reglab/statecodes huggingface dataset:
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 10 - FIREFIGHTER'S RELIEF FUND TAX › Section 40-10-10 - Firefighter's relief association; permissible disbursements

Current through Register Vol. 43, No. 28, July 11, 2024
The cost of the bond for the treasurer of a firefighter's
				relief association, as prescribed by
				K.S.A.
				40-1706, and reasonable administrative
				expenses, to be determined at the discretion of the commissioner of insurance,
				including stamps, stationery, safe deposit box rent, the expense of having the
				funds of the association audited, and other similar expenses, shall be
				permissible disbursements from the firefighter's relief funds. Each expenditure
				shall be itemized in the financial statement.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 10 - FIREFIGHTER'S RELIEF FUND TAX › Section 40-10-14 - Same; purchase of bonds; requirements

Current through Register Vol. 43, No. 28, July 11, 2024
Each bond purchased with firefighter's relief funds shall be
				shown on the financial statement at the initial purchase price. Bonds shall not
				be carried at market or maturity value. When the bonds mature or are sold, each
				change in the value from the initial purchase price shall be reflected in the
				financial statement.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 10 - FIREFIGHTER'S RELIEF FUND TAX › Section 40-10-15 - Firefighters relief act; application of statutory formula

Current through Register Vol. 43, No. 28, July 11, 2024
In applying the formula set forth in L. 1987, Ch. 168, Sec.
				1(c)(5), the result of the calculation prescribed by subsection (A)(ii) and
				(B)(ii) shall be the "amount received from taxes collected for all of calendar
				year 1983" referenced in subsections (A)(iv) and (B)(iv) respectively.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 10 - FIREFIGHTER'S RELIEF FUND TAX › Section 40-10-16 - Firefighters relief act; fund allocation

Current through Register Vol. 43, No. 28, July 11, 2024
(a) The annual redetermination allocation
			 shall be calculated using a formula based on the population and the assessed
			 tangible property valuation of the area served by the association that requests
			 redetermination in relation to the population and the assessed tangible
			 property valuation of the state. The assessed tangible property valuation of
			 the area served by the association and the state to be used in the formula
			 shall be as reported by the Kansas department of revenue's statistical report
			 of property assessment and taxation for the year during which rede-termination
			 is requested. The populations of the area served by the association and the
			 state to be used in the formula shall be those population totals certified by
			 the Kansas secretary of state for the year during which re-determination is
			 requested.
(b) The following
			 formula shall be used to calculate a new base allocation percentage for the
			 association that requests redetermination:
(1)
			 The assessed tangible property valuation of the area served by the association
			 shall be divided by the assessed tangible property valuation of the state, and
			 the quotient shall be divided by two to form one-half of the new base
			 allocation percentage.
(2) The
			 population of the area served by the association shall be divided by the
			 population of the state, and the quotient shall be divided by two to form the
			 second half of the new base allocation percentage.
(3) The sum of the amounts calculated in
			 paragraphs (b)(1) and (2) shall be the new base allocation percentage for the
			 association.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 11 - PROXIES, CONSENTS AND AUTHORIZATIONS › Section 40-11-12 - Domestic stock insurance companies; proxies, consents and authorizations; application of regulation

Current through Register Vol. 43, No. 28, July 11, 2024
The national association of insurance commissioners regulation
				regarding proxies, consents and authorizations of domestic stock insurers, June
				1980 edition, is hereby adopted by reference.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-4 - Stock insurance companies; sale of stock; permit; amount paid-in; requirements

Current through Register Vol. 43, No. 28, July 11, 2024
A domestic insurance company in the process of organization and
				offering its stock for sale under a permit issued by the commissioner of
				insurance shall not be issued a certificate of authority to transact the
				business of insurance, as required by
				K.S.A.
				40-214, until the full amount of stock
				authorized under the permit has been paid-in.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-6 - Stock insurance companies; sale of stock; permits; holding companies

Current through Register Vol. 43, No. 28, July 11, 2024
A permit shall not be issued to a domestic insurance company in
				the process of organization where the company's stock plan provides that
				sufficient shares to effect control of the insurance company shall be issued to
				a holding company or other legal entity which is offering for sale shares of
				its authorized but unissued stock or of its treasury stock.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-7 - Stock insurance companies; sale of stock; permits; organizers and promoters; requirements

