reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,196 Coverage for amino acid-based elemental formula; report required; recommendation to legislature.

40-2,196. Coverage for amino acid-based elemental formula; report required; recommendation to legislature.
(a) In the coverage for the next health plan coverage year commencing on January 1, 2019, the state employees health care commission shall provide for the coverage for amino acid-based elemental formula, regardless of delivery method, for the diagnosis or treatment of food protein-induced enterocolitis syndrome, eosinophilic disorders or short bowel syndrome, if prescribed by a prescriber, as defined by K.S.A. 65-1626, and amendments thereto, authorized by the pharmacy act of the state of Kansas and the applicable medical professional licensure entity in the state of Kansas.
(b) (1) Pursuant to the provisions of K.S.A. 40-2249a, and amendments thereto, on or before March 1, 2020, the state employees health care commission shall submit to the president of the senate and to the speaker of the house of representatives a report including the following information pertaining to the mandated coverage for amino acid-based elemental formula provided during the plan year commencing on January 1, 2019, and ending on December 31, 2019:
(A) The impact that the mandated coverage for amino acid-based elemental formula required by subsection (a) has had on the state health care benefits program;
(B) data on the utilization of coverage for amino acid-based elemental formula by covered individuals and the cost of providing such coverage for amino acid-based elemental formula; and
(C) a recommendation whether such mandated coverage for amino acid-based elemental formula should continue for the state health care benefits program or whether additional utilization and cost data is required.
(2) At the next legislative session following receipt of the report required in paragraph (1), the legislature may consider whether or not to require the coverage for amino acid-based elemental formula required by subsection (a) to be included in any individual or group health insurance policy, medical service plan, contract, hospital service corporation contract, hospital and medical service corporation contract, fraternal benefit society or health maintenance organization that provides coverage for accident and health services and that is delivered, issued for delivery, amended or renewed in this state on or after July 1, 2021.
History:
L. 2018, ch. 76, § 4; May 17.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,201 Property and casualty insurance; group affiliated insurers; renewal of policy.

40-2,201. Property and casualty insurance; group affiliated insurers; renewal of policy.
(a) A policy of insurance for property and casualty coverage will be considered renewed by: (1) The issuance and delivery of a policy by the current insurer or by an insurer within the same group of affiliated insurers replacing the existing policy at the end of the policy period or term with no gap in coverage; or (2) the issuance and delivery of a certificate or notice extending the term of the policy beyond its policy period or term.
(b) As used in this section, the term "group affiliated insurers" means two or more insurance companies that are under substantially the same management or financial control.
(c) When a policy of insurance is renewed by an insurer within the same group of affiliated insurers, notice of the change of the policy to the affiliated company shall be provided to the insured at the last known address and made available to the agent of record on or before 30 days before the end of the term or period of the existing policy of insurance. Such notice may be satisfied by delivery of the new policy to the insured.
History:
L. 2016, ch. 33, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,204 Claims handling operations; prohibition on imposition of restrictions or enforcement of local licensing or registration ordinances during a catastrophic event.

40-2,204. Claims handling operations; prohibition on imposition of restrictions or enforcement of local licensing or registration ordinances during a catastrophic event.
(a) Except as otherwise provided in this section, at the time of any catastrophic event threatening life or property, no political subdivision shall impose restrictions or enforce local licensing or registration ordinances with respect to an insurer's claims handling operations.
(b) Any insurer establishing claims handling operations pursuant to this section shall provide notice to a city or county prior to establishing such operations.
(c) Nothing in this section shall prohibit a political subdivision from exercising its police power when necessary to preserve public health and welfare, including, but not limited to, enforcing building, zoning and fire safety codes.
(d) As used in this section:
(1) "Claims handling operations" includes, but is not limited to, the establishment of a base of operations on a temporary basis, not to exceed six months, by an insurer within the disaster area and the investigation and handling of claims by personnel authorized by any such insurer; and
(2) "insurer" means an insurance company as defined in K.S.A. 40-201, and amendments thereto.
History:
L. 2018, ch. 15, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,210 Kansas telemedicine act; citation.

