Chapter 40, INSURANCE

40-4311. Reinsurance authority; requirements and limitation; credit for reserves on risks ceded. (a) Any captive insurance company organized under the laws of this state may, with the consent of the commissioner, assume all or any part of an individual risk or all or any part of …

40-4312. No requirement to join rating or policy form organization. No captive insurance company shall be required to join a rating organization or a policy form organization. History: L. 1988, ch. 156, § 12; L. 2025, ch. 99, § 27; July 1.

40-4313. Companies prohibited from joining or benefiting from insolvency guarantee funds; notice. No captive insurance company shall be permitted to join or contribute financially to any plan, pool, association or guaranty or insolvency fund in this state, nor shall any captive i…

40-4314. Taxation of captive insurance companies and redomesticating captive insurance companies. (a) Each captive insurance company shall, at the time it files the report required by K.S.A. 40-4307, and amendments thereto, pay a tax on all premiums received on risks located in t…

40-4315. Statutes regulating trade practices applicable to certain insurance provided by captive insurance companies. To the extent the insurance provided or solicited by a captive insurance company involves persons or property not owned or controlled by a parent, affiliate or in…

40-4317. Rules and regulations; exemptions. The commissioner may adopt such rules and regulations relating to captive insurance companies as are necessary to carry out the provisions of this act. The commissioner, on a case-by-case basis, may by order, exempt a captive insurance …

40-4318. General insurance statutes not applicable unless specifically referenced in act; K.S.A. 40-2209 and 40-2215 applicable. (a) No provisions of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, other than those contained in this act or contained in specif…

40-4319. Captive insurance companies; pure captive insurance companies; rules and regulations, authority of commissioner. The commissioner may adopt rules and regulations establishing standards to ensure that a pure captive insurance company's parent or any of its affiliated comp…

40-4320. Same; actions requiring prior approval of commissioner. The following actions shall not be taken without the prior approval of the commissioner: (a) The dissolution of a captive insurance company; (b) the sale, exchange, lease, mortgage, assignment, pledge or other trans…

40-4321. Same; books and records; maintenance requirements. (a) Unless otherwise approved by the commissioner, a captive insurance company shall maintain its books, records, documents, accounts, vouchers and agreements in Kansas. Notwithstanding the foregoing, all electronic docu…

40-4322. Same; fund established. There is hereby created a fund in the state treasury to be known as the captive insurance regulatory and supervision fund to be administered by the commissioner. All moneys credited to such fund shall be expended only for the purpose of providing …

40-4323. Dormant captive insurance companies; certification of; authorization of commissioner to set and publish renewal fee. (a) As used in this section, unless the context requires otherwise, "dormant captive insurance company" means a captive insurance company that has: (1) Ce…

40-4324. Same; notification of material change required. The captive insurance company shall notify the commissioner in writing within 10 days of any material change in the financial condition or management of the captive insurance company. The commissioner shall designate materi…

40-4325. Branch captive insurance companies; establishment. (a) A branch captive insurance company, as defined in K.S.A. 40-4326, and amendments thereto, may be established in Kansas in accordance with the provisions of the captive insurance act. In addition to the general provis…

40-4326. Same; definitions. As used in K.S.A. 40-4325 through 40-4331, and amendments thereto: (a) "Alien" means formed under the laws of any country or jurisdiction other than the United States of America or any of its states, districts, commonwealths or possessions. (b) "Alien …

40-4327. Same; capital requirements; exemptions. (a) No branch captive insurance company shall be issued a certificate of authority unless it shall possess and thereafter maintain, as security for the payment of liabilities attributable to the branch operations: (1) Minimum capit…

40-4328. Same; certification of general good required. (a) In the case of a captive insurance company authorized as a branch captive, the branch captive insurance company shall petition the commissioner to issue a certificate setting forth the commissioner's finding that, after c…

40-4329. Same; annual report. (a) A branch captive insurance company shall file with the commissioner a copy of all reports and statements required to be filed under the laws of the jurisdiction in which the alien captive insurance company is formed, verified by oath of two of it…

40-4330. Same; examinations; confidentiality. (a) The examination of a branch captive insurance company pursuant to K.S.A. 40-4308, and amendments thereto, shall be of branch business and branch operations only, so long as the branch captive insurance company provides annually to…

40-4331. Same; taxation. In the case of a branch captive insurance company, the tax provided for in K.S.A. 40-4314, and amendments thereto, shall apply only to the branch business of such company. History: L. 2018, ch. 50, § 14; July 1.

40-4332. Special purpose insurance captives; definitions. As used in K.S.A. 40-4332 through 40-4352, and amendments thereto: (a) "Affiliate" means a company that controls, is controlled by or under common control with a special purpose insurance captive. (b) "Affiliated agreement…

40-4333. Same; applicable law. (a) No provision of the Kansas insurance laws, other than those specifically referenced in K.S.A. 40-4332 through 40-4352, and amendments thereto, apply to a special purpose insurance captive, its operations, assets, investments and special purpose …

40-4334. Certification required; requirements; authorization of commissioner to set and publish application fee. (a) To transact business in Kansas, a special purpose insurance captive shall: (1) Obtain from the commissioner a certificate of authority authorizing it to conduct re…

40-4335. Same; plan of operation. (a) A special purpose insurance captive must file, as part of its application, a plan of operation to consist of a description of the contemplated financing transaction or transactions and a detailed description of transaction documents to which …

40-4336. Same; commissioner's findings to approve application. (a) In order to approve an application and issue a certificate of authority to a special purpose insurance captive, the commissioner must find that: (1) The proposed plan of operation provides a reasonable and expecte…