Current through Register Vol. 43, No. 28, July 11, 2024
Except as provided in
				K.A.R.
				40-12-8, the organizers and promoters of a
				domestic insurance company in the process of organization shall, as a group and
				prior to the offer or sale of any shares of stock to any other person, purchase
				for their own account shares equal to not less than 20 percent of the total
				number of shares to be offered under the permit. Each share of stock of a
				domestic insurance company in the process of organization purchased directly or
				indirectly by its organizers and promoters shall be deposited in escrow
				pursuant to an escrow agreement approved by the commissioner of insurance. The
				escrow agreement shall include a provision that the shares shall not be sold,
				transferred, assigned, encumbered, or alienated in any manner except by
				operation of law without the prior approval of the commissioner of insurance
				for such period of time as the commissioner shall deem reasonable, necessary,
				or advisable to protect the interests of the company, its policyholders and
				stockholders.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-8 - Stock insurance companies; sale of stock; permits; organizers and promoters; holding companies; requirements

Current through Register Vol. 43, No. 28, July 11, 2024
(a) When the plan
			 by which a domestic insurance company in the process of organization proposes
			 to offer its stock for sale provides that the insurance company shall be
			 sponsored by a holding company or other legal entity which will subscribe for
			 and purchase sufficient shares to control the operation of the insurance
			 company, the organizers and promoters of the insurance company shall not be
			 subject to K.A.R. 40-12-7.
(b)
			 When the provision of paragraph (a) shall apply, each share of the insurance
			 company purchased by the organizers and promoters and each share purchased by
			 the holding company or other legal entity shall be deposited in escrow pursuant
			 to an escrow agreement approved by the commissioner of insurance.
(c) The escrow agreement shall include a
			 provision that the shares shall not be sold, transferred, assigned, encumbered
			 or alienated in any manner except by operation of law without the prior
			 approval of the commissioner of insurance. The sale restriction shall be
			 effective for a period of time as the commissioner shall deem reasonable,
			 necessary or advisable to protect the interests of the company, its
			 policyholders, and stockholders.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-9 - Impounding of stock sale proceeds; when required; impound agent; certificates of no lien

Current through Register Vol. 43, No. 28, July 11, 2024
(a) A permit issued
			 to a domestic stock insurer prior to a certificate of authority shall require
			 100 percent of all stock sale proceeds to be impounded until release upon
			 written order of the commissioner. This requirement shall not apply if the
			 applicant can demonstrate to the commissioner's satisfaction that an
			 impoundment of funds is not necessary to guarantee full return of stock
			 purchase moneys in the event a certificate of authority is not issued. If the
			 applicant does not qualify for a certificate of authority within two years,
			 subscription money shall be returned in full to all subscribers without
			 deduction of expenses. Extensions beyond two years shall not be granted without
			 the consent of all subscribers.
(b) Application for a permit which will
			 entail impoundment of stock sale proceeds shall name a duly authorized bank or
			 trust company within the state which has consented to act as impound agent.
(c) Before an order is made
			 releasing stock sale proceeds from impoundment, written assurance shall be
			 requested from the bank or trust company serving as impound agent that it has
			 no lien, general, special, bankers, or otherwise, against the funds, and knows
			 of no claims asserted against the funds.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-10 - Promotional stock

Current through Register Vol. 43, No. 28, July 11, 2024
Stock issued for consideration of the promotion of a domestic
				stock insurer shall be prohibited. The prohibition does not preclude, for
				promoters, officers or employees, a stock option plan which meets the standards
				set forth in Kansas administrative regulation 40-12-12(a).
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-12 - Options to promoters, officers or employees

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Issuance of an
			 option of stock of a domestic insurer to promoters, officers or employees shall
			 be authorized only when it is satisfactorily demonstrated that the promoters,
			 officers or employees have rendered a genuine service of value to the company
			 for which they have not otherwise been fully compensated.
(b) The issuance shall be permitted if:
(1) The total number of shares subject to the
			 option shall not exceed 10 percent of the number of authorized shares initially
			 sold and issued for cash.
(2) The
			 exercise price stated in the option to be issued by a domestic insurer is not
			 less than the net price at which shares are sold to public investors at the
			 time the option is granted, plus an increase of 10 percent for each year
			 thereafter elapsing during the life of the option.
(3) The option shall be non-transferable
			 except upon death of the optionee or by operation of law.
(4) The option terms shall not be exercisable
			 more than five years after the date of issue.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-13 - Officers, directors, and employee stock purchase plans

