reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-515 Same; compensation of directors and officers; criminal penalties.

40-515.
Same; compensation of directors and officers; criminal penalties.
(a) No director or officer of any company party to a merger or a consolidation, except as fully expressed in the agreement of merger or consolidation, shall receive any fee, commission, other compensation or valuable consideration whatever, directly or indirectly, for in any manner aiding, promoting or assisting in such merger or consolidation.
(b) Any person violating the provisions of this section shall be fined not less than one thousand dollars ($1,000) and not more than five thousand dollars ($5,000) or imprisoned in the county jail for not more than one year, or both, and shall forfeit any office held in the merged or consolidated company.
History:
L. 1980, ch. 135, § 9; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 5 - Mutual Life Insurance Companies › 40-516 Same; act supplemental to insurance code; severability.

40-516.
Same; act supplemental to insurance code; severability.
(a) Nothing contained in this act shall be construed to enlarge the charter powers of any insurance company except in conformity with the provisions of the proposed articles of incorporation of the merged or consolidated company as provided in this act, nor to authorize any insurance company to do any kind of insurance business not authorized by its charter or articles of incorporation, nor to authorize any insurance company to do any kind of insurance business in this state not authorized by its license or certificate of authority to do business in this state.
(b) This act shall be part of and supplemental to the insurance code of the state of Kansas.
(c) If any provision of this act or the application of such provision to any person or circumstance shall be held invalid, the remainder of this act and the application of such provision to persons and circumstances other than those as to which it is held invalid shall not be affected thereby.
History:
L. 1980, ch. 135, § 10; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 6 - Mutual Assessment Life Associations › 40-601 Mutual assessment life associations; types of insurance permitted; liability of policyholders; deposit of securities.

40-601.
Mutual assessment life associations; types of insurance permitted; liability of policyholders; deposit of securities.
Mutual assessment life associations hereafter organized and admitted under this article, as well as those now transacting business in this state upon the mutual assessment life insurance plan, may insure the lives of their members and provide every insurance applicable thereto or connected therewith, including personal injury, disability, old age, accumulation and annuity benefits, and shall reserve in their policies and articles of incorporation the right to collect additional amounts, assessments or premiums so that the liability of policyholders shall not be limited to fixed, level or stipulated premiums. Any such domestic association shall at all times have and maintain on deposit with the commissioner of insurance pursuant to K.S.A. 40-229a approved securities in the sum of $10,000 as a guaranty fund for the benefit of its policyholders, and such deposit shall be in addition to all other deposits required by this article.
History:
L. 1927, ch. 231, 40-601; L. 1996, ch. 25, § 8; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 6 - Mutual Assessment Life Associations › 40-602 Formation; directors and officers; annual meeting.

40-602.
Formation; directors and officers; annual meeting.
Five or more persons of lawful age, citizens of this state, may associate themselves together for the purpose of forming a mutual assessment life association. The persons named in the articles of incorporation shall constitute the directors or trustees of the association for the first year, and shall have power to fill all vacancies occurring in the board in the manner provided in the bylaws of the association. Upon complying with the requirements of section 40-216, they may proceed to complete their organization by the election, by ballot, of a president and vice-president from among their number, and a secretary and treasurer, and such other officers as may be necessary for the complete performance of all the business and objects of the association herein provided, to serve for one year, or until their successors are elected and qualified. Such directors and officers shall be elected annually thereafter, at such times as shall be fixed in the bylaws. The directors or trustees shall be elected by the certificate or policyholders at each annual meeting, each certificate or policyholder to be entitled to one vote for every director to be elected. Notice of the annual meeting shall be given by the secretary, by publication in some daily newspaper having general circulation in this state, at least once each week for four consecutive weeks just prior to such meeting. The policies issued by such associations, as well as all other associations now transacting business in this state or hereinafter admitted, which policies shall include a copy of the application and medical examination, shall constitute the entire contract between the association and its members.
History:
L. 1927, ch. 231, 40-602; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 6 - Mutual Assessment Life Associations › 40-604 Regulations and restrictions.

