reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-450 Life insurance; insurable interests; assignments to charitable, benevolent, educational and religious institutions.

40-450.
Life insurance; insurable interests; assignments to charitable, benevolent, educational and religious institutions.
(a) A person of competent legal capacity may insure such person's own life and, either at the time the contract of insurance is entered into or thereafter, name any person as the beneficiary thereof irrespective of whether the person named has an insurable interest in the life of the insured. However, except as provided in this section, no person shall procure or cause to be procured any insurance policy upon the life of another person unless the benefits under such policy are payable to the personal representative of the person insured, or to a person having, at the time such contract of insurance was entered into, an insurable interest in the person insured.
(b) A charitable, benevolent, educational and religious institution qualified under section 501(c) of the internal revenue code shall be deemed to have an insurable interest in the life of an individual insured who has executed a written consent to the assignment of the insurance contract to such institution if such institutional assignee is named as the irrevocable beneficiary thereof.
(c) If the beneficiary, assignee or other payee under any contract made in violation of this section receives from the insurer any benefits thereunder accruing upon the death of the person insured, the personal representative of the insured may maintain an action to recover such benefits from the person so receiving the benefits.
(d) Life insurance contracts may be entered into in which the person paying the consideration has no insurable interest in the life of the person insured if a charitable, benevolent, educational or religious institution qualified under section 501(c) of the internal revenue code is irrevocably designated as the beneficiary. In making such contracts the person paying the premium shall make and sign the application therefor as owner. The application must also be signed by the person whose life is to be insured. Such a contract shall be valid and binding among the parties thereto notwithstanding the absence otherwise of an insurable interest in the life of the person insured.
(e) The provisions of this section shall apply to all insurance contracts in force on and after the effective date of this act and to the procurement, assignment and designation of beneficiaries thereof whenever made.
History:
L. 1991, ch. 123, § 1; April 25.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-451 Coverage temporarily effective, when; written receipt for premium may exclude, void or limit coverage; refund of unearned premium.

40-451.
Coverage temporarily effective, when; written receipt for premium may exclude, void or limit coverage; refund of unearned premium.
(a) When an application for an individual life insurance policy and an initial premium therefor has been received by an insurance company or agent acting on behalf of such company, the coverage for which application is made shall, subject to the limitations in subsection (b), be deemed to be temporarily in effect until the insurance company or agent has, in the event of an adverse underwriting decision, as defined in K.S.A. 40-2,111, and amendments thereto, notified in writing the applicant of such adverse underwriting decision and returned any unearned premium in accordance with K.S.A. 40-2,112, and amendments thereto.
(b) When an application for an individual life insurance policy and an initial premium therefor has been received, the receipt for the premium shall be in writing and may:
(1) Exclude coverage if the proposed insured commits suicide;
(2) void coverage if the application contains material misrepresentation or is fraudulently completed;
(3) limit the coverage otherwise provided by subsection (a) by specifying for each proposed insured the amount and type of temporary coverage granted; and
(4) void coverage if a check or draft received in payment of the premium is not honored for payment when presented.
(c) When an application for an individual life insurance policy and an initial premium therefor has been received, the receipt for the premium shall be in writing and provide for a refund of any unearned premium pursuant to K.S.A. 40-2,112, and amendments thereto.
History:
L. 1992, ch. 236, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-452 Life insurance; employer's insurable interest in employees; when.