Current through Register Vol. 43, No. 28, July 11, 2024
Stock option plans in a domestic insurer shall conform to the
				following specifications:
(a) Stock
			 options shall be provided for by a fair and reasonable plan which has been
			 submitted to and approved by the board of directors and stockholders after the
			 company has been in operation for at least one full year.
(b) The granting of the stock option shall
			 bear a reasonable incentive relationship to the continual employment of the
			 optionee.
(c) The stock option
			 shall be for a stated number of shares, to be paid for in cash.
(d) If the stock is widely traded, the
			 options shall be for the full market value at the time the options are granted.
			 If the stock is not widely traded, the options shall be for a price fixed by
			 the company's board of directors and approved by the commissioner.
(e) The stock option shall fully set forth
			 employment qualifications, conditions for complete exercise of the options,
			 conditions under which cessation of employment shall terminate the option, and
			 the effect of death, resignation, or other similar events.
(f) The stock option shall contain an
			 anti-dilution or proration clause. The clause shall provide that the number of
			 shares allocated to the plan and the number of shares carried by each
			 individual option, and price per share, shall automatically be proportionately
			 adjusted for each increase or decrease in the number of issued and outstanding
			 shares of the corporation. This shall be accomplished without a corresponding
			 increase or decrease in the corporation's paid-in capital.
(g) Only the optionee, or a court appointed
			 guardian, shall exercise the option during the optionee's lifetime. For a
			 specified time after death, only the heirs, administrator or executor shall
			 exercise the option.
(h) The
			 period of time in which an option may be exercised after death shall be no
			 longer than five years.
(i) The
			 total number of shares set aside at any one time for this purpose shall not be
			 inequitably proportioned to the number of shares issued and outstanding.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-14 - Purchasing of shares through options

Current through Register Vol. 43, No. 28, July 11, 2024
A stock purchase plan or option in a domestic insurer shall
				provide that the optionee shall sign a stipulation when the option is exercised
				that the purchase of the shares shall be for investment and not for resale.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-16 - Agents' production stock option plans

Current through Register Vol. 43, No. 28, July 11, 2024
In order to be authorized, each agent's stock option plan in a
				domestic insurer shall:
(a) Be clear
			 and unambiguous in its term and as simple as the subject matter permits;
(b) provide that the plan shall be
			 submitted to and approved by the company's directors and stockholders before it
			 becomes effective;
(c) provide
			 that no securities shall be issued without a prior permit of the commissioner
			 authorizing the issue. The company shall promptly and diligently endeavor to
			 process the necessary authorization contemplated by the plan;
(d) provide that business written shall serve
			 as a basis for earning options only after the business shall have been in force
			 and effect for two policy years and premiums for the same period shall have
			 been fully paid in cash. A policy that shall terminate by a death claim prior
			 to expiration of the persistency period shall be regarded as having run the
			 full two years;
(e) govern the
			 earning of conditional rights to options and the grant of options by a
			 conservative formula based on one of the following:
(1) Annual premiums written and paid on
			 policies issued during a given calendar quarter;
(2) commissions earned per calendar quarter;
			 or,
(3) another reliable criterion
			 of production of business, per calendar quarter, having intensive value to the
			 company;
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-17 - Limitation of options

Current through Register Vol. 43, No. 28, July 11, 2024
If the total number of shares of a domestic insurer are, at any
				one time, subject to outstanding unexercised option rights which exceed or will
				exceed 20 percent of the number of the then-issued and outstanding shares, it
				shall be presumed that an unfair, unjust and inequitable situation exists. The
				number of outstanding unexercised option rights shall include promotional
				options, employee incentive options, and agents production options.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-18 - Options to attorneys-at-law, actuaries, and underwriters

Current through Register Vol. 43, No. 28, July 11, 2024
An option in a domestic insurer to an attorney at law, or an
				actuary employed on a consulting basis, and to an underwriter under agents'
				production stock option plans shall be prohibited.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 12 - SALE OF STOCK › Section 40-12-19 - Directors' resolution as to fairness of price; commissioner's approval

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Each
			 application for authorization to issue options in a domestic insurer shall be
			 supported by a certified copy of a resolution of the applicant's board of
			 directors containing its findings, as follows:
(1) In the case of an applicant who
			 demonstrates to the commissioner's reasonable satisfaction that:
(A) its shares have, through substantial
			 trading in a free market, achieved a recognizable value in the market place;
(B) the market price reported is a
			 bona fide market price;
(C) in the
			 opinion of its board of directors, the market price represents the fair value
			 of the shares; and
(D) the
			 issuance at the proposed price will be equitable to the company, to its present
			 and future stockholders, and to other optionees.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-1 - Definition of certain terms

