82             1997 Session Laws of Kansas             Ch. 29

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 1996 Supp. 40-507 is hereby amended to read as
follows: 40-507. (a) Every mutual life insurance company formed under
authority of K.S.A. 40-501 et seq. and amendments thereto may:

(1) Merge or consolidate with any other domestic mutual life insur-
ance company;

(2) merge or consolidate with any other non-domestic mutual life
insurance company if such merger or consolidation is authorized by the
laws of the state or territory in which such non-domestic company is
organized; and

(3) merge or consolidate with a nondomestic nonprofit health services
corporation or nonprofit medical and hospital service corporation if such
merger or consolidation would be permitted by the state regulatory official
or officials having jurisdiction over such nondomestic nonprofit health
services corporation or nonprofit medical and hospital service corporation
and the surviving or resulting company is a domestic mutual life insurance
company; and

(3) (4) by virtue of such merger or consolidation, do the kinds of
insurance business in the manner and for the purposes for which a mutual
life insurance company may be organized in this state or in the manner

Ch. 29             1997 Session Laws of Kansas             83

and for the purposes for which a non-domestic mutual life insurance
company may be licensed or authorized to do business in this state.

(b) When a mutual life insurance company of this state shall be
merged or consolidated with a mutual life insurance company organized
under the laws of any other state, the commissioner of insurance in an
order of approval shall direct that the assets of the domestic company be
delivered to the company with which the domestic company is merged
or consolidated.

Sec. 2. K.S.A. 1996 Supp. 40-507 is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved March 31, 1997.