40-2917. Termination of operation of association, when; discontinuance of payments to association; distribution of assets of company.
40-2917
40-2917. Termination of operation of association, when; discontinuanceof payments to association; distribution of assets of company.(a) The commissioner shall by order terminate the operation of theKansas insurance guaranty association as to any kind of insurance coveredby this act with respect to which he has found, after hearing, that thereis in effect a statutory or voluntary plan which; (1) is a permanent planwhich is adequately funded or for which adequate funding is provided; and
(2) extends, or will extend to the Kansas policyholders and residentsprotection and benefits with respect to insolvent insurers notsubstantially less favorable and effective to such policyholders andresidents than the protection and benefits provided with respect to suchkinds of insurance under this act.
(b) The commissioner shall by the same such order authorizediscontinuance of future payments by insurers to the Kansas insuranceguaranty association with respect to the same kinds of insurance:Provided, The assessments and payments shall continue, as necessary,to liquidate covered claims of insurers adjudged insolvent prior to saidorder and the related expenses not covered by such other plan.
(c) In the event the operation of the Kansas insurance guarantyassociation shall be so terminated as to all kinds of insurance otherwisewithin its scope, the association as soon as possible thereafter shalldistribute the balance of moneys and assets remaining, after discharge ofthe functions of the association with respect to prior insurer insolvenciesnot covered by such other plan, together with related expenses, to theinsurers which are then writing in this state policies of the kinds ofinsurance covered by this act and which had made payments to theassociation, pro rate upon the basis of the aggregate of such payments madeby the respective insurers during the period of five (5) years nextpreceding the date of such order. Upon completion of such distribution withrespect to all of the kinds of insurance covered by this act, this actshall be deemed to have expired.
History: L. 1970, ch. 185, § 17; March 27.