reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 40 - Insurance › Article 40 - Conversion Of Domestic Mutual Insurer Into Domestic Stock Insurer › 40-4007 Prohibition on certain persons benefiting from assistance in conversion.

40-4007.
Prohibition on certain persons benefiting from assistance in conversion.
(a) No director, officer, agent or employee of the insurer shall secure any unfair advantage through a plan of conversion by reducing the volume of new business written, by cancellation or by reducing or by any other means seeking to reduce, limit or alter the number or identity of the insurer's policyholders entitled to participate in such plan.
(b) No director, officer, agent or employee of the insurer shall receive any fee, commission or other valuable consideration whatsoever, other than regular salary and compensation, for in any manner aiding, promoting or assisting in the conversion except as set forth in the plan approved by the commissioner of insurance. This provision shall not be deemed to prohibit the payment of reasonable fees and compensation to attorneys at law, accountants, appraisers, actuaries, financial advisers or other similar professionals for services performed in the independent practice of their professions, even though such person may also be directors of the insurer.
History:
L. 1985, ch. 154, § 7; L. 1997, ch. 107, § 9; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 40 - Conversion Of Domestic Mutual Insurer Into Domestic Stock Insurer › 40-4008 Issuance of certificate of authority as final act of conversion; conversion not to affect rights of insurer.

40-4008.
Issuance of certificate of authority as final act of conversion; conversion not to affect rights of insurer.
Within 30 days of receipt of the filing of the approved plan in accordance with subsection (f) of K.S.A. 40-4002 and the amended articles of incorporation, the commissioner shall issue a new certificate of authority to the insurer. Notwithstanding the actions of any other jurisdiction, the issuance of such certificate shall be deemed the final act of conversion and the mutual insurer shall concurrently become a stock insurer. The date of the issuance of such certificate shall be the "conversion date" of the insurer. The stock insurer shall be a continuation of the mutual insurer and deemed to have been organized at the time the converted mutual insurer was organized. The conversion shall in no way annul, modify or change any of such insurer's existing suits, rights, contracts or liabilities except as provided in the plan. The insurer, after conversion, shall exercise all the rights and powers and perform all the duties conferred or imposed by law upon insurers writing the classes of insurance written by it and shall retain the rights and contracts existing prior to conversion, subject to the effect of the plan.
History:
L. 1985, ch. 154, § 8; L. 1997, ch. 107, § 10; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 40 - Conversion Of Domestic Mutual Insurer Into Domestic Stock Insurer › 40-4009 Directors and officers of mutual insurer, service.

40-4009.
Directors and officers of mutual insurer, service.
The directors and officers of the mutual insurer shall serve until new directors and officers have been duly elected and qualified pursuant to the plan and articles of incorporation or bylaws of the converted insurer or of the affiliates of the converted insurer, if applicable, unless otherwise determined by the board of directors of the converting insurer.
History:
L. 1985, ch. 154, § 9; L. 1997, ch. 107, § 11; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 40 - Conversion Of Domestic Mutual Insurer Into Domestic Stock Insurer › 40-4010 Securities issued under plan exempt from securities laws.

40-4010.
Securities issued under plan exempt from securities laws.
The offer or sale of securities issued under the plan developed and approved in accordance with the provisions of this act shall be exempt from the Kansas securities laws.
History:
L. 1985, ch. 154, § 10; L. 1997, ch. 107, § 12; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 40 - Conversion Of Domestic Mutual Insurer Into Domestic Stock Insurer › 40-4011 Actions challenging validity of conversion; security required.

40-4011.
Actions challenging validity of conversion; security required.
No action challenging the validity of a conversion, or any aspect of such conversion under this act, may be commenced more than 30 days after the final act of conversion.
In any action challenging the plan of conversion or charging that the directors of the converting insurer, the converted insurer, the mutual holding company or the stock holding company, as applicable or any other person or persons have acted improperly in connection with any aspect of the conversion, the insurer or converted insurer in whose right such action is brought or the defendant or defendants shall be entitled at any stage of the proceedings before final judgment to require the plaintiff or plaintiffs to give security for the reasonable expenses including attorney fees, which may be incurred by the converting insurer, converted insurer or any other parties defendant in connection with such action. Thereafter, the amount of such security, from time to time, may be increased or decreased in the discretion of the court having jurisdiction of such action upon a showing that the security provided has or may become inadequate or excessive.
History:
L. 1985, ch. 154, § 11; L. 1997, ch. 107, § 13; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 40 - Conversion Of Domestic Mutual Insurer Into Domestic Stock Insurer › 40-4012 Rules and regulations.

