reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 40 - Insurance › Article 11 - General Provisions Relative To Casualty, Surety And Fidelity Companies › 40-1138 Same; agent record requirements; inspection.

40-1138.
Same; agent record requirements; inspection.
(a) The title insurance agent shall maintain sufficient records of its escrow operations and escrow trust accounts so that the commissioner may adequately ensure that the title insurance agent is in compliance with all provisions of K.S.A. 40-1135 through 40-1141, and amendments thereto. The commissioner may prescribe the specific record entries and documents to be kept and the length of time for which the records must be maintained.
(b) The title insurance agent shall make available for inspection by the commissioner, or the commissioner's representatives, all records relating to the title insurance agent's escrow, settlement and closing business, and any other fiduciary trust accounts required to be kept by the title insurance agent. Such availability for inspection shall include any records to which subsection (f) of K.S.A. 40-1137, and amendments thereto, applies.
History:
L. 1999, ch. 95, § 11; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 11 - General Provisions Relative To Casualty, Surety And Fidelity Companies › 40-1139 Same; financial responsibility requirements.

40-1139.
Same; financial responsibility requirements.
(a) The title insurance agent who handles escrow, settlement or closing accounts shall file with the commissioner a surety bond or irrevocable letter of credit in a form acceptable to the commissioner, issued by an insurance company or financial institution authorized to conduct business in this state, securing the applicant's or the title insurance agent's faithful performance of all duties and obligations set out in K.S.A. 40-1135 through 40-1141, and amendments thereto.
(b) The terms of the bond or irrevocable letter of credit shall be:
(1) The surety bond shall provide that such bond may not be terminated without 30 days prior written notice to the commissioner.
(2) An irrevocable letter of credit shall be issued by a bank which is insured by the federal deposit insurance corporation or its successor if such letter of credit is initially issued for a term of at least one year and by its terms is automatically renewed at each expiration date for at least an additional one-year term unless at least 30 days prior written notice of intention not to renew is given to the commissioner of insurance.
(c) The amount of the surety bond or irrevocable letter of credit for those agents servicing real estate transactions on property located in counties having a certain population shall be required as follows:
(1) $100,000 surety bond or irrevocable letter of credit in counties having a population of 40,001 and over;
(2) $50,000 surety bond or irrevocable letter of credit in counties having a population of 20,001 to 40,000; and
(3) $25,000 surety bond or irrevocable letter of credit in counties having a population of 20,000 or under.
(d) The surety bond or irrevocable letter of credit shall be for the benefit of any person suffering a loss if the title insurance agent converts or misappropriates money received or held in escrow, deposit or trust accounts while acting as a title insurance agent providing any escrow or settlement services.
History:
L. 1999, ch. 95, § 12; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 11 - General Provisions Relative To Casualty, Surety And Fidelity Companies › 40-1140 Same; rules and regulations; commissioner's orders.

40-1140.
Same; rules and regulations; commissioner's orders.
The commissioner may issue rules, regulations and orders necessary to carry out the provisions of K.S.A. 40-1135 through 40-1141, and amendments thereto.
History:
L. 1999, ch. 95, § 13; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 11 - General Provisions Relative To Casualty, Surety And Fidelity Companies › 40-1141 Same; violations and penalties.

40-1141.
Same; violations and penalties.
If the commissioner determines that the title insurance agent or any other person has violated this act, or any rules and regulation or order promulgated thereunder, after notice and opportunity to be heard, the commissioner may order that such person be subject to the penalties provided in K.S.A. 40-2406 et seq., and amendments thereto.
History:
L. 1999, ch. 95, § 14; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1201 Authority for formation; directors and officers; elections.

40-1201.
Authority for formation; directors and officers; elections.
(a) Any number of persons, not less than 20, a majority of whom shall be citizens of this state, by complying with the provisions of this code, may become a body corporate for the purpose of carrying on the business of mutual insurance as herein provided.
(b) The affairs of any such mutual insurance company, now existing or hereafter organized under the laws of this state, shall be managed by a board of not more than 25 nor less than five directors. Any vacancy in the board shall be filled by the remaining members until the next annual meeting of the policyholders, at which time a successor shall be elected to fill the unexpired term.
(c) Unless written balloting is required by the bylaws, directors shall be elected by voice vote. Each person who is a policyholder shall be entitled to one vote. A policyholder may vote by proxy, signed by the person legally entitled to vote such proxy.
(d) A majority of the total number of directors shall constitute a quorum for the transaction of business.
(e) Every such mutual insurance company, now existing or hereafter organized under the laws of this state, shall have such officers with such titles and duties as shall be stated in the bylaws or in a resolution of the board of directors which is not inconsistent with the bylaws. Officers shall be chosen in such manner and shall hold their offices for such terms as are prescribed by the bylaws or determined by the board of directors or other governing body.
History:
L. 1927, ch. 231, 40-1201; L. 2007, ch. 30, § 4; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1202 Articles of incorporation; name.