Current through Register Vol. 43, No. 28, July 11, 2024
(a) "Insurer" means
			 any domestic insurance company with an equity security subject to the terms of
			 K.S.A.
			 40-264,
			 40-265,
			 40-266,
			 40-267,
			 40-268,
			 40-269, and not exempt by the
			 provisions of
			 K.S.A.
			 40-270.
(b) "Director" means those persons named as
			 directors in the articles of incorporation for the first year, or those persons
			 elected as directors by the stockholders.
(c) "Officer" means the president,
			 vice-president, treasurer, secretary, controller, actuary or any other person
			 who performs at the election or appointment by the board of directors of the
			 corporation.
(d) Securities "held
			 of record":
(1) Securities shall be deemed to
			 be "held of record" by each person who is identified as the owner of the
			 securities on a record of security holders maintained by or on behalf of the
			 insurer, subject to the following:
(A) In
			 each case where the records of security holders have not been maintained in
			 accordance with accepted practice, each additional person who would be
			 identified as an owner on such records if they had been maintained in
			 accordance with accepted practice shall be included as a holder of record.
(B) Securities identified as held
			 of record by a corporation, a partnership, a trust whether or not the trustees
			 are named, or other organization shall be considered to be held by one person.
(C) Securities identified as held
			 of record by one or more persons as trustees, executors, guardians, custodians
			 or in other fiduciary capacities with respect to a single trust, estate or
			 account shall be considered to be held of record by one person.
(D) Securities held by two or more persons as
			 co-owners shall be considered to be held by one person.
(E) Each outstanding unregistered or bearer
			 certificate shall be considered to be held of record by a separate person,
			 except to the extent the insurer can establish that if the securities were
			 registered they would be held of record under the provisions of this rule by a
			 lesser number of persons.
(F)
			 Securities registered in substantially similar names where the insurer has
			 reason to believe, because of the address or other indications, that the names
			 represent the same person, may be included as held of record by one person.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-3 - Reporting of securities

Current through Register Vol. 43, No. 28, July 11, 2024
Information concerning the beneficial ownership of securities
				shall be given as of January 31, 1966, or in the case of persons who
				subsequently assume any of the relationships specified in
				K.S.A.
				40-264, as of the date that the relationship
				was assumed.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-5 - Ownership of more than 10 percent of an equity security

Current through Register Vol. 43, No. 28, July 11, 2024
(a) In determining
			 whether a person is the beneficial owner, directly or indirectly, of more than
			 10 percent of any class of any equity security for the purpose of
			 K.S.A.
			 40-264, the class shall be deemed to consist
			 of the total number of shares of the class outstanding, but shall not include
			 any securities of the class held by or for the account of the insurer or a
			 subsidiary of the insurer.
(b) The
			 class of voting trust certificates or certificates of deposit shall consist of
			 the number of shares of voting trust certificates or certificates of deposit
			 issuable out of the total amount of outstanding shares of the class which may
			 be deposited under the voting trust agreement or deposit agreement in question,
			 whether or not all of the outstanding securities have been so deposited.
(c) A person acting in good faith
			 may rely on the information contained in the latest annual statement filed with
			 the commissioner concerning the number of shares outstanding in a class or, in
			 the case of voting trust certificates or certificates of deposit, the number
			 issuable.
(d) In determining
			 whether a person is the beneficial owner, directly or indirectly, of more than
			 10 percent of any class of equity security for the purpose of
			 K.S.A.
			 40-264, a person shall be deemed to be the
			 beneficial owner of securities of the class in which the person has the right
			 to acquire securities through the exercise of presently exercisable options,
			 warrants or rights, or through the conversion of presently convertible
			 securities.
(e) The securities
			 subject to the options, warrants, rights or conversion privileges held by a
			 person shall be deemed to be outstanding for the purpose of computing, the
			 percentage of outstanding securities of the class owned by the person described
			 in paragraphs (a), (b) and (c), but shall not be deemed outstanding for the
			 purpose of computing the percentage of the class owned by any other person.
			 This paragraph shall not be construed to relieve a person of any duty to comply
			 with K.S.A. 40-264 with respect to
			 equity securities consisting of options, warrants, rights or convertible
			 securities which are otherwise subject, as a class, to
			 K.S.A.
			 40-264.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-6 - Disclaimer of beneficial ownership

Current through Register Vol. 43, No. 28, July 11, 2024
Each person filing a statement may expressly declare that the
				filing of the statement shall not be construed as an admission that the person
				is, for the purpose of
				K.S.A.
				40-264 and
				40-265, the beneficial owner of
				any equity securities covered by the statement.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-7 - Exemptions from K.S.A. 40-264 and 40-265