40-452.
Life insurance; employer's insurable interest in employees; when.
(a) An employer, or a trust which is sponsored by an employer for the benefit of its employees, shall have an insurable interest in each of the lives of the employer's employees, directors or retired employees. Notwithstanding the provisions of K.S.A. 40-433, and amendments thereto, the employer or trust may insure such employees', directors' or retired employees' lives for such employer's or trust's benefit on an individual or group basis with the consent of the insured.
(b) The consent requirement of subsection (a) shall be deemed to be satisfied if: (1) The employee, director or retired employee is provided with a written notice that the employer or trust intends to obtain life insurance coverage with respect to such person's life; and (2) the employee, director or retired employee fails to provide written notification to the employer or trust, within 30 days from the date that the notice was transmitted, that such person does not consent to the employer obtaining life insurance coverage on such person's life. It shall be unlawful for the employer or trust to retaliate against any person for refusing to consent to the issuance of life insurance on such person's life.
(c) The extent of the employer's or trust's insurable interest in nonmanagement and retired employees shall be limited to an amount commensurate with the aggregate projected liabilities to such employees under all employee welfare benefit plans, as defined in 29 U.S.C. § 1002(1), calculated in accordance with generally accepted actuarial principles.
(d) For purposes of this section, "employer", means any individual, sole proprietorship, partnership, limited liability company, corporation or any other entity that is legally doing business in this state; the term shall also include all entities or persons which are controlled by or affiliated with any of the foregoing. The determination of whether any entity or person is controlled by or affiliated with another shall be made by applying the principles set forth in subsections (b) or (c) of section 414 of the internal revenue code of 1986, as in effect on January l, 1993, except that all references therein to "80%" shall be changed to 51%.
(e) This section shall not be interpreted to define all instances in which an insurable interest exists.
(f) The provisions of this section shall apply to all insurance contracts in force on or after the effective date of this section.
History:
L. 1993, ch. 190, § 1; April 22.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-453 Life insurance; insurable interest.

40-453.
Life insurance; insurable interest.
(a) Determination of the existence and extent of the insurable interest under any life insurance policy shall be made at the time the contract of insurance becomes effective but need not exist at the time the loss occurs. In the case of life insurance policies issued or renewed for a specific term, an insurable interest shall not exist for any policy term with respect to any person previously insured by the policy who has, in writing, requested the insurer to terminate or nonrenew the insurance applicable to such person's life.
(b) Notwithstanding the provisions of subsection (a), an employer's or a trust's insurable interest in any employee, director or previous employee cannot be terminated by such employee, director or previous employee with respect to employee benefit plans described in 29 U.S.C. § 1002(3).
History:
L. 1993, ch. 190, § 2; April 22.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-462 Same; disclosure statement, contents.

40-462.
Same; disclosure statement, contents.
The transferee shall provide to the payee a separate disclosure statement not less than three days prior to the date on which a payee signs a transfer agreement. Such disclosure statement shall set forth in bold type no smaller than 14 points:
(a) The amounts and due dates of the structured settlement payments to be transferred.
(b) The aggregate amount of such payments.
(c) The discounted present value of the payments to be transferred, which shall be identified as the calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities, and the amount of the applicable federal rate used in calculating such discounted present value.
(d) The gross advance amount.
(e) An itemized listing of all applicable transfer expenses, other than attorneys' fees and related disbursements payable in connection with the transferee's application for approval of the transfer, and the transferee's best estimate of the amount of any such fees and disbursements.
(f) The net advance amount.
(g) The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee.
(h) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee.
History:
L. 2005, ch. 57, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-463 Same; approval of transfer; required findings.

40-463.
Same; approval of transfer; required findings.
(a) No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by such court or responsible administrative authority that the:
(1) Transfer is in the best interest of the payee, taking into account the welfare and support of the payee's dependents;
(2) payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing; and
(3) transfer does not contravene any applicable statute or the order of any court or other government authority.
History:
L. 2005, ch. 57, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-464 Same; discharge of structured settlement obligor and annuity issuer, when; liability of transferee.

40-464.
Same; discharge of structured settlement obligor and annuity issuer, when; liability of transferee.
Following a transfer of structured settlement payment rights under this act: (a) The structured settlement obligor and the annuity issuer shall be discharged and released from any and all liability for the transferred payments as to all parties except the transferee.
(b) The transferee shall be liable to the structured settlement obligor and the annuity issuer:
(1) If the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and
(2) for any other liabilities or costs, including reasonable costs and attorneys' fees, arising from compliance by such parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee's failure to comply with this act.
(c) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees.
(d) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this act.
History:
L. 2005, ch. 57, § 4; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-465 Same; application for approval of transfer of structured settlement payment rights; procedure.

