40-209. Foreign companies; requirements to transact business, waiver thereof; certificate of authority; application of corporation code and other laws.
40-209
40-209. Foreign companies; requirements to transactbusiness, waiver thereof;certificate of authority; application of corporation code andother laws.(a) Any insurance company organized under the laws of any other country,state or territory, upon application, may be authorized to transactbusiness in this state, when possessed of the required amount of paid-upcapital and surplus, or surplus only if a mutual company, and:
(1) Has made thedeposit required by this code with the department of insurance of this orany other state in the United States;
(2) participates to the extent possible in the insurance regulatoryinformation system administered by the national association of insurancecommissioners;
(3) has submitted an examination report of its financial condition andaffairs which has been conducted by the insurance department of the stateof domicile within five years of the date of applicationunless thecommissioner determines that an earlier report will satisfy the purpose ofthis provision;
(4) demonstrates that any majority ownership interests are in soundfinancial condition;
(5) is not owned, managed or controlled by persons previouslyconvicted of criminal activity involving fraud or embezzlement or offensesof a similar nature;
(6) has been in operation at least three years and has been thesubject of an examination of its affairs and financial condition other thanits organizational examination. This requirement does not apply tosubsidiary or affiliate companies with substantially the same management ofan admitted company, a continuing corporation resulting from merger orconsolidation or a company whose admission is determined by thecommissioner to be in the best public interest;
(7) the company will not require immediate regulatory attention by thedepartment upon admission pursuant to K.S.A. 40-222b and amendments thereto.
(b) The authorityshall not be granted, continued or renewed to any insurance company whichis controlled, as such word is defined in subsection (c) of K.S.A. 40-3302,and amendments thereto,by another state of theUnited States or by a foreign government, or by any political subdivisionof either.
(c) Every such company shall file a certified copy of its charter ordeed of settlement with the commissioner of insurance, together with astatement, under oath of the president, vice-president or other chiefofficer and the secretary of the company for which they act, stating thename of the company, the place where located, and the amount of itscapital, with a detailed statement of the facts and items required fromcompanies organized under the laws of this state and a copy of the lastannual report, if any was made, under any law of the state or country inwhich such company was incorporated.
(d) Upon the application of any such insurance company for a certificate ofauthority to transact business in this state, the commissioner of insuranceshall be satisfied that the companyis possessed of moneyand other admitted assets in excess of its liabilities, as herein provided,and that it has otherwise complied with all the other requirements of thiscode. The commissioner shall thereupon issue a certificate of authority to such companyauthorizing it to transact the classes of insurance permitted under itsarticles of incorporation and by the provisions of this code.
(e) The fundsof any such insurance company, in excess of theminimum paid-up capital required by this code, may at all times be investedin such securities as are or may be authorized by the laws of the state inwhich such company is organized or in which it has and maintains its UnitedStates deposit.
(f) (1) Except as provided in paragraph (2), the commissioner ofinsurance may,upon renewal of a certificate of authority waive any of the above requirementsexcept those relating to assets, capital and surplus.
(2) The commissioner of insurancemay, at the commissioner'sdiscretion, waive any of the aboverequirements forprescription drug plan sponsors as defined by 42 U.S.C. 1395w-151 as in effecton January 1, 2006.
(g) Whenever any insurance company organized under the laws of any othercountry, state or territory is issued a certificate of authority totransact insurance in this state by the commissioner of insurance pursuantto this section, such company shall not be required to comply with theprovisions of the general corporation code relating to foreigncorporations, nor shall any such company be required to file with thesecretary of state its articles of incorporation, charter, bylaws or otherdocuments, or any amendments thereof, unless specifically required to do soby law.
History: L. 1927, ch. 231, 40-209; L. 1957, ch. 272, § 1; L. 1972, ch. 53, §4; L. 1982, ch. 190, § 1; L. 1984, ch. 161, § 1;L. 2006, ch. 75, § 1;L. 2007, ch. 150, § 3; July 1.