40-2,210. Kansas telemedicine act; citation.
(a) K.S.A. 40-2,210 through 40-2,216, and amendments thereto, shall be known and may be cited as the Kansas telemedicine act.
(b) This section shall take effect on and after January 1, 2019.
History:
L. 2018, ch. 98, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,211 Same; definitions.

40-2,211. Same; definitions.
(a) For purposes of Kansas telemedicine act:
(1) "Distant site" means a site at which a healthcare provider is located while providing healthcare services by means of telemedicine.
(2) "Healthcare provider" means a physician, licensed physician assistant, licensed advanced practice registered nurse or person licensed, registered, certified or otherwise authorized to practice by the behavioral sciences regulatory board.
(3) "Originating site" means a site at which a patient is located at the time healthcare services are provided by means of telemedicine.
(4) "Physician" means a person licensed to practice medicine and surgery by the state board of healing arts.
(5) "Telemedicine," including "telehealth," means the delivery of healthcare services or consultations while the patient is at an originating site and the healthcare provider is at a distant site. Telemedicine shall be provided by means of real-time two-way interactive audio, visual, or audio-visual communications, including the application of secure video conferencing or store-and-forward technology to provide or support healthcare delivery, that facilitate the assessment, diagnosis, consultation, treatment, education and care management of a patient's healthcare. "Telemedicine" does not include communication between:
(A) Healthcare providers that consist solely of a telephone voice-only conversation, email or facsimile transmission; or
(B) a physician and a patient that consists solely of an email or facsimile transmission.
(b) This section shall take effect on and after January 1, 2019.
History:
L. 2018, ch. 98, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,212 Same; confidentiality.

40-2,212. Same; confidentiality.
(a) The same requirements for patient privacy and confidentiality under the health insurance portability and accountability act of 1996 and 42 C.F.R. § 2.13, as applicable, that apply to healthcare services delivered via in-person contact shall also apply to healthcare services delivered via telemedicine. Nothing in this section shall supersede the provisions of any state law relating to the confidentiality, privacy, security or privileged status of protected health information.
(b) Telemedicine may be used to establish a valid provider-patient relationship.
(c) The same standards of practice and conduct that apply to healthcare services delivered via in-person contact shall also apply to healthcare services delivered via telemedicine.
(d) (1) A person authorized by law to provide and who provides telemedicine services to a patient shall provide the patient with guidance on appropriate follow-up care.
(2) (A) Except when otherwise prohibited by any other provision of law, when the patient consents and the patient has a primary care or other treating physician, the person providing telemedicine services shall send within three business days a report to such primary care or other treating physician of the treatment and services rendered to the patient in the telemedicine encounter.
(B) A person licensed, registered, certified or otherwise authorized to practice by the behavioral sciences regulatory board shall not be required to comply with the provisions of subparagraph (A).
(e) This section shall take effect on and after January 1, 2019.
History:
L. 2018, ch. 98, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,214 Same; prescribing of drugs via telemedicine.

40-2,214. Same; prescribing of drugs via telemedicine.
(a) The state board of healing arts, following consultation with the state board of pharmacy and the board of nursing, shall adopt rules and regulations relating to the prescribing of drugs, including controlled substances, via telemedicine. Such rules and regulations shall be adopted by December 31, 2018.
(b) The state board of healing arts shall adopt such rules and regulations as may be necessary to effectuate the provisions of Kansas telemedicine act. Such rules and regulation*, shall be adopted by December 31, 2018.
(c) The behavioral sciences regulatory board shall adopt such rules and regulations as may be necessary to effectuate the provisions of Kansas telemedicine act. Such rules and regulations shall be adopted by December 31, 2018.
History:
L. 2018, ch. 98, § 5; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,215 Same; abortions delivered via telemedicine not authorized.

40-2,215. Same; abortions delivered via telemedicine not authorized.
Nothing in the Kansas telemedicine act shall be construed to authorize the delivery of any abortion procedure via telemedicine.
History:
L. 2018, ch. 98, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,216 Same; nonseverability clause.