40-465.
Same; application for approval of transfer of structured settlement payment rights; procedure.
(a) An application for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in:
(1) The county in which the payee resides;
(2) the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business; or
(3) any court or before any responsible administrative authority which approved the structured settlement agreement.
(b) The transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization not less than 20 days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under K.S.A. 40-463, and amendments thereto. Such notice shall include:
(1) A copy of the transferee's application;
(2) a copy of the transfer agreement;
(3) a copy of the disclosure statement required under K.S.A. 40-462, and amendments thereto;
(4) a listing of each of the payee's dependents, together with each dependent's age;
(5) notification that any interested party is entitled to support, oppose or otherwise respond to the transferee's application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and
(6) notification of the time and place of the hearing and notification of the manner in which and the time, which shall not be less than 15 days after service of the transferee's notice, by which written responses to the application must be filed in order to be considered by the court or responsible administrative authority.
History:
L. 2005, ch. 57, § 5; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-466 Same; limitations on provisions of transfer agreement.

40-466.
Same; limitations on provisions of transfer agreement.
(a) The provisions of this act may not be waived by any payee.
(b) Any transfer agreement entered into by a payee who resides in this state on or after the effective date of this act shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee.
(c) No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for:
(1) Periodically confirming the payee's survival; and
(2) giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee's death.
(d) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of such transfer to satisfy the conditions of this act.
(e) No provision of this act shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply the validity of any transfer under a transfer agreement entered into prior to the effective date of this act.
(f) Compliance with the requirements of K.S.A. 40-462, and amendments thereto, and fulfillment of the conditions of K.S.A. 40-463, and amendments thereto, shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights. Neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, non-compliance with such requirements or failure to fulfill such conditions.
History:
L. 2005, ch. 57, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-467 Same; citation of act; applicability to workers compensation.

40-467.
Same; citation of act; applicability to workers compensation.
(a) K.S.A. 40-461 through 40-467, and amendments thereto, shall be known as and may be cited as the structured settlement protection act.
(b) No provision of this act shall apply to any settlement of any claim for or award of workers compensation.
History:
L. 2005, ch. 57, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-4,101 Standard nonforfeiture law for individual deferred annuities; citation of act.

40-4,101.
Standard nonforfeiture law for individual deferred annuities; citation of act.
(a) K.S.A. 40-4,101 through 40-4,113, and amendments thereto, shall be known as the standard nonforfeiture law for individual deferred annuities.
(b) For the purposes of this act, the term "commissioner" shall mean the commissioner of insurance.
History:
L. 2004, ch. 18, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-4,102 Same; application.

40-4,102.
Same; application.
This act shall not apply to any reinsurance, group annuity purchased under a retirement plan or plan of deferred compensation established or maintained by an employer, including a partnership or sole proprietorship, or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under Section 408 of the federal internal revenue code, premium deposit fund, variable annuity, investment annuity, immediate annuity, any deferred annuity contract after annuity payments have commenced or reversionary annuity, nor to any contract which shall be delivered outside this state through an agent or other representative of the company issuing the contract.
History:
L. 2004, ch. 18, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-4,105 Same; computation of present value.

40-4,105.
Same; computation of present value.
Any paid-up annuity benefit available under an annuity contract shall be such that its present value on the date annuity payments are to commence is at least equal to the minimum nonforfeiture amount on that date. Present value shall be computed using the mortality table, if any, and the interest rates specified in the annuity contract for determining the minimum paid-up annuity benefits guaranteed in such annuity contract.
History:
L. 2004, ch. 18, § 5; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-4,106 Same; calculation of cash surrender value.

40-4,106.
Same; calculation of cash surrender value.
For annuity contracts that provide cash surrender benefits, the cash surrender benefits available prior to maturity shall not be less than the present value as of the date of surrender of that portion of the maturity value of the paid-up annuity benefit that would be provided under the contract at maturity arising from considerations paid prior to the time of cash surrender reduced by the amount appropriate to reflect any prior withdrawals from or partial surrenders of the contract, such present value being calculated on the basis of an interest rate not more than one percent higher than the interest rate specified in the contract for accumulating the net considerations to determine maturity value, decreased by the amount of any indebtedness to the company on the contract, including interest due and accrued, and increased by any existing additional amounts credited by the company to the annuity contract. In no event shall any cash surrender benefit be less than the minimum nonforfeiture amount at that time. The death benefit under such annuity contracts shall at least equal to the cash surrender benefit.
History:
L. 2004, ch. 18, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-4,107 Same; calculation of paid-up annuity benefits.

