Chapter 40, INSURANCE

40-3907. Application to all covered claims. This act shall apply to all covered claims arising from damage to all buildings or structures. History: L. 1982, ch. 192, § 8; L. 2016, ch. 72, § 7; July 1.

40-3908. Cities and counties not parties to insurance contract. This act does not make any city or county a party to any insurance contract nor is the insurer liable to any party for any amount in excess of the proceeds otherwise payable under its insurance policy. History: L. 19…

40-3909. Insurers immune. Insurers complying with this act, or attempting in good faith to comply with this act, shall be immune from civil and criminal liability and such actions shall not be deemed in violation of K.S.A. 40-2404 and any amendments thereto, including withholding…

40-3910. Commissioner; rules and regulations. The commissioner of insurance is hereby authorized to promulgate rules and regulations necessary to carry out the provisions of this act. History: L. 1982, ch. 192, § 11; July 1.

40-4001. Conversion authority; review by commissioner; act to be liberally construed. A domestic mutual insurer issuing nonassessable policies may be converted into a domestic stock insurer. To that end, it may provide and carry out a plan for such conversion by complying with th…

40-4002. Resolution by board of directors; plan of conversion; approval by commissioner and policyholders; withdrawal or amendment of plan. (a) A resolution shall be adopted by a ⅔ majority of the entire board of directors of the insurer which shall state the reasons such convers…

40-4003a. Plan of conversion; terms and conditions. The plan of conversion shall comply with the terms and conditions set forth in subsection (a), (b), (c) or (d) as follows: (a) Plan of conversion in which policyholders exchange their membership interests for cash, securities, p…

40-4003b. Same; establishment of closed block for policyholder dividends. The commissioner may require that the conversion plan of a mutual life insurer provide for the establishment, for policyholder dividend purposes only, of a closed block. In the event that the commissioner r…

40-4003c. Continuation in force of policies; extinguishment of policyholder rights. (a) All policies in force on the effective date of conversion remain in force under the terms of the policies, except that the following rights, to the extent they existed in the mutual company, s…

40-4004. Consideration and approval or disapproval of plan by commissioner; hearings. (a) The commissioner shall examine the plan submitted pursuant to subsection (b) or (c) of K.S.A. 40-4002, and amendments thereto. As a part of such examination, the commissioner shall order a h…

40-4005. Same; meeting for approval by policyholders. The meeting called for approval of the plan by the policyholders prescribed by K.S.A. 40-4002 and amendments thereto shall be called by a majority of the board of directors, the chairperson of the board or the president. A cop…

40-4006. Limitation on ownership of voting stock of converted insurer; violations; remedies. (a) For five years from the conversion date, no person (including any individual, corporation, firm or affiliated group of individuals, corporations or firms), other than a parent corpora…

40-4007. Prohibition on certain persons benefiting from assistance in conversion. (a) No director, officer, agent or employee of the insurer shall secure any unfair advantage through a plan of conversion by reducing the volume of new business written, by cancellation or by reduci…

40-4008. Issuance of certificate of authority as final act of conversion; conversion not to affect rights of insurer. Within 30 days of receipt of the filing of the approved plan in accordance with subsection (f) of K.S.A. 40-4002 and the amended articles of incorporation, the co…

40-4009. Directors and officers of mutual insurer, service. The directors and officers of the mutual insurer shall serve until new directors and officers have been duly elected and qualified pursuant to the plan and articles of incorporation or bylaws of the converted insurer or …

40-4010. Securities issued under plan exempt from securities laws. The offer or sale of securities issued under the plan developed and approved in accordance with the provisions of this act shall be exempt from the Kansas securities laws. History: L. 1985, ch. 154, § 10; L. 1997,…

40-4011. Actions challenging validity of conversion; security required. No action challenging the validity of a conversion, or any aspect of such conversion under this act, may be commenced more than 30 days after the final act of conversion. In any action challenging the plan of…

40-4012. Rules and regulations. The commissioner may adopt rules and regulations to carry out the provisions of this act. History: L. 1985, ch. 154, § 12; L. 1997, ch. 107, § 14; July 1.

40-4013. Commissioner to charge insurer for expenses. The commissioner shall also have the authority to retain experts and may charge and collect from the insurer the actual amount of expenses, including the expenses of retaining experts, reasonably incurred by the state in disch…

40-4014. Filing amended articles of incorporation with secretary of state. Not later than 24 hours after issuance of the certificate of authority to the converted stock insurer, a certified copy of the amended articles of incorporation of the insurer shall be filed with the secre…

40-4101. Definitions. As used in this act: (a) "Commissioner" means the insurance commissioner of this state or the commissioner, director or superintendent of insurance in any other state. (b) "Completed operations liability" means liability arising out of the installation, main…

40-4102. Kansas charter; must be licensed insurance company; submission of plan of operation or feasibility study; information required to be provided to national association of insurance commissioners. A risk retention group seeking to be chartered in this state must be chartere…

40-4103. Requirements of risk retention groups chartered in foreign states; authorization of commissioner to set and publish fees. Risk retention groups chartered in states other than this state seeking to do business as a risk retention group in this state shall observe and abid…

40-4108. Risk retention group prohibited from joining insolvency guaranty fund. No risk retention group shall be permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall any risk retention group, or its …

40-4109. Policy issued to risk retention group not required to be countersigned. A policy of insurance issued to a risk retention group or any member of that group shall not be required to be countersigned as otherwise provided by K.S.A. 40-246, and amendments thereto. History: L…

40-4114. Rules and regulations. The commissioner is hereby authorized to adopt such rules and regulations relating to risk retention groups as may be necessary to carry out the provisions of this act. History: L. 1986, ch. 166, § 14; L. 1987, ch. 172, § 13; April 30.