40-4337. Same; incorporation of companies. A special purpose insurance captive may be incorporated as a stock insurer subject to the provisions in K.S.A. 40-205, and amendments thereto, or as a nonstock corporation, or may be formed as a limited liability company, partnership or …

40-4338. Same; miscellaneous requirements. (a) Activities of a special purpose insurance captive shall be limited to those necessary to accomplish its purpose as outlined in its plan of operation. (b) The name of a special purpose insurance captive shall not be deceptively simila…

40-4339. Same; contracts. A special purpose insurance captive may enter into a special purpose insurance captive contract with a ceding company, provided: (a) The special purpose insurance captive has been granted a certificate of authority to transact business as a special purpo…

40-4340. Same; issuance of securities. (a) A special purpose insurance captive may issue approved securities, subject to and in accordance with applicable law, its approved plan of operation and its organizational documents. A special purpose insurance captive may enter into and …

40-4341. Same; asset management. A special purpose insurance captive's assets shall be managed in accordance with an investment management agreement filed with and approved by order of the commissioner. A special purpose insurance captive shall invest at least 90% of its assets i…

40-4342. Same; admitted assets. Admitted assets of the special purpose insurance captive shall include permitted investments, proceeds from a securitization, premium and other amounts payable by a ceding insurer to the special purpose insurance captive, and any other assets appro…

40-4343. Same; prohibited activities. A special purpose insurance captive shall not: (a) Enter into a special purpose insurance captive contract with a person that is not authorized to transact the business of insurance or reinsurance in at least its state or country of domicile;…

40-4344. Same; dividends and distributions; limitations. (a) A special purpose insurance captive shall not declare or pay dividends or distributions in any form to its owners other than in accordance with the transaction agreements or plan of operation. (b) Dividends and distribu…

40-4345. Same; plan of operation; changes. Any material changes to a special purpose insurance captive's plan of operation shall require the prior written approval of the commissioner. The plan of operation must specify which deviations shall be considered material. History: L. 2…

40-4346. Same; affiliated agreements. Copies of all completed affiliated agreements to which the special purpose insurance captive is a party, including, but not limited to, the special purpose insurance captive contract or contracts and any reinsurance agreements to which the sp…

40-4347. Same; annual report. (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 by two of its executive officers or other authorized persons. (b) A special purpose insurance cap…

40-4348. Same; examinations; reports. (a) Whenever the commissioner of insurance deems it necessary, but at least once every five years, the commissioner may make, or direct to be made, a financial examination of any special purpose insurance captive. The commissioner may engage …

40-4349. Same; taxation. (a) Each special purpose insurance captive shall pay to the commissioner on or before May 1 of each year a premium tax at the rate of 0.214 of 1% on the first $20,000,000 of the assumed reinsurance premium, 0.143 of 1% on the next $20,000,000, 0.048 of 1%…

40-4350. Special purpose insurance captives; confidentiality. (a) Documents, materials or other information obtained by or disclosed to the commissioner pursuant to K.S.A. 40-4332 through 40-4352, and amendments thereto, shall: (1) Be confidential and privileged, except as provid…

40-4351. Same; conservation, rehabilitation or liquidation, grounds for. (a) The commissioner may, after notice and hearing, issue an order, subject to the Kansas administrative procedure act, to conserve, rehabilitate or liquidate a special purpose insurance captive domiciled in…

40-4352. Same; rules and regulations. The commissioner may promulgate all rules and regulations necessary to effectuate the provisions of K.S.A. 40-4332 through 40-4352, and amendments thereto. History: L. 2018, ch. 50, § 35; July 1.

40-4353. Citation of act. K.S.A. 40-4301 through 40-4304, 40-4306 through 40-4315, * 40-4317 through 40-4353, and amendments thereto, and K.S.A. 2025 Supp. 40-4354, and amendments thereto, shall be known and may be cited as the captive insurance act. History: L. 2018, ch. 50, § 1…

40-4354. Technology-enabled fiduciary financial institution insurance company; powers and duties; types of insurance authorized; naming requirements; payment-in-kind policies; policy provisions. (a) In addition to the types of insurance permitted under K.S.A. 40-4302, and amendme…

40-4355. Captive insurance companies; redomestication. (a) A foreign or alien insurer may become a domestic captive insurance company by complying with all of the requirements of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, relating to the organization and…

40-4361. Citation of act. K.S.A. 2025 Supp. 40-4361 through 40-4370, and amendments thereto, shall be known and may be cited as the Kansas protected cell captive insurance company act. History: L. 2025, ch. 99, § 1; July 1.

40-4362. Formation of protected cell captive insurance company. (a) One or more sponsors may form a protected cell captive insurance company under this act. This act shall apply to protected cell captive insurance companies. (b) A protected cell captive insurance company shall be…

40-4363. Definitions. As used in this act, unless the context requires otherwise: (a) "Act" means the Kansas protected cell captive insurance company act; (b) "general account" means all assets and liabilities of a protected cell captive insurance company not attributable to a pr…

40-4364. Filing requirements of applicants. In addition to the information required by K.S.A. 40-4302, and amendments thereto, each applicant-protected cell captive insurance company shall file with the commissioner the following: (a) Materials demonstrating how the applicant wil…

40-4365. Protected cells, establishment and maintenance, conditions of operations; powers of commissioner of insurance related thereto. A protected cell captive insurance company formed or licensed under this chapter may establish and maintain one or more incorporated or unincorp…

40-4366. Participants in protected cell captive insurance companies. (a) Associations, corporations, limited liability companies, partnerships, trusts and other business entities may be participants in any protected cell captive insurance company formed or licensed under this cha…