Chapter 40 — INSURANCE

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. Previous | Next LEGISLATIVE COORDINATING COUNC…

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. Previous | Next LEGISLATIVE COORDINATING COUNCIL General…

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…

40-4367. Investment of assets; methods of valuation and rating. (a) Notwithstanding the provisions of K.S.A. 2025 Supp. 40-4364, and amendments thereto, the assets of two or more protected cells may be combined for purposes of investment, and such combination shall not be constru…

40-4368. Application of the insurers supervision, rehabilitation and liquidation act; management of assets and liabilities by receiver. (a) Except as otherwise provided in this section the insurers supervision, rehabilitation and liquidation act shall apply to a protected cell ca…

40-4369. Pleading in legal actions; named parties; assets. (a) The pleadings in any legal action brought by or against a protected cell captive insurance company shall specify which protected cell or cells should be named as a party to the suit. If the general account is party to…

40-4370. Conversion; submission requirements. (a) (1) Upon the application of a protected cell captive insurance company, one of its protected cells may be converted to any form of captive insurance company authorized pursuant to chapter 40 of the Kansas Statutes Annotated, and a…

[Repealed or reserved.]

[Repealed or reserved.]

40-4403. History: L. 1992, ch. 168, § 3; L. 1993, ch. 43, § 1; Repealed, L. 1994, ch. 32, § 2; July 1. Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Session Documents Archived Schoo…

40-4404. History: L. 1992, ch. 168, § 4; Repealed, L. 1994, ch. 32, § 2; 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 US…

40-4407. History: L. 1992, ch. 168, § 7; Repealed, L. 1994, ch. 32, § 2; 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 US…

40-4408. Transfer of moneys in healthy kids trust fund to state general fund; healthy kids trust fund abolished. On the effective date of this act, the director of accounts and reports shall transfer all moneys in the healthy kids trust fund to the state general fund. On the effe…

40-4501. Citation of act. This act may be cited as the reinsurance intermediary act. History: L. 1992, ch. 15, § 1; December 31. Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Sessio…

40-4502. Definitions. As used in this act: (a) "Actuary" means a person who is a member in good standing of the American academy of actuaries. (b) "Controlling person" means any person, firm, association or corporation who directly or indirectly has the power to direct or cause t…

40-4503. Licensure of reinsurance brokers, managers and intermediaries; authorization of commissioner to set and publish application fee; nonresidents, designation of agent for service of process; refund of commissioner to issue license; exemption for attorneys. (a) No person, fi…

40-4504. Contracts between reinsurance brokers and insurers; written authorization required, contents. Transactions between a reinsurance broker and the insurer it represents in such capacity shall only be entered into pursuant to a written authorization, specifying the responsib…

40-4505. Same; records to be maintained by reinsurance broker; rights of insurer to access, copy and audit records. (a) For at least 10 years after expiration of each contract of reinsurance transacted by the reinsurance broker, the reinsurance broker shall keep a complete record…

40-4506. Same; conditions; broker to provide insurer annual statement of financial condition. (a) An insurer shall not engage the services of any person, firm, association or corporation to act as a reinsurance broker on its behalf unless such person is licensed as required by su…

40-4507. Contracts between reinsurance managers and reinsurers; writing and commissioner's approval required; contents. Transactions between a reinsurance manager and the reinsurer it represents in such capacity shall only be entered into pursuant to a written contract, specifyin…

40-4508. Same; reinsurance managers precluded from taking certain actions. The reinsurance manager shall not: (a) Cede retrocessions on behalf of the reinsurer, except that the reinsurance manager may cede faculative retrocessions pursuant to obligatory faculative agreements if t…

40-4509. Same; conditions; manager to provide reinsurer annual statement of financial condition; actuarial opinion on adequacy of loss reserves; authority over retrocessional contracts and syndicate participation; notice of contract termination to commissioner; reinsurance manage…

40-4510. Examination; access to books, bank accounts and records. (a) A reinsurance intermediary shall be subject to examination by the commissioner pursuant to K.S.A. 40-222 and 40-223 and amendments thereto. The commissioner shall have access to all books, bank accounts and rec…

40-4511. History: L. 1992, ch. 15, § 11; 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 US…

40-4512. Rules and regulations. The commissioner may adopt rules and regulations for the implementation and administration of this act. History: L. 1992, ch. 15, § 12; December 31. Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archi…

40-4513. Continuation of existing contracts. Contracts between an insurer and a reinsurance broker or a reinsurer and a reinsurance manager which became effective on or before the effective date of this act may continue in full effect and force until June 30, 1993. History: L. 19…

[Repealed or reserved.]