40-205.Application for permit to offer stock for sale; contents;duties of commissioner; findings; issuance or denial of permit; terms ofpermit; report by insurer; amendment or suspension of permit; notice andhearing; revocation, when; rules and regulations.Each insurance company or health maintenance organization applicant for apermit to offer its stock forsale shall file with the commissioner an application therefor, verifiedby its president and secretary. The application shall set forth:
(a) The name of the company and the address of its principal office.
(b) The names and addresses of its officers.
(c) An itemized account of its financial condition, including theamount and character of its assets and liabilities.
(d) A detailed statement of the plan by which it proposes to offerits stock for sale and if the company has written no business in thisstate within the three years last preceding the date of theapplication, a detailed statement of any plan upon which it proposes totransact business in this state.
(e) A description of the stock it proposes to issue.
(f) Copies of any contracts, agreements or documents of any naturewhich have been made or are proposed to be made by the company or bythose persons managing it or owning more than 10% of its stock whichconcern the stock to be offered.
(g) A copy of any prospectus or advertisement or other descriptionof its operation proposed to be used in connection with the offer ofstock.
(h) Such additional information concerning the company, itscondition and affairs as the commissioner requires.
Upon the filing of such application the commissioner shall examine itand the papers and documents filed therewith. The commissioner may, ifdeemed advisable, cause to be made a detailed examination, audit andinvestigation of the applicant and its affairs.
The commissioner shall issue a permit if the commissioner finds that:
(1) The plan by which the applicant proposes to offer its stock andtransact its business is not unfair, unjust or inequitable.
(2) The applicant company intends to fairly and honestly transactits business.
(3) The stock the applicant company proposes to issue and themethods to be used by it are not such as will work a fraud upon thepurchaser thereof, or upon other stockholders or policyholders of theapplicant company.
Otherwise, the commissioner shall issue an order denying the applicationand notify the applicant in writing of such decision. The commissioner may prescribe in the permit the amounts,considerations, terms and conditions governing the issue and disposal ofthe stock and the permit shall authorize such issue and disposal only inaccordance with its provisions. The commissioner may impose conditions requiring the deposit inescrow of stock and the impoundment of the proceeds from the salethereof, limiting the expense in connection with the sale thereof, andotherwise requiring such method of dealing as the commissioner deemsreasonable and either necessary or advisable to insure the disposition ofthe proceeds of such stock in the manner and for the purposes provided in thepermit.
Every permit shall recite in bold type that the issuance thereof ispermissive only and does not constitute a recommendation or endorsementof the stock permitted to be issued. The commissioner shall not issue a permit for the sale of any stockof a domestic insurer or health maintenance organization in any case wherethe commissioner finds that theexpense of organization and promotion of the company or the expense of theproposed sale of stock will exceed 12 1/2% of the total amount actuallypaid for the capital stock.
Every insurer authorized by the commissioner to sell its stock shallthereafter, at such times and in such form as the commissioner requires,make and file in the commissioner's office a report setting forth:
(a) The stock sold by it under the authority of any permit issued by thecommissioner;
(b) the proceeds derived therefrom;
(c) the disposition of such proceeds; and
(d) such other information concerning its property, officers oraffairs, and relating to or affecting the value of such securities asthe commissioner requires.
The commissioner may from time to time for cause order the amendment,alteration or suspension of any permit granted pursuant to this act.After issuing such order the commissioner may on the commissioner's motion,or if within 15 days requested in writing by the company affected thecommissioner shall conduct a hearing in accordance with the provisions ofthe Kansas administrative procedure act. If upon the completion of suchhearing the commissioner finds that cause for such order still exists, thecommissioner may continue the order in effect or if the order has been oneof suspension the commissioner may revoke the permit. Otherwise the priororder shall be vacated. The commissioner of insurance shall be specifically authorized toadopt such rules and regulations as are reasonable and necessary tocarry out the purposes and provisions of this act.
History: L. 1927, ch. 231, 40-205; L. 1965, ch. 295, § 2;L. 1988, ch. 356, § 74;L. 1996, ch. 169, § 2; July 1.