40-1202.
Articles of incorporation; name.
The persons proposing to form any such company shall subscribe and acknowledge articles of incorporation specifying:
(a) The name, which shall contain the word "mutual," the purpose for which formed, and the location of such company's principal or home office, which shall be within this state.
(b) The names and addresses of those composing the board of not less than five directors in which the management shall be vested until the first meeting of the members.
(c) The names and addresses of the incorporators.
History:
L. 1927, ch. 231, 40-1202; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1204 Certification of authority; conditions for issuance.

40-1204.
Certification of authority; conditions for issuance.
The commissioner of insurance shall issue a certificate of authority to such company, when it has fully complied with the following conditions:
(a) It shall hold bona fide applications for insurance upon which it shall issue simultaneously, or it shall have in force, at least 200 policies to at least 200 members for the same kind of insurance upon not less than 200 separate risks of any single class each within the maximum single risk described herein.
(b) No such insurance company organized under the laws of this state and transacting business in this state shall expose itself to loss on any one risk or hazard to an amount exceeding 10% of its surplus unless the excess shall be reinsured in some other company duly authorized to transact similar business in this state or as otherwise provided in the insurance code and no such insurance company not organized under the laws of this state and transacting business in this state shall expose itself to loss on any one risk or hazard to an amount exceeding 10% of its surplus unless the excess shall be reinsured either in some company duly authorized to transact similar business in this state or as provided by the laws of such company's domiciliary state.
(c) It shall have collected the full consideration according to its filed rate on each contract applied for. The total of such considerations shall be held in cash or securities in which such insurance companies are authorized by law to invest, and it shall be in the possession of a residue of lawful assets over and above all liabilities in an amount not less than the capital and surplus required of a domestic stock insurance company transacting the same kinds of insurance. Pursuant to K.S.A. 40-229a, such company shall deposit with the commissioner of insurance lawful securities in an amount equal to not less than the minimum capital stock required of a domestic stock insurance company transacting the same kinds of insurance.
History:
L. 1927, ch. 231, 40-1204; L. 1939, ch. 211, § 2; L. 1965, ch. 300, § 6; L. 1967, ch. 268, § 2; L. 1969, ch. 237, § 9; L. 1971, ch. 169, § 1; L. 1979, ch. 143, § 1; L. 1984, ch. 169, § 8; L. 1996, ch. 25, § 14; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1205 Corporate membership; personal liability.

40-1205.
Corporate membership; personal liability.
Any public or private corporation, board or association in this state or elsewhere may make applications, enter into agreements for and hold policies in any such mutual insurance company. Any officer, stockholder, trustee or legal representative of any such corporation, board, association or estate may be recognized as acting for or on its behalf for the purpose of such membership, but shall not be personally liable upon such contract of insurance by reason of acting in such representative capacity. The right of any corporation organized under the laws of this state to participate as a member of any such mutual insurance company is hereby declared to be incidental to the purpose for which such corporation is organized and as fully granted as the rights and powers expressly conferred.
History:
L. 1927, ch. 231, 40-1205; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1206 Number of votes of members.

40-1206.
Number of votes of members.
Every member of the company shall be entitled to one vote, or to a number of votes based upon the insurance in force, the number of policies held, or the amount of premiums paid, as may be provided in the bylaws.
History:
L. 1927, ch. 231, 40-1206; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1207 Premiums, premium deposits; limitation on liability of policyholder; acceptance of notes for premiums in certain cases; determination of unearned premium reserves on certain policies.

40-1207.
Premiums, premium deposits; limitation on liability of policyholder; acceptance of notes for premiums in certain cases; determination of unearned premium reserves on certain policies.
Such policies shall provide for a premium or premium deposit payable in cash, and in no event shall the holder of any such policy be liable for a greater amount than the premium or premium deposit expressed in the policy. Any insurance company organized and existing as a mutual fire insurance company of the state of Kansas shall have the authority and right to accept notes for premium on farm property. The unearned premium reserve on policies written on the installment note plan shall be determined by the amount of cash collected in excess of the percentage earned on policies written for a cash premium, and in no case shall the cash collected on such installment note policies be less than the percentage earned on policies written for a cash premium.
History:
L. 1927, ch. 231, 40-1207; L. 1939, ch. 211, § 4; L. 1947, ch. 280, § 1; L. 1971, ch. 170, § 1; L. 1979, ch. 143, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1208 Reserves.