40-604.
Regulations and restrictions.
It shall be unlawful for such association to make insurance on the health of individuals, or to contract the payment to any member or his beneficiaries a sum greater than three thousand dollars, unless such corporation or association shall have a membership sufficient to pay the face value of the certificate or policy in full with one single assessment to make insurance on the life of any person until such person has first been subjected to a medical examination by a regular practicing physician, and found to be insurable, except when insurance is granted against accident or disablement only; to make insurance on the life of any person above sixty years of age; to issue joint life certificates or policies granting insurance on the life of more than one person under one certificate or policy, unless each person insured under such certificate or policy shall be named and assessed individually for their full pro rata share.
History:
L. 1927, ch. 231, 40-604; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 6 - Mutual Assessment Life Associations › 40-605 Policy not contestable; assessment to pay policy on maturity; payment to beneficiary.

40-605.
Policy not contestable; assessment to pay policy on maturity; payment to beneficiary.
From and after January 1, 1928, it shall be unlawful for any association to issue or deliver in this state a policy unless the same shall contain in substance provision that except as otherwise expressly provided by law the policy shall be incontestable after it has been in force during the lifetime of the insured for a period not more than two years from its date, except for nonpayment of premiums and except for violations of the conditions of the policy relating to military and naval service in time of war, and at the option of the company, provisions relative to benefits in the event of total and permanent disability and provisions which grant additional insurance specifically against death by accident may also be excepted; but upon the maturity of any policy or certificate, the secretary of the association shall proceed to make the necessary assessment with which to raise funds to pay the same and upon receipt of such fund shall within thirty days pay the same over to the beneficiary under such maturing certificate or policy.
History:
L. 1927, ch. 231, 40-605; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 6 - Mutual Assessment Life Associations › 40-606 Suspension of business and reinsurance.

40-606.
Suspension of business and reinsurance.
Any mutual assessment life association may suspend business and reinsure its outstanding certificates or policies as provided by section 40-505 of this code.
History:
L. 1927, ch. 231, 40-606; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 6 - Mutual Assessment Life Associations › 40-607 Regulations and restrictions of foreign mutual assessment life associations.

40-607.
Regulations and restrictions of foreign mutual assessment life associations.
Foreign mutual assessment life associations shall be admitted to this state upon complying with the requirements of section 40-209, provided such associations are required by the laws of the states of their domicile to, or they do voluntarily, maintain the reserves, segregate the same and value their policies in accordance with the provisions of section 40-608. Such foreign mutual assessment life associations shall file with the commissioner of insurance, a certificate showing that such association has on deposit with a state official of its home state, approved securities in the sum of at least two hundred thousand dollars, or shall make such deposit with the commissioner of insurance of this state.
History:
L. 1927, ch. 231, 40-607; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 6 - Mutual Assessment Life Associations › 40-609 Act not to apply to certain associations.

40-609.
Act not to apply to certain associations.
This article shall not apply to any association of religious or secret societies now existing or under the supervision of a grand or supreme lodge, nor to any class of mechanics, express, telegraph or railroad employees formed for the mututal benefit of the members thereof and their families, exclusively.
History:
L. 1927, ch. 231, 40-609; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-738 Definitions.

40-738.
Definitions.
Any incorporated society, order or supreme lodge, without capital stock, conducted solely for the benefit of its members and their beneficiaries and not for profit, operated on a lodge system with ritualistic form of work, having a representative form of government, and which provides benefits in accordance with this act, is hereby declared to be a fraternal benefit society.
History: L. 1988, ch. 154, § 1; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-739 Operation on lodge system; subordinate lodges required to hold regular meetings; lodges for children.

40-739.
Operation on lodge system; subordinate lodges required to hold regular meetings; lodges for children.
(a) A society is operating on the lodge system if it has a supreme governing body and subordinate lodges into which members are elected, initiated or admitted in accordance with its laws, rules and ritual. Subordinate lodges shall be required by the laws of the society to hold regular meetings at least once in each month in furtherance of the purposes of the society.
(b) A society may, at its option, organize and operate lodges for children under the minimum age for adult membership. Membership and initiation in local lodges shall not be required of such children, nor shall they have a voice or vote in the management of the society.
History: L. 1988, ch. 154, § 2; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-740 Representative form of government; election and voting criteria.