40-205.Application for permit to offer stock for sale; contents;duties of commissioner; findings; issuance or denial of permit; terms ofpermit; report by insurer; amendment or suspension of permit; notice andhearing; revocation, when; rules and regulations.Each insurance company or health maintenance organization applicant for apermit to offer its stock forsale shall file with the commissioner an application therefor, verifiedby its president and secretary. The application shall set forth:
(a) The name of the company and the address of its principal office.
(b) The names and addresses of its officers.
(c) An itemized account of its financial condition, including theamount and character of its assets and liabilities.
(d) A detailed statement of the plan by which it proposes to offerits stock for sale and if the company has written no business in thisstate within the three years last preceding the date of theapplication, a detailed statement of any plan upon which it proposes totransact business in this state.
(e) A description of the stock it proposes to issue.
(f) Copies of any contracts, agreements or documents of any naturewhich have been made or are proposed to be made by the company or bythose persons managing it or owning more than 10% of its stock whichconcern the stock to be offered.
(g) A copy of any prospectus or advertisement or other descriptionof its operation proposed to be used in connection with the offer ofstock.
(h) Such additional information concerning the company, itscondition and affairs as the commissioner requires.
Upon the filing of such application the commissioner shall examine itand the papers and documents filed therewith. The commissioner may, ifdeemed advisable, cause to be made a detailed examination, audit andinvestigation of the applicant and its affairs.
The commissioner shall issue a permit if the commissioner finds that:
(1) The plan by which the applicant proposes to offer its stock andtransact its business is not unfair, unjust or inequitable.
(2) The applicant company intends to fairly and honestly transactits business.
(3) The stock the applicant company proposes to issue and themethods to be used by it are not such as will work a fraud upon thepurchaser thereof, or upon other stockholders or policyholders of theapplicant company.
Otherwise, the commissioner shall issue an order denying the applicationand notify the applicant in writing of such decision. The commissioner may prescribe in the permit the amounts,considerations, terms and conditions governing the issue and disposal ofthe stock and the permit shall authorize such issue and disposal only inaccordance with its provisions. The commissioner may impose conditions requiring the deposit inescrow of stock and the impoundment of the proceeds from the salethereof, limiting the expense in connection with the sale thereof, andotherwise requiring such method of dealing as the commissioner deemsreasonable and either necessary or advisable to insure the disposition ofthe proceeds of such stock in the manner and for the purposes provided in thepermit.
Every permit shall recite in bold type that the issuance thereof ispermissive only and does not constitute a recommendation or endorsementof the stock permitted to be issued. The commissioner shall not issue a permit for the sale of any stockof a domestic insurer or health maintenance organization in any case wherethe commissioner finds that theexpense of organization and promotion of the company or the expense of theproposed sale of stock will exceed 12 1/2% of the total amount actuallypaid for the capital stock.
Every insurer authorized by the commissioner to sell its stock shallthereafter, at such times and in such form as the commissioner requires,make and file in the commissioner's office a report setting forth:
(a) The stock sold by it under the authority of any permit issued by thecommissioner;
(b) the proceeds derived therefrom;
(c) the disposition of such proceeds; and
(d) such other information concerning its property, officers oraffairs, and relating to or affecting the value of such securities asthe commissioner requires.
The commissioner may from time to time for cause order the amendment,alteration or suspension of any permit granted pursuant to this act.After issuing such order the commissioner may on the commissioner's motion,or if within 15 days requested in writing by the company affected thecommissioner shall conduct a hearing in accordance with the provisions ofthe Kansas administrative procedure act. If upon the completion of suchhearing the commissioner finds that cause for such order still exists, thecommissioner may continue the order in effect or if the order has been oneof suspension the commissioner may revoke the permit. Otherwise the priororder shall be vacated. The commissioner of insurance shall be specifically authorized toadopt such rules and regulations as are reasonable and necessary tocarry out the purposes and provisions of this act.
History: L. 1927, ch. 231, 40-205; L. 1965, ch. 295, § 2;L. 1988, ch. 356, § 74;L. 1996, ch. 169, § 2; July 1.