Current through Register Vol. 43, No. 28, July 11, 2024
(a) During the
			 period of 12 months following their appointment and qualification, securities
			 held by the following persons shall be exempt from
			 K.S.A.
			 40-264 and
			 40-265.
(1) An executor or administrator of the
			 estate of the decedent;
(2) a
			 guardian or conservator; and
(3) a
			 receiver, trustee in bankruptcy, assignee for the benefit of creditors,
			 conservator, liquidating agent, and other similar persons duly authorized by
			 law to administer the estate or assets of other persons.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-9 - Certain transactions subject to K.S.A. 40-264 of the code

Current through Register Vol. 43, No. 28, July 11, 2024
The acquisition or disposition of each transferable option,
				put, call, spread or straddle shall be a sufficient change in the beneficial
				ownership of the security to which the privilege relates to require the filing
				of a statement reflecting the acquisition or disposition of the privilege. This
				section shall not exempt a person from filing the statement required upon the
				exercise of an option, put, call, spread or straddle.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-10 - Ownership of securities held in trust

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Beneficial
			 ownership of a security, for the purpose of
			 K.S.A.
			 40-264, shall include:
(1) The ownership of securities as a trustee
			 where either the trustee or members of the immediate family have a vested
			 interest in the income or corpus of the trust;
(2) the ownership of a vested beneficial
			 interest in a trust; and
(3) the
			 ownership of securities as a settlor of a trust in which the settlor has the
			 power to revoke the trust without obtaining the consent of all the
			 beneficiaries.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-11 - Exemption for small transactions

Current through Register Vol. 43, No. 28, July 11, 2024
(a) An acquisition
			 of a security or securities shall be exempt from
			 K.S.A.
			 40-264 where:
(1) The person acquiring the security or
			 securities does not dispose of them within six months therefore, except by a
			 gift of securities of the same class; and
(2) the person acquiring the security or
			 securities does not participate in acquisitions or in dispositions of
			 securities of the same class having a total market value in excess of $3,000
			 for any six month period during which the acquisitions occur.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-12 - Exemption from K.S.A. 40-265 of transactions which will not be reported under K.S.A. 40-264

Current through Register Vol. 43, No. 28, July 11, 2024
Any transactions exempt from the requirements of
				K.S.A.
				40-264 shall, be exempt from
				K.S.A.
				40-265.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-13 - Exemption from K.S.A. 40-265 of certain transactions effected in connection with a distribution

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Each purchase
			 and sale, or sale and purchase, of a security which is effected in connection
			 with the distribution of a substantial block of securities shall be exempt from
			 the provisions of
			 K.S.A.
			 40-265 if:
(1) The person effecting the transacting buys
			 and sells securities in the ordinary course of business;
(2) the person is acting in good faith;
(3) the security involved in the
			 transaction is:
(A) Acquired with the intent
			 to distribute it for the insurer or other person on whose behalf it is being
			 offered; or
(B) purchased in good
			 faith by or for the account of the person initiating the transaction in order
			 to stabilize the market price of securities of the type being offered, or to
			 cover an over-allotment or other short position created by the offering, and
(4) other persons not
			 within the purview of
			 K.S.A.
			 40-265 participating in the offering shall be
			 doing so on terms at least as favorable as the person initiating the
			 transaction and all other persons exempted from the provisions of
			 K.S.A.
			 40-265. Bona fide payment for performing the
			 functions of a distributing group shall not preclude an exemption otherwise
			 available under this section.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-15 - Exemption from K.S.A. 40-265 of certain transactions in which securities are received by redeeming other securities

Current through Register Vol. 43, No. 28, July 11, 2024
Each acquisition of an equity security (other than a
				convertible security or right to purchase a security) by a director or officer
				of the insurer issuing the security shall be exempt from the operation of
				K.S.A.
				40-265, upon condition that:
(a) The equity security is acquired by way of
			 redemption of another security of an insurer substantially all of those assets
			 other than cash (or government bonds) consist of securities of the insurer
			 issuing the equity security so acquired, and which:
(1) Represented substantially a stated or
			 readily ascertainable amount of the equity security;
(2) had a value which was substantially
			 determined by the value of such equity security; and
(3) conferred upon the holder the right to
			 receive the equity security without the payment of a consideration other than
			 the security redeemed.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-16 - Exemption of long-term profits incident to sales within six months of the exercise of an option