40-4115. Purchasing groups satisfying criteria of federal law exempt from certain state laws; insurers doing business with purchasing groups exempt from certain state laws. Any purchasing group meeting the criteria established under the provisions of the federal liability risk re…

40-4116. Requirements of purchasing group doing business in state; authorization of commissioner to set and publish notification fee; consent to service of process on commissioner of insurance; provisions not applicable to certain purchasing groups. (a) (1) A purchasing group tha…

40-4117. Purchase of insurance through surplus lines agent or broker required, when. A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located, u…

40-4118. Federal preemption of commissioner's powers; injunctive authority restricted. The commissioner is authorized to make use of any of the powers established under the insurance code of this state to enforce the laws of this state so long as those powers are not specifically…

40-4119. Agents and brokers for risk retention groups; licensure. Any person acting, or offering to act, as an agent or broker for a risk retention group, which solicits members, sells insurance coverage, purchases coverage for its members located within the state or otherwise do…

40-4120. Order of United States district court enjoining risk retention group from doing business enforceable in state courts. An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating, in any st…

40-4201. Definitions. As used in this act, unless the context requires otherwise: (a) "Prepaid service plan" means any person, company, corporation, partnership or other legal entity who collects periodic fees on a prepaid basis from residents of this state in connection with for…

40-4202. Plan required to enter agreements with providers and members; provider agreement, retention and guarantee of services; membership agreement, terms. (a) A prepaid service plan shall not operate in Kansas without entering into a provider agreement with the provider and a m…

40-4204. Utilization of services; payment of provider; right of provider not limited. Whenever a member utilizes the services of a prepaid service plan under the terms of a written contract as required in K.S.A. 40-4202, the payment to the provider of any amount by or on behalf o…

40-4205. Books and records, maintenance; examination; confidentiality. For the duration of the written agreements referred to in K.S.A. 40-4202 and for five years thereafter, every prepaid service plan shall maintain at its principal administrative office adequate books and recor…

40-4206. Use of provider's name in advertising. A prepaid service plan may only use a provider's name in advertisements and promotional materials after obtaining the provider's approval. History: L. 1987, ch. 157, § 6; January 1, 1988.

40-4207. Membership fees; fiduciary responsibility of plan; deposit in bank account; records. All membership fees collected by a prepaid service plan on behalf of members shall be held by the prepaid service plan in a fiduciary capacity and shall be deposited promptly after recei…

40-4208. Basis of compensation paid to plan. The compensation paid to the prepaid service plan shall in no way be contingent on claim experience. This section shall not prevent the compensation of a prepaid service plan from being based on membership fees collected or number of c…

40-4209. Certificate of registration; application; authorization of commissioner to set and publish filing fee; issuance or continuation, when. (a) (1) No person shall act as or hold such person out to be a prepaid service plan in this state unless such person holds a certificate…

40-4211. Deposit of securities with commissioner to guarantee performance; surety bond or irrevocable letter of credit in lieu of securities deposit. (a) Each prepaid service plan shall deposit and maintain with the commissioner of insurance securities of the type eligible for de…

40-4301. Definitions. As used in the captive insurance act, unless the context requires otherwise: (a) "Affiliated company" means any person, other than a natural person in that person's individual capacity, in the same corporate system as a parent, or an associate member by comm…

40-4302. Certificate of authority to provide insurance coverage; certain risks not authorized to be covered; requirements for doing business; documents and information required to be filed with commissioner; examination and registration fees; issuance of certificate of authority;…

40-4303. Name of company; exceptions. (a) The word "captive" shall be incorporated into the name of every captive insurance company organized under the laws of this state. No captive insurance company shall adopt a name that is the same, deceptively similar or likely to be confus…

40-4304. Capital requirements. (a) No captive insurance company shall be issued a certificate of authority unless such company shall possess and thereafter maintain unimpaired paid-in capital and surplus of not less than: (1) $250,000, in the case of a pure captive insurance comp…

40-4306. Incorporation of companies; incorporators, number and residency requirements; petition of commissioner for issuance of certificate that company promotes welfare of state; certificate and articles of incorporation to be filed with secretary of state; organization fee; cap…

40-4307. Annual report of financial condition. (a) Prior to March 1 of each year, each captive insurance company shall submit to the commissioner a report of its financial condition, verified by oath of two of its executive officers. (b) The report may be filed using generally ac…

40-4308. Examination of companies; report; orders; confidentiality. (a) Whenever the commissioner deems necessary, but at least once every five years, the commissioner may make, or direct to be made, a financial examination of any captive insurance company in the process of organ…

40-4309. Suspension or revocation of certificate of authority; grounds. (a) The certificate of authority of a captive insurance company to do an insurance business in this state may be suspended or revoked by the commissioner for any of the following reasons: (1) The captive insu…

40-4310. Investments; restrictions and limitations. (a) Captive insurance companies shall comply with: (1) Except for any payment-in-kind assets held by a technology-enabled fiduciary financial institution insurance company, the investment requirements contained in articles 2a an…