40-2,216. Same; nonseverability clause.
If any provision of the Kansas telemedicine act, or the application thereof to any person or circumstance, is held invalid or unconstitutional by court order, then the remainder of the Kansas telemedicine act and the application of such provision to other persons or circumstances shall not be affected thereby and it shall be conclusively presumed that the legislature would have enacted the remainder of the Kansas telemedicine act without such invalid or unconstitutional provision, except that the provisions of K.S.A. 40-2,215, and amendments thereto, are expressly declared to be nonseverable.
History:
L. 2018, ch. 98, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,227 Requirements for methods of payment; limitations on certain transaction fees.

40-2,227. Requirements for methods of payment; limitations on certain transaction fees.
(a) No dental benefit plan shall contain restrictions on methods of payment to a dentist from the dental benefit plan, such plan's contracted vendor or health maintenance organization in which the only acceptable payment method is a credit card payment.
(b) If initiating or changing payments to a dentist using electronic funds transfer payments, including virtual credit card payments, a dental benefit plan, such plan's contracted vendor or health maintenance organization shall:
(1) Notify the dentist if any fees are associated with a particular payment method; and
(2) advise the dentist of the available methods of payment and provide clear instructions to the dentist as to how to select an alternative payment method.
(c) A dental benefit plan, such plan's contracted vendor or health maintenance organization that initiates or changes payments to a dentist through the automated clearing house network, as codified in 45 C.F.R. §§ 162.1601 and 162.1602, shall not charge a fee solely to transmit the payment to a dentist unless the dentist has consented to such fee. A dentist's agent may charge reasonable fees when transmitting an automated clearing house network payment related to transaction management, data management, portal services and other value-added services in addition to the bank transmittal.
(d) The provisions of this section shall not be waived by contract. Any contractual arrangement in conflict with the provisions of this section or that purports to waive any requirements of this section shall be null and void and unenforceable.
History:
L. 2022, ch. 49, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,228 Enforcement by commissioner of insurance.

40-2,228. Enforcement by commissioner of insurance.
Any violation of K.S.A. 2023 Supp. 40-2,225 through 40-2,227, and amendments thereto, shall be subject to enforcement by the commissioner of insurance.
History:
L. 2022, ch. 49, § 4; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,231 Kansas travel insurance act; citation.

40-2,231. Kansas travel insurance act; citation.
(a) K.S.A. 2023 Supp. 40-2,231 through 40-2,240, and amendments thereto, shall be known and may be cited as the Kansas travel insurance act.
(b) The Kansas travel insurance act shall be a part of and supplemental to article 2 of chapter 40 of the Kansas Statutes Annotated, and amendments thereto.
History:
L. 2023, ch. 42, § 1; January 1, 2024.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,232 Purpose of act.

40-2,232. Purpose of act.
(a) The purpose of this act is to promote the public welfare by establishing a comprehensive legal framework within which travel insurance may be sold.
(b) The requirements of this act shall apply to travel insurance that covers any resident of this state, that is sold, solicited, negotiated or offered in this state and policies and certificates that are delivered or issued for delivery in this state. This act shall not apply to cancellation fee waivers or travel assistance services except as expressly provided in this act.
(c) All other applicable provisions of the insurance laws of this state shall apply to travel insurance except that the specific provisions of this act shall supersede any general provisions of law that would otherwise be applicable to travel insurance.
History:
L. 2023, ch. 42, § 2; January 1, 2024.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,235 Premium tax imposed.

40-2,235. Premium tax imposed.
(a) A travel insurer shall pay premium tax, pursuant to K.S.A. 40-252, and amendments thereto, on travel insurance premiums paid by any of the following:
(1) An individual primary policyholder who is a resident of this state;
(2) a primary certificate-holder who is a resident of this state and who elects coverage under a group travel insurance policy; or
(3) a blanket travel insurance policyholder that is a resident of or has its principal place of business or the principal place of business of an affiliate or subsidiary in this state that has purchased blanket travel insurance for eligible blanket group members, subject to any apportionment rules that apply to the insurer across multiple taxing jurisdictions or that permit the insurer to allocate premium on an apportioned basis in a reasonable and equitable manner in those jurisdictions.
(b) A travel insurer shall:
(1) Document the state of residence or principal place of business of each policyholder or certificate holder described in subsection (a); and
(2) report as premium only the amount allocable to travel insurance and not any amounts received for travel assistance services or cancellation fee waivers.
History:
L. 2023, ch. 42, § 5; January 1, 2024.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,236 Travel protection plans; requirements.

