45 days following the end of the calendar quarter to which the interim statement pertains, as determined on the basis of the cost of such shares to the insurance company at the time of purchase.
History:
L. 1983, ch. 156, § 14; L. 1985, ch. 162, § 2; L. 1987, ch. 160, § 12; L. 1995, ch. 96, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b27 Medium and lower grade obligations; definitions.

40-2b27. Medium and lower grade obligations; definitions.
As used in K.S.A. 40-2b28:
(a) "Medium grade obligations" means obligations which are designated "3" by the SVO or its equivalent rating by a nationally recognized statistical rating organization recognized by the SVO.
(b) "Lower grade obligations" means obligations which are designated "4," "5" or "6" by the SVO or its equivalent rating by a nationally recognized statistical rating organization recognized by the SVO.
(c) "Admitted assets" means the amount shown on the insurer's last annual report as filed with the state commissioner of insurance or a more recent quarterly financial statement filed with the commissioner.
(d) "Aggregate amount" of medium grade and lower grade obligations means the aggregate statutory statement value thereof.
(e) "Institution" means a corporation, a joint-stock company, an association, a trust, a business partnership, a business joint venture or similar entity.
(f) "Insurance company" or "insurer" means any life insurance company organized under the laws of this state.
(g) "NAIC" means the national association of insurance commissioners.
(h) "SVO" means the securities valuation office of the NAIC or any successor office established by the NAIC.
History:
L. 1992, ch. 121, § 3; L. 2015, ch. 7, § 13; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b29 Investment in asset-backed securities; conditions; definitions.

40-2b29. Investment in asset-backed securities; conditions; definitions.
(a) Any life insurance company organized under any law of this state may invest, by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof, in asset-backed securities, subject to the following:
(1) To be an admitted asset under this section, an asset-backed security must, at the time of acquisition, be designated "1" or "2" by the SVO or its equivalent rating by a nationally recognized statistical rating organization recognized by the SVO; and
(2) the investment in any one issue of asset-backed securities shall not exceed 2% of the admitted assets of the life insurance company as shown by its last annual report or a more recent quarterly financial statement filed with the commissioner. Each issue designated as provided in paragraph (1) shall constitute a single issue regardless of any other obligations or securities issued by the same or any affiliated issuer.
(b) As used in this section:
(1) "Asset-backed security" means any security or other instrument representing or evidencing an interest in, a loan to, a participation in a loan to, or any other right to receive payments from a business entity of any type or form, which has as its primary business activity the acquisition and holding of financial assets, directly or through a trustee, for the benefit of such business entity's debt or equity holders;
(2) "financial asset" means a single asset or a pool of assets consisting of interest-bearing obligations or other contractual obligations representing or constituting the right to receive payment from the asset or pool of assets;
(3) "NAIC" means the national association of insurance commissioners; and
(4) "SVO" means the securities valuation office of the NAIC or any successor office established by the NAIC.
History:
L. 1995, ch. 23, § 1; L. 2014, ch. 43, § 8; L. 2015, ch. 7, § 15; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c02 Risk-based capital report.

40-2c02.
Risk-based capital report.
Every domestic insurer, concurrent with or prior to submission of the annual statement required by K.S.A. 40-225, and amendments thereto, shall prepare and submit to the commissioner a report of its RBC levels as of the end of the calendar year just ended in a form and containing such information as is required by the RBC instructions. In addition, every domestic insurer shall file its RBC report:
(a) With the NAIC in accordance with the RBC instructions; and
(b) with the insurance commissioner in any state in which the insurer is authorized to do business, if such insurance commissioner has notified the insurer of its request in writing, in which case the insurer shall file its RBC report not later than the later of:
(1) Fifteen days from the receipt of notice to file its RBC report with that state; or
(2) the filing date otherwise specified in this subsection.
History:
L. 1994, ch. 138, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c03 Determination of risk-based capital.

40-2c03.
Determination of risk-based capital.
(a) A life and health insurer's RBC shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take into account and may adjust for the covariance between:
(1) The risk with respect to the insurer's assets;
(2) the risk of adverse insurance experience with respect to the insurer's liabilities and obligations;
(3) the interest rate risk with respect to the insurer's business; and
(4) all other business risks and such other relevant risks as are set forth in the RBC instructions;
determined in each case by applying the factors in the manner set forth in the RBC instructions.
(b) A property and casualty insurer's RBC shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take into account and may adjust for the covariance between:
(1) Asset risk;
(2) credit risk;
(3) underwriting risk; and
(4) all other business risks and such other relevant risks as are set forth in the RBC instructions;
determined in each case by applying the factors in the manner set forth in the RBC instructions.
(c) An excess of capital over the amount produced by the risk-based capital requirements contained in this act and the formulas, schedules and instructions referenced in this act is desirable in the business of insurance. Accordingly, insurers should seek to maintain capital above the RBC levels required by this act. Additional capital is used and useful in the insurance business and helps to secure an insurer against various risks inherent in, or affecting, the business of insurance and not accounted for or only partially measured by the risk-based capital requirements contained in this act.
History:
L. 1994, ch. 138, § 3; L. 1996, ch. 134, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c04 Risk-based capital report; adjustment.