40-4,107.
Same; calculation of paid-up annuity benefits.
For annuity contracts that do not provide cash surrender benefits, the present value of any paid-up annuity benefit available as a nonforfeiture option at any time prior to maturity shall not be less than the present value of that portion of the maturity value of the paid-up annuity benefit provided under the annuity contract arising from considerations paid prior to the time the annuity contract is surrendered in exchange for, or changed to, a deferred paid-up annuity, such present value being calculated for the period prior to the maturity date on the basis of the interest rate specified in the annuity contract for accumulating the net considerations to determine maturity value, and increased by any additional amounts credited by the company to the annuity contract. For annuity contracts that do not provide any death benefits prior to the commencement of any annuity payments, present values shall be calculated on the basis of such interest rate and the mortality table specified in the contract for determining the maturity value of the paid-up annuity benefit. However, in no event shall the present value of a paid-up annuity benefit be less than the minimum nonforfeiture amount at that time.
History:
L. 2004, ch. 18, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-4,108 Same; maturity date.

40-4,108.
Same; maturity date.
For the purpose of determining the benefits calculated under K.S.A. 40-4,106 and 40-4,107, and amendments thereto, in the case of annuity contracts under which an election may be made to have annuity payments commence at optional maturity dates, the maturity date shall be deemed to be the latest date for which election shall be permitted by the annuity contract, but shall not be deemed to be later than the anniversary of such annuity contract next following the annuitant's 70th birthday or the 10th anniversary of such annuity contract, whichever is later.
History:
L. 2004, ch. 18, § 8; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-4,109 Same; disclosure of death benefits.

40-4,109.
Same; disclosure of death benefits.
Any annuity contract that does not provide cash surrender benefits or does not provide death benefits at least equal to the minimum nonforfeiture amount prior to the commencement of any annuity payments shall include a statement in a prominent place in such contract that such benefits are not provided.
History:
L. 2004, ch. 18, § 9; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-4,110 Same; inclusion of lapse of time considerations.

40-4,110.
Same; inclusion of lapse of time considerations.
Any paid-up annuity, cash surrender or death benefits available at any time, other than on the contract anniversary under any annuity contract with fixed scheduled considerations, shall be calculated with allowance for the lapse of time and the payment of any scheduled considerations beyond the beginning of the contract year in which cessation of payment of considerations under the annuity contract occurs.
History:
L. 2004, ch. 18, § 10; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-4,111 Same; proration of values; additional benefits.

40-4,111.
Same; proration of values; additional benefits.
For any annuity contract which provides, within the same contract by rider or supplemental contract provision, both annuity benefits and life insurance benefits that are in excess of the greater of cash surrender benefits or a return of the gross considerations with interest, the minimum nonforfeiture benefits shall be equal to the sum of the minimum nonforfeiture benefits for the annuity portion and the minimum nonforfeiture benefits, if any, for the life insurance portion computed as if each portion were a separate contract. Notwithstanding the provisions of K.S.A. 40-4,105, 40-4,106, 40-4,107, 40-4,108 and 40-4,110, and amendments thereto, additional benefits payable in the event of total and permanent disability, as reversionary annuity or deferred reversionary annuity benefits, or as other policy benefits additional to life insurance, endowment and annuity benefits, and considerations for all such additional benefits, shall be disregarded in ascertaining the minimum nonforfeiture amounts, paid-up annuity, cash surrender and death benefits that may be required by this act. The inclusion of such benefits shall not be required in any paid-up benefits, unless the additional benefits separately would require minimum nonforfeiture amounts, paid-up annuity, cash surrender and death benefits.
History:
L. 2004, ch. 18, § 11; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-4,113 Same; effective date.

