40-3305. Registration by insurers of an insurance holding company system; exceptions; registration statement, contents; information exempt from disclosure; changes in information disclosed; terminatio
40-3305
40-3305. Registration by insurers of an insurance holding companysystem; exceptions; registration statement, contents; information exemptfrom disclosure; changes in information disclosed; termination ofregistration; consolidated registration statements and reports;exemptions; disclaimer of affiliation; violations.(a) Every insurer which is authorized to do business in this state andwhich is a member of an insurance holding company system shall registerwith the commissioner of insurance, except a foreign insurer subject toregistration requirements and standards adopted by statuteor regulationin the jurisdiction of its domicile which are substantially similar tothose contained in this section. Any insurer which is subject toregistration under this section shall register within 15 days after itbecomes subject to registration, and annuallythereafter by May 1 of each year unless thecommissioner of insurance for good cause shown extends the time forregistration, and then within such extended time. The commissioner ofinsurance may require any authorized insurer which is a member of aholding company system and which is not subject to registration under thissection to furnish a copy of the registration statement, the summaryspecified in subsection (c) or otherinformation filed by such insurance company with the insuranceregulatory authority of domiciliary jurisdiction.
(b) Every insurer subject to registration shall file a registrationstatement on a form provided by the commissioner of insurance, whichshall contain current information about:
(1) The capital structure, general financial condition, ownershipand management of the insurer and any person controlling the insurer;
(2) the identity and relationship of every member of the insuranceholding companysystem;
(3) the following agreements in force andtransactions currently outstanding or which have occurred during the lastcalendar year between such insurer and itsaffiliates:
(A) loans, other investments, or purchases, sales or exchanges ofsecurities of the affiliates by the insurer or of the insurer by itsaffiliates;
(B) purchases, sales, or exchanges of assets;
(C) transactions not in the ordinary course of business;
(D) guarantees or undertakings for the benefit of an affiliate whichresult in an actual contingent exposure of the insurer's assets toliability, other than insurance contracts entered into in the ordinarycourse of the insurer's business;
(E) all management agreements and service contracts and all cost sharingarrangements;
(F) reinsurance agreements;
(G) dividends and other distributions to shareholders; and
(H) consolidated tax allocation agreements.
(4) Other matters concerning transactions between registeredinsurers and any affiliates as may be included from time to time in anyregistration forms adopted or approved by the commissioner ofinsurance;
(5) any pledge of the insurer's stock, including stock of any subsidiaryor controlling affiliate, for a loan made to any member of the insuranceholding company system.
(c) All registration statements shall contain a summary outlining allitems in the current registration statement representing changes from the priorregistration statement.
(d) No information need be disclosed on the registrationstatementfiled pursuant to subsection (b) if such information isnot material for the purpose of this section. Unless the commissioner ofinsurance by rules and regulations or order providesotherwise, sales,purchases, exchanges, loans or extensions of credit, investments orguarantees,involving .5% or less of an insurer's admittedassets as of the December 31 next preceding shall not be deemedmaterial for purposes of this section.
(e) Each registered insurer shall keep current the informationrequired to be disclosed in such insurer's registration statementby reportingallmaterial changes or additions on amendment forms provided by thecommissioner of insurance within 15 days after the end of themonth in which it learns of each such change or addition, except eachregistered insurer shall report all dividends and other distributionsto shareholders within five business days following itsdeclaration. Any such dividend or distribution shall not be paid for at least10 business days from the commissioner's receipt of the notice of itsdeclaration.
(f) Any person within an insurance holding company system subject toregistration shall be required to provide complete and accurate information toan insurer, where such information is reasonably necessary to enable theinsurer to comply with the provisions of this act.
(g) The commissioner of insurance shall terminate theregistrationof any insurer which demonstrates that such insurer no longer is amember of aninsurance holding company system.
(h) The commissioner of insurance may require or allow two ormore affiliated insurers subject to registration hereunder to file aconsolidated registration statement.
(i) The commissioner of insurance may allow an insurer which isauthorized to do business in this state and which is part of aninsurance holding company system to register on behalf of any affiliatedinsurer which is required to register under subsection (a)and to file all information and material required to be filedunder this section.
(j) The provisions of this section shall not apply to anyinformation or transaction if and to the extent the commissioner ofinsurance by order shallexempt the same from theprovisions of this section.
(k) Any person may file with the commissioner of insurance adisclaimer of affiliation with any authorized insurer or such adisclaimer may be filed by such insurer or any member of an insuranceholding company system. The disclaimer shall fully disclose all materialrelationships and bases for affiliation between such person and suchinsurer as well as the basis for disclaiming such affiliation. After adisclaimer has been filed, the insurer shall be relieved of any duty toregister or report under this section which may arise out of theinsurer's relationship with such person unless and until thecommissioner of insurance disallows such a disclaimer. The commissionerof insurance shall disallow such a disclaimer only after furnishing allparties in interest with notice and opportunity to be heardin accordance with the provisions of the Kansasadministrative procedure act.
History: L. 1974, ch. 183, § 5;L. 1988, ch. 356, § 120;L. 1991, ch. 138, § 4;L. 1992, ch. 288, § 3;L. 1993, ch. 45, § 2; July 1.