State Codes and Statutes
Statutes > Kansas > Chapter40 > Article19c > Statutes_1769040-19c12
40-19c12. Corporations mandated to convert to mutual status; procedure;effective date; existing rights and obligations not impaired.Any nonprofit medical and hospital service corporationorganized pursuant to the provisions of article 19c of chapter 40 of the KansasStatutes Annotated shall, without reincorporation, adopt and (at its option)shall either become subject to the provisions of article 5 of chapter 40 of theKansasStatutes Annotated, governing mutual life insurance companies, or of article 12of chapter 40 of the Kansas Statutes Annotated, governing mutual companiesother than life, by the adoption of a resolution of its board of directorsdeclaring the election of the nonprofit medical and hospital servicecorporation to become subject to the provisions of article 5 or 12 of chapter40 of the Kansas Statutes Annotated. After the adoption of such resolution, theboard of directors shall adopt such amendments to the articles of incorporationand bylaws of the corporation as shall be necessary and shall file the samewith the commissioner of insurance, together with a plan for mutualizationsetting forth provisions for fulfilling the conditions necessary to effect themutualization and a designated date upon which such mutualization shall becomeeffective if such conditions are fulfilled. Upon the designated date set forthin the plan, but not later than July 1, 1992, the nonprofit medical andhospital service corporation shallbecome subject to the provisions of law so elected, andshall not be governed by article 19c of chapter 40 of the Kansas StatutesAnnotated thereafter. The existing contract rights and obligations of suchcorporation, of subscribers and of health care providers shall not be impairedby such conversion to mutual status.
History: L. 1991, ch. 134, § 8; July 1.
