CHAPTER 23
HOUSE BILL No. 2637
An Act concerning the changing of the domicile of foreign insurance
companies; amending
K.S.A. 1997 Supp. 40-2,162 and repealing the existing
section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 1997 Supp. 40-2,162 is hereby amended
to read as
follows: 40-2,162. (a) An insurer organized under the laws of any
other
state and admitted to do business in this state for the purpose of
writing
insurance may become a domestic insurer by complying with all of
the
requirements of law relative to the organization and licensing of a
do-
mestic insurer of the same type and by designating the insurer's
principal
place of business at a place in this state. The domestic insurer
will be
entitled to like certificates and licenses to transact business in
this state,
and shall be subject to the authority and jurisdiction of this
state.
(b) A domestic insurer, upon the approval of the commissioner
of
insurance, may transfer the insurer's domicile to any other state
in which
it is admitted to transact the business of insurance, and upon such
a
transfer shall cease to be a domestic insurer, and shall be
admitted to this
state if qualified as a foreign insurer. The commissioner of
insurance shall
approve the proposed transfer unless the commissioner determines
the
transfer is not in the interest of the policyholders of this
state.
(c) The certificate of authority, agents' appointments and
licenses,
rates and other items which the commissioner allows, in the
commis-
sioner's discretion, that are in existence at the time an insurer
licensed to
transact the business of insurance in this state transfers the
insurer's cor-
porate domicile to this or any other state by merger, consolidation
or any
other lawful method shall continue in full force and effect upon
transfer
if the insurer remains duly qualified to transact the business of
insurance
in this state. For purposes of existing authorizations and all
other cor-
porate purposes, the insurer is deemed the same entity as it was
prior to
the transfer of its domicile. All outstanding policies of a
transferring in-
surer shall remain in full force and effect and need not be
endorsed as
to the new name of the company or the company's new location
unless
so ordered by the commissioner. A transferring insurer shall file
new
policy forms with the commissioner on or before the effective date
of the
transfer, but may use existing policy forms with appropriate
endorsements
if allowed by, and under such conditions as approved by, the
commis-
sioner. However, every transferring insurer shall notify the
commissioner
of the details of the proposed transfer and shall file promptly any
resulting
amendments to corporate documents filed or required to be filed
with
the commissioner.
(d) The commissioner may promulgate rules and regulations to
carry
out the purposes of this act.
New Sec. 2. A foreign insurer shall file restated
articles of incorpo-
ration and a certificate of domestication with the secretary of
state in a
form prescribed by the secretary of state and approved by the
insurance
commissioner, to transfer to this state. A domestic insurer shall
file with
the secretary of state a certificate or order issued by the
insurance com-
missioner approving the transfer to another state. An insurer who
has
transferred to this state prior to the effective date of this
subsection, with
the approval of the insurance commissioner pursuant to this act,
shall be
deemed in compliance with the provisions of this act.
Sec. 3. K.S.A. 1997 Supp. 40-2,162 is hereby
repealed.
Sec. 4. This act shall take effect and be in force from
and after its
publication in the Kansas register.
Approved March 11, 1998
Published in the Kansas Registers March 19, 1998
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