40-2c04.
Risk-based capital report; adjustment.
If a domestic insurer files an RBC report which in the judgment of the commissioner is inaccurate, the commissioner shall adjust the RBC report to correct the inaccuracy and shall notify the insurer of the adjustment. The notice shall contain a statement of the reason for the adjustment. An RBC report as so adjusted is referred to as an adjusted RBC report.
History:
L. 1994, ch. 138, § 4; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c05 Company action level event; defined.

40-2c05. Company action level event; defined.
"Company action level event" means any of the following events:
(a) The filing of an RBC report by an insurer which indicates that:
(1) The insurer's total adjusted capital is greater than or equal to its regulatory action level RBC but less than its company action level RBC; or
(2) (A) a life and health insurer has total adjusted capital which is greater than or equal to its company action level RBC but less than the product of its authorized control level RBC and 3.0 and has a negative trend; or
(B) a property and casualty insurer has total adjusted capital which is greater than or equal to its company action level RBC but less than the product of its authorized control level RBC and 3.0 and triggers the trend test calculation included in the RBC instructions as defined in K.S.A. 40-2c01, and amendments thereto.
(b) The notification by the commissioner to the insurer of an adjusted RBC report that indicates the event described in subsection (a)(1) or (2), unless the insurer challenges the adjusted RBC report pursuant to K.S.A. 40-2c19, and amendments thereto, and such challenge has not been rejected by the commissioner.
History:
L. 1994, ch. 138, § 5; L. 1996, ch. 134, § 3; L. 2009, ch. 19, § 1; L. 2013, ch. 38, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c06 Submission of RBC plan.

40-2c06.
Submission of RBC plan.
In the event of a company action level event, the insurer shall prepare and submit to the commissioner an RBC plan which shall:
(a) Identify the conditions in the insurer's operation which contribute to the company action level event;
(b) contain proposals of corrective actions which the insurer intends to take that would be expected to result in the elimination of the company action level event;
(c) provide projections of the insurer's financial results in the current year and at least the four succeeding years, both in the absence of the proposed corrective actions and giving effect to the proposed corrective actions, including projections of statutory operating income, net income, capital and surplus or surplus only with respect to a mutual insurer. The projections for both new and renewal business may include separate projections for each major line of business and separately identify each significant income, expense and benefit component;
(d) identify the key assumptions impacting the insurer's projections and the sensitivity of the projections to the assumptions; and
(e) identify the quality of, and problems associated with, the insurer's business, including, but not limited to, its assets, anticipated business growth and associated surplus strain, extraordinary exposure to risk, mix of business and use of reinsurance in each case, if any.
History:
L. 1994, ch. 138, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c07 Risk-based capital plan; submission.

40-2c07.
Risk-based capital plan; submission.
The RBC plan shall be submitted:
(a) Within 45 days of the company action level event; or
(b) within 45 days after notification to the insurer that the commissioner has rejected the insurer's challenge to an adjusted RBC report pursuant to K.S.A. 40-2c19.
History:
L. 1994, ch. 138, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c08 Same; notification by commissioner.

40-2c08.
Same; notification by commissioner.
Within 60 days after the submission by an insurer of an RBC plan to the commissioner, the commissioner shall notify the insurer whether the RBC plan shall be implemented or is, in the judgment of the commissioner, unsatisfactory. If the commissioner determines the RBC plan is unsatisfactory, the notification to the insurer shall state the reasons for the determination, and may state proposed revisions which, in the judgment of the commissioner, will render the RBC plan satisfactory. Upon notification from the commissioner, the insurer shall prepare a revised RBC plan and shall submit the revised RBC plan to the commissioner:
(a) Within 45 days after the notification from the commissioner; or
(b) within 45 days after a notification to the insurer that the commissioner has, pursuant to K.S.A. 40-2c19, rejected the insurer's challenge to the commissioner's original findings as authorized by this section.
History:
L. 1994, ch. 138, § 8; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c09 Same; notification a regulatory action level event.