40-1208.
Reserves.
Such company shall have and maintain unearned premium and other reserves upon the same basis as that required of domestic stock insurance companies transacting the same kind of insurance.
History:
L. 1927, ch. 231, 40-1208; L. 1979, ch. 143, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1209 Advancements to company; annual report; commission or promotion expenses prohibited; approval of commissioner to issue or retire certificates of indebtedness.

40-1209.
Advancements to company; annual report; commission or promotion expenses prohibited; approval of commissioner to issue or retire certificates of indebtedness.
Any director, officer or member of any such company, or any other person, may advance to such company any sum or sums of money necessary for the purposes of its business or to enable it to comply with any of the requirements of the laws of this state, and such moneys and such interest thereon as may have been agreed upon, not exceeding an amount equal to 1 1/2 percentage points below the maximum rate of interest prescribed by subsection (b) of K.S.A. 16-207, and amendments thereto, for real estate transactions. The rate of interest to be applied to any specific certificate of indebtedness shall be calculated using the most immediate prior month's usury rate published by the secretary of state in the Kansas register. The sum or sums of money advanced pursuant to this authorization and any interest thereon shall be payable only out of the surplus remaining after providing for all reserves and other liabilities, and shall not otherwise be a liability or claim against the company or any of its assets. No commission or promotion expenses shall be paid in connection with the advance of any such money to the company, and the amount of such advance shall be reported in each annual statement. Provided, however,* Such certificates of indebtedness shall not be issued nor retired and no interest thereon shall be paid without the approval of the commissioner of insurance who must be satisfied that all requirements of the law have been met.
History:
L. 1927, ch. 231, 40-1209; L. 1939, ch. 211, § 5; L. 1992, ch. 35, § 1; April 9.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1210 Foreign mutual insurance companies; paid-up capital and surplus requirements.

40-1210.
Foreign mutual insurance companies; paid-up capital and surplus requirements.
Any such mutual insurance company organized under the laws of any other country, state or territory, having a surplus and deposit equal to that required of a domestic company writing the same kind of business and having complied with the other requirements of this code, shall be authorized to transact business in this state.
No provision of this act shall require insurance companies doing business in this state on January 1, 1969, which have subsequently become authorized to transact business in accordance with a different article of chapter 40 of the Kansas Statutes Annotated to comply with the surplus and deposit requirements of this act until May 1, 1994.
History:
L. 1927, ch. 231, 40-1210; L. 1939, ch. 211, § 6; L. 1984, ch. 169, § 9; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1211 Premium tax; in lieu of certain other taxes.

40-1211.
Premium tax; in lieu of certain other taxes.
The taxable premiums or premium receipts of any mutual insurance company organized in or admitted to this state, for the purpose of taxation under any law of this state, shall be the gross premiums received for direct insurance upon property or risks in this state, deducting amounts received for reinsurance and deducting premiums upon policies not taken, premiums returned on canceled policies, and any refund or return made to policyholders other than for losses. The taxes and fees paid by mutual insurance companies into the state treasury through the commissioner of insurance shall be in lieu of all fees, licenses and taxes, state, county and municipal, except such taxes on real estate and tangible personal property as may be levied under other provisions of law.
History:
L. 1927, ch. 231, 40-1211; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1213 Certain existing companies or associations.

40-1213.
Certain existing companies or associations.
Any mutual company or association existing under any article other than article 12 of this code may by resolution of its board of directors, duly approved by the majority of the members at a meeting specially called for that purpose, and duly certified by the president and secretary, and filed with and approved by the commissioner of insurance, elect and adopt and become subject to the provisions of this article, in lieu of any act or acts theretofore governing such company or association. Any company or association so electing and fully complying with this article, may thereafter effect such kinds of insurance as authorized by this article and specified in its certificate of incorporation then in force, or as then or thereafter amended, together with such additional kinds of insurance as are specified in such resolution and authorized by this article.
History:
L. 1927, ch. 231, 40-1213; L. 1939, ch. 211, § 7; June 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1215 Charter and other papers to be filed; approval; authorization.

