12-2618.Certificate of authority to operate pool; application;
hearing upon denial of application.
Application for a certificate of authority to operate a pool shall be made to
the commissioner of insurance not less than 30 days prior to the proposed
inception date of the pool. The application shall include the following:
(a) A copy of the bylaws of the proposed pool, a copy of the articles
of incorporation, if any, and a copy of all agreements and rules of the
proposed pool. If any of the bylaws, articles of incorporation, agreements
or rules are changed, the pool shall notify the commissioner within 30 days
after such change.
(b) Designation of the initial board of trustees and administrator. When
there is a change in the membership of the board of trustees or change of
administrator, the pool shall notify the commissioner within 30 days after such
change.
(c) The address where the books and records of the pool will be maintained
at all times. If this address is changed, the pool shall notify the
commissioner within 30 days after such change.
(d) Evidence that the annual Kansas gross premium of the pool will be
not less than $250,000 for each of the categories described in subparagraphs
(1) through (4) of this subsection: (1) All property insurance under article 9
of chapter 40 of the Kansas Statutes Annotated except motor vehicle physical
damage; (2) motor vehicle liability and physical damage insurance; (3) workers'
compensation and employers' liability insurance; (4) all casualty insurance
under article 11 of chapter 40 of the Kansas Statutes Annotated except
insurance under categories (2) and (3) above; (5) group sickness and accident
insurance if at the date of issue the annual gross premium for such coverage
will be not less than $1,000,000; and (6) group life insurance if at the date
of issue the coverage will insure at least 60% of the eligible participants or
the total number of persons covered will exceed 600. The pool shall notify the
commissioner within 30 days if the minimum premium qualification or
participation requirement is less than that specified in this subsection for
any of the above categories of insurance.
(e) An agreement binding the group and each member thereof to comply with
the provisions of the workers compensation act if such coverage is to be
provided by the pool. For all lines of coverage, all members of the pool shall
be jointly liable for the payment of claims to the extent of the assets of the
pool.
(f) A copy of the procedures adopted by the pool to provide services with
respect to underwriting matters and, with respect to the categories
identified in subsection (d)(1) through (4), safety engineering.
(g) A copy of the procedures adopted by the pool to provide claims adjusting
and accumulation of income and expense and loss data.
(h) A confirmation that specific and aggregate excess insurance
provided by an insurance company holding a Kansas certificate of authority is
or will be in effect concurrent with the assumption of risk by the pool, as
selected by the board of trustees of the pool, or adequate surplus funds as
approved by the commissioner, in the pool. The pool shall notify the
commissioner within 30 days of any change in the specific or aggregate excess
insurance carried by the pool.
For the purposes hereof, "surplus funds" shall mean retained earnings of the
pool after reserves have been established
for all known and incurred but not reported losses of the pool and after all
other liabilities of the pool, including unearned premium reserves, have been
deducted from total assets.
The term "adequate surplus funds" shall mean the amount necessary for the pool
to fund its self-insured obligations.
(i) After evaluating the application the commissioner shall notify the
applicant if the plan submitted is inadequate, fully explaining to the
applicant what additional requirements must be met. If the application is
denied, the applicant shall have 10 days to make an application for hearing
by the commissioner after the denial notice is received. A record shall be
made of such hearing, and the cost thereof shall be assessed against the
applicant requesting the hearing.
(j) Any other relevant factors the commissioner may deem necessary.
History: L. 1987, ch. 74, § 3; L. 1990, ch. 76, § 2;
L. 1991, ch. 60, § 1; May 23.
12-2618.Certificate of authority to operate pool; application;
hearing upon denial of application.
Application for a certificate of authority to operate a pool shall be made to
the commissioner of insurance not less than 30 days prior to the proposed
inception date of the pool. The application shall include the following:
(a) A copy of the bylaws of the proposed pool, a copy of the articles
of incorporation, if any, and a copy of all agreements and rules of the
proposed pool. If any of the bylaws, articles of incorporation, agreements
or rules are changed, the pool shall notify the commissioner within 30 days
after such change.
(b) Designation of the initial board of trustees and administrator. When
there is a change in the membership of the board of trustees or change of
administrator, the pool shall notify the commissioner within 30 days after such
change.
(c) The address where the books and records of the pool will be maintained
at all times. If this address is changed, the pool shall notify the
commissioner within 30 days after such change.
(d) Evidence that the annual Kansas gross premium of the pool will be
not less than $250,000 for each of the categories described in subparagraphs
(1) through (4) of this subsection: (1) All property insurance under article 9
of chapter 40 of the Kansas Statutes Annotated except motor vehicle physical
damage; (2) motor vehicle liability and physical damage insurance; (3) workers'
compensation and employers' liability insurance; (4) all casualty insurance
under article 11 of chapter 40 of the Kansas Statutes Annotated except
insurance under categories (2) and (3) above; (5) group sickness and accident
insurance if at the date of issue the annual gross premium for such coverage
will be not less than $1,000,000; and (6) group life insurance if at the date
of issue the coverage will insure at least 60% of the eligible participants or
the total number of persons covered will exceed 600. The pool shall notify the
commissioner within 30 days if the minimum premium qualification or
participation requirement is less than that specified in this subsection for
any of the above categories of insurance.