40-4012.
Rules and regulations.
The commissioner may adopt rules and regulations to carry out the provisions of this act.
History:
L. 1985, ch. 154, § 12; L. 1997, ch. 107, § 14; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 40 - Conversion Of Domestic Mutual Insurer Into Domestic Stock Insurer › 40-4013 Commissioner to charge insurer for expenses.

40-4013.
Commissioner to charge insurer for expenses.
The commissioner shall also have the authority to retain experts and may charge and collect from the insurer the actual amount of expenses, including the expenses of retaining experts, reasonably incurred by the state in discharge of the commissioner's duties hereunder, including the determination of a valuation of the insurer.
History:
L. 1985, ch. 154, § 13; L. 1997, ch. 107, § 15; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 40 - Conversion Of Domestic Mutual Insurer Into Domestic Stock Insurer › 40-4014 Filing amended articles of incorporation with secretary of state.

40-4014.
Filing amended articles of incorporation with secretary of state.
Not later than 24 hours after issuance of the certificate of authority to the converted stock insurer, a certified copy of the amended articles of incorporation of the insurer shall be filed with the secretary of state.
History:
L. 1985, ch. 154, § 14; L. 1997, ch. 107, § 16; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 41 - Risk Retention And Purchasing Groups › 40-4102 Kansas charter; must be licensed insurance company; submission of plan of operation or feasibility study; information required to be provided to national association of insurance commissioners.

40-4102.
Kansas charter; must be licensed insurance company; submission of plan of operation or feasibility study; information required to be provided to national association of insurance commissioners.
A risk retention group seeking to be chartered in this state must be chartered and licensed as a liability insurance company authorized by the insurance laws of this state and, except as provided elsewhere in this act, must comply with all of the laws, rules and regulations and requirements applicable to such insurers chartered and licensed in this state and with K.S.A. 40-4103, and amendments thereto, to the extent such requirements are not a limitation on laws, rules and regulations or requirements of this state. Before it may offer insurance in any state, each risk retention group shall also submit for approval to the insurance commissioner of this state a plan of operation or a feasibility study and revisions of such plan or study if the group intends to offer any additional lines of liability insurance. Immediately upon receipt of an application for charter, this state shall provide summary information concerning the filing to the national association of insurance commissioners including the name of the risk retention group, the identity of the initial members of the group, the identity of those individuals who organized the group or who will provide administrative services or otherwise influence or control the activities of the group, the amount and nature of initial capitalization, the coverage to be afforded and the states in which the group intends to operate. Providing notification to the national association of insurance commissioners is in addition to and shall not be sufficient to satisfy the requirements of K.S.A. 40-4103, and amendments thereto, and all other sections of this act.
History:
L. 1986, ch. 166, § 2; L. 1987, ch. 172, § 2; April 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 41 - Risk Retention And Purchasing Groups › 40-4108 Risk retention group prohibited from joining insolvency guaranty fund.

40-4108.
Risk retention group prohibited from joining insolvency guaranty fund.
No risk retention group shall be permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall any risk retention group, or its insured, receive any benefit from any such fund for claims arising out of the operations of such risk retention group.
History:
L. 1986, ch. 166, § 8; L. 1987, ch. 172, § 4; April 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 41 - Risk Retention And Purchasing Groups › 40-4109 Policy issued to risk retention group not required to be countersigned.

40-4109.
Policy issued to risk retention group not required to be countersigned.
A policy of insurance issued to a risk retention group or any member of that group shall not be required to be countersigned as otherwise provided by K.S.A. 40-246, and amendments thereto.
History:
L. 1986, ch. 166, § 9; L. 1987, ch. 172, § 5; April 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 41 - Risk Retention And Purchasing Groups › 40-4114 Rules and regulations.

40-4114.
Rules and regulations.
The commissioner is hereby authorized to adopt such rules and regulations relating to risk retention groups as may be necessary to carry out the provisions of this act.
History:
L. 1986, ch. 166, § 14; L. 1987, ch. 172, § 13; April 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 41 - Risk Retention And Purchasing Groups › 40-4115 Purchasing groups satisfying criteria of federal law exempt from certain state laws; insurers doing business with purchasing groups exempt from certain state laws.

