HOUSE BILL No. 2637 An Act concerning the changing of the domicile of foreign insurance companies; amending
K.S.A. 1997 Supp. 40-2,162 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

    Section 1. K.S.A. 1997 Supp. 40-2,162 is hereby amended to read as
follows: 40-2,162. (a) An insurer organized under the laws of any other
state and admitted to do business in this state for the purpose of writing
insurance may become a domestic insurer by complying with all of the
requirements of law relative to the organization and licensing of a do-
mestic insurer of the same type and by designating the insurer's principal
place of business at a place in this state. The domestic insurer will be
entitled to like certificates and licenses to transact business in this state,
and shall be subject to the authority and jurisdiction of this state.

    (b) A domestic insurer, upon the approval of the commissioner of
insurance, may transfer the insurer's domicile to any other state in which
it is admitted to transact the business of insurance, and upon such a
transfer shall cease to be a domestic insurer, and shall be admitted to this
state if qualified as a foreign insurer. The commissioner of insurance shall
approve the proposed transfer unless the commissioner determines the
transfer is not in the interest of the policyholders of this state.

    (c) The certificate of authority, agents' appointments and licenses,
rates and other items which the commissioner allows, in the commis-
sioner's discretion, that are in existence at the time an insurer licensed to
transact the business of insurance in this state transfers the insurer's cor-
porate domicile to this or any other state by merger, consolidation or any
other lawful method shall continue in full force and effect upon transfer
if the insurer remains duly qualified to transact the business of insurance
in this state. For purposes of existing authorizations and all other cor-
porate purposes, the insurer is deemed the same entity as it was prior to
the transfer of its domicile. All outstanding policies of a transferring in-
surer shall remain in full force and effect and need not be endorsed as
to the new name of the company or the company's new location unless
so ordered by the commissioner. A transferring insurer shall file new
policy forms with the commissioner on or before the effective date of the
transfer, but may use existing policy forms with appropriate endorsements
if allowed by, and under such conditions as approved by, the commis-
sioner. However, every transferring insurer shall notify the commissioner
of the details of the proposed transfer and shall file promptly any resulting
amendments to corporate documents filed or required to be filed with
the commissioner.

    (d) The commissioner may promulgate rules and regulations to carry
out the purposes of this act.

    New Sec. 2. A foreign insurer shall file restated articles of incorpo-
ration and a certificate of domestication with the secretary of state in a
form prescribed by the secretary of state and approved by the insurance
commissioner, to transfer to this state. A domestic insurer shall file with
the secretary of state a certificate or order issued by the insurance com-
missioner approving the transfer to another state. An insurer who has
transferred to this state prior to the effective date of this subsection, with
the approval of the insurance commissioner pursuant to this act, shall be
deemed in compliance with the provisions of this act.

    Sec. 3. K.S.A. 1997 Supp. 40-2,162 is hereby repealed.

    Sec. 4. This act shall take effect and be in force from and after its
publication in the Kansas register.

I hereby certify that the above Bill originated in the House,
and passed that body

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Speaker of the House.

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Chief Clerk of the House.

Passed the Senate __________________________

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President of the Senate

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Secretary of the Senate.

Aproved __________________________________

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Governor.