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Subject to the
			 limitations of subsection (b), each transaction involving the purchase and
			 sale, or sale and purchase, of an equity security which is pursuant to the
			 exercise of an option or similar right shall be exempt from the provisions of
			 K.S.A.
			 40-265 if it is acquired:
(1) More than six months before its exercise;
			 or
(2) pursuant to the terms of an
			 employment contract entered into more than six months before its exercise if
			 the contracts are approved by the commissioner of insurance.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-17 - Exemption from K.S.A. 40-265 of certain acquisitions and dispositions of securities pursuant to merger or consolidations

Current through Register Vol. 43, No. 28, July 11, 2024
(a) The following
			 transactions shall be exempt from the provisions of
			 K.S.A.
			 40-265:
(1)
			 The acquisition of a security of an insurer, pursuant to a merger or
			 consolidation, in exchange for a security of a company which, prior to the
			 merger or consolidation, owned 85 percent or more of the equity securities of
			 all other companies involved in the merger or consolidation except, in the case
			 of consolidation, the resulting company;
(2) the disposition of a security, pursuant
			 to a merger or consolidation of an insurer which, prior to the merger or
			 consolidation, owned 85 percent or more of the equity securities of the other
			 companies involved in the merger or consolidation except, in the case of
			 consolidation, the resulting company;
(3) the acquisition of a security of an
			 insurer, pursuant to a merger or consolidation in exchange for a security of a
			 company which, prior to the merger or consolidation, held over 85 percent of
			 the combined assets of the companies undergoing merger or consolidation,
			 computed according to their book values prior to the merger or consolidation as
			 determined by their most recent available financial statements for a 12 month
			 period prior to the merger or consolidation.
(4) the disposition of a security, pursuant
			 to a merger or consolidation, of an insurer which, prior to the merger or
			 consolidation, held over 85 percent of the combined assets of the companies
			 undergoing merger or consolidation computed according to their book values
			 prior to merger or consolidation, as determined by their most recent available
			 financial statements for a 12 month period prior to the merger or
			 consolidation.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-20 - Certain securities transactions not violative of K.S.A. 40-266

Current through Register Vol. 43, No. 28, July 11, 2024
(a) A person shall
			 not be deemed to have violated the provisions of
			 K.S.A.
			 40-266 if:
(1) the security transaction is in the
			 process of execution by a broker of an order for an account in which the person
			 has no direct or indirect interest; or
(2) a sale made by, or on behalf of, a dealer
			 in connection with a distribution of a substantial block of securities meets
			 the following conditions:
(A) The sale is
			 represented by an over-allotment in which the dealer is participating as a
			 member of an underwriting group, or the dealer or a person acting for the
			 dealer intends to offset the sale with a security to be acquired by or on
			 behalf of the dealer as a participant in an underwriting, selling, or
			 soliciting-dealer group of which the dealer is a member at the time of the
			 sale, whether or not the security to be acquired shall be subject to a prior
			 offering to existing securityholders or some other class of persons; and
(B) other persons not within the
			 purview of
			 K.S.A.
			 40-266 shall be participating in the
			 distribution of the block of securities on terms at least as favorable as those
			 on which the dealer is participating and to an extent at least equal to the
			 aggregate participation of each person exempted from the provisions of
			 K.S.A.
			 40-266 by this section. The performance of
			 the functions of a manager of a distributing group and the receipt of a bona
			 fide payment for performing the functions shall not preclude an exemption which
			 would otherwise be available under this subsection.
(3) The security shall be acquired by any
			 person who is entitled as an incident to ownership of an issued security, and
			 without the payment of consideration to receive another security "when issued"
			 or "when distributed," if:
(A) The sale shall
			 be made subject to the same conditions as those attached to the right of
			 acquisition;
(B) the person shall
			 exercise reasonable diligence to deliver the security to the purchaser promptly
			 after the right of acquisition matures; and
(C) the person shall report the sale on the
			 appropriate form for reporting transactions by persons subject to
			 K.S.A.
			 40-264.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-23 - Arbitrage transactions under K.S.A. 40-268

Current through Register Vol. 43, No. 28, July 11, 2024
It shall be unlawful for any director or officer of an insurer
				to effect any foreign or domestic arbitrage transaction in any equity security
				of an insurer, unless the transaction shall be included in the statements
				required by
				K.S.A.
				40-264, and the director or officer shall
				account to the insurer for the profits arising from the transaction as provided
				in K.S.A.
				40-265. The provisions of
				K.S.A.
				40-266 shall not apply to arbitrage
				transactions. The provisions of chapter 40, Kansas statutes annotated shall not
				apply to any bona fide foreign or domestic arbitrage transaction effected by
				any person other than a director or officer of the insurer.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-24 - Exemption from K.S.A. 40-265 of certain transactions; conversion of equity securities

