Chapter 40 — INSURANCE

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…

40-4203. History: L. 1987, ch. 157, § 3; L. 1992, ch. 154, § 7; Repealed, L. 2023, ch. 49, § 6; July 1. Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Session Documents Archived Scho…

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. Previous | Next LEGISLATIVE COORDINATING COU…

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…

40-4210. History: L. 1987, ch. 157, § 10; Repealed, L. 1997, ch. 24, § 7; July 1. Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Session Documents Archived School Finance Documents U…

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…

[Repealed or reserved.]

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…

40-4305. History: L. 1988, ch. 156, § 5; Repealed, L. 2018, ch. 50, § 50; July 1. Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Session Documents Archived School Finance Documents U…

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…

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. Previous | Next LEGISLATIVE COORDINATING…

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…

40-4316. History: L. 1988, ch. 156, § 16; Repealed, L. 2018, ch. 50, § 50; July 1. Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Session Documents Archived School Finance Documents …

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. Previous | Next LEGISLATIVE COORDINATING CO…

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 …