40-740.
Representative form of government; election and voting criteria.
A society has a representative form of government when:
(a) It has a supreme governing body constituted in one of the following ways:
(1) Assembly. The supreme governing body is an assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates as may be prescribed in the society's laws. A society may provide for election of delegates by mail. The elected delegates shall constitute a majority in number and shall not have less than 2/3 of the votes and not less than the number of votes required to amend the society's laws. The assembly shall be elected and shall meet at least once every four years and shall elect a board of directors to conduct the business of the society between meetings of the assembly. Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws.
(2) Direct election. The supreme governing body is a board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws. A society may provide for election of the board by mail. Each term of a board member shall not exceed four years. Vacancies on the board between elections may be filled in the manner prescribed by the society's laws. Those persons elected to the board shall constitute a majority in number and not less than the number of votes required to amend the society's laws. A person filling the unexpired term of an elected board member shall be considered to be an elected member. The board shall meet at least quarterly to conduct the business of the society.
(b) The officers of the society are elected by the supreme governing body or by the board of directors;
(c) only benefit members are eligible for election to the supreme governing body, the board of directors or any intermediate assembly; and
(d) each voting member shall have one vote. No vote may be cast by proxy.
History: L. 1988, ch. 154, § 3; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-741 Definitions.

40-741.
Definitions.
As used in this act:
(a) "Agent" means an individual as defined in K.S.A. 40-239, and amendments thereto.
(b) "Benefit contract" means the agreement for provision of benefits authorized by subsection (a) of K.S.A. 40-742, as that agreement is described in K.S.A. 40-749.
(c) "Benefit member" means an adult member who is designated by the laws or rules of the society to be a benefit member under a benefit contract.
(d) "Certificate" means the document issued as written evidence of the benefit contract.
(e) "Commissioner" means the commissioner of insurance of this state.
(f) "Premiums" means premiums, rates, dues or other required contributions by whatever name known, which are payable under the certificate.
(g) "Laws" means the society's articles of incorporation, constitution and bylaws, however designated.
(h) "Rules" means all rules, regulations or resolutions adopted by the supreme governing body or board of directors which are intended to have general application to the members of the society.
(i) "Society" means fraternal benefit society, unless otherwise indicated.
(j) "Lodge" means subordinate member units of the society, known as camps, courts, councils, branches or by any other designation.
History: L. 1988, ch. 154, § 4; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-742 Operation for benefit of members; authorized insurance business and purposes; specification of persons who may be covered; adoption of laws and rules governing society's operation.

40-742.
Operation for benefit of members; authorized insurance business and purposes; specification of persons who may be covered; adoption of laws and rules governing society's operation.
(a) A society shall operate for the benefit of members and their beneficiaries by:
(1) Providing the following benefits:
(A) Death benefits;
(B) endowment benefits;
(C) annuity benefits;
(D) temporary or permanent disability benefits;
(E) hospital, medical or nursing benefits; and
(F) such other benefits as authorized for life insurers and which are not inconsistent with this article;
(2) operating for one or more social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic or religious purposes for the benefit of its members, which may also be extended to others.
Such purposes may be carried out directly by the society, or indirectly through subsidiary corporations or affiliated organizations.
(b) A society shall specify in its rules those persons who may be issued, or covered by, the contractual benefits in subsection (a), consistent with providing benefits to members and their dependents. A society may provide benefits on the lives of children under the minimum age for adult membership upon application of an adult person.
(c) Every society shall have the power to adopt laws and rules for the government of the society, the admission of its members, and the management of its affairs. It shall have the power to change, alter, add to or amend such laws and rules and shall have such other powers as are necessary and incidental to carrying into effect the objects and purposes of the society.
History: L. 1988, ch. 154, § 5; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-743 Laws and rules; provisions relating to membership to be specified.