40-4115.
Purchasing groups satisfying criteria of federal law exempt from certain state laws; insurers doing business with purchasing groups exempt from certain state laws.
Any purchasing group meeting the criteria established under the provisions of the federal liability risk retention act of 1986 shall be exempt from any law of this state relating to the creation of groups for the purchase of insurance, prohibition of group purchasing or any law that would discriminate against a purchasing group or its members. In addition, an insurer shall be exempt from any law of this state which prohibits providing, or offering to provide, to a purchasing group or its members advantages based on their loss and expense experience not afforded to other persons with respect to rates, policy forms, coverage or other matters. A purchasing group shall be subject to all other applicable laws of this state.
History:
L. 1987, ch. 172, § 6; April 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 41 - Risk Retention And Purchasing Groups › 40-4117 Purchase of insurance through surplus lines agent or broker required, when.

40-4117.
Purchase of insurance through surplus lines agent or broker required, when.
A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed agent or broker acting pursuant to the surplus lines laws and regulations of such state.
History:
L. 1987, ch. 172, § 8; April 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 41 - Risk Retention And Purchasing Groups › 40-4118 Federal preemption of commissioner's powers; injunctive authority restricted.

40-4118.
Federal preemption of commissioner's powers; injunctive authority restricted.
The commissioner is authorized to make use of any of the powers established under the insurance code of this state to enforce the laws of this state so long as those powers are not specifically preempted by the product liability risk retention act of 1981, as amended by the risk retention amendments of 1986. Such authorization includes, but is not limited to, the commissioner's administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders and impose penalties. With regard to any investigation, administrative proceeding, or litigation, the commissioner can rely on the procedural law and regulations of the state. The injunctive authority of the commissioner in regard to risk retention groups is restricted by the requirement that any injunction be issued by a court of competent jurisdiction.
History:
L. 1987, ch. 172, § 9; April 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 41 - Risk Retention And Purchasing Groups › 40-4119 Agents and brokers for risk retention groups; licensure.

40-4119.
Agents and brokers for risk retention groups; licensure.
Any person acting, or offering to act, as an agent or broker for a risk retention group, which solicits members, sells insurance coverage, purchases coverage for its members located within the state or otherwise does business in this state shall, before commencing any such activity, obtain a license from the commissioner.
History:
L. 1987, ch. 172, § 11; April 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 41 - Risk Retention And Purchasing Groups › 40-4120 Order of United States district court enjoining risk retention group from doing business enforceable in state courts.

40-4120.
Order of United States district court enjoining risk retention group from doing business enforceable in state courts.
An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating, in any state (or in all states or in any territory or possession of the United States) upon a finding that such a group is in a hazardous financial condition, shall be enforceable in the courts of the state.
History:
L. 1987, ch. 172, § 12; April 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 42 - Prepaid Legal And Dental Service Plans › 40-4201 Definitions.

40-4201. Definitions.
As used in this act, unless the context requires otherwise:
(a) "Prepaid service plan" means any person, company, corporation, partnership or other legal entity who collects periodic fees on a prepaid basis from residents of this state in connection with for-profit legal or dental coverage other than: (1) An employer on behalf of its employees or the employees of one or more subsidiary or affiliated corporations of such employer; (2) a union or association on behalf of its members; (3) an organization transacting business in this state pursuant to article 19a of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, including their sales representatives when engaged in the performance of their duties as such; (4) an insurance company duly authorized to conduct insurance pursuant to K.S.A. 40-1102(1)(m), and amendments thereto; or (5) a company providing products and services to customers for a fee where customers receive consultations with a licensed attorney connected to the customer by the company, so long as the company does not directly provide legal services, pay for legal services beyond a minimal administrative fee per customer or indemnify or reimburse the customer for any legal expenses incurred.
(b) "Provider" means any attorney or dentist currently licensed and in good standing in this state who enters into a provider agreement as defined in this act.
(c) "Member" means an individual or person on behalf of a group of individuals who enters into a membership agreement with a prepaid service plan which agrees to provide legal or dental services to the member: (1) For a predetermined monthly membership fee; (2) at a reduced rate in exchange for such a monthly membership fee; or (3) a combination of both a predetermined monthly fee and a reduced rate in exchange for such a monthly membership fee.
(d) "Membership agreement" means the written contract between the member and the prepaid service plan.
(e) "Provider agreement" means the written contract between the provider and the prepaid service plan.
History:
L. 1987, ch. 157, § 1; L. 2015, ch. 45, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 42 - Prepaid Legal And Dental Service Plans › 40-4202 Plan required to enter agreements with providers and members; provider agreement, retention and guarantee of services; membership agreement, terms.