40-2c09.
Same; notification a regulatory action level event.
In the event of a notification by the commissioner to an insurer that the insurer's RBC plan or revised RBC plan is unsatisfactory, the commissioner, subject to the insurer's right to a hearing under K.S.A. 40-2c19, may specify in the notification that the notification constitutes a regulatory action level event.
History:
L. 1994, ch. 138, § 9; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c10 Domestic insurer to file RBC plan in any state authorized to do business.

40-2c10.
Domestic insurer to file RBC plan in any state authorized to do business.
Every domestic insurer that files an RBC plan or revised RBC plan with the commissioner shall file a copy of the RBC plan or revised RBC plan with the insurance commissioner in any state in which the insurer is authorized to do business if:
(a) Such state has an RBC provision substantially similar to K.S.A. 40-2c20; and
(b) the insurance commissioner of that state has notified the insurer of such insurance commissioner's request for the filing in writing, in which case the insurer shall file a copy of the RBC plan or revised RBC plan in that state no later than the later of:
(1) Fifteen days after the receipt of notice to file a copy of its RBC plan or revised RBC plan with the state; or
(2) the date on which the final RBC plan or revised RBC plan is filed under K.S.A. 40-2c07 and 40-2c08.
History:
L. 1994, ch. 138, § 10; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c11 Regulatory action level event; defined.

40-2c11.
Regulatory action level event; defined.
"Regulatory action level event" means, with respect to any insurer, any of the following events:
(a) The filing of an RBC report by the insurer which indicates that the insurer's total adjusted capital is greater than or equal to its authorized control level RBC but less than its regulatory action level RBC;
(b) the notification by the commissioner to an insurer of an adjusted RBC report that indicates the result described in subsection (a) if the insurer does not challenge the adjusted RBC report pursuant to K.S.A. 40-2c19, and amendments thereto;
(c) the filing of an adjusted RBC report that indicates the result described in subsection (a) if the commissioner has rejected the insurer's challenge after a hearing held pursuant to K.S.A. 40-2c19, and amendments thereto;
(d) the failure of the insurer to file an RBC report by the filing date, unless the insurer has provided an explanation for such failure which is satisfactory to the commissioner and has cured the failure within 10 days after the filing date;
(e) the failure of the insurer to submit an RBC plan to the commissioner within the time period set forth in K.S.A. 40-2c07, and amendments thereto;
(f) notification by the commissioner to the insurer that:
(1) The RBC plan or revised RBC plan submitted by the insurer is, in the judgment of the commissioner, unsatisfactory; and
(2) (A) the insurer has not challenged the determination pursuant to K.S.A. 40-2c19, and amendments thereto; or
(B) the commissioner has rejected such challenge.
(g) Notification by the commissioner to the insurer that the insurer has failed to adhere to its RBC plan or revised RBC plan, but only if such failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event in accordance with its RBC plan or revised RBC plan and the commissioner has so stated in the notification, if:
(1) The insurer has not challenged such determination pursuant to K.S.A. 40-2c19, and amendments thereto; or
(2) the commissioner has rejected such challenge.
History:
L. 1994, ch. 138, § 11; L. 1996, ch. 134, § 4; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c12 Same; commissioner's duties in regulatory action level event.

40-2c12.
Same; commissioner's duties in regulatory action level event.
In the event of a regulatory action level event, the commissioner shall:
(a) Require the insurer to prepare and submit an RBC plan or, if applicable, a revised RBC plan;
(b) perform such examination or analysis as the commissioner deems necessary of the assets, liabilities and operations of the insurer including a review of its RBC plan or revised RBC plan; and
(c) subsequent to the examination or analysis, issue a corrective order specifying such actions as the commissioner determines are required.
History:
L. 1994, ch. 138, § 12; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c13 Corrective actions; submission of RBC plans, when.

40-2c13.
Corrective actions; submission of RBC plans, when.
In determining corrective actions, the commissioner may take into account such factors as are deemed relevant with respect to the insurer based upon the commissioner's examination or analysis of the assets, liabilities and operations of the insurer, including, but not limited to, the results of any sensitivity tests undertaken pursuant to the RBC instructions. The RBC plan or revised RBC plan shall be submitted:
(a) Within 45 days after the occurrence of the regulatory action level event;
(b) within 45 days after the notification to the insurer that the commissioner has rejected the insurer's challenge to an adjusted RBC report pursuant to K.S.A. 40-2c19, and amendments thereto; or
(c) within 45 days after notification to the insurer that the commissioner has rejected the insurer's challenge to a revised RBC plan pursuant to K.S.A. 40-2c19, and amendments thereto.
History:
L. 1994, ch. 138, § 13; L. 1996, ch. 134, § 5; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c14 Review of RBC plans; expenses.

