reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4324 Same; notification of material change required.

40-4324. Same; notification of material change required.
The captive insurance company shall notify the commissioner in writing within 10 days of any material change in the financial condition or management of the captive insurance company. The commissioner shall designate material changes through rules and regulations.
History:
L. 2018, ch. 50, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4325 Branch captive insurance companies; establishment.

40-4325. Branch captive insurance companies; establishment.
(a) A branch captive insurance company, as defined in K.S.A. 40-4326, and amendments thereto, may be established in Kansas in accordance with the provisions of the captive insurance act. In addition to the general provisions of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, the provisions of the captive insurance act shall apply to branch captive insurance companies. In the event of conflict between the provisions of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, and the provisions of the captive insurance act, the latter shall control.
(b) No branch captive insurance company shall do any insurance business in Kansas unless it maintains the principal place of business for its branch operations, as defined in K.S.A. 40-4326, and amendments thereto, in Kansas and it appoints a principal representative in Kansas who is a resident of Kansas.
History:
L. 2018, ch. 50, § 8; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4326 Same; definitions.

40-4326. Same; definitions.
As used in K.S.A. 40-4325 through 40-4331, and amendments thereto:
(a) "Alien" means formed under the laws of any country or jurisdiction other than the United States of America or any of its states, districts, commonwealths or possessions.
(b) "Alien captive insurance company" means any insurance company formed to write insurance business of a nature that the commissioner determines is otherwise permissible under this act and is licensed or authorized pursuant to the laws of an alien jurisdiction that imposes statutory or regulatory standards in a form acceptable to the commissioner on companies transacting business of insurance in such jurisdiction.
(c) "Branch business" means any insurance business transacted by a branch captive insurance company in Kansas.
(d) "Branch captive insurance company" means any alien captive insurance company that has been issued a certificate of authority by the commissioner to transact the business of insurance in Kansas through a business unit with a principal place of business in Kansas, and has not otherwise been issued a certificate of authority by the commissioner to transact insurance under this act.
(5) "Branch operations" means any business operations of a branch captive insurance company in Kansas.
(6) "Principal representative" shall mean a person designated as such by the branch captive insurance company as its principal representative on such forms and with such information as required by the commissioner.
History:
L. 2018, ch. 50, § 9; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4327 Same; capital requirements; exemptions.

40-4327. Same; capital requirements; exemptions.
(a) No branch captive insurance company shall be issued a certificate of authority unless it shall possess and thereafter maintain, as security for the payment of liabilities attributable to the branch operations:
(1) Minimum capital and surplus of an amount equal to the amount set forth in K.S.A. 40-4304, and amendments thereto, as the minimum capital requirement for a pure captive insurance company; and
(2) reserves on such insurance policies or such reinsurance contracts as may be issued or assumed by the branch captive insurance company through its branch operations, including reserves for losses, allocated loss adjustment expenses, incurred but not reported losses, and unearned premiums with regard to business written through the branch operations, except that, the commissioner may permit a branch captive insurance company to credit against any such reserve requirement in accordance with K.S.A. 40-221a, and amendments thereto.
(b) Subject to the prior approval of the commissioner, the amounts required in subsection (a) may be held in the form of:
(1) A trust formed under a trust agreement and funded by assets acceptable to the commissioner;
(2) an irrevocable letter of credit issued or confirmed by a bank approved by the commissioner; or
(3) any combination thereof.
(c) The commissioner may, on a case-by-case basis, exempt a branch captive insurance company from any or all of the requirements of this section, provided the commissioner finds satisfactory evidence of the branch captive insurer's financial stability.
History:
L. 2018, ch. 50, § 10; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4328 Same; certification of general good required.

40-4328. Same; certification of general good required.
(a) In the case of a captive insurance company authorized as a branch captive, the branch captive insurance company shall petition the commissioner to issue a certificate setting forth the commissioner's finding that, after considering the character, reputation, financial responsibility, insurance experience and business qualifications of the officers and directors of the branch captive insurance company, the licensing and maintenance of the branch operations will promote the general good of Kansas. The branch captive insurance company may register to do business in Kansas after the commissioner's certificate is issued.
(b) In making this determination, the commissioner or the commissioner's designee shall have free access to the books and papers of any such company that relate to its business and to the books and papers kept by any of its agents and may examine under oath, which the commissioner is empowered to administer, the directors, officers, agents or employees of any such company in relation to its affairs, transactions and condition.
History:
L. 2018, ch. 50, § 11; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4329 Same; annual report.