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Deposit or
			 withdrawal of equity securities under a voting trust or deposit agreement. Each
			 acquisition or disposition of an equity security involved in the deposit of a
			 security under, or the withdrawal of security from, a voting trust or deposit
			 agreement, and the acquisition or disposition in connection therewith of the
			 certificate representing the security, shall be exempt from the operation of
			 K.S.A.
			 40-265 if all assets held under the voting
			 trust or deposit agreement immediately after the deposit or immediately prior
			 to the withdrawal consisted of equity securities of the same class as the
			 security deposited or withdrawn. This section shall not apply if the following
			 conditions exist:
(1) A purchase of an equity
			 security of the class deposited and a sale of any certificate representing an
			 equity security of the class; or
(2) a sale of an equity security of the class
			 deposited and purchase of a certificate representing an equity security of the
			 class, other than in a transaction involved in the deposit or withdrawal or in
			 a transaction exempted by another provision of the regulations under
			 K.S.A.
			 40-265, within a period of less than six
			 months which includes the date of the deposit or withdrawal.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 13 - INSIDER STOCK TRADING › Section 40-13-26 - Exemption from K.S.A. 40-265 of certain transactions involving the sale of subscription rights

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Each sale of a
			 subscription right to acquire a subject security of the same insurer shall be
			 exempt from the provision of
			 K.S.A.
			 40-265 if:
(1) The subscription right is acquired,
			 directly or indirectly, from the insurer without the payment of consideration;
(2) the subscription right by its
			 terms expires within 45 days after the issuance thereof;
(3) the subscription right by its terms is
			 issued on a pro rata basis to all holders of the beneficiary security of the
			 insurer; and
(4) a registration
			 statement under the securities act of 1933 is in effect for each subject
			 security, or the applicable terms of each exemption from registration have been
			 met.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 14 - INSURANCE PREMIUM FINANCE COMPANIES › Section 40-14-1 - Insurance premium finance companies; changes in officers; management

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Each premium
			 finance company authorized in Kansas shall report to the commissioner of
			 insurance each change in officers and directors, as listed on page one of the
			 application form, and file for each a biographical sketch, unless a
			 biographical sketch has been previously filed upon admission to this state.
(b) Each premium finance company
			 authorized in this state shall report the sale of controlling stock interests
			 to the insurance department within 30 days after such sale is completed and the
			 controlling interests are transferred.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 14 - INSURANCE PREMIUM FINANCE COMPANIES › Section 40-14-3 - Insurance premium finance companies; annual reports

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Each licensee
			 shall file a report annually with the commissioner of insurance. The report
			 shall contain information concerning the business and operations during the
			 preceding calendar or fiscal year within the state.
(b) The report shall be filed on or before
			 the first day of April. The time for filing may be extended by the commissioner
			 of insurance for a period not in excess of 60 days.
(c) The report shall be subscribed and
			 affirmed by the licensee under the penalty of perjury. The report shall be in
			 the form prescribed by the commissioner of insurance who may make and publish
			 annually an analysis and recapitulation of the reports.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 14 - INSURANCE PREMIUM FINANCE COMPANIES › Section 40-14-4 - Same; printing of forms

Current through Register Vol. 43, No. 28, July 11, 2024
The printing of the items required by
				K.S.A.
				40-2609, paragraph C, must be in at least 10
				point, pica style type and print at least as bold as any other printing on the
				premium finance agreement. The style of type required by this regulation shall
				be used on all premium finance agreements delivered on and after January 1,
				1991.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 14 - INSURANCE PREMIUM FINANCE COMPANIES › Section 40-14-6 - Same; notice of assignment; payments

Current through Register Vol. 43, No. 28, July 11, 2024
Unless the borrower has notice of actual or intended assignment
				of a premium finance agreement, payment by the borrower to the last known
				holder of the agreement shall be binding upon all subsequent holders or
				assignees.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 14 - INSURANCE PREMIUM FINANCE COMPANIES › Section 40-14-7 - Same; service charges

Current through Register Vol. 43, No. 28, July 11, 2024
(a) A service
			 charge on a premium finance agreement written at the inception of the
			 applicable insurance policy may be computed from the effective date of the
			 policy. A 30 day delay shall be allowed between the inception date of the
			 insurance policy and the consummation date of the premium finance agreement for
			 computing service charges.
(b) A
			 service charge of less than $1.00 need not be refunded due to elapsed time
			 frames between inception and consummation of the insurance policy and the
			 consummation date of the premium finance agreement, or because of prepayment of
			 the premium finance agreement.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 14 - INSURANCE PREMIUM FINANCE COMPANIES › Section 40-14-9 - Same; disclosure of annual percentage rate