40-4202.
Plan required to enter agreements with providers and members; provider agreement, retention and guarantee of services; membership agreement, terms.
(a) A prepaid service plan shall not operate in Kansas without entering into a provider agreement with the provider and a membership agreement with each member in accordance with the provisions of this section.
(b) Each provider agreement shall be retained as part of the official records of both the provider and the prepaid service plan for the duration of the agreement and five years thereafter. Each provider agreement shall contain provisions which include the requirements of K.S.A. 40-4203 through 40-4207 and shall include a guarantee for the provision of services to the member for the duration of the membership agreement regardless of whether the prepaid service plan ceases doing business for any reason.
(c) Each membership agreement shall contain the terms of the agreement, including a list of the benefits to be provided.
History: L. 1987, ch. 157, § 2; January 1, 1988.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 42 - Prepaid Legal And Dental Service Plans › 40-4204 Utilization of services; payment of provider; right of provider not limited.

40-4204.
Utilization of services; payment of provider; right of provider not limited.
Whenever a member utilizes the services of a prepaid service plan under the terms of a written contract as required in K.S.A. 40-4202, the payment to the provider of any amount by or on behalf of the member by the prepaid service plan shall be deemed payment to that provider when received. Nothing in this act shall limit any right of the provider against the prepaid service plan resulting from its failure to make payments to the provider.
History: L. 1987, ch. 157, § 4; January 1, 1988.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 42 - Prepaid Legal And Dental Service Plans › 40-4205 Books and records, maintenance; examination; confidentiality.

40-4205.
Books and records, maintenance; examination; confidentiality.
For the duration of the written agreements referred to in K.S.A. 40-4202 and for five years thereafter, every prepaid service plan shall maintain at its principal administrative office adequate books and records of all transactions between the prepaid service plan and the providers and members thereof. Such books and records shall be maintained in accordance with prudent standards of insurance recordkeeping. The commissioner of insurance shall have access to such books and records for the purpose of examination, audit and inspection. Any information contained therein which is a trade secret under the uniform trade secrets act (K.S.A. 60-3320 et seq., and amendments thereto), including, but not limited to, the identity and addresses of members, shall be confidential, except that the commissioner may use such information in any proceedings instituted against a prepaid service plan.
History:
L. 1987, ch. 157, § 5; L. 2005, ch. 67, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 42 - Prepaid Legal And Dental Service Plans › 40-4206 Use of provider's name in advertising.

40-4206.
Use of provider's name in advertising.
A prepaid service plan may only use a provider's name in advertisements and promotional materials after obtaining the provider's approval.
History: L. 1987, ch. 157, § 6; January 1, 1988.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 42 - Prepaid Legal And Dental Service Plans › 40-4207 Membership fees; fiduciary responsibility of plan; deposit in bank account; records.

40-4207.
Membership fees; fiduciary responsibility of plan; deposit in bank account; records.
All membership fees collected by a prepaid service plan on behalf of members shall be held by the prepaid service plan in a fiduciary capacity and shall be deposited promptly after receipt in a bank account established and maintained by the prepaid service plan. The prepaid service plan shall maintain records clearly recording the deposits in and withdrawals from such account on behalf of or for each member. The prepaid service plan shall keep copies of all such records.
History: L. 1987, ch. 157, § 7; January 1, 1988.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 42 - Prepaid Legal And Dental Service Plans › 40-4208 Basis of compensation paid to plan.

40-4208.
Basis of compensation paid to plan.
The compensation paid to the prepaid service plan shall in no way be contingent on claim experience. This section shall not prevent the compensation of a prepaid service plan from being based on membership fees collected or number of claims paid or processed.
History: L. 1987, ch. 157, § 8; January 1, 1988.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 42 - Prepaid Legal And Dental Service Plans › 40-4209 Certificate of registration; application; filing fee; issuance or continuation, when.

40-4209. Certificate of registration; application; filing fee; issuance or continuation, when.
(a) (1) No person shall act as or hold such person out to be a prepaid service plan in this state unless such person holds a certificate of registration as a prepaid service plan issued by the commissioner of insurance. An application for such certificate may be made to the commissioner of insurance on forms prescribed by the commissioner and shall include: (A) The completed application form; (B) a list of each individual who solicits memberships on behalf of such prepaid service plan; and (C) a filing fee of $100.
(2) The certificate of registration may be continued for successive annual periods by notifying the commissioner of such intent, paying an annual continuation fee of $50 and advising the commissioner of insurance of any additions to or deletions from the list of individuals who solicit memberships on behalf of such prepaid service plan since the last reporting date.
(b) The certificate of registration shall be issued to or continued for a prepaid service plan by the commissioner of insurance unless the commissioner of insurance, after due notice and hearing, determines that the prepaid service plan is not competent, trustworthy, financially responsible or of good personal and business reputation, or has had a previous application for a certificate of registration denied for cause since January 1, 1988, or within five years of the date of application, whichever is later.
History:
L. 1987, ch. 157, § 9; L. 2023, ch. 49, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4303 Name of company; exceptions.

