CHAPTER 22
HOUSE BILL No. 2280
An Act concerning change of domicile of mutual holding
companies; amending K.S.A.
1998 Supp. 40-2,162 and repealing the existing section; also
repealing K.S.A. 1998 Supp.
40-2,162a.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 1998 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 mutual holding company organized
under the laws of any other
state may become a domestic mutual holding company by complying
with
all of the requirements of law relative to the organization of a
domestic
mutual holding company and by designating the mutual holding
com-
pany's principal place of business at a place in this state. The
domestic
mutual holding company shall be subject to the authority and
jurisdiction
of this state.
(b) (c) 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) (d) 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 corpo-
rate purposes, the insurer or mutual holding company is
deemed the same
entity as it was prior to the transfer of its domicile. All
outstanding policies
of a transferring insurer 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
effec-
tive date of the transfer, but may use existing policy forms with
appro-
priate endorsements if allowed by, and under such conditions as
approved
by, the commissioner. However, every transferring insurer or
mutual
holding company shall notify the commissioner of the details
of the pro-
posed transfer and shall file promptly any resulting amendments to
cor-
porate documents filed or required to be filed with the
commissioner.
(d) (e) The
commissioner may promulgate rules and regulations to
carry out the purposes of this act.
(f) A foreign insurer or mutual
holding company shall file restated
articles of incorporation and certificate of domestication with
the secre-
tary 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 commissioner approving the transfer to another state.
An in-
surer 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. 2. K.S.A. 1998 Supp. 40-2,162 and 40-2,162a are
hereby re-
pealed.
Sec. 3. This act shall take effect and be in force
from and after its
publication in the Kansas register.
Approved March 23, 1999.
Published in the Kansas Register April 1, 1999.
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