40-510. Same; merger or consolidation of companies; filing agreement with commissioner; hearing; disapproval, grounds; notice of disapproval.
40-510
40-510. Same; merger or consolidation of companies; filing agreement withcommissioner; hearing; disapproval,grounds; notice of disapproval.(a) No merger or consolidation of a domestic mutual insurer shall beeffectuatedunless, in advance of a proposed merger or consolidation, the agreementtherefor and any other information requested by the commissioner of insurancehas been filed with the commissioner and has not been disapproved in writing.If the domestic insurer is not then impaired, the commissioner of insuranceshall act with respect to the agreement for merger or consolidation after ahearing thereon conducted in accordance with the provisions of the Kansasadministrative procedure act. An agreement shall be effectuated inaccordance with its terms unless the commissioner of insurance disapprovesthe same within 60 days after the date of filing, subject to thecommissioner's right to have a reasonable extension of time not to exceedan additional 60 days upon written notice to the insurers involved.The commissioner of insurance may disapprove an agreement, upon one or moreof the following grounds, if the agreement:
(1) Is inequitable to the policyholders of any domestic insurer involved;
(2) would materially reduce the financial security of policyholders ofthe domestic insurer in this state and elsewhere;
(3) would materially tend to lessen competition in this state as to thekinds of insurance involved or would tend to create a monopoly therein; or
(4) is subject to any other reasonable objections.
(b) If the commissioner of insurance disapproves an agreement, noticeshall be given to the insurers proposing to merge or consolidate specifyingthe reasons for disapproval.
History: L. 1980, ch. 135, § 4; L. 1988, ch. 356, § 79; July 1, 1989.