History: L. 1927, ch. 231, 40-1601; L. 2000, ch. 170, § 17; July 1.
History: L. 1927, ch. 231, 40-1602; L. 2000, ch. 170, § 18; July 1.
(1) The name of the attorney-in-fact, and the name of the domestic reciprocal.
(2) The kind or kinds of insurance to be effected or exchanged.
(3) A copy of the form of power of attorney and subscriber's agreement or other authority of such attorney-in-fact under which such insurance is to be effected or exchanged.
(4) The location of the office or offices from which such contracts or agreements are to be issued.
(5) That except as to the kinds of insurance hereinafter specifically mentioned in this subdivision, applications shall have been made for indemnity upon at least 100 separate risks aggregating not less than $1,500,000, represented by executed contracts or bona fide applications to become concurrently effective. In the case of employers' liability or workers compensation insurance, applications shall have been made for indemnity upon at least 100 separate risks, covering a total annual payroll of not less than $2,500,000, as represented by executed contracts or bona fide applications to become concurrently effective.
(6) That there is in the possession of such attorney-in-fact, and available for the payment of losses, assets conforming to the requirements of K.S.A. 40-1605 and amendments thereto.
(7) A financial statement in form prescribed for the annual statement.
(8) An instrument authorizing service of process as provided in this article.
(b) No declaration shall be required under this section for any reciprocal organized in this state as a result of a conversion under the provisions of K.S.A. 40-1620 and amendments thereto.
History: L. 1927, ch. 231, 40-1603; L. 2000, ch. 170, § 19; July 1.
History: L. 1927, ch. 231, 40-1604; L. 1967, ch. 268, § 3; L. 2000, ch. 170, § 20; July 1.
(b) No reciprocal shall be licensed to transact the business of insurance in this state unless such reciprocal shall have and maintain a surplus equal to the capital and surplus required of a domestic stock insurance company transacting the same kinds of insurance.
(c) Each reciprocal shall have lawful securities on deposit, for the protection of all subscribers or creditors, or both, of the reciprocal, with the department of insurance of this or any other state in the United States in an amount equal to the minimum capital stock required of a domestic stock insurance company transacting the same kinds of insurance.
History: L. 1927, ch. 231, 40-1605; L. 1955, ch. 243, § 1; L. 1965, ch. 300, § 7; L. 1969, ch. 237, § 10; L. 1979, ch. 144, § 1; L. 1984, ch. 169, § 10; L. 2000, ch. 170, § 21; July 1.
History: L. 1927, ch. 231, 40-1606; L. 2000, ch. 170, § 22; July 1.
History: L. 1927, ch. 231, 40-1607; L. 1953, ch. 233, § 1; L. 2000, ch. 170, § 23; July 1.
History: L. 1927, ch. 231, 40-1608; L. 2000, ch. 170, § 24; July 1.
History: L. 1927, ch. 231, 40-1609; June 1.
History: L. 1927, ch. 231, 40-1610; L. 2000, ch. 170, § 25; July 1.
(b) For the purpose of payment of the levies and taxes specified in K.S.A. 40-252, 40-1703, 40-1704 and 75-1508 and amendments thereto, a reciprocal and its attorney-in-fact shall be considered to be the same entity.
History: L. 1927, ch. 231, 40-1611; L. 1957, ch. 286, § 1; L. 1965, ch. 299, § 2; L. 2000, ch. 170, § 26; L. 2007, ch. 54, § 1; July 1.
History: L. 1927, ch. 231, 40-1612; L. 1953, ch. 234, § 1; L. 2000, ch. 170, § 27; July 1.
History: L. 1943, ch. 183, § 1; L. 2000, ch. 170, § 28; July 1.
History: L. 1943, ch. 183, § 2; Repealed, L. 2000, ch. 170, § 32; July 1.
(a) "Armed Forces Cooperative Insuring Association" means the association organized as an unincorporated cooperative association operating within the federal enclave of Ft. Leavenworth, Kansas.
(b) "Armed Forces Insurance Exchange" means the unincorporated reciprocal exchange operating in Leavenworth, Kansas, under the laws of the state of Kansas.
(c) "Armed Forces Insurance Corporation" means the attorney-in-fact for Armed Forces Insurance Exchange, incorporated under the laws of the state of Kansas.
(d) "Insurance entity" means the Armed Forces Cooperative Insuring Association or Armed Forces Insurance Exchange, or both.
(e) "Merger" means the union of two or more insurance entities into a single insurance entity which is one of the insurance entities uniting.
History: L. 1992, ch. 72, § 1; May 7.
(b) By virtue of such merger, all in force policies of Armed Forces Cooperative Insuring Association shall be assumed by Armed Forces Insurance Exchange and may be rewritten in the name of the surviving insurance entity upon expiration.
(c) Business assumed in any state or territory of the United States where Armed Forces Insurance Exchange is not legally authorized to do business under the laws of such state or territory shall not violate, for the purposes of this act, the provisions of K.S.A. 40-214 and amendments thereto provided such business is not renewed upon its expiration or the entity obtains authorization from such state or territory to transact or continue such business.
History: L. 1992, ch. 72, § 2; May 7.
(b) Upon approval of such agreement by the boards of directors of both Armed Forces Cooperative Insuring Association and Armed Forces Insurance Corporation, at meetings called for the purpose of considering such agreement, each board of directors shall by resolution direct that the agreement be submitted to the commissioner of insurance of this state for approval.
History: L. 1992, ch. 72, § 3; May 7.