40-4,113.
Same; effective date.
(a) After the effective date of this act, a company may elect to apply its provisions to annuity contracts on a contract form-by-contract form basis before the second anniversary of the effective date of this act.
(b) In all other instances, this act shall become operative with respect to all annuity contracts issued by the company on or after the second anniversary of this act.
History:
L. 2004, ch. 18, § 13; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-4,201 Unclaimed life insurance benefits act; citation.

40-4,201. Unclaimed life insurance benefits act; citation.
On and after July 1, 2019, the provisions of K.S.A. 40-4,201 through 40-4,203, and amendments thereto, shall be known and may be cited as the unclaimed life insurance benefits act.
History:
L. 2019, ch. 54, § 1; May 9.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 4 - General Provisions Relating To Life Insurance Companies › 40-4,202 Same; definitions.

40-4,202. Same; definitions.
As used in the unclaimed life insurance benefits act:
(a) "Contract" means an annuity contract. The term "contract" shall not include an annuity used to fund an employment-based retirement plan or program where: (1) The insurer does not perform the record-keeping services; or (2) the insurer is not committed by terms of the annuity contract to pay death benefits to the beneficiaries of specific plan participants.
(b) "Death master file" means the United States social security administration's death master file or any other database or service that is at least as comprehensive as the United States social security administration's death master file for determining that a person has reportedly died.
(c) "Death master file match" means a search of the death master file that results in a match of the social security number or the name and date of birth of an insured, annuity owner or retained asset account holder.
(d) "Knowledge of death" means: (1) Receipt of an original or valid copy of a certified death certificate; or (2) a death master file match validated by the insurer in accordance with K.S.A. 40-4,203(a), and amendments thereto.
(e) "Policy" means any policy or certificate of life insurance that provides a death benefit. The term "policy" shall not include: (1) Any policy or certificate of life insurance that provides a death benefit under an employee benefit plan: (A) Subject to the employee retirement income security act of 1974 (29 U.S.C. § 1002); or (B) under any federal employee benefit program; (2) any policy or certificate of life insurance that is used to fund a preneed funeral contract or prearrangement; (3) any policy or certificate of credit life or accidental death insurance; or (4) any policy issued to a group master policyholder for which the insurer does not provide record keeping services.
(f) "Record keeping services" means those circumstances under which the insurer has agreed with a group policy or contract customer to be responsible for obtaining, maintaining and administering in its own or its agents' systems information about each individual insured under an insured's group insurance contract, or a line of coverage thereunder, at least the following information: (1) Social security number or name and date of birth; (2) beneficiary designation information; (3) coverage eligibility; (4) benefit amount; and (5) premium payment status.
(g) "Retained asset account" means any mechanism whereby the settlement of proceeds payable under a policy or contract is accomplished by the insurer or an entity acting on behalf of the insurer depositing the proceeds into an account with check or draft writing privileges, where those proceeds are retained by the insurer or its agent, pursuant to a supplementary contract not involving annuity benefits other than death benefits.
(h) The provisions of this section shall take effect on and after July 1, 2019.
History:
L. 2019, ch. 54, § 2; May 9.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-502 Directors and officers; vacancies; elections.

40-502.
Directors and officers; vacancies; elections.
(a) The affairs of any mutual life insurance company now existing or hereafter organized under the laws of this state shall be managed by a board of not more than 25 nor less than five directors. Any vacancy in the board shall be filled by the remaining members until the next annual meeting of the policyholders, at which time a successor shall be elected to fill the unexpired term.
(b) The director shall be elected by ballot, and each person who is a policyholder shall be entitled to one vote. Policyholders may vote by proxy, signed by the person legally entitled to vote the same. Each policyholder shall have the right to cast as many votes in the aggregate as shall equal the number of directors to be regularly elected, and each policyholder, in person or by proxy, may cast the whole number of votes for one candidate or may divide such policyholder's votes among two or more candidates. A majority of the number of directors shall constitute a quorum for the transaction of business.
(c) Every mutual life insurance company, now existing or hereafter organized under the laws of this state, shall have such officers with such titles and duties as shall be stated in the bylaws or in a resolution of the board of directors which is not inconsistent with the bylaws.
(d) Officers shall be chosen in such manner and shall hold their offices for such terms as are prescribed by the bylaws or determined by the board of directors or other governing body.
History:
L. 1927, ch. 231, 40-502; L. 2005, ch. 41, § 3; L. 2007, ch. 30, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-503 Seal; bylaws.