40-4303. Name of company; exceptions.
(a) The word "captive" shall be incorporated into the name of every captive insurance company organized under the laws of this state. No captive insurance company shall adopt a name that is the same, deceptively similar or likely to be confused with or mistaken for any other existing business name registered in the state of Kansas.
(b) The provisions of subsection (a) shall not apply to a technology-enabled fiduciary finance insurance company if such insurance company complies with the provisions of K.S.A. 2023 Supp. 40-4354(d), and amendments thereto.
History:
L. 1988, ch. 156, § 3; L. 1990, ch. 177, § 2; L. 2018, ch. 50, § 38; L. 2022, ch. 29, § 4; April 14.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4304 Capital requirements.

40-4304. Capital requirements.
(a) No captive insurance company shall be issued a certificate of authority unless it shall possess and thereafter maintain unimpaired paid-in capital and surplus of:
(1) In the case of a pure captive insurance company, not less than $250,000; and
(2) in the case of an association captive insurance company incorporated as a stock insurer, not less than $500,000.
(b) Such capital may be in the form of cash or, upon approval of the commissioner, an irrevocable letter of credit issued by a bank chartered by the state of Kansas or the United States comptroller of currency, domiciled in Kansas, and approved by the commissioner.
(c) In connection with the issuance of a certificate of authority, the commissioner may prescribe additional minimum capital and surplus based upon the type, volume and nature of the insurance business transacted.
(d) Loans of minimum capital and surplus funds shall be prohibited. Notwithstanding the foregoing, the minimum capital and surplus funds may be received by the issuance of a surplus note as approved by the commissioner.
(e) No pure captive insurance company shall make a loan or an investment in its parent company or affiliates without prior written approval of the commissioner, and any such loan or investment shall be evidenced by documentation approved by the commissioner.
History:
L. 1988, ch. 156, § 4; L. 2018, ch. 50, § 39; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4307 Annual report of financial condition.

40-4307. Annual report of financial condition.
(a) Prior to March 1 of each year, each captive insurance company shall submit to the commissioner a report of its financial condition, verified by oath of two of its executive officers.
(b) The report may be filed using generally accepted accounting principles, unless the commissioner approves the use of statutory accounting principles, with any appropriate or necessary modifications or adaptions thereof required or approved or accepted by the commissioner for the type of insurance and kinds of insurers to be reported upon, and as supplemented by additional information required by the commissioner. The commissioner shall by rules and regulations prescribe the forms by which captive insurance companies shall report.
(c) Any captive insurance company may make written application to the commissioner for filing the report required by subsection (a) on a fiscal year end. If an alternative reporting date is granted by the commissioner:
(1) The annual report shall be due 60 days after the fiscal year end; and
(2) in order to provide sufficient detail to support the premium tax return, the captive insurance company shall file prior to March 1 of each year for each calendar year end such form or information as the commissioner shall by rules and regulations prescribe, verified by the oath by two of its executive officers or other authorized persons.
(d) The captive insurance company shall file a report of financial condition on a quarterly basis to be designated by the commissioner. The contents and form of the report shall be governed by subsection (b).
(e) All reports shall be given the same confidential treatment as provided in K.S.A. 40-4308, and amendments thereto.
History:
L. 1988, ch. 156, § 7; L. 2018, ch. 50, § 41; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4309 Suspension or revocation of certificate of authority; grounds.

