Article 2b.--INVESTMENTS BY LIFE INSURANCE COMPANIES
40-2b23.Stock in any insurance company, health maintenance organization,incorporated insurance agencyor holding corporation.Any life insurance company heretofore or hereafter organized under any lawof this state may invest with the direction or approval of a majority ofits board of directors or authorized committee thereof, any of its funds,or any part thereof in:
(a) Stock in any insurance company or health maintenance organization,notwithstanding subsection (e) ofK.S.A. 40-2b07, and amendments thereto. Before more than 5% of the outstandingshares of stock of any insurance company or health maintenance organizationis acquired, or a tender offer made therefor, prior written approval of thecommissioner of insurance must be secured;
(b) stock in an incorporated insurance agency: (1) If 5% or less of theoutstanding shares of such incorporated agency is acquired, the provisionsof K.S.A. 40-2b07, and amendments thereto, shall apply; (2) if more than5% of the outstanding shares of such incorporated agency is acquired, ora tender offer is made therefor, the prior approval of the commissionerof insurance shall be required and the provisions of subsection (d) of K.S.A.40-2b07, and amendments thereto, shall apply. In valuing the stock of theagency, the assets of the agency shall be valued as if held directly byan insurance company; and (3) if majority interest in an incorporated insuranceagency results from the organization of an agency by the insurance companyto which this act applies, such investments shall be subject to the provisionsof K.S.A. 40-2b13, and amendments thereto, until they have produced earningsfor three out of five consecutive years. Such stock shall not be eligiblefor deposit with the commissioner of insurance as part of the legal reserveof such insurance company;
(c) stock in a holding corporation: (1) If 5% or less of the outstandingshares of stock of such holding corporation is acquired, the provisionsof K.S.A. 40-2b07, and amendments thereto, shall apply; (2) if at least55% of the holding corporation's voting stock is acquired, the prior approvalof the commissioner of insurance shall be required and the provisions ofK.S.A. 40-2b07, and amendments thereto, shall not apply. No insurer maypurchase in excess of 5% of the outstanding voting stock of a holdingcorporation unless such insurer acquires at least 55% of suchstock, nor shall the officers and directors of an insurer collectivelyown or control, directly or indirectly, more than 25% of such stock. Thecommissioner of insurance may direct an insurer to divest ofits ownership in a holdingcorporation acquired pursuant to this subsection if it appears to thecommissioner that the continued ownership or operation of the holding corporation isnot in the best interest of the policyholders, or if the insurer's ownershipin the holding corporation is less than 55% of the outstanding voting stockof the holding corporation, or if the officers and directors of theinsurer collectively own or control, directly or indirectly, more than 25%of such stock. A holding corporation acquired pursuant tothis subsection shall not acquire any investment not permitted for lifeinsurance companies pursuant to article 2b of chapter 40 of the Kansas StatutesAnnotated, and amendments thereto. In valuing the stock of any holdingcorporation acquired underthis subsection in the annual financial statement of the insurer, valueshall be assigned to the holding corporation's assets as though the assetswere owned directly by the insurer. A percentage of the holding corporation'sassets exactly equal to the insurer's ownership interest in the holdingcorporation will be added to the assets of the insurer in application ofthe insurer's investment limitations set forth in article 2b of chapter40 of the Kansas Statutes Annotated, and amendments thereto. Stock ina holding corporation acquiredunder this subsection shall not be eligible for deposit with the commissionerof insurance as part of the legal reserves of such insurer.
History: L. 1983, ch. 156, § 13;L. 1987, ch. 161, § 2;L. 1994, ch. 86, § 2; July 1.
Article 2b.--INVESTMENTS BY LIFE INSURANCE COMPANIES
40-2b23.Stock in any insurance company, health maintenance organization,incorporated insurance agencyor holding corporation.Any life insurance company heretofore or hereafter organized under any lawof this state may invest with the direction or approval of a majority ofits board of directors or authorized committee thereof, any of its funds,or any part thereof in:
(a) Stock in any insurance company or health maintenance organization,notwithstanding subsection (e) ofK.S.A. 40-2b07, and amendments thereto. Before more than 5% of the outstandingshares of stock of any insurance company or health maintenance organizationis acquired, or a tender offer made therefor, prior written approval of thecommissioner of insurance must be secured;
(b) stock in an incorporated insurance agency: (1) If 5% or less of theoutstanding shares of such incorporated agency is acquired, the provisionsof K.S.A. 40-2b07, and amendments thereto, shall apply; (2) if more than5% of the outstanding shares of such incorporated agency is acquired, ora tender offer is made therefor, the prior approval of the commissionerof insurance shall be required and the provisions of subsection (d) of K.S.A.40-2b07, and amendments thereto, shall apply. In valuing the stock of theagency, the assets of the agency shall be valued as if held directly byan insurance company; and (3) if majority interest in an incorporated insuranceagency results from the organization of an agency by the insurance companyto which this act applies, such investments shall be subject to the provisionsof K.S.A. 40-2b13, and amendments thereto, until they have produced earningsfor three out of five consecutive years. Such stock shall not be eligiblefor deposit with the commissioner of insurance as part of the legal reserveof such insurance company;