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Each premium
			 finance company shall include in its premium finance agreement a provision to
			 disclose the annual percentage rate pursuant to Kansas administrative
			 regulation 75-6-26.
(b) The total
			 service charges included for a premium finance agreement and the total interest
			 charged on the agreement shall be added together when computing the annual
			 percentage rate of the disclosure.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 14 - INSURANCE PREMIUM FINANCE COMPANIES › Section 40-14-10 - Same; rates; filing

Current through Register Vol. 43, No. 28, July 11, 2024
Each premium finance company shall file with the commissioner
				of insurance a complete listing of all scheduled interest rates and service
				charges which the company intends to use in Kansas. Such listing shall be
				revised and refiled as necessary to continuously reflect current rates and
				charges.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 15 - VARIABLE ANNUITIES OR SEPARATE ACCOUNTS › Section 40-15-1 - Variable annuity or separate accounts; definition

Current through Register Vol. 43, No. 28, July 11, 2024
(a) The term
			 "contract on a variable basis" or "variable contract," when used in this
			 regulation, shall mean each policy or contract which provides for variable
			 insurance or annuity benefits according to the investment experience of a
			 separate account or accounts maintained by the insurer as to a policy or
			 contract, as provided for in
			 K.S.A.
			 40-436 of the laws of this state.
(b) "Variable contract agent," when used in
			 this regulation, shall mean an agent who shall sell or offer to sell any
			 variable contract.
(c) "Securities
			 examination," as used in paragraph 40-15-8 of this regulation, shall mean any
			 one of the following examinations:
(1) Each
			 state securities sales examination accepted by the securities and exchange
			 commission;
(2) the national
			 association of securities dealers, inc. examination for principals, or
			 examination for qualification as a registered representative;
(3) the various securities examinations
			 required by the New York stock exchange, the American stock exchange, Pacific
			 stock exchange, or any other registered national securities exchange;
(4) the securities and exchange
			 commission test given pursuant to section 15(b)(8) of the securities exchange
			 act of 1934; or
(5) the
			 examination recommended for the testing of variable contract agents by the
			 national association of insurance commissioners, when adopted by the insurance
			 department of any state or territory of the United States and approved for use
			 by the department by the securities and exchange commission.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 15 - VARIABLE ANNUITIES OR SEPARATE ACCOUNTS › Section 40-15-2 - Same; qualification of insurance companies

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Before any
			 company shall deliver or issue for delivery variable contracts within this
			 state the company shall submit to the commissioner of insurance a general
			 description of the kinds of variable contracts it intends to issue.
(b) A copy of the statutes and regulations of
			 the domicile state under which the company is authorized to issue variable
			 contracts shall be submitted upon the commissioner's request.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 15 - VARIABLE ANNUITIES OR SEPARATE ACCOUNTS › Section 40-15-3 - Same; conditions

Current through Register Vol. 43, No. 28, July 11, 2024
(a) A domestic
			 company issuing variable contracts shall establish one or more separate
			 accounts pursuant to
			 K.S.A.
			 40-436.
(b) The investments and liabilities of a
			 separate account shall be clearly identifiable and distinguishable from the
			 other investments and liabilities of the corporation. An investment of a
			 separate account shall not be pledged or transferred as collateral for a loan.
(c) The sale, exchange or other
			 transfer of assets may not be made by a company between its separate accounts,
			 or between any other investment account and one or more of its separate
			 accounts unless:
(1) In case of a transfer
			 into a separate account, the transfer is made solely to establish the account
			 or to support the operation of the contracts with respect to the separate
			 account to which the transfer is made; and
(2) the transfer, whether into or from a
			 separate account, is made:
(i) by a transfer
			 of cash; or
(ii) by a transfer of
			 securities having a valuation which could be readily determined in the
			 marketplace and the transfer of securities is approved by the commissioner of
			 insurance. The commissioner may authorize other transfers among accounts if, in
			 his opinion, the transfers would not be inequitable.
Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 15 - VARIABLE ANNUITIES OR SEPARATE ACCOUNTS › Section 40-15-4 - Same; filing of contracts

Current through Register Vol. 43, No. 28, July 11, 2024
The filing requirements applicable to variable contracts shall
				be the filing requirements for individual and group life insurance contract
				form filings under
				K.S.A.
				40-216,
				40-420,
				40-421 and
				40-434.