40-2,236. Travel protection plans; requirements.
Travel protection plans may combine the features that such travel protection plan offers in this state for one price if:
(a) The travel protection plan clearly discloses to the consumer, at or prior to the time of purchase, that it includes travel insurance, travel assistance services and cancellation fee waivers as applicable and provides information and an opportunity, at or prior to the time of purchase, for the consumer to obtain additional information regarding the features and pricing of each; and
(b) the fulfillment materials:
(1) Describe and delineate the travel insurance, travel assistance services and cancellation fee waivers in the travel protection plan; and
(2) include the travel insurance disclosures and contact information for persons providing travel assistance services and cancellation fee waivers, as applicable.
History:
L. 2023, ch. 42, § 6; January 1, 2024.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,238 Travel administrators; requirements; duties of insurer.

40-2,238. Travel administrators; requirements; duties of insurer.
(a) Notwithstanding any other provision of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, no person shall act or represent itself as a travel administrator for travel insurance in this state unless such person:
(1) Is a licensed property and casualty insurance producer in this state for activities permitted under that producer license;
(2) holds a valid managing general agent license in this state; or
(3) holds a valid third-party administrator license in this state.
(b) An insurer shall be responsible for the acts of a travel administrator that administers travel insurance underwritten by the insurer and shall ensure that the travel administrator maintains all books and records relevant to the insurer be made available by the travel administrator to the commissioner, upon request.
History:
L. 2023, ch. 42, § 8; January 1, 2024.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2 - General Provisions › 40-2,239 Travel insurance; classification; eligibility and underwriting standards.

40-2,239. Travel insurance; classification; eligibility and underwriting standards.
(a) Notwithstanding any other provision of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, travel insurance shall be classified and filed for purposes of rates and forms under an inland marine line of insurance.
(b) Travel insurance may be in the form of an individual, group or blanket policy.
(c) Eligibility and underwriting standards for travel insurance may be developed and provided based on travel protection plans designed for individual or identified marketing or distribution channels, provided those standards also meet underwriting standards of the state for inland marine insurance.
History:
L. 2023, ch. 42, § 9; January 1, 2024.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a01 United States government obligations; call options.

40-2a01.
United States government obligations; call options.
Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in bonds or other evidences of indebtedness issued, assumed or guaranteed by the United States of America, or by any agency or instrumentality thereof. Such insurance company may write call options on government obligations permitted under this section which it owns. Call options may be purchased for the sole purpose of closing out a position taken previously with respect to one or more options having been written. The purchase of a call option for any reason other than as a closing transaction and the writing of naked (uncovered) call options are hereby prohibited.
Any United States government obligation owned by an insurance company obligated under an unexpired written call option shall be valued at the lesser of the striking price or value established in accordance with the method of valuation as prescribed by the commissioner of insurance for financial reporting purposes.
"Striking price" means the price per United States government obligation, exclusive of selling costs, the company would receive should the call option be exercised by the holder.
History:
L. 1972, ch. 173, § 1; L. 1989, ch. 134, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a02 State, District of Columbia, territorial and municipal obligations.

40-2a02.
State, District of Columbia, territorial and municipal obligations.
Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in bonds or other evidences of indebtedness issued, assumed or guaranteed by the District of Columbia, or by any state, insular or territorial possession of the United States of America, or by any county, city, town, school, road, drainage or other district, located within any state, insular or territorial possession of the United States of America, or by any political or civil subdivision or governmental authority of any such state, district or insular or territorial possession, or by any agency or instrumentality of or authority related to any one or more such states, districts, or insular or territorial possessions, or political or civil subdivisions.
History:
L. 1972, ch. 173, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a03 Canadian government, provincial and municipal obligations.