40-743.
Laws and rules; provisions relating to membership to be specified.
(a) A society shall specify in its laws or rules:
(1) Eligibility standards for each and every class of membership, provided that if benefits are provided on the lives of children, the minimum age for adult membership shall be set at not less than age 15 and not greater than age 21;
(2) the process for admission to membership for each membership class; and
(3) the rights and privileges of each membership class, provided that only benefit members shall have the right to vote on the management of the insurance affairs of the society.
(b) A society may also admit social members who shall have no voice or vote in the management of the insurance affairs of the society.
(c) Membership rights in the society are personal to the member and are not assignable.
History: L. 1988, ch. 154, § 6; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-744 Location of principal office; supreme governing body, location of meetings, minutes of proceedings; official publication for notices; mailings; grievance or complaint procedures.

40-744.
Location of principal office; supreme governing body, location of meetings, minutes of proceedings; official publication for notices; mailings; grievance or complaint procedures.
(a) The principal office of any domestic society shall be located in this state. The meetings of its supreme governing body may be held in any state, district, province or territory wherein such society has at least one subordinate lodge, or in such other location as determined by the supreme governing body, and all business transacted at such meetings shall be as valid in all respects as if such meetings were held in this state. The minutes of the proceedings of the supreme governing body and of the board of directors shall be in the English language.
(b) (1) A society may provide in its laws for an official publication in which any notice, report or statement required by law to be given to members, including notice of election, may be published. Such required reports, notices and statements shall be printed conspicuously in the publication. If the records of a society show that two or more members have the same mailing address, an official publication mailed to one member is deemed to be mailed to all members at the same address unless a member requests a separate copy.
(2) Not later than June 1 of each year, a synopsis of the society's annual statement providing an explanation of the facts concerning the condition of the society thereby disclosed shall be printed and mailed to each benefit member of the society, or, in lieu thereof, such synopsis may be published in the society's official publication.
(c) A society may provide in its laws or rules for grievance or complaint procedures for members.
History: L. 1988, ch. 154, § 7; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-746 Society's laws nonwaivable by subordinate bodies, officers or members.

40-746.
Society's laws nonwaivable by subordinate bodies, officers or members.
The laws of the society may provide that no subordinate body, nor any of its subordinate officers or members, shall have the power or authority to waive any of the provisions of the laws of the society. Such provision shall be binding on the society and every member and beneficiary of a member.
History: L. 1988, ch. 154, § 9; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-747 Beneficiary designations; payment of funeral benefits to persons incurring expense therefor; payment of proceeds when no lawful beneficiary.

40-747.
Beneficiary designations; payment of funeral benefits to persons incurring expense therefor; payment of proceeds when no lawful beneficiary.
(a) The owner of a benefit contract shall have the right at all times to change the beneficiary or beneficiaries in accordance with the laws or rules of the society unless the owner waives this right by specifically requesting in writing that the beneficiary designation be irrevocable. A society may, through its laws or rules, limit the scope of beneficiary designations and shall provide that no revocable beneficiary shall have or obtain any vested interest in the proceeds of any certificate until the certificate has become due and payable in conformity with the provisions of the benefit contract.
(b) A society may make provision for the payment of funeral benefits to the extent of such portion of any payment under a certificate as might reasonably appear to be due to any person equitably entitled thereto by reason of having incurred expense occasioned by the burial of the member, provided the portion so paid shall not exceed $1,500.
(c) If, at the death of any person insured under a benefit contract, there is no lawful beneficiary to whom the proceeds shall be payable, the amount of such benefit, except to the extent that funeral benefits may be paid as hereinbefore provided, shall be payable to the estate of the deceased insured the same as other property not exempt, provided that if the owner of the certificate is other than the insured, such proceeds shall be payable to such owner.
History: L. 1988, ch. 154, § 10; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-748 Benefits not subject to attachment, garnishment or process.

40-748.
Benefits not subject to attachment, garnishment or process.
No money or other benefit, charity, relief or aid to be paid, provided or rendered by any society, shall be liable to attachment, garnishment or other process, or to be seized, taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary, or any other person who may have a right thereunder, either before or after payment by the society.
History: L. 1988, ch. 154, § 11; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-750 Valuation of paid-up nonforfeiture benefits, cash surrender values and loan or other options.

