40-4323. Same; dormant captive insurance companies; certification of; renewal. (a) As used in this section, unless the context requires otherwise, “dormant captive insurance company” means a captive insurance company that has: (1) Ceased transacting the business of insurance, including the issuance of insurance policies; and (2) no remaining liabilities associated with insurance business transactions or […]
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 material changes through rules and regulations. History: L. 2018, ch. 50, § 7; July 1.
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 provisions of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, the provisions of […]
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 captive insurance company” means any insurance company formed to write insurance business […]
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 capital and surplus of an amount equal to the amount set forth in K.S.A. 40-4304, and […]
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 considering the character, reputation, financial responsibility, insurance experience and business qualifications of the officers […]
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 its executive officers. Such reports and statements shall […]
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 the commissioner a certificate of compliance, or its equivalent, issued by or filed with the […]
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 agreements” means written agreements, including a special purpose insurance captive contract, between a special purpose insurance captive […]
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 insurance captive contracts. Notwithstanding the foregoing, article 33 of chapter 40 of the Kansas Statutes Annotated, […]
40-4334. Same; certification required; requirements. (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 reinsurance business in Kansas; (2) hold at least one meeting of its board of directors each year within Kansas; (3) maintain its principal place of […]
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 the special purpose insurance captive will be a party, including, but not […]
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 expected successful operation; (2) the terms of the transactions proposed in the plan of […]
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 limited partnership. History: L. 2018, ch. 50, § 20; July 1.
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 similar to or likely to be confused with another existing business name registered […]
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 purpose insurance captive under this section; and (b) the special purpose insurance captive provides […]
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 perform all its obligations under any required contract to facilitate the issuance of these […]
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 in cash and securities that are investment grade at the time of the […]
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 approved by the commissioner. Additionally, letters of credit and guarantees of a parent may be recognized […]