40-2a03.
Canadian government, provincial and municipal obligations.
Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in bonds or other evidences of indebtedness issued, assumed or guaranteed by the Dominion of Canada, or by any province thereof, or by any municipality, district, agency or instrumentality thereof.
History:
L. 1972, ch. 173, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a04 Foreign government obligations.

40-2a04.
Foreign government obligations.
Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in bonds or other evidences of indebtedness issued, assumed or guaranteed by any foreign government, except as provided in K.S.A. 40-2a03, and amendments thereto, in an amount not to exceed 5% of its admitted assets as shown by the company's last annual report as filed with the state commissioner of insurance or a more recent quarterly financial statement as filed with the commissioner, on a form prescribed by the national association of insurance commissioners, within 45 days following the end of the calendar quarter to which the interim statement pertains. The 5% limitation shall be in addition to any investments in foreign nations required by virtue of a company doing business in a foreign nation.
History:
L. 1972, ch. 173, § 4; L. 1987, ch. 160, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a06 Equipment trust obligations or conditional sales contract.

40-2a06.
Equipment trust obligations or conditional sales contract.
Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in bonds, certificates or other evidences of indebtedness secured by any transportation or other equipment used wholly or in part within the United States of America or Dominion of Canada, that provide a right to receive determined rental, purchase or other fixed obligatory payments adequate to retire the obligations and also provide for vesting of title to such equipment free from incumbrance in a corporate trustee, or for creation of a first lien on such equipment.
History:
L. 1972, ch. 173, § 6; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a07 Preferred and guaranteed stocks; definitions.

40-2a07.
Preferred and guaranteed stocks; definitions.
Any insurance company other than life heretofore or hereafter organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in preferred stocks of, or stocks guaranteed by, a corporation incorporated under the laws of the United States of America, or of any state, district, insular or territorial possession thereof, or of the Dominion of Canada, or any province thereof, in an amount not to exceed 25% of its admitted assets as shown by the company's last annual report, as filed with the state commissioner of insurance, or a more recent quarterly financial statement as filed with the commissioner, on a form prescribed by the national association of insurance commissioners, within 45 days following the end of the calendar quarter to which the interim statement pertains, and which meets the following qualifications:
(a) All bonds or other evidences of indebtedness and preferred stocks shown on the last published annual statement of the issuing corporation, if any, senior to the preferred stock acquired must be eligible as investments under K.S.A. 40-2a05 or 40-2a07, and amendments thereto, as of the date of acquisition;
(b) if cumulative preferred, not in arrears as to dividends, or if noncumulative, has paid full dividends in each of the last three years;
(c) sinking fund payments are on a current basis;
(d) if net earnings available for fixed charges for the most recently completed three fiscal year period is at least equal to 1 1/4 times the aggregate fixed charges, plus full contingent interest and preferred dividend requirements of the preferred stock under consideration and those on a parity therewith or having a priority thereto, for the same period; and
(e) the corporation or a predecessor thereof, must have been in existence for a period of not less than five years.
(f) As used in this section:
(1) "Fixed charges" shall include actual interest incurred in each year on funded and unfunded debt; and
(2) "net earnings" shall mean income, before deducting interest on funded and unfunded debt, and after deducting operating and maintenance expenses, depreciation and depletion, and all taxes (including income taxes). Extraordinary, nonrecurring items of income or expense shall be excluded.
History:
L. 1972, ch. 173, § 7; L. 1987, ch. 160, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a10 Bank certificates of deposit.

40-2a10.
Bank certificates of deposit.
Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in certificates of deposit in a federally insured bank.
History:
L. 1972, ch. 173, § 10; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a11 Savings and loan shares or deposits.

40-2a11.
Savings and loan shares or deposits.
Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in shares or savings deposits in a federally insured savings and loan association.
History:
L. 1972, ch. 173, § 11; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a13 Real estate.