40-750.
Valuation of paid-up nonforfeiture benefits, cash surrender values and loan or other options.
(a) For certificates issued prior to one year after the effective date of this act, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall comply with the provisions of law applicable immediately prior to the effective date of this act.
(b) For certificates issued on or after one year from the effective date of this act for which reserves are computed on the commissioner's 1941 standard ordinary mortality table, the commissioner's 1941 standard industrial table or the commissioner's 1958 standard ordinary mortality table, or the commissioner's 1980 standard mortality table, or any more recent table made applicable to life insurers, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the corresponding amount ascertained in accordance with the laws of this state applicable to life insurers issuing policies containing like benefits based upon such tables.
History: L. 1988, ch. 154, § 13; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-751 Investment of funds.

40-751.
Investment of funds.
A society shall invest its funds only in such investments as are authorized by the laws of this state for the investment of assets of life insurers and subject to the limitations thereon. Any foreign or alien society permitted or seeking to do business in this state which invests its funds in accordance with the laws of the state, district, territory, country or province in which it is incorporated shall be held to meet the requirements of this section for the investment of funds.
History: L. 1988, ch. 154, § 14; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-752 Holding of assets; creation of special funds; establishment of separate accounts; issuance of contracts on variable basis.

40-752.
Holding of assets; creation of special funds; establishment of separate accounts; issuance of contracts on variable basis.
(a) All assets shall be held, invested and disbursed for the use and benefit of the society, and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment on the surrender of any part thereof except as provided in the benefit contract.
(b) A society may create, maintain, invest, disburse and apply any special fund or funds necessary to carry out any purpose permitted by the laws of such society.
(c) A society may, pursuant to resolution of its supreme governing body, establish and operate one or more separate accounts and issue contracts on a variable basis, subject to the provisions of law regulating life insurers establishing such accounts and issuing such contracts. To the extent the society deems it necessary in order to comply with any applicable federal or state laws, or any rules issued thereunder, the society may adopt special procedures for the conduct of the business and affairs of a separate account, may, for persons having beneficial interests therein, provide special voting and other rights, including without limitation special rights and procedures relating to investment policy, investment advisory services, selection of certified public accountants, and selection of a committee to manage the business and affairs of the account, and may issue contracts on a variable basis to which subsections (b) and (d) of K.S.A. 40-749 shall not apply.
History: L. 1988, ch. 154, § 15; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-753 Insurance laws application to societies.

40-753.
Insurance laws application to societies.
Except as herein provided, societies shall be governed by this act and shall be exempt from all other provisions of the insurance laws of this state unless they be expressly designated therein or unless it is specifically made applicable by this act.
History: L. 1988, ch. 154, § 16; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-754 Standards of valuation for certificates; mortality tables; maintenance of reserves in excess of those required.

40-754.
Standards of valuation for certificates; mortality tables; maintenance of reserves in excess of those required.
(a) Standards of valuation for certificates issued prior to one year after the effective date of this act shall be those provided by the laws applicable immediately prior to the effective date of this act.
(b) The minimum standards of valuation for certificates issued on or after one year from the effective date of this article shall be based on the following tables:
(1) For certificates of life insurance - the commissioner's 1941 standard ordinary mortality table, the commissioner's 1941 standard industrial mortality table, the commissioner's 1958 standard ordinary mortality table, the commissioner's 1980 standard ordinary mortality table or any more recent table made applicable to life insurers;
(2) for annuity and pure endowment certificates, for total and permanent disability benefits, for accidental death benefits and for non-cancellable accident and health benefits - such tables as are authorized for use by life insurers in this state.
All of the above shall be under valuation methods and standards, including interest assumptions, in accordance with the laws of this state applicable to life insurers issuing policies containing like benefits.
(c) The commissioner of insurance may, in the exercise of discretion, accept other standards for valuation if it is found that the reserves produced thereby will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard herein prescribed. The commissioner of insurance may, in the exercise of discretion, vary the standards of mortality applicable to all benefit contracts on substandard lives or other extra hazardous lives by any society authorized to do business in this state.
(d) Any society, with the consent of the commissioner of insurance of the state of domicile of the society and under such conditions, if any, which the commissioner may impose, may establish and maintain reserves on its certificates in excess of the reserves required thereunder, but the contractual rights of any benefit member shall not be affected thereby.
History: L. 1988, ch. 154, § 17; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-755 Annual statement to include valuation of certificates in force; certification or verification of actuary.

