Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES
40-401.Formation of company on stock or mutual plan; powers ofcompanies; combination policies; organizational requirements; guaranty funds;deposits with joint custodians; withdrawals, when; paid-up capital stock,surplus and deposit requirements.Any 10 or more persons, a majority of whom are citizens of this state, mayassociate in accordance with the provisions of this code and form anincorporated company, upon either the stock or mutual plan, to make insuranceupon the lives of persons and every insurance appertaining thereto or connectedtherewith and to grant, purchase or dispose of annuities, and to issuefunding agreements, guaranteed investment contracts and synthetic guaranteedinvestmentcontracts. Such companies mayincorporate: (a) In their policies provisions or conditions for thewaiver ofpremiums or for thegranting of an annuity to the insured, or for special surrender values or otherbenefits in the event the insured shall from any cause becomeunemployed or totally and permanently disabled; (b) in their policiesprovisions for acceleration oflife or annuity benefits inadvance of the time they would otherwise be payable subject to such reserve andother regulatory standards as the commissioner may prescribe by rules andregulations, except that any provision providing for acceleration oflife orannuity benefits for personsdiagnosed as having a medical condition usually requiring continuousconfinement for the rest of the person's life in a nursing home or othereligible facility as defined in the policy, may also provide for accelerationof benefits upon diagnosis of such condition even if the person is not confinedin a nursing home or similar facility; (c) in their policies and annuitycontractsprovisions or conditions for waiver ofsurrendercharges upon terms and conditions as specified in the policy or contract,subject to rules and regulations adopted by the commissioner of insurance;or (d) in their policies provisionsfor thepayment of a larger sum if death is caused by accident than if it results fromany other causes.
Prior to the payment of any accelerated benefit, the insurershall receive from any assignee or irrevocable beneficiary of the policy asigned acknowledgment of concurrence for the payment. For the purposes of thissection, "totally and permanently disabled" means disabled continuously for aperiod, such period to be specified in any such provision, of not less than 60days nor more than one year, except this provision shall not apply to andspecifically excludes group life insurance. Such company may make insurance onthe health of individuals, against accidental personal injury, disablement ordeath and against loss, liability or expense on account thereof. Such companyso transacting such health and accident insurance business, or either kind,shall maintain statutory and separate reserves for such business, shall issuesuch contracts only in separate policies except as otherwise permitted hereinand shall make separate reports to the commissioner of insurance of thepremiums received and expenses and losses incurred in connection with suchbusiness, except that such reports will not be required for acceleratedbenefits incorporated in a life or annuity policy. Long-term care insurancemeeting the applicable requirements of K.S.A. 40-2227 and 40-2228, andamendments thereto, may be incorporated in life insurance policies ifapproved by the commissioner.
The business of life insurance in this state shall not be in any wayconducted or transacted by any company which in this state makes insuranceon marine, fire, inland or any other like risks, except that, life,health and accident insurance on the group or industrial plan may becombined in one policy, which shall show the premium charged for lifeinsurance and the premium charged for health and accident insurance, andthe insured, at the insured's option, may discontinue either and by payment ofthe stated premium continue the other. The amount of capital stock of a companyorganized on the stock plan shall be not less than $600,000.
Companies organized on the mutual plan shall be required to have applicationsfrom at least 200 persons for insurance upon their lives, aggregating not lessthan $400,000, upon which one full annual premium in cash shall have been paid.No such company shall transact any business of insurance until, if a stockcompany, all the capital stock named in its charter has been paid in cashincluding all contributions to surplus to be made by the original purchasers ofsuch stock. The surplus shall be at least $600,000, and at least $400,000 insecurities authorized by this code shall have been deposited with thecommissioner of insurance pursuantto K.S.A. 40-229a, and amendments thereto, and if a mutual company, aguaranty fund of atleast $1,200,000,and at least $400,000 of whichshall be in securities as authorized in this code and deposited with thecommissioner of insurancepursuant to K.S.A. 40-229a and amendments thereto. The guaranty fundmay be returned to the contributors with interest at 6% per annum whenever thesurplus shall equal the amount of such guaranty fund and interest, and nocompany shall transact any business of insurance unless it shall maintain thecapital or surplus or both required of a company commencing to transactbusiness, or, if a mutual company, the required number and amount ofapplications for insurance have been received and the annual premiums collectedin cash. The securities deposited pursuant to this section shall be held by thecommissioner of insurance intrust forthe benefit and protection of the policyholders or creditors, or both, of thecompany depositing the same and may be withdrawn only upon order of thecommissioner of insurance.
History: L. 1927, ch. 231, 40-401; L. 1965, ch. 300, § 1; L. 1969,ch. 237, § 1; L. 1975, ch. 242, § 2; L. 1984, ch. 169, § 1; L. 1989,ch. 135, § 1; L. 1990, ch. 164, § 1;L. 1993, ch. 92, § 1;L. 1995, ch. 46, § 1;L. 1996, ch. 25, § 5;L. 2005, ch. 42, § 1; July 1.
Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES
40-401.Formation of company on stock or mutual plan; powers ofcompanies; combination policies; organizational requirements; guaranty funds;deposits with joint custodians; withdrawals, when; paid-up capital stock,surplus and deposit requirements.Any 10 or more persons, a majority of whom are citizens of this state, mayassociate in accordance with the provisions of this code and form anincorporated company, upon either the stock or mutual plan, to make insuranceupon the lives of persons and every insurance appertaining thereto or connectedtherewith and to grant, purchase or dispose of annuities, and to issuefunding agreements, guaranteed investment contracts and synthetic guaranteedinvestmentcontracts. Such companies mayincorporate: (a) In their policies provisions or conditions for thewaiver ofpremiums or for thegranting of an annuity to the insured, or for special surrender values or otherbenefits in the event the insured shall from any cause becomeunemployed or totally and permanently disabled; (b) in their policiesprovisions for acceleration oflife or annuity benefits inadvance of the time they would otherwise be payable subject to such reserve andother regulatory standards as the commissioner may prescribe by rules andregulations, except that any provision providing for acceleration oflife orannuity benefits for personsdiagnosed as having a medical condition usually requiring continuousconfinement for the rest of the person's life in a nursing home or othereligible facility as defined in the policy, may also provide for accelerationof benefits upon diagnosis of such condition even if the person is not confinedin a nursing home or similar facility; (c) in their policies and annuitycontractsprovisions or conditions for waiver ofsurrendercharges upon terms and conditions as specified in the policy or contract,subject to rules and regulations adopted by the commissioner of insurance;or (d) in their policies provisionsfor thepayment of a larger sum if death is caused by accident than if it results fromany other causes.
Prior to the payment of any accelerated benefit, the insurershall receive from any assignee or irrevocable beneficiary of the policy asigned acknowledgment of concurrence for the payment. For the purposes of thissection, "totally and permanently disabled" means disabled continuously for aperiod, such period to be specified in any such provision, of not less than 60days nor more than one year, except this provision shall not apply to andspecifically excludes group life insurance. Such company may make insurance onthe health of individuals, against accidental personal injury, disablement ordeath and against loss, liability or expense on account thereof. Such companyso transacting such health and accident insurance business, or either kind,shall maintain statutory and separate reserves for such business, shall issuesuch contracts only in separate policies except as otherwise permitted hereinand shall make separate reports to the commissioner of insurance of thepremiums received and expenses and losses incurred in connection with suchbusiness, except that such reports will not be required for acceleratedbenefits incorporated in a life or annuity policy. Long-term care insurancemeeting the applicable requirements of K.S.A. 40-2227 and 40-2228, andamendments thereto, may be incorporated in life insurance policies ifapproved by the commissioner.
The business of life insurance in this state shall not be in any wayconducted or transacted by any company which in this state makes insuranceon marine, fire, inland or any other like risks, except that, life,health and accident insurance on the group or industrial plan may becombined in one policy, which shall show the premium charged for lifeinsurance and the premium charged for health and accident insurance, andthe insured, at the insured's option, may discontinue either and by payment ofthe stated premium continue the other. The amount of capital stock of a companyorganized on the stock plan shall be not less than $600,000.
Companies organized on the mutual plan shall be required to have applicationsfrom at least 200 persons for insurance upon their lives, aggregating not lessthan $400,000, upon which one full annual premium in cash shall have been paid.No such company shall transact any business of insurance until, if a stockcompany, all the capital stock named in its charter has been paid in cashincluding all contributions to surplus to be made by the original purchasers ofsuch stock. The surplus shall be at least $600,000, and at least $400,000 insecurities authorized by this code shall have been deposited with thecommissioner of insurance pursuantto K.S.A. 40-229a, and amendments thereto, and if a mutual company, aguaranty fund of atleast $1,200,000,and at least $400,000 of whichshall be in securities as authorized in this code and deposited with thecommissioner of insurancepursuant to K.S.A. 40-229a and amendments thereto. The guaranty fundmay be returned to the contributors with interest at 6% per annum whenever thesurplus shall equal the amount of such guaranty fund and interest, and nocompany shall transact any business of insurance unless it shall maintain thecapital or surplus or both required of a company commencing to transactbusiness, or, if a mutual company, the required number and amount ofapplications for insurance have been received and the annual premiums collectedin cash. The securities deposited pursuant to this section shall be held by thecommissioner of insurance intrust forthe benefit and protection of the policyholders or creditors, or both, of thecompany depositing the same and may be withdrawn only upon order of thecommissioner of insurance.
History: L. 1927, ch. 231, 40-401; L. 1965, ch. 300, § 1; L. 1969,ch. 237, § 1; L. 1975, ch. 242, § 2; L. 1984, ch. 169, § 1; L. 1989,ch. 135, § 1; L. 1990, ch. 164, § 1;L. 1993, ch. 92, § 1;L. 1995, ch. 46, § 1;L. 1996, ch. 25, § 5;L. 2005, ch. 42, § 1; July 1.
Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES
40-401.Formation of company on stock or mutual plan; powers ofcompanies; combination policies; organizational requirements; guaranty funds;deposits with joint custodians; withdrawals, when; paid-up capital stock,surplus and deposit requirements.Any 10 or more persons, a majority of whom are citizens of this state, mayassociate in accordance with the provisions of this code and form anincorporated company, upon either the stock or mutual plan, to make insuranceupon the lives of persons and every insurance appertaining thereto or connectedtherewith and to grant, purchase or dispose of annuities, and to issuefunding agreements, guaranteed investment contracts and synthetic guaranteedinvestmentcontracts. Such companies mayincorporate: (a) In their policies provisions or conditions for thewaiver ofpremiums or for thegranting of an annuity to the insured, or for special surrender values or otherbenefits in the event the insured shall from any cause becomeunemployed or totally and permanently disabled; (b) in their policiesprovisions for acceleration oflife or annuity benefits inadvance of the time they would otherwise be payable subject to such reserve andother regulatory standards as the commissioner may prescribe by rules andregulations, except that any provision providing for acceleration oflife orannuity benefits for personsdiagnosed as having a medical condition usually requiring continuousconfinement for the rest of the person's life in a nursing home or othereligible facility as defined in the policy, may also provide for accelerationof benefits upon diagnosis of such condition even if the person is not confinedin a nursing home or similar facility; (c) in their policies and annuitycontractsprovisions or conditions for waiver ofsurrendercharges upon terms and conditions as specified in the policy or contract,subject to rules and regulations adopted by the commissioner of insurance;or (d) in their policies provisionsfor thepayment of a larger sum if death is caused by accident than if it results fromany other causes.
Prior to the payment of any accelerated benefit, the insurershall receive from any assignee or irrevocable beneficiary of the policy asigned acknowledgment of concurrence for the payment. For the purposes of thissection, "totally and permanently disabled" means disabled continuously for aperiod, such period to be specified in any such provision, of not less than 60days nor more than one year, except this provision shall not apply to andspecifically excludes group life insurance. Such company may make insurance onthe health of individuals, against accidental personal injury, disablement ordeath and against loss, liability or expense on account thereof. Such companyso transacting such health and accident insurance business, or either kind,shall maintain statutory and separate reserves for such business, shall issuesuch contracts only in separate policies except as otherwise permitted hereinand shall make separate reports to the commissioner of insurance of thepremiums received and expenses and losses incurred in connection with suchbusiness, except that such reports will not be required for acceleratedbenefits incorporated in a life or annuity policy. Long-term care insurancemeeting the applicable requirements of K.S.A. 40-2227 and 40-2228, andamendments thereto, may be incorporated in life insurance policies ifapproved by the commissioner.
The business of life insurance in this state shall not be in any wayconducted or transacted by any company which in this state makes insuranceon marine, fire, inland or any other like risks, except that, life,health and accident insurance on the group or industrial plan may becombined in one policy, which shall show the premium charged for lifeinsurance and the premium charged for health and accident insurance, andthe insured, at the insured's option, may discontinue either and by payment ofthe stated premium continue the other. The amount of capital stock of a companyorganized on the stock plan shall be not less than $600,000.
Companies organized on the mutual plan shall be required to have applicationsfrom at least 200 persons for insurance upon their lives, aggregating not lessthan $400,000, upon which one full annual premium in cash shall have been paid.No such company shall transact any business of insurance until, if a stockcompany, all the capital stock named in its charter has been paid in cashincluding all contributions to surplus to be made by the original purchasers ofsuch stock. The surplus shall be at least $600,000, and at least $400,000 insecurities authorized by this code shall have been deposited with thecommissioner of insurance pursuantto K.S.A. 40-229a, and amendments thereto, and if a mutual company, aguaranty fund of atleast $1,200,000,and at least $400,000 of whichshall be in securities as authorized in this code and deposited with thecommissioner of insurancepursuant to K.S.A. 40-229a and amendments thereto. The guaranty fundmay be returned to the contributors with interest at 6% per annum whenever thesurplus shall equal the amount of such guaranty fund and interest, and nocompany shall transact any business of insurance unless it shall maintain thecapital or surplus or both required of a company commencing to transactbusiness, or, if a mutual company, the required number and amount ofapplications for insurance have been received and the annual premiums collectedin cash. The securities deposited pursuant to this section shall be held by thecommissioner of insurance intrust forthe benefit and protection of the policyholders or creditors, or both, of thecompany depositing the same and may be withdrawn only upon order of thecommissioner of insurance.
History: L. 1927, ch. 231, 40-401; L. 1965, ch. 300, § 1; L. 1969,ch. 237, § 1; L. 1975, ch. 242, § 2; L. 1984, ch. 169, § 1; L. 1989,ch. 135, § 1; L. 1990, ch. 164, § 1;L. 1993, ch. 92, § 1;L. 1995, ch. 46, § 1;L. 1996, ch. 25, § 5;L. 2005, ch. 42, § 1; July 1.