40-503.
Seal; bylaws.
The board of directors of any mutual life insurance company shall have power to adopt a seal and make such bylaws and amendments thereto, not inconsistent with the constitution and laws of this state, as may be deemed necessary for the regulation and management of its affairs.
History:
L. 1927, ch. 231, 40-503; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-504 Certificate of authority; procedure and fee; duties of attorney general.

40-504.
Certificate of authority; procedure and fee; duties of attorney general.
Any corporation heretofore organized and existing pursuant to law for the purpose of making insurance on the lives of individuals, may take advantage and have the benefit of this act by filing in the office of the commissioner of insurance a declaration of the company, signed by the president and secretary, giving the name of the corporation, a copy of the bylaws, the form of application adopted by them, and a copy of the policy contract proposed to be issued to individuals, together with a fee of one hundred dollars. The commissioner of insurance shall submit all documents to the attorney general for his examination, and if found by him to be in accordance with the law he shall certify to and deliver the same to the commissioner of insurance, who shall retain such documents on file, and upon compliance by said company with the provisions of this code the commissioner of insurance shall issue his certificate authorizing said company to do business in this state under the provisions of this code.
History:
L. 1927, ch. 231, 40-504; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-505 Suspension of business.

40-505.
Suspension of business.
Whenever the directors of any mutual life insurance company organized under the laws of this state shall deem it to the best interest of the policyholders to suspend business, it may secure propositions from other solvent life insurance companies authorized to do business in this state, whether foreign or domestic, and whether companies possessing a capital stock or organized on the mutual plan, to reinsure its policies. That upon securing such proposition or propositions, the same shall be formulated and the substance transmitted by mail to each policyholder, and a regular or special meeting of the policyholders shall be called for the purpose of determining whether said company shall go into liquidation, and also of voting upon said proposition of reinsurance. If at such meeting two thirds of the number of the holders of outstanding policies of such company shall vote, either in person or by proxy, to go into liquidation and to accept any one of said propositions for reinsurance, the board of directors may make a contract in accordance therewith, and upon due execution thereof transfer and turn over to the said reinsuring corporation so much of the assets of such mutual life insurance company as are embraced in said proposal or contract as consideration therefor: Provided, That any dissenting policyholder may withdraw his equitable share of the assets of such company in lieu of accepting such reinsurance contract: Provided, That nothing in this act shall be construed as legalizing any attempted reinsurance or transfer heretofore made by any such company.
History:
L. 1927, ch. 231, 40-505; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-506 Issuance of participating and nonparticipating insurance and annuities by mutual life insurance companies.

40-506.
Issuance of participating and nonparticipating insurance and annuities by mutual life insurance companies.
Any mutual life insurance company, upon authorization of its board of directors, may issue both participating and nonparticipating insurance and annuities and may determine the right to participate and the extent of participation of any class or classes or policies. Any such classification or determination shall be reasonable and shall not unfairly discriminate as between policyholders within the same such classifications. Life insurers may issue both participating and nonparticipating policies only if the right or absence of right to participate is reasonably related to the premium charged. A separate account shall be established for nonparticipating policies, and adequate provision shall be made so that the interests of participating policyholders are in no way adversely affected by reason of the issuance of such nonparticipating policies. The total number of nonparticipating life insurance and annuity policies issued in any one fiscal year by any mutual life insurance company shall not exceed the total number of participating life insurance and annuity policies issued by that company in the same fiscal year. Mutual life insurance companies issuing such nonparticipating business shall be further subject to such regulation in issuing nonparticipating policies as the insurance commissioner shall consider appropriate. Nonparticipating insurance and annuities is that type of insurance and annuities which is not entitled to receive dividends. Participating insurance and annuities is defined as insurance and annuities on which the owner thereof is entitled to receive dividends as may be apportioned by the board of directors of the company pursuant to K.S.A. 40-420.
History:
L. 1972, ch. 181, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-507 Merger or consolidation; order of commissioner directing delivery of assets.

