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 9  AN ACT concerning insurance; merger and consolidation of certain in-
10    surance entities; amending K.S.A. 1996 Supp. 40-507 and repealing
11    the existing section.
12
13  Be it enacted by the Legislature of the State of Kansas:
14    Section 1.  K.S.A. 1996 Supp. 40-507 is hereby amended to read as
15  follows: 40-507. (a) Every mutual life insurance company formed under
16  authority of K.S.A. 40-501 et seq. and amendments thereto may:
17    (1)  Merge or consolidate with any other domestic mutual life insur-
18  ance company;
19    (2)  merge or consolidate with any other non-domestic mutual life
20  insurance company if such merger or consolidation is authorized by the
21  laws of the state or territory in which such non-domestic company is
22  organized; and
23    (3)  merge or consolidate with a nondomestic nonprofit health services
24  corporation or nonprofit medical and hospital service corporation if such
25  merger or consolidation would be permitted by the state regulatory official
26  or officials having jurisdiction over such nondomestic nonprofit health
27  services corporation or nonprofit medical and hospital service corporation
28  and the surviving or resulting company is a domestic mutual life insurance
29  company; and
30    (3) (4)  by virtue of such merger or consolidation, do the kinds of
31  insurance business in the manner and for the purposes for which a mutual
32  life insurance company may be organized in this state or in the manner
33  and for the purposes for which a non-domestic mutual life insurance
34  company may be licensed or authorized to do business in this state.
35    (b)  When a mutual life insurance company of this state shall be
36  merged or consolidated with a mutual life insurance company organized
37  under the laws of any other state, the commissioner of insurance in an
38  order of approval shall direct that the assets of the domestic company be
39  delivered to the company with which the domestic company is merged
40  or consolidated.
41    Sec. 2.  K.S.A. 1996 Supp. 40-507 is hereby repealed.
42    Sec. 3.  This act shall take effect and be in force from and after its
43  publication in the statute book.
SB 225