12-2620.   Certificate of authority granted on perpetual basis;examinations; submission of financial statement and reports; suspension ofcertificate, grounds, hearing; revocation; dissolution or injunction of pool.(a) All certificates granted hereunder shall be perpetualunless sooner suspended or revoked by the commissioner or the attorney general.

      (b)   Whenever the commissioner shall deem it necessary the commissionermay make, or direct to be made, an examination of the affairs and the financialconditionof any pool, except that once every five years the commissioner shallconduct an examination of the affairs and thefinancial condition of each pool. Each pool shall submit a certifiedindependent audited financial statement no later than 90 days after the endof the fiscal year. The financial statement shall include outstanding reservesforclaims and for claims incurred but not reported. Each pool shall filereports as to income, expenses and loss data at such times and in suchmanner as the commissioner shall require. Any pool which does not use ratesdeveloped by an approved rating organization shall file with the commissioneran actuarial certification that such rates are actuarially sound. Wheneverit appears to thecommissioner from such examination or other satisfactory evidence that theability to pay current and future claims of any such pool is impaired, orthat it is doing business in violation of any of the laws of this state, orthat its affairs are in an unsound condition so as to endanger its abilityto pay or cause to be paid claims in the amount, manner and time due, thecommissioner shall, before filing such report or making the same public,grant such pool upon reasonable notice a hearing, and, if on such hearingthe report be confirmed, the commissioner may require any ofthe actions allowed under K.S.A. 40-222b and amendments thereto or suspendthe certificate ofauthority for such pool until its ability to pay current and future claimsshall have been fully restored and the laws of the state fully compliedwith. The commissioner may, if there is an unreasonable delay in restoringthe ability to pay claims of such pool and in complying with the law or ifrehabilitation or corrective action taken under K.S.A. 40-222b and amendmentsthereto is unsuccessful, revoke thecertificate of authority of such pool to do business in this state. Uponrevoking any such certificate the commissioner shall communicate the factto the attorney general, whose duty it shall be to commence and prosecutean action in the proper court to dissolve such pool or to enjoin the samefrom doing or transacting business in this state. The commissioner ofinsurance may call a hearing under K.S.A. 40-222b, and amendments thereto,and the provisions thereof shall apply to group-funded pools.

      (c)   On an annual basis, or within 30 days of any change thereto, each poolshall supply to the commissioner the name and qualifications of the designatedadministrator of the pools and the terms of the specific and aggregate excessinsurance contracts of the pool.

      History:   L. 1987, ch. 74, § 5;L. 1999, ch. 95, § 2; July 1.