40-755.
Annual statement to include valuation of certificates in force; certification or verification of actuary.
As part of the annual statement herein required, each society shall, on or before the first day of March, file with the commissioner of insurance a valuation of its certificates in force on December 31 last preceding, providing the commissioner of insurance may, in the exercise of discretion for cause shown, extend the time for filing such valuation for not more than two calendar months. Such valuation shall be done in accordance with the standards specified in K.S.A. 40-754. Such valuation and underlying data shall be certified by a qualified actuary or, at the expense of the society, verified by the actuary of the department of insurance of the state of domicile of the society.
History:
L. 1988, ch. 154, § 18; L. 1997, ch. 24, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-756 Licenses continued in force upon payment of fees; certified copy of license prima facie evidence licensee is society.

40-756.
Licenses continued in force upon payment of fees; certified copy of license prima facie evidence licensee is society.
Societies which are now authorized to transact business in this state, and all societies hereafter licensed, may continue such business as provided in K.S.A. 40-215, and amendments thereto, upon payment of the fee prescribed in K.S.A. 40-252, and amendments thereto. A duly certified copy or duplicate of such license shall be prima facie evidence that the licensee is a fraternal benefit society within the meaning of this act.
History: L. 1988, ch. 154, § 19; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-757 Examinations; notice and opportunity to respond; payment of expenses.

40-757.
Examinations; notice and opportunity to respond; payment of expenses.
(a) The commissioner of insurance or the commissioner's designee may examine any domestic, foreign or alien society transacting or applying for admission to transact business in this state in the same manner as authorized for examination of domestic, foreign or alien insurers. Requirements of notice and an opportunity to respond before findings are made public as provided in the laws regulating insurers shall also be applicable to the examination of societies.
(b) The expense of each examination and of each valuation, including compensation and actual expense of examiners, shall be paid by the society examined or whose certificates are valued, upon statements furnished by the commissioner of insurance.
History: L. 1988, ch. 154, § 20; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-758 Foreign and alien societies to procure license to transact business in state; filing and other requirements.

40-758.
Foreign and alien societies to procure license to transact business in state; filing and other requirements.
No foreign or alien society shall transact business in this state without a license issued by the commissioner of insurance as provided in K.S.A. 40-214, and amendments thereto. Any such society desiring admission to this state shall:
(a) Comply substantially with the requirements and limitations of this act applicable to domestic societies and the applicable provisions of K.S.A. 40-209, and amendments thereto;
(b) file with the commissioner of insurance:
(1) A duly certified copy of its articles of incorporation;
(2) a copy of its bylaws, certified by its secretary or corresponding officer;
(3) a power of attorney to the commissioner of insurance as prescribed in K.S.A. 40-777;
(4) a statement of its business, under oath of its president and secretary or corresponding officers, in a form prescribed by the commissioner of insurance, duly verified by an examination made by the supervising insurance official of its home state or other state, territory, province or country, satisfactory to the commissioner of insurance;
(5) a certificate from the proper official of its home state, territory, province or country that the society is legally incorporated and licensed to transact business therein;
(6) copies of its certificate forms; and
(7) such other information as the commissioner of insurance may deem necessary; and
(c) show that its assets are invested in accordance with the provisions of this act.
History: L. 1988, ch. 154, § 21; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-760 Deficiencies in operation by foreign or alien society; notice to correct; show cause requirement upon failure to correct; suspension, revocation or refusal of authority to do business; certain contracts authorized to be continued.