40-4329. Same; annual report.
(a) A branch captive insurance company shall file with the commissioner a copy of all reports and statements required to be filed under the laws of the jurisdiction in which the alien captive insurance company is formed, verified by oath of two of its executive officers. Such reports and statements shall be filed with the commissioner on the same day that such reports and statements are due in the domiciliary jurisdiction of the alien captive insurance company.
(b) If the commissioner is satisfied that the annual report filed in accordance with subsection (a) provides adequate information concerning the financial condition of the branch captive insurance company, the commissioner may waive the requirement for completion of the annual report required under K.S.A. 40-4307, and amendments thereto. If the commissioner is not satisfied with the reports and statements filed pursuant to subsection (a), a report that meets the requirements of K.S.A. 40-4307, and amendments thereto, shall be filed with the commissioner at such date as the commissioner shall establish.
(c) If the branch captive insurance company is not required to file reports or statements in its domiciliary jurisdiction, the requirements of K.S.A. 40-4307, and amendments thereto, shall apply.
(d) All reports shall be provided the same confidential treatment as provided in K.S.A. 40-4308, and amendments thereto.
History:
L. 2018, ch. 50, § 12; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4330 Same; examinations; confidentiality.

40-4330. Same; examinations; confidentiality.
(a) The examination of a branch captive insurance company pursuant to K.S.A. 40-4308, and amendments thereto, shall be of branch business and branch operations only, so long as the branch captive insurance company provides annually to the commissioner a certificate of compliance, or its equivalent, issued by or filed with the licensing authority of the domiciliary jurisdiction of the branch captive insurance company, and demonstrates to the commissioner's satisfaction that it is operating in sound financial condition in accordance with all applicable laws and regulations of such jurisdiction.
(b) As a condition of the issuance of a certificate of authority under this act, a branch captive insurance company shall grant authority to the commissioner for examination of the affairs of a branch captive insurance company in the jurisdiction in which the branch captive insurance company is formed, operates or maintains books and records.
(c) All reports shall be given the same confidential treatment as provided in K.S.A. 40-4308, and amendments thereto.
History:
L. 2018, ch. 50, § 13; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4331 Same; taxation.

40-4331. Same; taxation.
In the case of a branch captive insurance company, the tax provided for in K.S.A. 40-4314, and amendments thereto, shall apply only to the branch business of such company.
History:
L. 2018, ch. 50, § 14; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4333 Same; applicable law.

40-4333. Same; applicable law.
(a) No provision of the Kansas insurance laws, other than those specifically referenced in K.S.A. 40-4332 through 40-4352, and amendments thereto, apply to a special purpose insurance captive, its operations, assets, investments and special purpose insurance captive contracts. Notwithstanding the foregoing, article 33 of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, shall continue to apply as applicable.
(b) In the event of a conflict between any provision of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, and K.S.A. 40-4332 through 40-4352, and amendments thereto, the latter shall control as to the special purpose insurance captive and its operations, assets, dividends, special purpose insurance captive contracts, and surplus notes and investments. The commissioner may exempt all, or any one, special purpose insurance captive by rules and regulations or order from the provisions of K.S.A. 40-4332 through 40-4352, and amendments thereto, that the commissioner determines to be inappropriate, but may not expand the application of these sections.
History:
L. 2018, ch. 50, § 16; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4335 Same; plan of operation.

40-4335. Same; plan of operation.
(a) A special purpose insurance captive must file, as part of its application, a plan of operation to consist of a description of the contemplated financing transaction or transactions and a detailed description of transaction documents to which the special purpose insurance captive will be a party, including, but not limited to, the special purpose insurance captive contract and related transactions to which the special purpose insurance captive will be a party that must include:
(1) Draft documentation or, at the commissioner's discretion, a written summary of all material agreements to which the special purpose insurance captive is to be a party that are to be entered into to effectuate the special purpose insurance captive contract and the financing transaction;
(2) the purpose of the transaction;
(3) maximum amounts;
(4) interrelationships of the various transactions, to which the special purpose insurance captive will be a party, required to effectuate the financing;
(5) the investment strategy and plan for the special purpose insurance captive;
(6) a description of the underwriting, reporting and claims payment methods by which losses covered by the special purpose insurance captive contract will be reported, accounted for and settled;
(7) the initial minimum capital to be held by the special purpose insurance captive; and
(8) a pro forma balance sheet and income statements illustrating the performance of the special purpose insurance captive, the special purpose insurance captive contract, and any ceded reinsurance agreements under scenarios reasonably requested by the commissioner or specified by rules and regulations.
(b) The pro forma balance sheets and income statements filed under this section must be updated by the special purpose insurance captive and filed with the commissioner in the event of a material deviation from the original or most recently filed plan of operation.
(1) The plan of operation must specify which deviations are to be considered material; and
(2) any other documents or descriptions the commissioner deems appropriate to explain such material deviation.
History:
L. 2018, ch. 50, § 18; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4336 Same; commissioner's findings to approve application.