40-1215.
Charter and other papers to be filed; approval; authorization.
Before any such mutual company shall solicit initial applications for insurance or sell certificates of indebtedness, it shall file with the commissioner of insurance a certified copy of its charter, bylaws, policy forms, and application therefor and rates covering all classifications of insurance to be written and a copy of the certificate of indebtedness to be issued, and receive written approval of all documents filed and written authorization from the commissioner of insurance for the solicitation of application and the sale of certificates of indebtedness.
History:
L. 1939, ch. 211, § 1; June 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1216 Merger or consolidation of certain mutual companies other than life.

40-1216.
Merger or consolidation of certain mutual companies other than life.
Definitions as used in this act:
(1) The term "merger" means the union of two (2) or more companies into a single company which is one of the companies so uniting.
(2) The term "consolidation" means the joining of two (2) or more companies in any manner so that a single new consolidated company results therefrom.
History:
L. 1957, ch. 289, § 1; June 29.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1217 Merger or consolidation of certain mutual companies other than life; powers of merged company.

40-1217.
Merger or consolidation of certain mutual companies other than life; powers of merged company.
Any, other than life, solvent domestic mutual insurance company, organized pursuant to the provisions of K.S.A. chapter 40, article 10, 12 or 15, may:
(1) Merge or consolidate with any other, other than life, solvent domestic mutual insurance company as hereinafter provided.
(2) Merge or consolidate with any other, other than life, solvent non-domestic mutual insurance company which is authorized to do an insurance business in this state if such merger or consolidation is authorized by the laws of the state or territory in which such non-domestic company is organized as hereinafter provided.
(3) By virtue of such merger or consolidation, do the kinds of insurance business in the manner and for the purposes for which a, other than life, mutual insurance company may be organized in this state or in the manner and for the purposes for which a, other than life, non-domestic mutual insurance company may be licensed or authorized to do business in this state.
History:
L. 1957, ch. 289, § 2; L. 1970, ch. 180, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1218 Same; procedure.

40-1218.
Same; procedure.
Such merger or consolidation shall be made under the conditions, provisions, and restrictions, and with the powers herein set forth to wit: The directors of each company shall enter into a joint agreement, under the corporate seal of each company, for the merger or consolidation of said companies, prescribing the terms and conditions thereof, the mode of carrying the same into effect, the name of the surviving or new company, the number and names of the directors and other officers thereof, and who shall be the first directors and officers, and their places of residence, and how and when directors and officers shall be chosen, with such other details as required by this act and as they shall deem necessary to perfect the said merger or consolidation. Said agreement shall not be effective unless the same shall be approved by the policyholders of said companies and the commissioner of insurance in the manner hereinafter provided.
History:
L. 1957, ch. 289, § 3; L. 1972, ch. 53, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1219 Same; vote of policyholders on agreement; meetings of policyholders, notice; required votes.

40-1219.
Same; vote of policyholders on agreement; meetings of policyholders, notice; required votes.
(a) Except as otherwise provided herein, the agreement of merger or consolidation shall be submitted to a vote of the policyholders of each company at an annual, periodic or special meeting of policyholders of each such company. The right of a policyholder to vote shall be governed by the laws of the domiciliary state and the bylaws of the company. Written or printed notice shall be given not less than 20 days before each such meeting, either personally or by mail, to each policyholder entitled to vote. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail, with postage prepaid, addressed to the policyholder, at such policyholder's address as it appears on the records of the company. Such notice, whether the meeting is annual, periodic or special, shall state the place, day, hour and purpose of the meeting, and a copy or a summary of the agreement of merger or consolidation, as the case may be, shall be included in or enclosed with such notice.
(b) In the case of consolidation the proposed articles of incorporation of the new company must be set out in full in or enclosed with such notice and in the case of merger, any amendments to the articles of incorporation of the continuing company as may be desired or necessary to provide for the purposes of the merger or to comply with law, must be set out separately and in full in or enclosed with such notice clearly showing the nature of such amendments. The policyholders may vote in person or by proxy. Two-thirds of the votes cast by the policyholders of each such company, as are represented at the meeting in person or by proxy, must be in favor of the agreement in order to approve any such agreement. Should the agreement fail to receive the required number of votes it shall be null and void.
(c) The provisions of subsections (a) and (b) shall not apply to the surviving company of any merger or consolidation to which this act applies whose surplus as regards policyholders is greater than 25 times the surplus as regards policyholders of the nonsurviving company or companies. For purposes of this section, the surplus as regards policyholders of the respective companies shall be those reflected by the most recent statement of financial condition filed with and accepted by the commissioner pursuant to K.S.A. 40-225 and amendments thereto.
History: L. 1957, ch. 289, § 4; L. 1993, ch. 2, § 1; February 25.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1219a Same; approval of policyholders of merger or consolidation of certain mutual companies not required.