(c) stock in a holding corporation: (1) If 5% or less of the outstandingshares of stock of such holding corporation is acquired, the provisionsof K.S.A. 40-2b07, and amendments thereto, shall apply; (2) if at least55% of the holding corporation's voting stock is acquired, the prior approvalof the commissioner of insurance shall be required and the provisions ofK.S.A. 40-2b07, and amendments thereto, shall not apply. No insurer maypurchase in excess of 5% of the outstanding voting stock of a holdingcorporation unless such insurer acquires at least 55% of suchstock, nor shall the officers and directors of an insurer collectivelyown or control, directly or indirectly, more than 25% of such stock. Thecommissioner of insurance may direct an insurer to divest ofits ownership in a holdingcorporation acquired pursuant to this subsection if it appears to thecommissioner that the continued ownership or operation of the holding corporation isnot in the best interest of the policyholders, or if the insurer's ownershipin the holding corporation is less than 55% of the outstanding voting stockof the holding corporation, or if the officers and directors of theinsurer collectively own or control, directly or indirectly, more than 25%of such stock. A holding corporation acquired pursuant tothis subsection shall not acquire any investment not permitted for lifeinsurance companies pursuant to article 2b of chapter 40 of the Kansas StatutesAnnotated, and amendments thereto. In valuing the stock of any holdingcorporation acquired underthis subsection in the annual financial statement of the insurer, valueshall be assigned to the holding corporation's assets as though the assetswere owned directly by the insurer. A percentage of the holding corporation'sassets exactly equal to the insurer's ownership interest in the holdingcorporation will be added to the assets of the insurer in application ofthe insurer's investment limitations set forth in article 2b of chapter40 of the Kansas Statutes Annotated, and amendments thereto. Stock ina holding corporation acquiredunder this subsection shall not be eligible for deposit with the commissionerof insurance as part of the legal reserves of such insurer.
History: L. 1983, ch. 156, § 13;L. 1987, ch. 161, § 2;L. 1994, ch. 86, § 2; July 1.
Article 2b.--INVESTMENTS BY LIFE INSURANCE COMPANIES
40-2b23.Stock in any insurance company, health maintenance organization,incorporated insurance agencyor holding corporation.Any life insurance company heretofore or hereafter organized under any lawof this state may invest with the direction or approval of a majority ofits board of directors or authorized committee thereof, any of its funds,or any part thereof in:
(a) Stock in any insurance company or health maintenance organization,notwithstanding subsection (e) ofK.S.A. 40-2b07, and amendments thereto. Before more than 5% of the outstandingshares of stock of any insurance company or health maintenance organizationis acquired, or a tender offer made therefor, prior written approval of thecommissioner of insurance must be secured;
(b) stock in an incorporated insurance agency: (1) If 5% or less of theoutstanding shares of such incorporated agency is acquired, the provisionsof K.S.A. 40-2b07, and amendments thereto, shall apply; (2) if more than5% of the outstanding shares of such incorporated agency is acquired, ora tender offer is made therefor, the prior approval of the commissionerof insurance shall be required and the provisions of subsection (d) of K.S.A.40-2b07, and amendments thereto, shall apply. In valuing the stock of theagency, the assets of the agency shall be valued as if held directly byan insurance company; and (3) if majority interest in an incorporated insuranceagency results from the organization of an agency by the insurance companyto which this act applies, such investments shall be subject to the provisionsof K.S.A. 40-2b13, and amendments thereto, until they have produced earningsfor three out of five consecutive years. Such stock shall not be eligiblefor deposit with the commissioner of insurance as part of the legal reserveof such insurance company;
(c) stock in a holding corporation: (1) If 5% or less of the outstandingshares of stock of such holding corporation is acquired, the provisionsof K.S.A. 40-2b07, and amendments thereto, shall apply; (2) if at least55% of the holding corporation's voting stock is acquired, the prior approvalof the commissioner of insurance shall be required and the provisions ofK.S.A. 40-2b07, and amendments thereto, shall not apply. No insurer maypurchase in excess of 5% of the outstanding voting stock of a holdingcorporation unless such insurer acquires at least 55% of suchstock, nor shall the officers and directors of an insurer collectivelyown or control, directly or indirectly, more than 25% of such stock. Thecommissioner of insurance may direct an insurer to divest ofits ownership in a holdingcorporation acquired pursuant to this subsection if it appears to thecommissioner that the continued ownership or operation of the holding corporation isnot in the best interest of the policyholders, or if the insurer's ownershipin the holding corporation is less than 55% of the outstanding voting stockof the holding corporation, or if the officers and directors of theinsurer collectively own or control, directly or indirectly, more than 25%of such stock. A holding corporation acquired pursuant tothis subsection shall not acquire any investment not permitted for lifeinsurance companies pursuant to article 2b of chapter 40 of the Kansas StatutesAnnotated, and amendments thereto. In valuing the stock of any holdingcorporation acquired underthis subsection in the annual financial statement of the insurer, valueshall be assigned to the holding corporation's assets as though the assetswere owned directly by the insurer. A percentage of the holding corporation'sassets exactly equal to the insurer's ownership interest in the holdingcorporation will be added to the assets of the insurer in application ofthe insurer's investment limitations set forth in article 2b of chapter40 of the Kansas Statutes Annotated, and amendments thereto. Stock ina holding corporation acquiredunder this subsection shall not be eligible for deposit with the commissionerof insurance as part of the legal reserves of such insurer.
History: L. 1983, ch. 156, § 13;L. 1987, ch. 161, § 2;L. 1994, ch. 86, § 2; July 1.