(b) After notice and a hearing in accordance with the Kansas administrative procedure act, the commissioner of insurance shall approve the merger unless the commissioner of insurance determines that any one of the following exist or would result from the merger, in which event the commissioner of insurance shall disapprove the merger: (1) The insurance entities proposing to merge have not complied with the provisions of this act; (2) the merger of the two insurance entities is not in the best interests of the subscribers of Armed Forces Insurance Exchange; (3) after the merger, Armed Forces Insurance Exchange would be in violation of any of the laws of this state; or (4) the effect of the merger would be to substantially lessen competition in insurance in this state.
(c) The parties proposing to merge under this act shall bear all costs associated with the hearing required by this section.
History: L. 1992, ch. 72, § 4; May 7.
(b) No merger under this act shall be subject to the provisions of K.S.A. 40-3304 and amendments thereto.
History: L. 1992, ch. 72, § 5; May 7.
(b) The commissioner may establish reasonable requirements and procedures for the submission and approval of a conversion plan authorized by subsection (a).
(c) No conversion plan shall be approved under this section unless such conversion plan includes:
(1) A provision for the conversion of existing stockholder or policyholder interests in the insurance company into reciprocal or exchange subscriber interests in the insurance reciprocal so that each subscriber's interest in the resulting Kansas insurance reciprocal shall be fairly proportionate to such subscriber's interest in the insurance company;
(2) a provision for the amendment of the insurance company's existing articles of incorporation or other chartering document to a subscriber's agreement which complies with the provisions of K.S.A. 40-1602, 40-1603 and 40-1626 and amendments thereto;
(3) a copy of the proposed subscriber's agreement;
(4) proof of the approval or adoption of the conversion plan by not less than 2/3 of the shares or policyholders entitled to vote, represented either in person or by proxy, at a duly called regular or special meeting of the stockholders or policyholders of the insurance company at which a quorum, as determined by the bylaws or other chartering documents of the insurance company, is present;
(5) a transition plan for the change of governance of the insurance company from the board of directors and officer structure of the insurance company to the insurance reciprocal which shall be governed by article 16 of chapter 40 of the Kansas Statutes Annotated and amendments thereto; and
(6) any other information required by the commissioner.
(d) The commissioner shall approve the conversion plan if the commissioner finds that the proposed conversion will:
(1) Not be detrimental to the interests of the stockholders or policyholders of the insurance company;
(2) not be detrimental to the interests of the state of Kansas; and
(3) not render the insurer incapable of fulfilling the insurer's contractual obligations.
(e) Upon approval of a conversion plan under this section, the commissioner shall issue a new or amended certificate of authority, which shall be deemed to be the final act of conversion at which time the insurance company shall concurrently become an insurance reciprocal. The insurance reciprocal shall be deemed to be a continuation of the insurance company and deemed to have been organized at the time the converted insurance company was organized.
(f) Each insurance reciprocal created pursuant to this section shall comply with all provisions of K.S.A. 40-1612, and amendments thereto.
(g) Any conversion of an insurance company to a reciprocal shall not be subject to the provisions of K.S.A. 40-3304, and amendments thereto.
(h) For the purposes of this section, "insurance company" means a stock or mutual insurance company.
History: L. 1999, ch. 110, § 6; L. 2000, ch. 170, § 29; July 1.
History: L. 1999, ch. 110, § 7; July 1.
History: L. 1999, ch. 110, § 8; L. 2000, ch. 170, § 30; July 1.
(a) "Attorney-in-fact" means the person designated and authorized by subscribers as having authority to obligate them on reciprocal insurance contracts.
(b) "Commissioner" means the commissioner of insurance.
(c) "Person" means any association, aggregate of individuals, business, company, corporation, individual, joint-stock company, Lloyds-type of organization, organization, cooperative, partnership, receiver, trustee or society, with power to enter into contractual undertakings within or without the state.
(d) "Reciprocal" means an aggregation of subscribers under a common name.
(e) "Reciprocal insurance" means insurance resulting from the mutual exchange of insurance contracts among persons in an unincorporated association under a common name through an attorney-in-fact having authority to obligate each person both as insured and insurer.
(f) "Subscriber" means a person obligated under a reciprocal insurance agreement.
History: L. 2000, ch. 170, § 9; July 1.
History: L. 2000, ch. 170, § 10; July 1.
History: L. 2000, ch. 170, § 11; July 1.
(1) A designation and appointment of the attorney-in-fact to act for and bind the subscriber in all transactions relating to or arising out of the operations of the reciprocal;
(2) a provision empowering the attorney-in-fact:
(A) To accept service of process on behalf of the reciprocal; and
(B) to appoint the commissioner as an agent of the reciprocal upon whom may be served all lawful process against or notice to the reciprocal; and
(3) the maximum amount to be deducted from advance premiums or deposits to be paid the attorney-in-fact, and the items of expense, in addition to losses, to be paid by the reciprocal.
(b) The subscriber's agreement may:
(1) Provide for the right of substitution of the attorney-in-fact and revocation of the power of attorney;
(2) impose any restrictions upon the exercise of the power agreed upon by the subscribers;
(3) provide for the exercise of any right reserved to the subscribers directly or through the board of directors; or
(4) contain other lawful provisions deemed to be advisable.
History: L. 2000, ch. 170, § 12; July 1.
History: L. 2000, ch. 170, § 13; July 1.
History: L. 2000, ch. 170, § 14; July 1.
History: L. 2000, ch. 170, § 15; July 1.
History: L. 2000, ch. 170, § 16; July 1.