40-1219a.
Same; approval of policyholders of merger or consolidation of certain mutual companies not required.
Notwithstanding the provisions of K.S.A. 40-1219, and amendments thereto, if a domestic mutual insurer is impaired in that the insurer's surplus is less than the amount required for authority to transact the kinds of insurance being transacted by the insurer or the insurer has attained a financial condition such that its continued operation might be hazardous to the insuring public pursuant to K.S.A. 40-222b, and amendments thereto, the commissioner of insurance may approve the agreement of merger or consolidation after a hearing thereon conducted in accordance with the provisions of the Kansas administrative procedure act. Approval of the merger or consolidation by the policyholders of the insurers that are a party to the transaction is not required.
History:
L. 1993, ch. 11, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1221 Same; approval by commissioner.

40-1221.
Same; approval by commissioner.
The commissioner of insurance shall examine the application and accompanying papers, and, if he finds the same to be in accordance with the provisions of this act and not inconsistent with the laws and the constitutions of this state and the United States and not injurious to the interests of the policyholders and creditors of such companies, he shall endorse his approval thereon.
History:
L. 1957, ch. 289, § 6; L. 1972, ch. 53, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1223 Same; rights of dissatisfied policyholders; appraisement of interest; award; costs; judgment, when.

40-1223.
Same; rights of dissatisfied policyholders; appraisement of interest; award; costs; judgment, when.
If any policyholder, who shall be entitled to vote and is residing in this state at the time of the merger or consolidation, shall be dissatisfied with or object to such merger or consolidation and shall have voted against the same at the meeting of policyholders, it shall be lawful for any such policyholder, within thirty (30) days after the approval of said agreement of merger or consolidation by the commissioner of insurance and upon reasonable notice to the merged or consolidated company, to apply by petition to the district court of the county in which the registered or home office of such merged or consolidated company may be situated to appoint three (3) qualified disinterested persons to estimate and appraise the interest or cash value of such interest in the company of which he was a policyholder prior to the merger or consolidation. The persons so appointed shall appraise the interest or the cash value of such interest of such policyholder in such company at the full value thereof, without regard to any appreciation or depreciation in consequence of the said merger or consolidation. Said appointed persons shall receive as full compensation for their services a sum not to exceed one hundred dollars ($100) per day for the actual and necessary time in making such estimate or appraisal as may be directed by the court which shall become a part of the costs.
Upon such petition it shall be the duty of said court to make such appointment, and the award of the persons so appointed, or a majority of them, when confirmed by the said court, shall be final and conclusive and such award shall become an obligation of the new or surviving company. The costs in such proceeding shall be shared equally by the petitioner and the merged or consolidated company, except that the court in any case may assess the costs in such proceeding as it may deem just and equitable under the particular facts and circumstances of the case. Upon the payment of the award made to any policyholder the interest of such policyholder shall cease. In case the award and costs, or both, as aforesaid, shall not be so paid within thirty (30) days after the said award shall have been confirmed by said court, the award and costs, or both, so found and confirmed, shall be a judgment against the party named by the court, and may be collected as other judgments in said court are by law recoverable.
History:
L. 1957, ch. 289, § 8; L. 1970, ch. 180, § 2; L. 1972, ch. 53, § 9; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1224 Same; fees of officers or directors, prohibited unless disclosed; penalty.

40-1224.
Same; fees of officers or directors, prohibited unless disclosed; penalty.
(1) No director or officer of any company party to a merger or 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.
(2) Any person violating the provisions of the preceding 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 (1) year, or both, and shall forfeit any office he holds in the merged or consolidated company.
History:
L. 1957, ch. 289, § 9; June 29.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1225 Same; construction of act; invalidity of part.

40-1225.
Same; construction of act; invalidity of part.
(1) 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.
(2) This act shall be construed as a part of and supplementary to the insurance code of the state of Kansas.
(3) If any provision of this act, or the application of such provision to any person or circumstances, shall be held invalid the remainder of the 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. 1957, ch. 289, § 10; June 29.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12 - Mutual Insurance Companies Other Than Life › 40-1226 Additional kinds of insurance authorized; surplus and deposit requirements.