40-4336. Same; commissioner's findings to approve application.
(a) In order to approve an application and issue a certificate of authority to a special purpose insurance captive, the commissioner must find that:
(1) The proposed plan of operation provides a reasonable and expected successful operation;
(2) the terms of the transactions proposed in the plan of operation to which the special purpose insurance captive is a party comply with K.S.A. 40-4332 through 40-4352, and amendments thereto; and
(3) the commissioner of the domiciliary state of each ceding company has notified the commissioner in writing or the applicant has otherwise provided assurance satisfactory to the commissioner that such regulator has either approved or granted a disapproval of the special purpose insurance captive contract.
(b) In evaluating the expectation of a successful operation, the commissioner shall consider whether the proposed special purpose insurance captive and its management are of known good character and reasonably believed not to be affiliated, directly or indirectly, with a person known to have been involved with the improper manipulation of assets, accounts or reinsurance. In the event the commissioner of the state of domicile of any ceding company is not required to review the special purpose insurance captive contract, then the approval described in subsection (a)(3) shall not be required for licensing of the special purpose insurance captive hereunder.
History:
L. 2018, ch. 50, § 19; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4337 Same; incorporation of companies.

40-4337. Same; incorporation of companies.
A special purpose insurance captive may be incorporated as a stock insurer subject to the provisions in K.S.A. 40-205, and amendments thereto, or as a nonstock corporation, or may be formed as a limited liability company, partnership or limited partnership.
History:
L. 2018, ch. 50, § 20; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4338 Same; miscellaneous requirements.

40-4338. Same; miscellaneous requirements.
(a) Activities of a special purpose insurance captive shall be limited to those necessary to accomplish its purpose as outlined in its plan of operation.
(b) The name of a special purpose insurance captive shall not be deceptively similar to or likely to be confused with another existing business name registered in the state.
(c) A special purpose insurance captive must have at least three incorporators or organizers, at least one of whom shall be a resident of the state.
(d) The capital stock of a special purpose insurance captive incorporated as a stock company shall be issued at not less than par value.
History:
L. 2018, ch. 50, § 21; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4339 Same; contracts.

40-4339. Same; contracts.
A special purpose insurance captive may enter into a special purpose insurance captive contract with a ceding company, provided:
(a) The special purpose insurance captive has been granted a certificate of authority to transact business as a special purpose insurance captive under this section; and
(b) the special purpose insurance captive provides the commissioner with evidence of approval or disapproval from the insurance regulatory official of the ceding company's state or country of domicile to enter into the special purpose insurance captive contract. If the ceding company's domiciliary insurance regulatory official does not customarily provide evidence of such approval or disapproval, the commissioner shall approve the special purpose insurance captive's execution of such special purpose insurance captive contract, if such special purpose insurance captive contract would be acceptable and if an assuming insurer domiciled in Kansas were to propose execution of the same with its ceding company for the purpose of assuming such reinsurance and an officer of the special purpose insurance captive provides the commissioner with a certification that terms of the special purpose insurance captive contract meet the requirements for the ceding company to obtain credit in its state of domicile for reinsurance ceded under the special purpose insurance captive contract.
History:
L. 2018, ch. 50, § 22; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4340 Same; issuance of securities.