40-507.
Merger or consolidation; order of commissioner directing delivery of assets.
(a) Every mutual life insurance company formed under authority of K.S.A. 40-501 et seq., and amendments thereto may:
(1) Merge or consolidate with any other domestic mutual life insurance company;
(2) merge or consolidate with any other non-domestic mutual life insurance company if such merger or consolidation is authorized by the laws of the state or territory in which such nondomestic company is organized;
(3) merge or consolidate with a nondomestic nonprofit health services corporation or nonprofit medical and hospital service corporation if such merger or consolidation would be permitted by the state regulatory official or officials having jurisdiction over such nondomestic nonprofit health services corporation or nonprofit medical and hospital service corporation and the surviving or resulting company is a domestic mutual life insurance company; and
(4) by virtue of such merger or consolidation, do the kinds of insurance business in the manner and for the purposes for which a mutual life insurance company may be organized in this state or in the manner and for the purposes for which a nondomestic mutual life insurance company may be licensed or authorized to do business in this state.
(b) When a mutual life insurance company of this state shall be merged or consolidated with a mutual life insurance company organized under the laws of any other state, the commissioner of insurance in an order of approval shall direct that the assets of the domestic company be delivered to the company with which the domestic company is merged or consolidated.
History:
L. 1972, ch. 53, § 10; L. 1980, ch. 135, § 2; L. 1996, ch. 25, § 7; L. 1997, ch. 29, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-508 Same; merger and consolidation defined.

40-508.
Same; merger and consolidation defined.
As used in this act:
(a) "Merger" means the union of two (2) or more companies into a single company which is one of the companies so uniting.
(b) "Consolidation" means the joining of two (2) or more companies in a manner so that a single new consolidated company results therefrom.
History:
L. 1980, ch. 135, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-509 Same; resolution of boards of directors.

40-509.
Same; resolution of boards of directors.
(a) The board of directors of each of the mutual insurers proposing to merge or consolidate shall, by resolution adopted by at least a majority of all the members of each board, approve a joint agreement of merger or consolidation, as the case may be, between the insurer parties, setting forth the terms and conditions of the merger or consolidation, the mode of carrying the same into effect and such other provisions as are deemed advisable.
(b) Upon approving such an agreement, each board by resolution shall direct the same be submitted to the commissioner of insurance subject to disapproval as provided in K.S.A. 40-510 and to the approval of the policyholders of the respective insurers as provided in K.S.A. 40-511.
History:
L. 1980, ch. 135, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-510 Same; merger or consolidation of companies; filing agreement with commissioner; hearing; disapproval, grounds; notice of disapproval.

40-510.
Same; merger or consolidation of companies; filing agreement with commissioner; hearing; disapproval, grounds; notice of disapproval.
(a) No merger or consolidation of a domestic mutual insurer shall be effectuated unless, in advance of a proposed merger or consolidation, the agreement therefor and any other information requested by the commissioner of insurance has been filed with the commissioner and has not been disapproved in writing. If the domestic insurer is not then impaired, the commissioner of insurance shall act with respect to the agreement for merger or consolidation after a hearing thereon conducted in accordance with the provisions of the Kansas administrative procedure act. An agreement shall be effectuated in accordance with its terms unless the commissioner of insurance disapproves the same within 60 days after the date of filing, subject to the commissioner's right to have a reasonable extension of time not to exceed an additional 60 days upon written notice to the insurers involved. The commissioner of insurance may disapprove an agreement, upon one or more of the following grounds, if the agreement:
(1) Is inequitable to the policyholders of any domestic insurer involved;
(2) would materially reduce the financial security of policyholders of the domestic insurer in this state and elsewhere;
(3) would materially tend to lessen competition in this state as to the kinds of insurance involved or would tend to create a monopoly therein; or
(4) is subject to any other reasonable objections.
(b) If the commissioner of insurance disapproves an agreement, notice shall be given to the insurers proposing to merge or consolidate specifying the reasons for disapproval.
History:
L. 1980, ch. 135, § 4; L. 1988, ch. 356, § 79; July 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-511 Same; approval by two-thirds vote of policyholders; notice of meeting; summary of agreement.