40-1226.
Additional kinds of insurance authorized; surplus and deposit requirements.
(a) Any insurance company organized and existing under article 12 of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, may make and issue contracts of insurance, in addition to the kinds of insurance specified in K.S.A. 40-1203, and amendments thereto, which include such amount and kind of insurance against legal liability for injury, damage or loss to the person or property of others, and for medical, hospital and surgical expense related to such injury, as the commissioner of insurance deems to be reasonably incidental to insurance of real or personal property against fire or other perils under policies covering residential properties involving not more than two families with or without incidental office, professional, private school or studio occupancy by an insured, whether or not the premium or rate charged for certain perils so covered is specified in the policy. Any provision of K.S.A. 40-1204, and amendments thereto, to the contrary notwithstanding: (1) No insurer having a bona fide net surplus of at least $1,000,000 but less than $1,500,000 authorized as to property insurance only shall, pursuant to this subsection (a), retain risk as to any one subject of insurance as to hazards other than property insurance hazards in an amount exceeding 3% of its surplus to policyholders; and (2) no insurer which has a bona fide net surplus of less than $1,000,000 but at least $750,000 authorized as to property insurance only shall, pursuant to this subsection (a), retain any risk other than property insurance hazards, and all such companies shall reinsure all such risks as to hazards other than property insurance hazards.
(b) It is required when a company is acting under subsection (a) that its board of directors authorize such action by the affirmative vote of at least 2/3 of its membership. Any company which has acted under this section shall certify such action to the commissioner of insurance, together with a statement showing its financial status and a net surplus sufficient to warrant such action.
(c) Any company operating under this section shall maintain unearned premium reserves equal to a pro rata amount of the premiums received on all unexpired risks, and such unearned premium reserves shall be held and regarded as an absolute liability of the company.
History:
L. 1994, ch. 87, § 1; April 7.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12a - Mutual Insurance Companies Organized To Provide Health Care Provider Liability Insurance › 40-12a01 Definitions.

40-12a01. Definitions.
As used in this act: (a) "Health care provider" means any person licensed to practice any branch of the healing arts by the state board of healing arts or any hospital licensed under the provisions of K.S.A. 65-425 et seq., and amendments thereto, or a private psychiatric hospital authorized under K.S.A. 39-2001 et seq., and amendments thereto;
(b) "person" means an individual, corporation, partnership, association, joint stock company, trust, unincorporated organization or any similar entity;
(c) "affiliate" means a person that directly or indirectly, through one or more intermediaries, employs, controls or is controlled by, or is under common control with a health care provider;
(d) "commissioner" means the commissioner of insurance; and
(e) "association" means any organization whose income is exempt from taxation pursuant to section 501(a) of the internal revenue code of 1986, and amendments thereto, as in effect on the effective date of this act, due to such association's compliance with section 501(c)(6) of such code, and amendments thereto, as in effect on the effective date of this act.
History:
L. 1988, ch. 147, § 1; L. 1999, ch. 87, § 2; L. 2018, ch. 71, § 15; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12a - Mutual Insurance Companies Organized To Provide Health Care Provider Liability Insurance › 40-12a02 Formation and operation; purpose.

40-12a02. Formation and operation; purpose.
(a) Except as otherwise provided in this act, the provisions of article 12 of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, shall control the formation and operation of companies organized under this act.
(b) Any association of health care providers domiciled within the state of Kansas which has been in existence for three years or more, may, as provided in this act, form an insurance company for the purpose of issuing contracts of insurance providing insurance for health care providers which are members of the association, the member's employees, directors, professional associations and affiliates.
(c) Any two or more such associations of health care providers, may form an insurance company for the purpose of issuing contracts of insurance providing insurance for such association's respective members, the member's employees, directors, professional associations and affiliates.
(d) In addition to other requirements of law, any plan or agreement for the sale, merger, consolidation or change of control of any company organized under the provisions of this act shall not be effective unless such plan or agreement has been approved by resolution of the governing board of directors or board of trustees of the association which formed such company.
History:
L. 1988, ch. 147, § 2; L. 1997, ch. 52, § 1; L. 2014, ch. 56, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12a - Mutual Insurance Companies Organized To Provide Health Care Provider Liability Insurance › 40-12a03 Board of directors; selection; officers.