40-2a13.
Real estate.
Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in real estate only if acquired or used for the following purposes and in the following manner:
(a) Such as shall be requisite for its convenient present and reasonable future accommodations in the transaction of its business. In the erection or purchase of any buildings for such purpose, additional space may be included for home office rental income;
(b) such as shall have been mortgaged to it in good faith, by way of security for loans previously contracted or for money due;
(c) such as shall have been conveyed to it in satisfaction of debts previously contracted in their legitimate business or for money due;
(d) such as shall have been purchased at sales upon judgments, decrees or mortgages obtained or made for such debts; or
(e) such as shall have been acquired for development or income purposes.
It shall not be lawful for any such company to purchase, hold or convey real estate in any other case or for any other purpose, except nothing in this section shall be deemed to prohibit any such company from purchasing the principal residence owned and inhabited by an employee or prospective employee who is being transferred by the company to a different community; and all such real estate as may be acquired as aforesaid and which shall not be necessary for the accommodation of such company in the transaction of its business, except real estate acquired for development or income purposes shall be sold and disposed of within five years after such company shall have acquired title thereto, unless the company shall procure a certificate from the commissioner of insurance that the interests of the company will suffer materially by a forced sale thereof, in which event the sale may be postponed for such period as the commissioner of insurance shall direct in the certificate. If the company so elects, real estate other than farm properties, which has been acquired under subsections (c) and (d) may be held by it for income purposes. The company's aggregate investment in real estate as herein provided shall not exceed 20% of the admitted assets of the company as shown by its last annual report as filed with the commissioner of insurance or a more recent quarterly financial statement as filed with the commissioner, on a form prescribed by the national association of insurance commissioners, within 45 days following the end of the calendar quarter to which the interim statement pertains.
History:
L. 1972, ch. 173, § 13; L. 1982, ch. 201, § 1; L. 1983, ch. 156, § 4; L. 1987, ch. 160, § 5; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a14 Collateral loans.

40-2a14. Collateral loans.
Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in loans secured by collateral consisting of a pledge of bonds, securities, stock or evidences of indebtedness qualified in article 2a of chapter 40 of the Kansas Statutes Annotated, and amendments thereto. Except the amount of the loan shall not exceed 80% of the market value of the asset securing the loan. In addition, all restrictions, limitations or conditions placed on any investment authorized within article 2a of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, shall apply to the collateral pledged to the payment of loans authorized in this section.
History:
L. 1972, ch. 173, § 14; L. 2014, ch. 43, § 2; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a16 Leeway clause.

40-2a16. Leeway clause.
Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in investments whether or not qualified and permitted under this act and notwithstanding any conditions or limitations prescribed therein, in an aggregate amount not more than 10% of its admitted assets as shown by the company's last annual report as filed with the commissioner of insurance or a more recent quarterly financial statement filed with the commissioner, except that investments shall not be permitted in insolvent organizations or organizations in default with respect to the payment of principal or interest.
History:
L. 1972, ch. 173, § 16; L. 1983, ch. 156, § 5; L. 2015, ch. 7, § 3; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a17 International bank for reconstruction and development, inter-American development bank and African development bank.

40-2a17.
International bank for reconstruction and development, inter-American development bank and African development bank.
Any insurance company other than life organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in bonds or other evidences of indebtedness issued, assumed, or guaranteed by the international bank for reconstruction and development, the inter-American development bank or by the African development bank.
History:
L. 1972, ch. 173, § 17; L. 1986, ch. 175, § 1; April 24.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a18 Real estate investment trusts.

40-2a18.
Real estate investment trusts.
Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in shares of beneficial interest in or obligations issued by a real estate investment trust qualified under sections 856 through 858 of the federal internal revenue code which meet the following qualifications:
(a) The obligations shown on the last published annual statement of such trust must meet the qualifications specified for corporate obligations in subsections (a) through (d) of K.S.A. 40-2a05.
(b) Cash dividends have been paid during each of the last three (3) years preceding the date of acquisition.
(c) The shares are registered on a national securities exchange regulated under the securities exchange act of 1934, as amended, or regularly traded on a national or regional basis.
(d) The trust shall have earnings in three (3) of the last five (5) years preceding date of acquisition.
(e) No insurance company shall own more than five percent (5%) of the total number of shares of any one such trust, nor invest more than two percent (2%) of its admitted assets in shares of any one such trust.
Shares in each such trust which has over one-half (1/2) of its assets invested in ownership of real estate or which has such ownership as its stated investment objective shall be considered a real estate investment for purposes of conforming with the limitation on real estate ownership imposed in K.S.A. 40-2a13.
History:
L. 1972, ch. 173, § 18; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a19 Prior lawful investments.