40-4309. Suspension or revocation of certificate of authority; grounds.
(a) The certificate of authority of a captive insurance company to do an insurance business in this state may be suspended or revoked by the commissioner for any of the following reasons:
(1) The captive insurance company is financially impaired, insolvent or otherwise deemed to be in a hazardous financial condition pursuant to K.S.A. 40-222b, and amendments thereto;
(2) failure to meet the requirements of K.S.A. 40-4304, and amendments thereto;
(3) refusal or failure to submit the report, required by K.S.A. 40-4307, and amendments thereto, or any other report or statement required by law or by lawful order of the commissioner;
(4) failure to comply with the provisions of its own organizational documents;
(5) failure to pay any tax or fee, or to submit to pay the cost of examination or any legal obligation relative thereto, as required by Kansas law;
(6) use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders;
(7) failure otherwise to comply with the laws of this state.
(b) Whenever it appears to the commissioner that any captive insurance company has committed any of the acts specified in subsection (a), the commissioner shall give the company notice and an opportunity for hearing in accordance with the provisions of the Kansas administrative procedure act. If the commissioner finds, upon examination, hearing or other evidence, that any captive insurance company has committed any of the acts specified in subsection (a), the commissioner may suspend or revoke such certificate of authority if the commissioner deems it in the best interests of the public and the policyholders of such captive insurance company, notwithstanding any other provisions of this act.
(c) Although issued and delivered to the captive insurance company, the certificate of authority at all times shall be the property of this state. Upon any expiration, suspension or termination thereof, the captive insurance company shall promptly deliver the certificate of authority to the commissioner.
(d) Suspension of a captive insurance company's certificate of authority shall be for such period as the commissioner specifies in the order of suspension. During the suspension period, the commissioner may rescind or shorten the suspension by further order.
(e) During the suspension period, the captive insurance company may not solicit or write any new business, but must file annual statements, pay fees and taxes as required under this act, and unless otherwise provided in the order of suspension, may service its business already in force as if the certificate of authority had continued in full force.
History:
L. 1988, ch. 156, § 9; L. 2018, ch. 50, § 43; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4310 Investments; restrictions and limitations.

40-4310. Investments; restrictions and limitations.
(a) Captive insurance companies shall comply with:
(1) Except for any payment-in-kind assets held by a technology-enabled fiduciary financial institution insurance company, the investment requirements contained in articles 2a and 2b of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, as applicable; and
(2) such investment requirements as may otherwise be approved by the commissioner upon application by any such captive insurance company.
(b) Investments of association captive insurance companies shall be valued in accordance with the valuation procedures established by the national association of insurance commissioners, except to the extent it is inconsistent with the accounting standards in use by the company and approved by the commissioner.
(c) Insurance companies organized in a jurisdiction other than Kansas and Kansas technology-enabled fiduciary financial institution insurance companies may hold in-kind assets in accordance with K.S.A. 2023 Supp. 40-4354, and amendments thereto, and any such in-kind assets required to be held shall be counted as part of the reserves, capital and surplus of such insurance companies required for the primary and predominant business activity of the writing of insurance or the reinsuring of risks underwritten by technology-enabled fiduciary financial institution insurance companies.
(d) A technology-enabled fiduciary financial institution insurance company shall be permitted to hold equity interests in an affiliated technology-enabled fiduciary financial institution.
History:
L. 1988, ch. 156, § 10; L. 2018, ch. 50, § 44; L. 2022, ch. 29, § 5; April 14.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4311 Reinsurance authority; requirements and limitation; credit for reserves on risks ceded.

40-4311. Reinsurance authority; requirements and limitation; credit for reserves on risks ceded.
(a) Any captive insurance company organized under the laws of this state may, with the consent of the commissioner, assume all or any part of an individual risk or all or any part of a particular class of risks by affiliated insurers.
(b) Any captive insurance company may take a credit or reduction from liability for the reinsurance of risks or portions of risks ceded to a reinsurer in accordance with K.S.A. 40-221a, and amendments thereto, or as otherwise approved by the commissioner. The commissioner may require any other documents, financial information or other evidence that such reinsurer will be able to provide adequate security for its financial obligations. The commissioner may deny authorization or impose any limitation on the activities of a reinsurer that in the commissioner's judgment are necessary and proper to provide adequate security for the ceding captive insurance company and for the protection and consequent benefit of the public at large.
History:
L. 1988, ch. 156, § 11; L. 1990, ch. 177, § 3; L. 2018, ch. 50, § 45; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4313 Companies prohibited from joining or benefiting from insolvency guarantee funds; notice.

40-4313. Companies prohibited from joining or benefiting from insolvency guarantee funds; notice.
No captive insurance company shall be permitted to join or contribute financially to any plan, pool, association or guaranty or insolvency fund in this state, nor shall any captive insurance company, or its insured, or its parent or any affiliated company, receive any benefit from any such plan, pool, association or guaranty or insolvency fund for claims arising out of the operations of such captive insurance company. Prior to insuring a risk or hazard of an association member, the association captive insurance company must notify the association member that it does not participate in any guaranty or insolvency fund in Kansas.
History:
L. 1988, ch. 156, § 13; L. 2018, ch. 50, § 46; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4314 Taxation.

