Brief⁽¹⁾

H.B. 2280, as amended, amends the law which provides a framework for an insurance company authorized to do business in Kansas but located in another state to change its legal residence from that state to Kansas. The process is commonly referred to as "redomestication."

H.B. 2280 allows not only the relocation of an insurance company but a mutual holding company organized under the laws of another state. The mutual holding company would have to comply with all of the requirements of law relative to the organization of a domestic mutual holding company and designate a principal place of business in this state. The "redomesticated" holding company would then be subject to the Kansas Insurance Commissioner.

To complete the relocation, the foreign mutual holding company must file restated articles of incorporation and its certificate of domestication with the Kansas Secretary of State.

The House Committee amendment was technical to include in the title and repealer K.S.A. 1998 Supp. 40-2,162a.

Background

H.B. 2280 was requested by the AmVestors Financial Corporation whose representative indicated an Iowa mutual holding company was investigating the possibility of redomesticating to Kansas. The bill would make that relocation easier and could encourage other mutual holding companies to consider relocation to Kansas.

The bill was supported by the Kansas Insurance Department and the Kansas Life Insurance Association.

Any fiscal impact resulting from the bill could be absorbed within the existing budgets of the Insurance Commissioner and the Secretary of State.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.