40-2a19.
Prior lawful investments.
All investments owned by any insurance company other than life at the time this act becomes effective and purchased pursuant to and in accordance with prior investment laws of this state shall be deemed in compliance with this act.
History:
L. 1972, ch. 173, § 19; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a20 Adoption of nominee name; designation of bank as trustee.

40-2a20. Adoption of nominee name; designation of bank as trustee.
(a) Any insurance company other than life organized under any law of this state, with the direction or approval of a majority of its board of directors or authorized committee thereof, may:
(1) Adopt a nominee name unique to such insurance company in which such insurance company's securities may be registered;
(2) designate a state or national bank, a trust company or a federal home loan bank having trust powers to obtain a nominee name for such insurance company in which such insurance company's securities may be registered; or
(3) designate a state or national bank or a trust company having trust powers as trustee to make any investment authorized by this act in the name of such trustee or such trustee's nominee.
(b) Under the provisions of paragraphs (2) and (3) of subsection (a), the designated state or national bank, trust company or the federal home loan bank may arrange for such securities to be held in a clearing corporation. Such arrangement must be in accordance with a written agreement, approved by the commissioner of insurance, between the insurance company and its designated bank or trust company and must impose the same degree of responsibility on the bank or trust company as if such securities were held in definitive form by such bank or trust company.
(c) As used in this section "clearing corporation" means: (1) A corporation defined in subsection (5) of K.S.A. 84-8-102, and amendments thereto;
(2) any organization or system for clearance and settlement of securities transactions which is operated or owned by a bank, trust company or other entity that is subject to regulation by the United States federal reserve board or the United States comptroller of the currency; or
(3) any clearing agency registered with the securities and exchange commission pursuant to the securities exchange act of 1934, section 17A.
History:
L. 1975, ch. 240, § 1; L. 1986, ch. 176, § 1; L. 1996, ch. 81, § 1; L. 1996, ch. 202, § 90; L. 2009, ch. 83, § 23; L. 2011, ch. 21, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a22 Investment companies; money market mutual funds.

40-2a22.
Investment companies; money market mutual funds.
(a) Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in shares of a corporation registered and operated as an open-end regulated investment company in accordance with the investment company act of 1940, as amended.
(b) Investments under this section, other than investments in money market mutual funds as described in subsection (c), shall be further limited as follows:
(1) The insurance company's aggregate investment under this provision and K.S.A. 40-2a08, and amendments thereto, combined shall not exceed 25% of its admitted assets as shown by the company's last annual report as filed with the state commissioner of insurance or a more recent quarterly financial statement as filed with the commissioner, on a form prescribed by the national association of insurance commissioners, within 45 days following the end of the calendar quarter to which the interim statement pertains;
(2) the investment company in which the insurance company acquires shares shall have assets of not less than $25,000,000 at the date of purchase;
(3) the insurance company shall not acquire more than 15% of the outstanding shares of any one investment company;
(4) investments in the shares of any one investment company shall not exceed 10% of the admitted assets of the insurance company as shown by the company's last annual report as filed with the commissioner of insurance, as determined on the basis of the cost of such shares to the insurance company at time of purchase.
(c) Investments in money market mutual funds shall not be subject to the limitations contained in subsection (b) when the assets of the fund represent qualified investments described in K.S.A. 40-2a01, 40-2a02, 40-2a03, 40-2a04, 40-2a05 and 40-2a21, and amendments thereto. Investments in money market mutual funds shall be further limited as follows:
(1) The investment company in which the insurance company acquires shares shall have assets of not less than $25,000,000 at the date of purchase; and
(2) investments in the shares of any one investment company shall not exceed 20% of the admitted assets of the insurance company as shown by the company's last annual report as filed with the commissioner of insurance, or a more recent quarterly financial statement as filed with the insurance commissioner, on a form prescribed by the national association of insurance commissioners, within 45 days following the end of the calendar quarter to which the interim statement pertains, as determined on the basis of the cost of such shares to the insurance company at the time of purchase.
History:
L. 1983, ch. 156, § 15; L. 1985, ch. 162, § 1; L. 1987, ch. 160, § 6; L. 1995, ch. 96, § 1; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a26 Medium and lower grade obligations; definitions.