40-4314. Taxation.
(a) Each captive insurance company shall, at the time it files the report required by K.S.A. 40-4307, and amendments thereto, pay a tax on all premiums received on risks located in this state.
(b) Each captive insurance company shall pay the commissioner a tax at the rate of 2/10 of 1% on each dollar of direct premiums collected or contracted for, during the year ending December 31 next preceding, on policies or contracts of insurance written by the captive insurance company, after deducting from the direct premiums subject to the tax amounts paid to policyholders as return premiums with respect to such preceding year only, which amounts shall include only dividends or distributions of unabsorbed premiums or premium deposits returned or credited to policyholders, up to a maximum tax for such year of $500,000, except that no tax shall be due or payable as a consideration received for annuity contracts.
(c) Each captive insurance company shall pay to the commissioner no later than March 1 of each year a tax at the rate of 1/10 of 1% on each dollar assumed reinsurance premiums collected or contracted for, during the year end December 31 next preceding, on policies or contracts of insurance written by the captive insurance company, up to a maximum tax for such year of $300,000. However, no such tax applies to premiums for risks or portion of risks that are subject to taxation on a direct basis pursuant to subsection (b), and no such 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 company by the state or any county, city or municipality within Kansas, except ad valorem taxes on real and personal property used in the production of income.
(d) The tax provided in this section shall be calculated on an annual basis, notwithstanding that policies or contracts of insurance or contracts of reinsurance are issued on a multi-year basis. In the case of multi-year policies or contracts, the premium shall be prorated for purposes of determining the tax under this section.
History:
L. 1988, ch. 156, § 14; L. 2018, ch. 50, § 47; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4315 Statutes regulating trade practices applicable to certain insurance provided by captive insurance companies.

40-4315.
Statutes regulating trade practices applicable to certain insurance provided by captive insurance companies.
To the extent the insurance provided or solicited by a captive insurance company involves persons or property not owned or controlled by a parent, affiliate or industrial insured, the provisions of article 24 of chapter 40 of the Kansas Statutes Annotated shall apply.
History:
L. 1988, ch. 156, § 15; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4317 Rules and regulations; exemptions.

40-4317. Rules and regulations; exemptions.
The commissioner may adopt such rules and regulations relating to captive insurance companies as are necessary to carry out the provisions of this act. The commissioner, on a case-by-case basis, may by order, exempt a captive insurance company from the provisions of this act and any rule or regulation adopted by the commissioner that, as reasonably determined by the commissioner, based on such factors deemed relevant by the commissioner, consistent with the purposes of this act, are inappropriate to apply to such captive insurance company.
History:
L. 1988, ch. 156, § 17; L. 2018, ch. 50, § 48; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4318 General insurance statutes not applicable unless specifically referenced in act; K.S.A. 40-2209 and 40-2215 applicable.

40-4318. General insurance statutes not applicable unless specifically referenced in act; K.S.A. 40-2209 and 40-2215 applicable.
(a) No provisions of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, other than those contained in this act or contained in specific references contained in this act or specific references contained in statutory sections cited in subsections (b) and (c), shall apply to captive insurance companies.
(b) The provisions of K.S.A. 40-2209 and 40-2215, and amendments thereto, shall apply to captive insurance companies and to all contracts issued under the act of which this section is a part.
(c) The provisions of article 33 of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, shall continue to apply to insurers, as applicable.
(d) To the extent not inconsistent with this act, the provisions of article 36 of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, shall apply to captive insurance companies authorized under this act.
History:
L. 1988, ch. 156, § 18; L. 1991, ch. 134, § 12; L. 2018, ch. 50, § 49; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4319 Captive insurance companies; pure captive insurance companies; rules and regulations, authority of commissioner.

40-4319. Captive insurance companies; pure captive insurance companies; rules and regulations, authority of commissioner.
The commissioner may adopt rules and regulations establishing standards to ensure that a pure captive insurance company's parent or any of its affiliated companies is able to exercise control of the risk management function of any controlled unaffiliated business to be insured by the pure captive insurance company, except that, until such time as rules and regulations under this section are adopted, the commissioner may approve the coverage of such risks by a pure captive insurance company on a case-by-case basis.
History:
L. 2018, ch. 50, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4320 Same; actions requiring prior approval of commissioner.