40-2c14.
Review of RBC plans; expenses.
The commissioner may retain actuaries and investment experts and other consultants as may be necessary in the judgment of the commissioner to review the insurer's RBC plan or revised RBC plan, examine or analyze the assets, liabilities and operations of the insurer and formulate the corrective order with respect to the insurer. The reasonable fees, costs and expenses relating to consultants shall be borne by the affected insurer or other party as directed by the commissioner.
History:
L. 1994, ch. 138, § 14; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c15 Authorized control level event; defined.

40-2c15.
Authorized control level event; defined.
"Authorized control level event" means any of the following events:
(a) The filing of an RBC report by the insurer which indicates that the insurer's total adjusted capital is greater than or equal to its mandatory control level RBC but less than its authorized control level RBC;
(b) the notification by the commissioner to the insurer of an adjusted RBC report that indicates the event described in subsection (a) if:
(1) The insurer does not challenge the adjusted RBC report pursuant to K.S.A. 40-2c19, and amendments thereto; or
(2) the commissioner has rejected such challenge;
(c) the failure of the insurer to respond, in a manner satisfactory to the commissioner, to a corrective order if the insurer has not challenged the corrective order under K.S.A. 40-2c19, and amendments thereto; or
(d) if the commissioner has rejected the challenge to the corrective order or modified the corrective order pursuant to K.S.A. 40-2c19, and amendments thereto, the failure of the insurer to respond, in a manner satisfactory to the commissioner, to the corrective order subsequent to rejection or modification by the commissioner.
History:
L. 1994, ch. 138, § 15; L. 1996, ch. 134, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c16 Same; commissioner's duties in authorized control level event.

40-2c16.
Same; commissioner's duties in authorized control level event.
In the event of an authorized control level event with respect to an insurer, the commissioner shall:
(a) Take such actions as are required under K.S.A. 40-2c11 through 40-2c14 regarding an insurer with respect to which a regulatory action level event has occurred; or
(b) if the commissioner deems it to be in the best interests of the policyholders and creditors of the insurer and of the public, take such actions as are necessary to cause the insurer to be placed under regulatory control pursuant to K.S.A. 40-3605 et seq., and amendments thereto. In the event the commissioner takes such actions, the authorized control level event shall be deemed sufficient grounds for the commissioner to take action under K.S.A. 40-3605 et seq., and amendments thereto, and the commissioner shall have the rights, powers and duties with respect to the insurer as are set forth in K.S.A. 40-3605 et seq., and amendments thereto. In the event the commissioner takes actions under this subsection pursuant to an adjusted RBC report, the insurer shall be entitled to such protections as are afforded to insurers under the provisions of K.S.A. 77-601 et seq., and amendments thereto, pertaining to summary proceedings.
History:
L. 1994, ch. 138, § 16; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c17 Mandatory control event; defined.

40-2c17.
Mandatory control event; defined.
"Mandatory control event" means any of the following events:
(a) The filing of an RBC report which indicates that the insurer's total adjusted capital is less than its mandatory control level RBC;
(b) notification by the commissioner to the insurer of an adjusted RBC report that indicates the event described in subsection (a) if:
(1) The insurer does not challenge the adjusted RBC report pursuant to K.S.A. 40-2c19; or
(2) the commissioner has rejected such challenge.
History:
L. 1994, ch. 138, § 17; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c18 Same; commissioner's actions.