40-2a26. Medium and lower grade obligations; definitions.
As used in K.S.A. 40-2a27 of this act:
(a) "Medium grade obligations" means obligations which are designated "3" by the SVO or its equivalent rating by a nationally recognized statistical rating organization recognized by the SVO.
(b) "Lower grade obligations" means obligations which are designated "4," "5" or "6" by the SVO or its equivalent rating by a nationally recognized statistical rating organization recognized by the SVO.
(c) "Admitted assets" means the amount shown on the insurer's last annual report as filed with the state commissioner of insurance or a more recent quarterly financial statement filed with the commissioner.
(d) "Aggregate amount" of medium grade and lower grade obligations means the aggregate statutory statement value thereof.
(e) "Institution" means a corporation, a joint-stock company, an association, a trust, a business partnership, a business joint venture or similar entity.
(f) "Insurance company" or "insurer" means an insurance company other than life organized under the laws of this state.
History:
L. 1992, ch. 121, § 1; L. 2015, ch. 7, § 5; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2a - Investments By Other Than Life Insurance Companies › 40-2a28 Investment in asset-backed securities; conditions; definitions.

40-2a28. Investment in asset-backed securities; conditions; definitions.
(a) Any insurance company other than life organized under any law of this state may invest, by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof, in asset-backed securities, subject to the following:
(1) To be an admitted asset under this section, an asset-backed security must, at the time of acquisition, be designated "1" or "2" by the SVO or its equivalent rating by a nationally recognized statistical rating organization recognized by the SVO;
(2) the investment in any one issue of asset-backed securities shall not exceed 2% of the admitted assets of the investing insurance company as shown by its last annual report or a more recent quarterly financial statement filed with the commissioner. Each issue designated as provided in paragraph (1) shall constitute a single issue regardless of any other obligations or securities issued by the same or any affiliated issuer.
(b) As used in this section:
(1) "Asset-backed security" means any security or other instrument representing or evidencing an interest in, a loan to, a participation in a loan to, or any other right to receive payments from a business entity of any type or form, which has as its primary business activity the acquisition and holding of financial assets, directly or through a trustee, for the benefit of such business entity's debt or equity holders;
(2) "financial asset" means a single asset or a pool of assets consisting of interest-bearing obligations or other contractual obligations representing or constituting the right to receive payment from the asset or pool of assets;
(3) "NAIC" means the national association of insurance commissioners; and
(4) "SVO" means the securities valuation office of the NAIC or any successor office established by the NAIC.
History:
L. 1995, ch. 23, § 2; L. 2014, ch. 43, § 4; L. 2015, ch. 7, § 7; July 1.
2023 Kansas Statutes › Chapter 40 - Insurance › Article 2b - Investments By Life Insurance Companies › 40-2b01 United States government obligations; call options.

40-2b01.
United States government obligations; call options.
Any life insurance company heretofore or hereafter organized under any law of this state may invest by loans or otherwise, with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in bonds or other evidences of indebtedness issued, assumed or guaranteed by the United States of America, or by any agency or instrumentality thereof. Such life insurance company may write call options on government obligations permitted under this section which it owns. Call options may be purchased for the sole purpose of closing out a position taken previously with respect to one or more options having been written. The purchase of a call option for any reason other than as a closing transaction and the writing of naked (uncovered) call options are hereby prohibited.
Any United States government obligation owned by an insurance company obligated under an unexpired written call option shall be valued at the lesser of the striking price or value established in accordance with the method of valuation as prescribed by the commissioner of insurance for financial reporting purposes.
"Striking price" means the price per United States government obligation, exclusive of selling costs, the company would receive should the call option be exercised by the holder.
History:
L. 1972, ch. 179, § 1; L. 1989, ch. 134, § 2; July 1.