40-12a03.
Board of directors; selection; officers.
The affairs of the company shall be managed by a board of directors of not less than five nor more than 25 persons selected by the association or associations forming the company. Directors shall not be required to be policyholders. The persons named as directors in the charter shall constitute the directors for the first year, and, at their first meeting, they shall select a president, secretary and treasurer and such other officers as may be necessary. Thereafter, directors shall be selected in accordance with the bylaws.
History:
L. 1988, ch. 147, § 3; April 28.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12a - Mutual Insurance Companies Organized To Provide Health Care Provider Liability Insurance › 40-12a04 Articles of incorporation.

40-12a04.
Articles of incorporation.
The persons proposing to form any such company shall subscribe, acknowledge and file with the commissioner articles of incorporation specifying:
(a) The name, which shall contain the word "mutual," the names of persons initially associated, the method by which other persons may be admitted to the company as members, the purposes for which the company is organized and the location of such company's principal or home office, which shall be within this state. The articles of incorporation shall provide for bylaws and for the amendment of the articles of incorporation and the bylaws.
(b) The names and addresses of those persons composing the board.
(c) The names and addresses of the incorporators.
History:
L. 1988, ch. 147, § 4; L. 1997, ch. 52, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12a - Mutual Insurance Companies Organized To Provide Health Care Provider Liability Insurance › 40-12a05 Bylaws.

40-12a05.
Bylaws.
The bylaws shall provide for a governing body for the company, the manner of election thereof, and the specific kinds of insurance or indemnification which will be offered. The bylaws may provide for the transfer of risks to other insurance companies or for reinsurance.
History:
L. 1988, ch. 147, § 5; L. 1997, ch. 52, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12a - Mutual Insurance Companies Organized To Provide Health Care Provider Liability Insurance › 40-12a06 Insurance authorized to be written; authority to contract with joint underwriting authority and write insurance under plan.

40-12a06. Insurance authorized to be written; authority to contract with joint underwriting authority and write insurance under plan.
(a) Any company organized under the provisions of this act shall be empowered to make contracts of insurance as provided herein and to cede to any insurer or accept from any insurer reinsurance on any portion of any such risk for the kinds of insurance authorized by article 12 of chapter 40 of the Kansas Statutes Annotated, and amendments thereto.
(b) Any company organized under the provisions of this act shall be empowered to contract with the governing board of any plan created pursuant to K.S.A. 40-3413, and amendments thereto, to issue policies to any applicant for liability insurance under the provisions of any such plan, to service and manage such policies and in all respects to administer and carry out the functions of any plan as the same may be authorized by the contract. Policies may be issued to persons and corporations under the provisions of such contract even though the insured is not a member of the association of health care providers forming the insurance company. No provision of this act or of article 12 of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, regarding the voting rights of members or the payment of dividends shall apply to policies issued under this subsection.
History:
L. 1988, ch. 147, § 6; L. 1990, ch. 166, § 1; L. 1997, ch. 52, § 4; L. 2014, ch. 56, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12a - Mutual Insurance Companies Organized To Provide Health Care Provider Liability Insurance › 40-12a07 Certificate of authority; issuance; conditions; limitation on amount of risk; surplus; deposit of securities.

40-12a07.
Certificate of authority; issuance; conditions; limitation on amount of risk; surplus; deposit of securities.
The commissioner shall issue a certificate of authority when any company, organized under this act, has fully complied with the following conditions:
(a) The company holds bona fide applications for insurance upon which it shall issue at least 20 policies to at least 20 members. If the company is in compliance with all other provisions of this act, the commissioner shall not revoke or refuse to renew the certificate of authority because membership has declined to less than 20 members.
(b) No insurance company organized pursuant to this act shall expose itself to loss on any one risk or hazard to an amount exceeding 20% of its surplus unless the excess is reinsured.
(c) It shall have collected, in accordance with the method provided in the articles of incorporation or the bylaws, the full consideration according to its filed rate on each contract for which application has been made. The total of such consideration shall be held in cash or securities in which such insurance companies are authorized to invest, or one or more clean and irrevocable letters of credit, and it shall possess and thereafter maintain a surplus of lawful assets or letters of credit over and above liabilities in an amount not less than the capital and surplus required of a domestic stock insurance company transacting the same kinds of insurance. Pursuant to K.S.A. 40-229a, the company shall deposit with the commissioner securities in which such insurance companies are authorized to invest, or one or more clean and irrevocable letters of credit, for the benefit of the commissioner, in an amount not less than the minimum capital stock required of a domestic stock insurance company. For the purpose of this act, letters of credit shall be in the form allowed by K.S.A. 40-221a(b)(2), and amendments thereto, drawn on the account of a health care provider for the benefit of the company, or for the benefit of the commissioner if the letter of credit is on deposit in accordance with this section.
History:
L. 1988, ch. 147, § 7; L. 1996, ch. 25, § 15; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12a - Mutual Insurance Companies Organized To Provide Health Care Provider Liability Insurance › 40-12a08 Liability of insureds; certain distributions precluded; distribution of dividends.