40-4340. Same; issuance of securities.
(a) A special purpose insurance captive may issue approved securities, subject to and in accordance with applicable law, its approved plan of operation and its organizational documents. A special purpose insurance captive may enter into and perform all its obligations under any required contract to facilitate the issuance of these securities.
(b) The commissioner may approve the use of surplus notes. If the commissioner so approves, the special purpose insurance captive shall:
(1) Account for the proceeds of surplus notes as surplus and not debt for purposes of statutory accounting; and
(2) submit for prior approval of the commissioner periodic written requests for payments of interest on and repayments of principal of surplus notes.
(c) The obligation to repay principal or interest, or both, on the securities issued by the special purpose insurance captive shall reflect the risk associated with the reinsurance obligations assumed by the special purpose insurance captive.
History:
L. 2018, ch. 50, § 23; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4341 Same; asset management.

40-4341. Same; asset management.
A special purpose insurance captive's assets shall be managed in accordance with an investment management agreement filed with and approved by order of the commissioner. A special purpose insurance captive shall invest at least 90% of its assets in cash and securities that are investment grade at the time of the acquisition. The balance may be invested in cash, securities or other assets otherwise permitted in chapter 40 of the Kansas Statutes Annotated, and amendments thereto.
History:
L. 2018, ch. 50, § 24; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4342 Same; admitted assets.

40-4342. Same; admitted assets.
Admitted assets of the special purpose insurance captive shall include permitted investments, proceeds from a securitization, premium and other amounts payable by a ceding insurer to the special purpose insurance captive, and any other assets approved by the commissioner. Additionally, letters of credit and guarantees of a parent may be recognized as an admitted asset on the special purpose insurance captive's financial statements with prior approval of the commissioner. The commissioner may, by order, reduce the amount of admitted assets previously approved if the commissioner determines that the value of those assets has decreased. At least 30 days prior to issuing any such order, the commissioner shall notify the special purpose insurance captive and provide it with an opportunity to remedy the issues identified by the commissioner. If the issues identified by the commissioner have not been resolved to the commissioner's satisfaction at the end of the 30-day period, the commissioner shall issue the order. The special purpose insurance captive shall have the right to a hearing, at which the insurer may challenge any determination or action by the commissioner. The special purpose insurance captive shall notify the commissioner of its request for hearing within 15 days after the issuance of the order. Hearings under this section shall be conducted in accordance with the provisions of the Kansas administrative procedure act.
History:
L. 2018, ch. 50, § 25; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4343 Same; prohibited activities.

40-4343. Same; prohibited activities.
A special purpose insurance captive shall not:
(a) Enter into a special purpose insurance captive contract with a person that is not authorized to transact the business of insurance or reinsurance in at least its state or country of domicile; or
(b) lend or otherwise invest or place in custody, trust or under management any of its assets with, or to borrow money or receive a loan, other than according to the plan of operation filed with and approved by the commissioner.
History:
L. 2018, ch. 50, § 26; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4344 Same; dividends and distributions; limitations.

40-4344. Same; dividends and distributions; limitations.
(a) A special purpose insurance captive shall not declare or pay dividends or distributions in any form to its owners other than in accordance with the transaction agreements or plan of operation.
(b) Dividends and distributions may not decrease the capital of the special purpose insurance captive below the minimum capital requirements.
(c) All dividends and distributions shall be approved by the commissioner. After giving effect to the dividends, the assets of the special purpose insurance captive, including assets held in trust and letters of credit issued for the exclusive benefit of the special purpose insurance captive, must be sufficient to satisfy the commissioner so that it can meet its obligations, in order to be approved.
(d) Dividends and distributions may be declared by the management of the special purpose insurance captive, provided that the dividend amount or form does not violate the provisions of this section or jeopardize the fulfillment of the obligations of the special purpose insurance captive.
History:
L. 2018, ch. 50, § 27; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4345 Same; plan of operation; changes.

40-4345. Same; plan of operation; changes.
Any material changes to a special purpose insurance captive's plan of operation shall require the prior written approval of the commissioner. The plan of operation must specify which deviations shall be considered material.
History:
L. 2018, ch. 50, § 28; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4346 Same; affiliated agreements.

40-4346. Same; affiliated agreements.
Copies of all completed affiliated agreements to which the special purpose insurance captive is a party, including, but not limited to, the special purpose insurance captive contract or contracts and any reinsurance agreements to which the special purpose insurance captive is a party must be filed with the commissioner for prior approval.
History:
L. 2018, ch. 50, § 29; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4349 Same; taxation.