40-511.
Same; approval by two-thirds vote of policyholders; notice of meeting; summary of agreement.
(a) After a proposed agreement of merger or consolidation has been filed with the commissioner of insurance and has not been disapproved in accordance with K.S.A. 40-510, and if the insurer is then unimpaired, such agreement shall be submitted to the domestic insurer's policyholders for approval at a regular or special meeting of the policyholders.
(b) Not less than twenty (20) days before any such meeting, written notices of the meeting and of the proposed merger or consolidation shall be given to each policyholder of each insurer. The notice shall state the day, hour, place and purposes of the meeting and be accompanied by a brief summary of the agreement of merger or consolidation, as the case may be. The notice and summary shall be subject to approval by the commissioner of insurance. Notice and accompanying summary shall be deemed given when enclosed in an envelope addressed to each policyholder at the address last of record with the insurer and deposited postage paid in a depository of the United States post office. In the event of a merger, if at the year end prior to the date of merger the total admitted assets, as reflected by the most recent annual statement filed with the commissioner of insurance of the company that is to survive, are equal to or greater than five (5) times that of the total admitted assets, as reflected by the most recent annual statement filed with the commissioner of insurance, of the company or companies that are not to survive, in lieu of notice by mail, notice, subject to approval by the commissioner, may be given to the policyholders of the larger insurer by publication in a newspaper of general circulation in either of the two (2) largest cities in each state in which the insurers are authorized to transact an insurance business.
(c) Upon receiving the affirmative vote of two-thirds (2/3) of all votes cast by policyholders present or represented by written proxy at each meeting, such agreement shall be deemed to have been approved. Each policyholder of the insurers shall be bound by such vote without right of dissent other than the right to vote against the proposal at the meeting. A dissenting policyholder shall have no right or equity as to assets of the insurer except as expressly provided in the policyholder's policy or policies. Should any such agreement fail to receive the required number of votes, it shall be null and void.
History:
L. 1980, ch. 135, § 5; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-512 Same; impaired insurer.

40-512.
Same; impaired insurer.
If a domestic mutual insurer is impaired in that the insurer's surplus is less than the amount required for authority to transact the kinds of insurance being transacted by the insurer, the commissioner of insurance may approve the agreement of merger or consolidation with a hearing thereon conducted in accordance with the provisions of the Kansas administrative procedure act, and the same may be effectuated without approval of the impaired insurer's policyholders.
History:
L. 1980, ch. 135, § 6; L. 1988, ch. 356, § 80; July 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-513 Same; articles of merger or consolidation, requirements.

40-513.
Same; articles of merger or consolidation, requirements.
After a proposed agreement of merger or consolidation has been filed with the commissioner of insurance and has not been disapproved and after approval of the policyholders, if required, upon agreement of merger or consolidation the articles of merger or consolidation, as the case may be, shall be executed under the seal of each insurer, shall be verified by a duly authorized officer of each insurer and shall set forth, as applicable:
(a) The name of the surviving or new corporation;
(b) the time and place of the meeting of the directors at which the agreement of merger or consolidation was approved and, except when pursuant to K.S.A. 40-512 the agreement was not submitted to a vote of the policyholders of the insurer, the time and place of the meeting of the policyholders of each insurer at which the agreement of merger or consolidation, as the case may be, was approved, the kind and period of notice given to the policyholders and the total vote by which the agreement was approved;
(c) in the case of a merger into a surviving insurer, any changes desired to be made in the articles of the surviving insurer, or in the case of a consolidation into a new domestic insurer, all of the statements required by law to be set forth in the original articles in the case of the formation of a domestic insurer;
(d) the number, names and addresses of the persons to be the directors of the surviving or new insurer; and
(e) the agreement of merger or consolidation.
History:
L. 1980, ch. 135, § 7; July 1.