40-2c18.
Same; commissioner's actions.
In the event of a mandatory control level event with respect to: (a) A life and health insurer, the commissioner shall take actions as are necessary to cause the insurer to be placed under regulatory control under K.S.A. 40-3605 et seq., and amendments thereto. In that event, the mandatory control level event shall be deemed sufficient grounds for the commissioner to take action under K.S.A. 40-3605 et seq., and amendments thereto, and the commissioner shall have the rights, powers, and duties with respect to the insurer as are set forth in K.S.A. 40-3605 et seq., and amendments thereto. In the event the commissioner takes actions pursuant to an adjusted RBC report, the insurer shall be entitled to such protections as are afforded to insurers under the provisions of K.S.A. 77-601 et seq., and amendments thereto, pertaining to summary proceedings. Notwithstanding any of the foregoing, the commissioner may forego action for up to 90 days after the mandatory control level event if there is a reasonable expectation that the mandatory control level event may be eliminated within the 90-day period;
(b) A property and casualty insurer, the commissioner shall take such actions as are necessary to place the insurer under regulatory control under K.S.A. 40-3605 et seq., and amendments thereto, or, in the case of an insurer which is writing no business and which is running-off its existing business, may allow the insurer to continue its run-off under the supervision of the commissioner. In either event, the mandatory control level event shall be deemed sufficient grounds for the commissioner to take action under K.S.A. 40-3605 et seq., and amendments thereto and the commissioner shall have the rights, powers and duties with respect to the insurer as are set forth in K.S.A. 40-3605 et seq., and amendments thereto. If the commissioner takes actions pursuant to an adjusted RBC report, the insurer shall be entitled to such protections as are afforded to insurers under the provisions of K.S.A. 77-601 et seq., and amendments thereto, pertaining to summary proceedings. Notwithstanding any of the foregoing, the commissioner may forego action for up to 90 days after the mandatory control level event if there is a reasonable expectation that the mandatory control level event may be eliminated with the 90-day period.
History:
L. 1994, ch. 138, § 18; L. 1996, ch. 134, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c19 Hearing under Kansas administrative procedure act.

40-2c19.
Hearing under Kansas administrative procedure act.
(a) Upon notification to an insurer by the commissioner of an adjusted RBC report; or
(b) upon notification to an insurer by the commissioner that:
(1) The insurer's RBC plan or revised RBC plan is unsatisfactory; and
(2) such notification constitutes a regulatory action level event with respect to such insurer; or
(c) upon notification to any insurer by the commissioner that the insurer has failed to adhere to its RBC plan or revised RBC plan and that such failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event with respect to the insurer in accordance with its RBC plan or revised RBC plan; or
(d) upon notification to an insurer by the commissioner of a corrective order with respect to the insurer,
the insurer shall have the right to a hearing under the Kansas administrative procedure act, at which the insurer may challenge any determination or action by the commissioner. The insurer shall notify the commissioner of its request for a hearing within five days after the notification by the commissioner under subsections (a), (b), (c) or (d). Upon receipt of the insurer's request for a hearing, the commissioner shall set a date for the hearing, which date shall be no less than 10 nor more than 30 days after receipt of the insurer's request. Such hearing shall be governed by K.S.A. 77-513 through 77-532, and amendments thereto.
History:
L. 1994, ch. 138, § 19; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c20 RBC reports, plans and corrective orders are confidential; not to be used by commissioner for rate making.

40-2c20.
RBC reports, plans and corrective orders are confidential; not to be used by commissioner for rate making.
(a) All RBC reports, RBC plans and any corrective orders, including the working papers and the results of any analysis of an insurer performed under this act shall be kept confidential by the commissioner. This information shall not be made public or subject to subpoena, other than by the commissioner and then only for the purpose of enforcement actions taken by the commissioner pursuant to this act or any other provision of the insurance laws of this state.
(b) RBC instructions, RBC reports, adjusted RBC reports, RBC plans and revised RBC plans are intended solely for use by the commissioner in monitoring the solvency of insurers and the need for possible corrective action with respect to insurers and shall not be used by the commissioner for ratemaking nor considered or introduced as evidence in any rate proceeding nor used by the commissioner to calculate or derive any elements of an appropriate premium level or rate of return for any line of insurance which an insurer or any affiliate is authorized to write.
History:
L. 1994, ch. 138, § 20; L. 1996, ch. 134, § 8; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2c - Risk-based Capital Requirements › 40-2c21 Comparison of insurer's total adjusted capital to RBC levels, prohibited generally.

40-2c21.
Comparison of insurer's total adjusted capital to RBC levels, prohibited generally.
The comparison of an insurer's total adjusted capital to any of its RBC levels is a regulatory tool, and shall not be used to rank insurers generally. Therefore, except as otherwise required under the provisions of this act, the making, publishing, disseminating, circulating or placing before the public, or causing, directly or indirectly to be made, published, disseminated, circulated or placed before the public, in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, an advertisement, announcement or statement containing an assertion, representation or statement with regard to the RBC levels of any insurer, or of any component derived in the calculation, by any insurer, agent, broker or other person engaged in any manner in the insurance business is prohibited. Notwithstanding the foregoing, if any materially false statement with respect to the comparison regarding an insurer's total adjusted capital to any of its RBC levels or an inappropriate comparison of any other amount to the insurer's RBC levels is published in any written publication and the insurer is able to demonstrate to the commissioner with substantial proof the falsity or misrepresentative nature of such statement, the insurer may publish a rebuttal if the sole purpose of such publication is to rebut the materially false or improper statement.
History:
L. 1994, ch. 138, § 21; July 1.