40-4349. Same; taxation.
(a) Each special purpose insurance captive shall pay to the commissioner on or before May 1 of each year a premium tax at the rate of 0.214 of 1% on the first $20,000,000 of the assumed reinsurance premium, 0.143 of 1% on the next $20,000,000, 0.048 of 1% on the next $20,000,000 and 0.024 of 1% of each dollar thereafter. No reinsurance premium tax shall be payable in connection with the receipt of assets in exchange for the assumption of loss reserves and other liabilities of another insurer under common ownership and control if such transaction is part of a plan to discontinue the operations of such other insurer, and if the intent of the parties to such transaction is to renew or maintain such business with the captive insurance company.
(b) The premium tax imposed by subsection (a) shall constitute all taxes collectible under the laws of this state from any special purpose insurance captive, and no other occupation tax or other taxes shall be levied or collected from any captive insurance company by the state or any county, city or municipality within this state, except ad valorem taxes on real and personal property used in the production of income.
(c) Every special purpose insurance captive shall, on or before February 1 of each year, make a return on a form provided by the commissioner, verified by the affidavit of the company's president and secretary or other authorized officers, to the commissioner stating the amount of all direct premiums received and assumed reinsurance premiums received, whether in cash or in notes, during the year ending on December 31 next preceding. Upon receipt of such returns, the commissioner shall verify the same and certify the amount of tax due from the various companies on the basis and at the rate provided in this section, on or before March 31 of each year. The commissioner shall immediately thereafter notify and assess each company the amount of tax due.
(d) A special purpose insurance captive failing to make returns as required by subsection (c), or failing to pay within the time required all taxes assessed by this section, shall be subject to the provisions of K.S.A. 40-2806, and amendments thereto.
History:
L. 2018, ch. 50, § 32; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4351 Same; conservation, rehabilitation or liquidation, grounds for.

40-4351. Same; conservation, rehabilitation or liquidation, grounds for.
(a) The commissioner may, after notice and hearing, issue an order, subject to the Kansas administrative procedure act, to conserve, rehabilitate or liquidate a special purpose insurance captive domiciled in this state on one or more of the following grounds:
(1) There has been embezzlement, wrongful sequestration, dissipation or diversion of the assets of the special purpose insurance captive;
(2) the special purpose insurance captive is financially impaired, insolvent or otherwise deemed to be in a hazardous financial condition pursuant to K.S.A. 40-222b, and amendments thereto; or
(3) the holders of a majority in outstanding principal amount of each class of special purpose insurance captive securities or surplus notes request or consent to conservation, rehabilitation or liquidation under the provisions of this section.
(b) Upon any order of conservation, rehabilitation or liquidation of a special purpose insurance captive, the receiver shall manage the assets and liabilities of the special purpose insurance captive under the provisions of chapter 40 of the Kansas Statutes Annotated, and amendments thereto.
(c) With respect to amounts recoverable under a special purpose insurance captive contract, the amount recoverable by the receiver must not be reduced or diminished as a result of the entry of an order of conservation, rehabilitation or liquidation with respect to the ceding company, notwithstanding another provision in the special purpose insurance captive contract or other documentation governing the special purpose insurance captive's transactions.
History:
L. 2018, ch. 50, § 34; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4352 Same; rules and regulations.

40-4352. Same; rules and regulations.
The commissioner may promulgate all rules and regulations necessary to effectuate the provisions of K.S.A. 40-4332 through 40-4352, and amendments thereto.
History:
L. 2018, ch. 50, § 35; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4353 Captive insurance act; citation.

40-4353. Captive insurance act; citation.
K.S.A. 40-4301 through 40-4304, 40-4306 through 40-4315, * 40-4317 through 40-4353, and amendments thereto, and K.S.A. 2023 Supp. 40-4354, and amendments thereto, shall be known and may be cited as the captive insurance act.
History:
L. 2018, ch. 50, § 1; L. 2022, ch. 29, § 6; April 14.
* The word "and" should have been included.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 44 - Kansas Healthy Kids Program › 40-4408 Transfer of moneys in healthy kids trust fund to state general fund; healthy kids trust fund abolished.

40-4408.
Transfer of moneys in healthy kids trust fund to state general fund; healthy kids trust fund abolished.
On the effective date of this act, the director of accounts and reports shall transfer all moneys in the healthy kids trust fund to the state general fund. On the effective date of this act, all liabilities of the healthy kids trust fund are hereby transferred to and imposed on the state general fund and the healthy kids trust fund is hereby abolished.
History:
L. 1994, ch. 32, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 45 - Regulation Of Reinsurance Intermediaries › 40-4504 Contracts between reinsurance brokers and insurers; written authorization required, contents.