40-760.
Deficiencies in operation by foreign or alien society; notice to correct; show cause requirement upon failure to correct; suspension, revocation or refusal of authority to do business; certain contracts authorized to be continued.
(a) When the commissioner of insurance upon investigation finds that a foreign or alien society transacting or applying to transact business in this state: (1) Has exceeded its powers; (2) has failed to comply with any of the provisions of this article; (3) is not fulfilling its contracts in good faith; or (4) is conducting its business fraudulently or in a manner hazardous to its members or creditors or the public, the commissioner shall notify the society of such deficiency or deficiencies and state in writing the reasons for dissatisfaction. The commissioner shall at once issue a written notice to the society requiring that the deficiency or deficiencies which exist be corrected. After such notice the society shall have a 30-day period in which to comply with the commissioner's request for correction. If the society fails to comply, the commissioner shall notify the society of such findings of noncompliance and require the society to show cause on a date named why its license should not be suspended, revoked or refused. If on such date the society does not present good and sufficient reason why its authority to do business in this state should not be suspended, revoked or refused, the commissioner may suspend or refuse the license of the society to do business in this state until satisfactory evidence is furnished to the commissioner that such suspension or refusal should be withdrawn, or the commissioner may revoke the authority of the society to do business in this state.
(b) Nothing contained in this section shall be construed to prevent any such society from continuing in good faith all contracts made in this state during the time such society was legally authorized to transact business herein.
History: L. 1988, ch. 154, § 23; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-761 Application or petition for injunction required to be made by attorney general on request of commissioner.

40-761.
Application or petition for injunction required to be made by attorney general on request of commissioner.
No application or petition for injunction against any domestic, foreign or alien society, or lodge thereof, shall be recognized in any court of this state unless made by the attorney general upon request of the commissioner of insurance.
History: L. 1988, ch. 154, § 24; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-763 Societies and agents subject to law regulating trade practices; construction and application thereof.

40-763.
Societies and agents subject to law regulating trade practices; construction and application thereof.
Every society and agent authorized to do business in this state shall be subject to the provisions of article 24 of chapter 40 of the Kansas Statutes Annotated, but nothing in such provisions shall be construed as applying to or affecting the right of any society to determine its eligibility requirements for membership or be construed as applying to or affecting the offering of benefits exclusively to members or persons eligible for membership in the society by a subsidiary corporation or affiliated organization of the society.
History: L. 1988, ch. 154, § 26; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-765 Amendment of domestic society's laws; procedures; approval by commissioner; amendments or synopsis thereof to be furnished to members; amendments and additions to be furnished to commissioner; printed copies prima facie evidence of legal adoption.

40-765.
Amendment of domestic society's laws; procedures; approval by commissioner; amendments or synopsis thereof to be furnished to members; amendments and additions to be furnished to commissioner; printed copies prima facie evidence of legal adoption.
(a) A domestic society may amend its laws in accordance with the provisions thereof by action of its supreme governing body at any regular or special meeting thereof or, if its laws so provide, by referendum. Such referendum may be held in accordance with the provisions of its laws by the vote of the voting members of the society, by the vote of delegates or representatives of voting members or by the vote of local lodges. A society may provide for voting by mail. No amendment submitted for adoption by referendum shall be adopted unless, within six months from the date of submission thereof, a majority of the members voting shall have signified their consent to such amendment by one of the methods herein specified.
(b) No amendment to the laws of any domestic society shall take effect unless approved by the commissioner of insurance. The commissioner shall approve such amendment if it has been duly adopted and is not inconsistent with any requirement of the laws of this state or with the character, objects and purposes of the society. Unless the commissioner shall disapprove an amendment within 30 days after it is filed, such amendment shall be considered approved. The approval or disapproval of the commissioner shall be in writing and mailed to the secretary or corresponding officer of the society at its principal office. If the commissioner disapproves such amendment, the reasons therefor shall be stated in such written notice.
(c) Within 90 days from the approval thereof by the commissioner, all such amendments, or a synopsis thereof, shall be furnished to all members of the society either by mail or by publication in full in the official publication of the society. The affidavit of any officer of the society or of anyone authorized by it to mail any amendments or synopsis thereof, stating facts which show that such amendments or synopsis thereof has been duly addressed and mailed, shall be prima facie evidence that such amendments or synopsis thereof have been furnished the addressee.
(d) Every foreign or alien society authorized to do business in this state shall file with the commissioner of insurance a duly certified copy of all amendments of or additions to its laws within 60 days after the enactment thereof.
(e) Printed copies of the laws as amended, certified by the secretary or corresponding officer of the society, shall be prima facie evidence of the legal adoption thereof.
History: L. 1988, ch. 154, § 28; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-766 Establishment and operation of not for profit institutions to further purposes of society; compensation for institutions' services; annual statement to include property held for such purposes.