40-12a08. Liability of insureds; certain distributions precluded; distribution of dividends.
No insured shall be liable for any amounts other than the annual premium. The business of the company shall be conducted so as to preclude any distribution of income, profit or property of the company to the individual members thereof except in payment of dividends, debts, claims or indemnities or upon the final dissolution of the company. Dividends may be credited to a member's account and distributed in accordance with a plan adopted by the board of directors.
History:
L. 1988, ch. 147, § 8; L. 1997, ch. 52, § 5; L. 2013, ch. 97, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 12a - Mutual Insurance Companies Organized To Provide Health Care Provider Liability Insurance › 40-12a09 Annual statement.

40-12a09. Annual statement.
Each company organized pursuant to this act shall file an annual statement each year in accordance with the requirements for domestic insurers writing the same kind of insurance.
History:
L. 1988, ch. 147, § 9; L. 2000, ch. 147, § 1; L. 2014, ch. 56, § 4; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 13 - Mutual Indemnity Associations › 40-1312 Mutual indemnity associations transacting business on June 30, 1961, authorized to continue; conditions.

40-1312.
Mutual indemnity associations transacting business on June 30, 1961, authorized to continue; conditions.
Any corporation organized under the provisions of article 13, chapter 40 of the Kansas Statutes Annotated and now transacting business as a mutual indemnity association may continue the transaction of such business: Provided, That, on or before May 1, 1962, every such corporation shall comply fully with the provisions of the insurance code of this state relating to mutual insurance companies other than life as set out in article 12, chapter 40 of the Kansas Statutes Annotated, and acts amendatory thereof or supplemental thereto.
History:
L. 1961, ch. 237, § 1; June 30.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 15 - Mutual Hail Insurance Companies › 40-1501 Formation of companies; membership fee.

40-1501.
Formation of companies; membership fee.
Any number of persons, not less than four hundred, residing in this state, who collectively own not less than twenty thousand acres of growing grain, in this state, which they desire to insure against loss or damage by hail, and who shall actually subscribe for such insurance to the amount of two hundred thousand dollars, in not less than four hundred separate risks, located in not less than ten counties, and upon not more than five risks of one hundred sixty acres each in any one township, may form an incorporated company for the purpose of mutually insuring growing grain against loss or damage by hail: Provided, That each subscriber shall have paid a membership fee of five dollars, for which duplicate receipts have been executed conditioned for the return thereof at the end of one year from date of first subscription if the company has not then completed its organization, the original receipt to be delivered to the member subscribing, and the duplicate receipt, together with the fee, shall within thirty days after the execution thereof be deposited with the commissioner of insurance, until a certificate of authority to transact business has been granted by the commissioner of insurance, if granted within one year from date of first subscription, otherwise to be returned to the subscribing member.
History:
L. 1927, ch. 231, 40-1501; June 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 15 - Mutual Hail Insurance Companies › 40-1502 Statement of incorporators to be filed; contents of charter; deposit of securities; certificate of authority.

40-1502.
Statement of incorporators to be filed; contents of charter; deposit of securities; certificate of authority.
Such persons so desiring to incorporate shall file in the office of the commissioner of insurance a statement signed and duly acknowledged by all of the incorporators stating their purpose of forming a company as expressed in the first section of this article, for the transaction of the business of hail insurance, the number of acres of growing grain owned by each, the amount of insurance subscribed for, the description and location of the grain, the address of each subscriber, and a certified copy of the charter. The charter shall set forth the corporate title of the organization, which title shall include the word "mutual," the place of business, the home or general office thereof, the intended duration of the company, the directors chosen, and the specific purpose for which the organization is formed. No certificate of authority shall be issued by the commissioner of insurance until there shall have been deposited with the commissioner by such company cash or securities in an amount not less than $20,000, which shall not be withdrawn until all claims for hail damage be paid in full.
History:
L. 1927, ch. 231, 40-1502; L. 1929, ch. 200, § 1; L. 1996, ch. 25, § 16; July 1.