40-4504.
Contracts between reinsurance brokers and insurers; written authorization required, contents.
Transactions between a reinsurance broker and the insurer it represents in such capacity shall only be entered into pursuant to a written authorization, specifying the responsibilities of each party. The authorization shall, at a minimum, provide that:
(a) The insurer may terminate the reinsurance broker's authority at any time;
(b) the reinsurance broker shall render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing, to the reinsurance broker, and remit all funds due to the insurer within 30 days of receipt;
(c) all funds collected for the insurer's account shall be held by the reinsurance broker in a fiduciary capacity in a bank which is a qualified United States financial institution as defined herein;
(d) the reinsurance broker shall comply with K.S.A. 40-4505;
(e) the reinsurance broker shall comply with the written standards established by the insurer for the cession or retrocession of all risks; and
(f) the reinsurance broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.
History: L. 1992, ch. 15, § 4; December 31.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 45 - Regulation Of Reinsurance Intermediaries › 40-4505 Same; records to be maintained by reinsurance broker; rights of insurer to access, copy and audit records.

40-4505.
Same; records to be maintained by reinsurance broker; rights of insurer to access, copy and audit records.
(a) For at least 10 years after expiration of each contract of reinsurance transacted by the reinsurance broker, the reinsurance broker shall keep a complete record for each transaction showing:
(1) The type of contract, limits, underwriting restrictions, classes or risks and territory;
(2) period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation;
(3) reporting and settlement requirements of balances;
(4) rate used to compute the reinsurance premium;
(5) names and addresses of assuming reinsurers;
(6) rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance broker;
(7) related correspondence and memoranda;
(8) proof of placement;
(9) details regarding retrocessions handled by the reinsurance broker including the identity of retrocessionaires and percentages of each contract assumed or ceded;
(10) financial records, including but not limited to, premium and loss accounts; and
(11) when the reinsurance broker procures a reinsurance contract on behalf of a licensed ceding insurer:
(A) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
(B) if placed through a representative of the assuming reinsurer, other than an employee, written evidence that such reinsurer has delegated binding authority to the representative.
(b) The insurer shall have access and the right to copy and audit all accounts and records maintained by the reinsurance broker related to its business in a form usable by the insurer.
History: L. 1992, ch. 15, § 5; December 31.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 45 - Regulation Of Reinsurance Intermediaries › 40-4506 Same; conditions; broker to provide insurer annual statement of financial condition.

40-4506.
Same; conditions; broker to provide insurer annual statement of financial condition.
(a) An insurer shall not engage the services of any person, firm, association or corporation to act as a reinsurance broker on its behalf unless such person is licensed as required by subsection (a) of K.S.A. 40-4503.
(b) An insurer may not employ an individual who is employed by a reinsurance broker with which it transacts business, unless such reinsurance broker is under common control with the insurer and subject to the holding company act.
(c) The insurer shall annually obtain a copy of statements of the financial condition of each reinsurance broker with which it transacts business.
History: L. 1992, ch. 15, § 6; December 31.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 45 - Regulation Of Reinsurance Intermediaries › 40-4508 Same; reinsurance managers precluded from taking certain actions.

40-4508.
Same; reinsurance managers precluded from taking certain actions.
The reinsurance manager shall not:
(a) Cede retrocessions on behalf of the reinsurer, except that the reinsurance manager may cede faculative retrocessions pursuant to obligatory faculative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for such retrocessions. Such guidelines shall include a list of reinsurers with which such automatic agreements are in effect, and for each such reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules;
(b) commit the reinsurer to participate in reinsurance syndicates;
(c) appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which such producer is appointed;
(d) without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer's policyholder's surplus as of December 31 of the last complete calendar year;
(e) collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report must be promptly forwarded to the reinsurer;
(f) jointly employ an individual who is employed by the reinsurer unless such reinsurance manager is under common control with the reinsurer subject to the holding company act;
(g) appoint a sub-reinsurance manager.
History: L. 1992, ch. 15, § 8; December 31.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 45 - Regulation Of Reinsurance Intermediaries › 40-4509 Same; conditions; manager to provide reinsurer annual statement of financial condition; actuarial opinion on adequacy of loss reserves; authority over retrocessional contracts and syndicate participation; notice of contract termination to commissioner; reinsurance manager, officers, directors, employees, controlling shareholders and subproducers ineligible for appointment to reinsurer board.

