Article 3.--ORGANIZATION, MERGER OR CONSOLIDATION OF STOCK COMPANIES
40-310.Additional kinds of insurance authorized; surplus and depositrequirements.(a) Any insurance company organized under article 3 of chapter 40of the Kansas Statutes Annotated and amendments thereto, may make and issuecontracts of insurance, in addition to those specified in subsections (a)through (g) of K.S.A. 40-901 and amendments thereto, which include such amountand kind of insurance against legal liability for injury, damage or loss to theperson or property of others, and for medical, hospital and surgical expenserelated to such injury, as the commissioner of insurance deems to be reasonablyincidental to insurance of real or personal property against fire or otherperils under policies covering residential properties involving not more thantwo families with or without incidental office, professional, private school orstudio occupancy by an insured, whether or not the premium or rate charged forcertain perils so covered is specified in the policy. Any provision of K.S.A.40-901 or 40-902 and amendments thereto, to the contrary notwithstanding: (1)No insurer having paid-up capital stock of at least $600,000 and a bona fidenet surplus of at least $400,000 but less than $1,500,000 paid-up capital andsurplus combined authorized as to property insurance only shall, pursuant tothis subsection (a), retain risk as to any one subject of insurance as tohazards other than property insurance hazards in an amount exceeding 3% of itssurplus to policyholders; and (2) no insurer having at least paid-up capitalstock of $450,000 and a bona fide net surplus of at least $300,000 but lessthan $1,000,000 paid-up capital stock and surplus combined authorized as toproperty insurance only shall, pursuant to subsection (a), retain any riskother than property insurance hazards, and all such companies shall reinsureall such risks as to hazards other than property insurance hazards.
(b) It is required when a company is acting under this section that itsboard of directors authorize such action by the affirmative vote of at least2/3 of its membership. Any company which has acted under this section shallcertify such action to the commissioner of insurance, together with a statementshowing its financial status and a net surplus sufficient to warrant suchaction.
(c) Any company operating under this section shall maintain unearned premiumreserves equal to a pro rata amount of the premiums received on all unexpiredrisks and such unearned premium reserves shall be held and regarded as anabsolute liability of the company.
Article 3.--ORGANIZATION, MERGER OR CONSOLIDATION OF STOCK COMPANIES
40-310.Additional kinds of insurance authorized; surplus and depositrequirements.(a) Any insurance company organized under article 3 of chapter 40of the Kansas Statutes Annotated and amendments thereto, may make and issuecontracts of insurance, in addition to those specified in subsections (a)through (g) of K.S.A. 40-901 and amendments thereto, which include such amountand kind of insurance against legal liability for injury, damage or loss to theperson or property of others, and for medical, hospital and surgical expenserelated to such injury, as the commissioner of insurance deems to be reasonablyincidental to insurance of real or personal property against fire or otherperils under policies covering residential properties involving not more thantwo families with or without incidental office, professional, private school orstudio occupancy by an insured, whether or not the premium or rate charged forcertain perils so covered is specified in the policy. Any provision of K.S.A.40-901 or 40-902 and amendments thereto, to the contrary notwithstanding: (1)No insurer having paid-up capital stock of at least $600,000 and a bona fidenet surplus of at least $400,000 but less than $1,500,000 paid-up capital andsurplus combined authorized as to property insurance only shall, pursuant tothis subsection (a), retain risk as to any one subject of insurance as tohazards other than property insurance hazards in an amount exceeding 3% of itssurplus to policyholders; and (2) no insurer having at least paid-up capitalstock of $450,000 and a bona fide net surplus of at least $300,000 but lessthan $1,000,000 paid-up capital stock and surplus combined authorized as toproperty insurance only shall, pursuant to subsection (a), retain any riskother than property insurance hazards, and all such companies shall reinsureall such risks as to hazards other than property insurance hazards.
(b) It is required when a company is acting under this section that itsboard of directors authorize such action by the affirmative vote of at least2/3 of its membership. Any company which has acted under this section shallcertify such action to the commissioner of insurance, together with a statementshowing its financial status and a net surplus sufficient to warrant suchaction.
(c) Any company operating under this section shall maintain unearned premiumreserves equal to a pro rata amount of the premiums received on all unexpiredrisks and such unearned premium reserves shall be held and regarded as anabsolute liability of the company.
Article 3.--ORGANIZATION, MERGER OR CONSOLIDATION OF STOCK COMPANIES
40-310.Additional kinds of insurance authorized; surplus and depositrequirements.(a) Any insurance company organized under article 3 of chapter 40of the Kansas Statutes Annotated and amendments thereto, may make and issuecontracts of insurance, in addition to those specified in subsections (a)through (g) of K.S.A. 40-901 and amendments thereto, which include such amountand kind of insurance against legal liability for injury, damage or loss to theperson or property of others, and for medical, hospital and surgical expenserelated to such injury, as the commissioner of insurance deems to be reasonablyincidental to insurance of real or personal property against fire or otherperils under policies covering residential properties involving not more thantwo families with or without incidental office, professional, private school orstudio occupancy by an insured, whether or not the premium or rate charged forcertain perils so covered is specified in the policy. Any provision of K.S.A.40-901 or 40-902 and amendments thereto, to the contrary notwithstanding: (1)No insurer having paid-up capital stock of at least $600,000 and a bona fidenet surplus of at least $400,000 but less than $1,500,000 paid-up capital andsurplus combined authorized as to property insurance only shall, pursuant tothis subsection (a), retain risk as to any one subject of insurance as tohazards other than property insurance hazards in an amount exceeding 3% of itssurplus to policyholders; and (2) no insurer having at least paid-up capitalstock of $450,000 and a bona fide net surplus of at least $300,000 but lessthan $1,000,000 paid-up capital stock and surplus combined authorized as toproperty insurance only shall, pursuant to subsection (a), retain any riskother than property insurance hazards, and all such companies shall reinsureall such risks as to hazards other than property insurance hazards.
(b) It is required when a company is acting under this section that itsboard of directors authorize such action by the affirmative vote of at least2/3 of its membership. Any company which has acted under this section shallcertify such action to the commissioner of insurance, together with a statementshowing its financial status and a net surplus sufficient to warrant suchaction.
(c) Any company operating under this section shall maintain unearned premiumreserves equal to a pro rata amount of the premiums received on all unexpiredrisks and such unearned premium reserves shall be held and regarded as anabsolute liability of the company.