40-766.
Establishment and operation of not for profit institutions to further purposes of society; compensation for institutions' services; annual statement to include property held for such purposes.
A society may create, maintain and operate, or may establish organizations to operate, not for profit institutions to further purposes permitted by subsection (a)(2) of K.S.A. 40-742. Such institutions may furnish services free or at a reasonable charge. Any real or personal property owned, held or leased by the society for this purpose shall be reported in every annual statement.
History: L. 1988, ch. 154, § 29; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-767 Reinsurance; limitations; credit for reserves on ceded risks.

40-767.
Reinsurance; limitations; credit for reserves on ceded risks.
(a) A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make such reinsurance and authorized to do business in this state, or if not so authorized, one which is approved by the commissioner of insurance, but no such society may reinsure substantially all of its insurance in force without the written permission of the commissioner. It may take credit for the reserves on such ceded risks to the extent reinsured, but no credit shall be allowed as an admitted asset or as a deduction from liability to a ceding society for reinsurance made, ceded, renewed or otherwise becoming effective after the effective date of this act unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society.
(b) Notwithstanding the limitation in subsection (a), a society may reinsure the risks of another society in a consolidation or merger approved by the commissioner under K.S.A. 40-768.
History: L. 1988, ch. 154, § 30; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-769 Conversion of society into mutual or stock life insurance company.

40-769.
Conversion of society into mutual or stock life insurance company.
Any fraternal benefit society incorporated under the laws of the state of Kansas may reorganize and convert itself into a mutual life insurance company or into a stock life insurance company by conforming with the provisions of K.S.A. 40-770 through 40-776. Nothing contained herein shall affect any conversion of a fraternal benefit society carried out under the laws of this state prior to the effective date of this act.
History: L. 1988, ch. 154, § 32; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-771 Same; adoption of resolution by delegates to supreme legislative body; certificate to be filed with commissioner by directors of society; contents.

40-771.
Same; adoption of resolution by delegates to supreme legislative body; certificate to be filed with commissioner by directors of society; contents.
If, pursuant to such notice and convening of the regular or special meeting of the supreme legislative body, there shall be adopted a resolution by delegates representing lodges which comprise not less than 60% of the total membership of the society, authorizing the conversion of the fraternal benefit society into a mutual or stock life insurance company, the directors of such society shall file with the commissioner of insurance and the secretary of state a certificate setting forth the following:
(a) The name of the society, and the new name of the corporation by which it shall thereafter be known. If the new name of the corporation shall change from the former name of the society, it shall not adopt the same name as that of any other society or life insurance company doing business in this state or a name similar to that of any other such society or life insurance company doing business in this state;
(b) the objective of the corporation;
(c) the location of its principal offices, which must be within the state of Kansas, and the names of the principal officers of such corporation, who shall serve until their successors are elected and qualified;
(d) the period, if any, for the duration of the corporation;
(e) the amount of the capital stock authorized, if any, and the number of shares into which it is divided, and the amount of capital stock to be immediately paid in, which shall not be less than $100,000 and generally comply with the laws of the state of Kansas governing the organization of insurance companies; and
(f) any other provisions which the supreme or governing body may choose to insert to protect the membership of the retiring society and insure the business and the conduct of the affairs of the new corporation.
History: L. 1988, ch. 154, § 34; January 1, 1989.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 7 - Fraternal Benefit Societies › 40-772 Same; report of meeting to be filed with commissioner.

40-772.
Same; report of meeting to be filed with commissioner.
A report of such meeting of the supreme legislative body certified to by the presiding officers under the corporate seal of such society shall also be filed with the commissioner.
History: L. 1988, ch. 154, § 35; January 1, 1989.