40-4509.
Same; conditions; manager to provide reinsurer annual statement of financial condition; actuarial opinion on adequacy of loss reserves; authority over retrocessional contracts and syndicate participation; notice of contract termination to commissioner; reinsurance manager, officers, directors, employees, controlling shareholders and subproducers ineligible for appointment to reinsurer board.
(a) A reinsurer shall not engage the services of any person, firm, association or corporation to act as a reinsurance manager on its behalf unless such person is licensed as required by subsection (b) of K.S.A. 40-4503.
(b) The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance manager which such reinsurer has engaged to be prepared by an independent certified accountant in a form acceptable to the commissioner.
(c) If a reinsurance manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance manager. This opinion shall be in addition to any other required loss reserve certification.
(d) Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the reinsurance manager.
(e) Within 30 days of termination of a contract with a reinsurance manager, the reinsurer shall provide written notification of such termination to the commissioner.
(f) A reinsurer shall not appoint to its board of directors, any officer, director, employee, controlling shareholder or subproducer of its reinsurance manager. This subsection shall not apply to relationships governed by the holding company act or, if applicable, the broker controlled insurer act.
History: L. 1992, ch. 15, § 9; December 31.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 45 - Regulation Of Reinsurance Intermediaries › 40-4510 Examination; access to books, bank accounts and records.

40-4510.
Examination; access to books, bank accounts and records.
(a) A reinsurance intermediary shall be subject to examination by the commissioner pursuant to K.S.A. 40-222 and 40-223 and amendments thereto. The commissioner shall have access to all books, bank accounts and records of the reinsurance intermediary in a form usable to the commissioner.
(b) A reinsurance manager may be examined as if it were the reinsurer.
History: L. 1992, ch. 15, § 10; December 31.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 45 - Regulation Of Reinsurance Intermediaries › 40-4513 Continuation of existing contracts.

40-4513.
Continuation of existing contracts.
Contracts between an insurer and a reinsurance broker or a reinsurer and a reinsurance manager which became effective on or before the effective date of this act may continue in full effect and force until June 30, 1993.
History: L. 1992, ch. 15, § 13; December 31.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 46 - Managed Care › 40-4601 Patient protection act; citation.

40-4601.
Patient protection act; citation.
K.S.A. 40-4601 to 40-4608 shall be known and may be cited as the patient protection act.
History:
L. 1997, ch. 190, § 16; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 46 - Managed Care › 40-4602 Same; definitions.

40-4602.
Same; definitions.
As used in this act:
(a) "Emergency medical condition" means the sudden and, at the time, unexpected onset of a health condition that requires immediate medical attention, where failure to provide medical attention would result in serious impairment to bodily functions or serious dysfunction of a bodily organ or part, or would place the person's health in serious jeopardy.
(b) "Emergency services" means ambulance services and health care items and services furnished or required to evaluate and treat an emergency medical condition, as directed or ordered by a physician.
(c) "Health benefit plan" means any hospital or medical expense policy, health, hospital or medical service corporation contract, a plan provided by a municipal group-funded pool, a policy or agreement entered into by a health insurer or a health maintenance organization contract offered by an employer or any certificate issued under any such policies, contracts or plans. "Health benefit plan" does not include policies or certificates covering only accident, credit, dental, disability income, long-term care, hospital indemnity, medicare supplement, specified disease, vision care, coverage issued as a supplement to liability insurance, insurance arising out of a workers compensation or similar law, automobile medical-payment insurance, or insurance under which benefits are payable with or without regard to fault and which is statutorily required to be contained in any liability insurance policy or equivalent self-insurance.
(d) "Health insurer" means any insurance company, nonprofit medical and hospital service corporation, municipal group-funded pool, fraternal benefit society, health maintenance organization, or any other entity which offers a health benefit plan subject to the Kansas Statutes Annotated.
(e) "Insured" means a person who is covered by a health benefit plan.
(f) "Participating provider" means a provider who, under a contract with the health insurer or with its contractor or subcontractor, has agreed to provide one or more health care services to insureds with an expectation of receiving payment, other than coinsurance, copayments or deductibles, directly or indirectly from the health insurer.
(g) "Provider" means a physician, hospital or other person which is licensed, accredited or certified to perform specified health care services.
(h) "Provider network" means those participating providers who have entered into a contract or agreement with a health insurer to provide items or health care services to individuals covered by a health benefit plan offered by such health insurer.
(i) "Physician" means a person licensed by the state board of healing arts to practice medicine and surgery.
History:
L. 1997, ch. 190, § 17; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 46 - Managed Care › 40-4603 Same; emergency services, prohibitions on health care plan; prior authorization after condition stabilized; post evaluation or post stabilization services.