(e) An agreement binding the group and each member thereof to comply with
the provisions of the workers compensation act if such coverage is to be
provided by the pool. For all lines of coverage, all members of the pool shall
be jointly liable for the payment of claims to the extent of the assets of the
pool.
(f) A copy of the procedures adopted by the pool to provide services with
respect to underwriting matters and, with respect to the categories
identified in subsection (d)(1) through (4), safety engineering.
(g) A copy of the procedures adopted by the pool to provide claims adjusting
and accumulation of income and expense and loss data.
(h) A confirmation that specific and aggregate excess insurance
provided by an insurance company holding a Kansas certificate of authority is
or will be in effect concurrent with the assumption of risk by the pool, as
selected by the board of trustees of the pool, or adequate surplus funds as
approved by the commissioner, in the pool. The pool shall notify the
commissioner within 30 days of any change in the specific or aggregate excess
insurance carried by the pool.
For the purposes hereof, "surplus funds" shall mean retained earnings of the
pool after reserves have been established
for all known and incurred but not reported losses of the pool and after all
other liabilities of the pool, including unearned premium reserves, have been
deducted from total assets.
The term "adequate surplus funds" shall mean the amount necessary for the pool
to fund its self-insured obligations.
(i) After evaluating the application the commissioner shall notify the
applicant if the plan submitted is inadequate, fully explaining to the
applicant what additional requirements must be met. If the application is
denied, the applicant shall have 10 days to make an application for hearing
by the commissioner after the denial notice is received. A record shall be
made of such hearing, and the cost thereof shall be assessed against the
applicant requesting the hearing.
(j) Any other relevant factors the commissioner may deem necessary.
History: L. 1987, ch. 74, § 3; L. 1990, ch. 76, § 2;
L. 1991, ch. 60, § 1; May 23.
12-2618.Certificate of authority to operate pool; application;
hearing upon denial of application.
Application for a certificate of authority to operate a pool shall be made to
the commissioner of insurance not less than 30 days prior to the proposed
inception date of the pool. The application shall include the following:
(a) A copy of the bylaws of the proposed pool, a copy of the articles
of incorporation, if any, and a copy of all agreements and rules of the
proposed pool. If any of the bylaws, articles of incorporation, agreements
or rules are changed, the pool shall notify the commissioner within 30 days
after such change.
(b) Designation of the initial board of trustees and administrator. When
there is a change in the membership of the board of trustees or change of
administrator, the pool shall notify the commissioner within 30 days after such
change.
(c) The address where the books and records of the pool will be maintained
at all times. If this address is changed, the pool shall notify the
commissioner within 30 days after such change.
(d) Evidence that the annual Kansas gross premium of the pool will be
not less than $250,000 for each of the categories described in subparagraphs
(1) through (4) of this subsection: (1) All property insurance under article 9
of chapter 40 of the Kansas Statutes Annotated except motor vehicle physical
damage; (2) motor vehicle liability and physical damage insurance; (3) workers'
compensation and employers' liability insurance; (4) all casualty insurance
under article 11 of chapter 40 of the Kansas Statutes Annotated except
insurance under categories (2) and (3) above; (5) group sickness and accident
insurance if at the date of issue the annual gross premium for such coverage
will be not less than $1,000,000; and (6) group life insurance if at the date
of issue the coverage will insure at least 60% of the eligible participants or
the total number of persons covered will exceed 600. The pool shall notify the
commissioner within 30 days if the minimum premium qualification or
participation requirement is less than that specified in this subsection for
any of the above categories of insurance.
(e) An agreement binding the group and each member thereof to comply with
the provisions of the workers compensation act if such coverage is to be
provided by the pool. For all lines of coverage, all members of the pool shall
be jointly liable for the payment of claims to the extent of the assets of the
pool.
(f) A copy of the procedures adopted by the pool to provide services with
respect to underwriting matters and, with respect to the categories
identified in subsection (d)(1) through (4), safety engineering.
(g) A copy of the procedures adopted by the pool to provide claims adjusting
and accumulation of income and expense and loss data.
(h) A confirmation that specific and aggregate excess insurance
provided by an insurance company holding a Kansas certificate of authority is
or will be in effect concurrent with the assumption of risk by the pool, as
selected by the board of trustees of the pool, or adequate surplus funds as
approved by the commissioner, in the pool. The pool shall notify the
commissioner within 30 days of any change in the specific or aggregate excess
insurance carried by the pool.
For the purposes hereof, "surplus funds" shall mean retained earnings of the
pool after reserves have been established
for all known and incurred but not reported losses of the pool and after all
other liabilities of the pool, including unearned premium reserves, have been
deducted from total assets.
The term "adequate surplus funds" shall mean the amount necessary for the pool
to fund its self-insured obligations.
(i) After evaluating the application the commissioner shall notify the
applicant if the plan submitted is inadequate, fully explaining to the
applicant what additional requirements must be met. If the application is
denied, the applicant shall have 10 days to make an application for hearing
by the commissioner after the denial notice is received. A record shall be
made of such hearing, and the cost thereof shall be assessed against the
applicant requesting the hearing.
(j) Any other relevant factors the commissioner may deem necessary.
History: L. 1987, ch. 74, § 3; L. 1990, ch. 76, § 2;
L. 1991, ch. 60, § 1; May 23.