Article 2a.--INVESTMENTS BY OTHER THAN LIFE INSURANCE COMPANIES
40-2a07.Preferred and guaranteed stocks; definitions.Any insurance company other than life heretofore or hereafter organizedunder any law of this state may invest by loans or otherwise, with thedirection or approval ofa majority of its board of directors or authorized committee thereof,any of its funds, or any part thereof in preferred stocks of, or stocksguaranteed by, a corporation incorporated under the laws of the UnitedStates of America, or of any state, district, insular or territorialpossession thereof, or of the Dominion of Canada, or any provincethereof, in an amount not to exceed 25% of its admitted assets as shown by thecompany's last annual report, as filed with the state commissioner ofinsurance, or a more recent quarterly financial statement as filed with thecommissioner, on a form prescribed by the national association of insurancecommissioners, within 45 days following the end of the calendar quarter towhich the interim statement pertains, and which meets the following qualifications:
(a) All bonds or other evidences of indebtedness and preferredstocks shown on the last published annual statement of the issuingcorporation, if any, senior to the preferred stock acquired must beeligible as investments under K.S.A. 40-2a05 or 40-2a07, and amendmentsthereto, as of the date of acquisition;
(b) if cumulative preferred, not in arrears as to dividends, or ifnoncumulative, has paid full dividends in each of the last threeyears;
(c) sinking fund payments are on a current basis;
(d) if net earnings available for fixed charges for the mostrecently completed three fiscal year period is at least equal to 1 1/4times the aggregate fixed charges, plus fullcontingent interest and preferred dividend requirements of the preferredstock under consideration and those on a parity therewith or having apriority thereto, for the same period; and
(e) the corporation or a predecessor thereof, must have been inexistence for a period of not less than five years.
(f) As used in this section:
(1) "Fixed charges" shall include actual interest incurred in eachyear on funded and unfunded debt; and
(2) "net earnings" shall mean income, before deducting interest onfunded and unfunded debt, and after deducting operating and maintenanceexpenses, depreciation and depletion, and all taxes (including incometaxes). Extraordinary, nonrecurring items of income or expense shall beexcluded.
History: L. 1972, ch. 173, § 7;L. 1987, ch. 160, § 3; July 1.
Article 2a.--INVESTMENTS BY OTHER THAN LIFE INSURANCE COMPANIES
40-2a07.Preferred and guaranteed stocks; definitions.Any insurance company other than life heretofore or hereafter organizedunder any law of this state may invest by loans or otherwise, with thedirection or approval ofa majority of its board of directors or authorized committee thereof,any of its funds, or any part thereof in preferred stocks of, or stocksguaranteed by, a corporation incorporated under the laws of the UnitedStates of America, or of any state, district, insular or territorialpossession thereof, or of the Dominion of Canada, or any provincethereof, in an amount not to exceed 25% of its admitted assets as shown by thecompany's last annual report, as filed with the state commissioner ofinsurance, or a more recent quarterly financial statement as filed with thecommissioner, on a form prescribed by the national association of insurancecommissioners, within 45 days following the end of the calendar quarter towhich the interim statement pertains, and which meets the following qualifications:
(a) All bonds or other evidences of indebtedness and preferredstocks shown on the last published annual statement of the issuingcorporation, if any, senior to the preferred stock acquired must beeligible as investments under K.S.A. 40-2a05 or 40-2a07, and amendmentsthereto, as of the date of acquisition;
(b) if cumulative preferred, not in arrears as to dividends, or ifnoncumulative, has paid full dividends in each of the last threeyears;
(c) sinking fund payments are on a current basis;
(d) if net earnings available for fixed charges for the mostrecently completed three fiscal year period is at least equal to 1 1/4times the aggregate fixed charges, plus fullcontingent interest and preferred dividend requirements of the preferredstock under consideration and those on a parity therewith or having apriority thereto, for the same period; and
(e) the corporation or a predecessor thereof, must have been inexistence for a period of not less than five years.
(f) As used in this section:
(1) "Fixed charges" shall include actual interest incurred in eachyear on funded and unfunded debt; and
(2) "net earnings" shall mean income, before deducting interest onfunded and unfunded debt, and after deducting operating and maintenanceexpenses, depreciation and depletion, and all taxes (including incometaxes). Extraordinary, nonrecurring items of income or expense shall beexcluded.
History: L. 1972, ch. 173, § 7;L. 1987, ch. 160, § 3; July 1.
Article 2a.--INVESTMENTS BY OTHER THAN LIFE INSURANCE COMPANIES
40-2a07.Preferred and guaranteed stocks; definitions.Any insurance company other than life heretofore or hereafter organizedunder any law of this state may invest by loans or otherwise, with thedirection or approval ofa majority of its board of directors or authorized committee thereof,any of its funds, or any part thereof in preferred stocks of, or stocksguaranteed by, a corporation incorporated under the laws of the UnitedStates of America, or of any state, district, insular or territorialpossession thereof, or of the Dominion of Canada, or any provincethereof, in an amount not to exceed 25% of its admitted assets as shown by thecompany's last annual report, as filed with the state commissioner ofinsurance, or a more recent quarterly financial statement as filed with thecommissioner, on a form prescribed by the national association of insurancecommissioners, within 45 days following the end of the calendar quarter towhich the interim statement pertains, and which meets the following qualifications:
(a) All bonds or other evidences of indebtedness and preferredstocks shown on the last published annual statement of the issuingcorporation, if any, senior to the preferred stock acquired must beeligible as investments under K.S.A. 40-2a05 or 40-2a07, and amendmentsthereto, as of the date of acquisition;
(b) if cumulative preferred, not in arrears as to dividends, or ifnoncumulative, has paid full dividends in each of the last threeyears;
(c) sinking fund payments are on a current basis;
(d) if net earnings available for fixed charges for the mostrecently completed three fiscal year period is at least equal to 1 1/4times the aggregate fixed charges, plus fullcontingent interest and preferred dividend requirements of the preferredstock under consideration and those on a parity therewith or having apriority thereto, for the same period; and
(e) the corporation or a predecessor thereof, must have been inexistence for a period of not less than five years.
(f) As used in this section:
(1) "Fixed charges" shall include actual interest incurred in eachyear on funded and unfunded debt; and
(2) "net earnings" shall mean income, before deducting interest onfunded and unfunded debt, and after deducting operating and maintenanceexpenses, depreciation and depletion, and all taxes (including incometaxes). Extraordinary, nonrecurring items of income or expense shall beexcluded.
History: L. 1972, ch. 173, § 7;L. 1987, ch. 160, § 3; July 1.