40-4603.
Same; emergency services, prohibitions on health care plan; prior authorization after condition stabilized; post evaluation or post stabilization services.
(a) A health benefit plan shall not deny coverage for emergency services if the symptoms presented by an insured and recorded by the attending provider indicate that an emergency medical condition exists, or for emergency services necessary to provide an insured with a medical examination and stabilizing treatment, regardless of whether prior authorization was obtained to provide those services.
(b) If a participating provider or other authorized representative of a health insurer authorizes emergency services, the health insurer shall not subsequently rescind or modify that authorization after the provider renders the authorized care in good faith and pursuant to the authorization except for:
(1) Payments made as a result of misrepresentation, fraud, omission or clerical error; and
(2) copayment, coinsurance or deductible amounts that are the responsibility of the insured.
(c) Once an insured is stabilized pursuant to subsection (a), a health benefit plan may require as a condition of further coverage that a hospital emergency facility shall promptly contact the health insurer for prior authorization for continuing treatment, specialty consultations, transfer arrangements or other medically necessary and appropriate care for an insured.
(d) Coverage of emergency services shall be subject to applicable copayments, coinsurance and deductibles.
(e) For required post evaluation or post stabilization services immediately following treatment of an emergency medical condition, a health insurer shall provide access to an authorized representative 24 hours a day, seven days a week.
History:
L. 1997, ch. 190, § 18; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 46 - Managed Care › 40-4604 Same; medically appropriate health care information; advocating on behalf of insured.

40-4604.
Same; medically appropriate health care information; advocating on behalf of insured.
No health insurer shall prohibit or restrict any participating provider from discussing with or disclosing to any insured or other individual any medically appropriate health care information that such provider deems appropriate regarding the nature of treatment options, the risks or alternatives thereto, the process used or the decision made by such insurer to approve or deny health care services, the availability of alternate therapies, consultations, or tests, or from advocating on behalf of the insured within the utilization review or grievance processes established by the health insurer.
History:
L. 1997, ch. 190, § 19; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 46 - Managed Care › 40-4605 Same; arrangements which serve as inducement to reduce or limit delivery of medically necessary services prohibited; capitation payments or other risk sharing provisions not considered inducements.

40-4605.
Same; arrangements which serve as inducement to reduce or limit delivery of medically necessary services prohibited; capitation payments or other risk sharing provisions not considered inducements.
No health insurer shall offer or operate a compensation arrangement between such health insurer or its agents and a participating provider that may directly or indirectly serve as an inducement to reduce or limit the delivery of medically necessary services with respect to an insured in any health benefit plan offered by such health insurer. Compensation arrangements which involve capitation payments or other risk sharing provisions shall not be considered inducements.
History:
L. 1997, ch. 190, § 20; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 46 - Managed Care › 40-4606 Same; health insurer required to inform in writing current and prospective insureds of availability of certain information.

40-4606.
Same; health insurer required to inform in writing current and prospective insureds of availability of certain information.
Every health insurer shall inform in writing current and prospective insureds that the following information shall be available upon request:
(a) A complete description of the health care services, items and other benefits to which the insured is entitled in the particular health benefit plan which is covering or being offered to such person;
(b) a description of any limitations, exceptions or exclusions to coverage in the health benefit plan, including prior authorization policies, restricted drug formularies or other provisions which restrict access to covered services or items by the insured;
(c) a listing of the health benefit plan's participating providers, their business addresses and telephone numbers, the availability of those providers, and any limitations on an insured's choice of provider;
(d) notification in advance of any changes in the health benefit plan which either reduces the coverage or benefits, or increases the cost, to such person; and
(e) a description of the grievance and appeal procedures available under the health benefit plan and an insured's rights regarding termination, disenrollment, nonrenewal or cancelation of coverage.
History:
L. 1997, ch. 190, § 21; July 1.