40-205.Application for permit to offer stock for sale; contents;duties of commissioner; findings; issuance or denial of permit; terms ofpermit; report by insurer; amendment or suspension of permit; notice andhearing; revocation, when; rules and regulations.Each insurance company or health maintenance organization applicant for apermit to offer its stock forsale shall file with the commissioner an application therefor, verifiedby its president and secretary. The application shall set forth:
(a) The name of the company and the address of its principal office.
(b) The names and addresses of its officers.
(c) An itemized account of its financial condition, including theamount and character of its assets and liabilities.
(d) A detailed statement of the plan by which it proposes to offerits stock for sale and if the company has written no business in thisstate within the three years last preceding the date of theapplication, a detailed statement of any plan upon which it proposes totransact business in this state.
(e) A description of the stock it proposes to issue.
(f) Copies of any contracts, agreements or documents of any naturewhich have been made or are proposed to be made by the company or bythose persons managing it or owning more than 10% of its stock whichconcern the stock to be offered.
(g) A copy of any prospectus or advertisement or other descriptionof its operation proposed to be used in connection with the offer ofstock.
(h) Such additional information concerning the company, itscondition and affairs as the commissioner requires.
Upon the filing of such application the commissioner shall examine itand the papers and documents filed therewith. The commissioner may, ifdeemed advisable, cause to be made a detailed examination, audit andinvestigation of the applicant and its affairs.
The commissioner shall issue a permit if the commissioner finds that:
(1) The plan by which the applicant proposes to offer its stock andtransact its business is not unfair, unjust or inequitable.
(2) The applicant company intends to fairly and honestly transactits business.
(3) The stock the applicant company proposes to issue and themethods to be used by it are not such as will work a fraud upon thepurchaser thereof, or upon other stockholders or policyholders of theapplicant company.
Otherwise, the commissioner shall issue an order denying the applicationand notify the applicant in writing of such decision. The commissioner may prescribe in the permit the amounts,considerations, terms and conditions governing the issue and disposal ofthe stock and the permit shall authorize such issue and disposal only inaccordance with its provisions. The commissioner may impose conditions requiring the deposit inescrow of stock and the impoundment of the proceeds from the salethereof, limiting the expense in connection with the sale thereof, andotherwise requiring such method of dealing as the commissioner deemsreasonable and either necessary or advisable to insure the disposition ofthe proceeds of such stock in the manner and for the purposes provided in thepermit.
Every permit shall recite in bold type that the issuance thereof ispermissive only and does not constitute a recommendation or endorsementof the stock permitted to be issued. The commissioner shall not issue a permit for the sale of any stockof a domestic insurer or health maintenance organization in any case wherethe commissioner finds that theexpense of organization and promotion of the company or the expense of theproposed sale of stock will exceed 12 1/2% of the total amount actuallypaid for the capital stock.
Every insurer authorized by the commissioner to sell its stock shallthereafter, at such times and in such form as the commissioner requires,make and file in the commissioner's office a report setting forth:
(a) The stock sold by it under the authority of any permit issued by thecommissioner;
(b) the proceeds derived therefrom;
(c) the disposition of such proceeds; and
(d) such other information concerning its property, officers oraffairs, and relating to or affecting the value of such securities asthe commissioner requires.
The commissioner may from time to time for cause order the amendment,alteration or suspension of any permit granted pursuant to this act.After issuing such order the commissioner may on the commissioner's motion,or if within 15 days requested in writing by the company affected thecommissioner shall conduct a hearing in accordance with the provisions ofthe Kansas administrative procedure act. If upon the completion of suchhearing the commissioner finds that cause for such order still exists, thecommissioner may continue the order in effect or if the order has been oneof suspension the commissioner may revoke the permit. Otherwise the priororder shall be vacated. The commissioner of insurance shall be specifically authorized toadopt such rules and regulations as are reasonable and necessary tocarry out the purposes and provisions of this act.
History: L. 1927, ch. 231, 40-205; L. 1965, ch. 295, § 2;L. 1988, ch. 356, § 74;L. 1996, ch. 169, § 2; July 1.