40-4320. Same; actions requiring prior approval of commissioner.
The following actions shall not be taken without the prior approval of the commissioner:
(a) The dissolution of a captive insurance company;
(b) the sale, exchange, lease, mortgage, assignment, pledge or other transfer of or granting of a security interest in all or substantially all of the assets of a captive insurance company;
(c) the making of a loan, investment or extension of credit by a captive insurance company, provided each such transaction is equal to or exceeds 3% of the captive insurance company's admitted assets, except as provided in K.S.A. 40-430, and amendments thereto;
(d) any distribution or dividend out of the capital and surplus, or otherwise;
(e) any merger or consolidation to which a captive insurance company is a party;
(f) any conversion of a captive insurance company to another business form;
(g) any transfer to or domestication in any jurisdiction by a captive insurance company; or
(h) any amendment of the organizational documents of a captive insurance company.
History:
L. 2018, ch. 50, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4321 Same; books and records; maintenance requirements.

40-4321. Same; books and records; maintenance requirements.
(a) Unless otherwise approved by the commissioner, a captive insurance company shall maintain its books, records, documents, accounts, vouchers and agreements in Kansas. Notwithstanding the foregoing, all electronic documents shall be accessible within the state. A captive insurance company shall make its books, records, documents, accounts, vouchers and agreements available for inspection by the commissioner at any time. A captive insurance company shall keep its books, records, documents, accounts, vouchers and agreements in such manner that its financial condition, affairs and operations can be readily ascertained and in such manner that the commissioner may readily verify its financial statements and determine its compliance with all relevant statutes.
(b) Unless otherwise approved by the commissioner, all original books, records, documents, accounts, vouchers and agreements of a captive insurance company must be preserved and kept available in Kansas for the purpose of examination and inspection until the commissioner approves their destruction or other disposition. If the commissioner approves the preservation and keeping of the foregoing outside of Kansas, the captive insurance company shall maintain a complete and true copy of each such original within the state. Books, records, documents, accounts, vouchers and agreements may be photographed, reproduced on film or stored and reproduced electronically.
(c) If any company, by its officers, directors, employees or agents, fails to comply with subsections (a) and (b), the commissioner, after notice and opportunity for hearing, may impose a civil penalty of up to $5,000 for each violation or act, along with a penalty of up to $1,000 for each week thereafter that such report or document is not provided. A violation of subsection (a) or (b) shall also be grounds for suspension or refusal of, or nonrenewal of, the certificate of authority held by the captive insurance company. Any proceeding for suspension, revocation or refusal of any certificate of authority shall be conducted in accordance with the provisions of the Kansas administrative procedure act.
History:
L. 2018, ch. 50, § 4; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4322 Same; fund established.

40-4322. Same; fund established.
There is hereby created a fund in the state treasury to be known as the captive insurance regulatory and supervision fund to be administered by the commissioner. All moneys credited to such fund shall be expended only for the purpose of providing for the administration of this act. All fees received by the commissioner under the captive insurance act shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the captive insurance regulatory and supervision fund. All expenditures from the fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the commissioner. All amounts received by the department pursuant to this act shall be credited to this fund.
History:
L. 2018, ch. 50, § 5; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 43 - Captive Insurance Companies › 40-4323 Same; dormant captive insurance companies; certification of; renewal.

40-4323. Same; dormant captive insurance companies; certification of; renewal.
(a) As used in this section, unless the context requires otherwise, "dormant captive insurance company" means a captive insurance company that has:
(1) Ceased transacting the business of insurance, including the issuance of insurance policies; and
(2) no remaining liabilities associated with insurance business transactions or insurance policies issued prior to the filing of its application for a certificate of dormancy under this section.
(b) A captive insurance company domiciled in Kansas that meets the criteria of subsection (a) may apply to the commissioner for a certificate of dormancy. The certificate of dormancy shall be subject to renewal every five years and shall be forfeited if not renewed within such time.
(c) A dormant captive insurance company that has been issued a certificate of dormancy shall:
(1) Possess and thereafter maintain unimpaired, paid-in capital and surplus of not less than $25,000;
(2) prior to March 15 of each year, submit to the commissioner a report of its financial condition, verified by oath by two of its executive officers, in a form as may be prescribed by the commissioner; and
(3) pay a license renewal fee of $500.
(d) A dormant captive insurance company shall not be subject to or liable for the payment of any tax under K.S.A. 40-4314, and amendments thereto, or as provided in article 28 of chapter 40 of the Kansas Statutes Annotated, and amendments thereto.
(e) A dormant captive insurance company shall apply to the commissioner for approval to surrender its certificate of dormancy and resume conducting the business of insurance prior to issuing any insurance policies.
(f) A certificate of dormancy shall be revoked if a dormant captive insurance company no longer meets the criteria of subsection (a).
(g) The commissioner may promulgate rules and regulations as necessary to carry out the provisions of this section.
History:
L. 2018, ch. 50, § 6; July 1.