Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES
40-452.Life insurance; employer's insurable interest in employees;when.(a) An employer, or a trust which is sponsored by anemployer for the benefitof its employees, shall have an insurable interest in each of the lives of theemployer's employees, directors or retired employees. Notwithstanding theprovisions of K.S.A. 40-433, and amendments thereto, the employer or trust mayinsure such employees', directors' or retired employees' lives for suchemployer's or trust's benefit on an individual or group basis with the consentof the insured.
(b) The consent requirement of subsection (a) shall be deemed to besatisfied if: (1) The employee, director or retired employee is provided with awritten notice that the employer or trust intends to obtain life insurancecoverage with respect to such person's life; and (2) the employee, director orretired employee fails to provide written notification to the employer ortrust, within 30 days from the date that the notice was transmitted, that suchperson does not consent to the employer obtaining life insurance coverage onsuch person's life. It shall be unlawful for the employer or trust to retaliateagainst any person for refusing to consent to the issuance of life insurance onsuch person's life.
(c) The extent of the employer's or trust's insurable interest innonmanagement and retired employees shall be limited to an amount commensuratewith the aggregate projected liabilities to such employees under all employeewelfare benefit plans, as defined in 29 U.S.C. 1002(1), calculated inaccordance with generally accepted actuarial principles.
(d) For purposes of this section, "employer", means any individual, soleproprietorship, partnership, limited liability company, corporation or anyother entity that is legally doing business in this state; the term shall alsoinclude all entities or persons which are controlled by or affiliated with anyof the foregoing. The determination of whether any entity or person iscontrolled by or affiliated with another shall be made by applying theprinciples set forth in subsections (b) or (c) of section 414 of the internalrevenue code of 1986, as in effect on January l, 1993, except that allreferencestherein to "80%" shall be changedto 51%.
(e) This section shall not be interpreted to define all instances in whichan insurable interest exists.
(f) The provisions of this section shall apply to all insurance contracts inforce on or after the effective date of this section.
Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES
40-452.Life insurance; employer's insurable interest in employees;when.(a) An employer, or a trust which is sponsored by anemployer for the benefitof its employees, shall have an insurable interest in each of the lives of theemployer's employees, directors or retired employees. Notwithstanding theprovisions of K.S.A. 40-433, and amendments thereto, the employer or trust mayinsure such employees', directors' or retired employees' lives for suchemployer's or trust's benefit on an individual or group basis with the consentof the insured.
(b) The consent requirement of subsection (a) shall be deemed to besatisfied if: (1) The employee, director or retired employee is provided with awritten notice that the employer or trust intends to obtain life insurancecoverage with respect to such person's life; and (2) the employee, director orretired employee fails to provide written notification to the employer ortrust, within 30 days from the date that the notice was transmitted, that suchperson does not consent to the employer obtaining life insurance coverage onsuch person's life. It shall be unlawful for the employer or trust to retaliateagainst any person for refusing to consent to the issuance of life insurance onsuch person's life.
(c) The extent of the employer's or trust's insurable interest innonmanagement and retired employees shall be limited to an amount commensuratewith the aggregate projected liabilities to such employees under all employeewelfare benefit plans, as defined in 29 U.S.C. 1002(1), calculated inaccordance with generally accepted actuarial principles.
(d) For purposes of this section, "employer", means any individual, soleproprietorship, partnership, limited liability company, corporation or anyother entity that is legally doing business in this state; the term shall alsoinclude all entities or persons which are controlled by or affiliated with anyof the foregoing. The determination of whether any entity or person iscontrolled by or affiliated with another shall be made by applying theprinciples set forth in subsections (b) or (c) of section 414 of the internalrevenue code of 1986, as in effect on January l, 1993, except that allreferencestherein to "80%" shall be changedto 51%.
(e) This section shall not be interpreted to define all instances in whichan insurable interest exists.
(f) The provisions of this section shall apply to all insurance contracts inforce on or after the effective date of this section.
Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES
40-452.Life insurance; employer's insurable interest in employees;when.(a) An employer, or a trust which is sponsored by anemployer for the benefitof its employees, shall have an insurable interest in each of the lives of theemployer's employees, directors or retired employees. Notwithstanding theprovisions of K.S.A. 40-433, and amendments thereto, the employer or trust mayinsure such employees', directors' or retired employees' lives for suchemployer's or trust's benefit on an individual or group basis with the consentof the insured.
(b) The consent requirement of subsection (a) shall be deemed to besatisfied if: (1) The employee, director or retired employee is provided with awritten notice that the employer or trust intends to obtain life insurancecoverage with respect to such person's life; and (2) the employee, director orretired employee fails to provide written notification to the employer ortrust, within 30 days from the date that the notice was transmitted, that suchperson does not consent to the employer obtaining life insurance coverage onsuch person's life. It shall be unlawful for the employer or trust to retaliateagainst any person for refusing to consent to the issuance of life insurance onsuch person's life.
(c) The extent of the employer's or trust's insurable interest innonmanagement and retired employees shall be limited to an amount commensuratewith the aggregate projected liabilities to such employees under all employeewelfare benefit plans, as defined in 29 U.S.C. 1002(1), calculated inaccordance with generally accepted actuarial principles.
(d) For purposes of this section, "employer", means any individual, soleproprietorship, partnership, limited liability company, corporation or anyother entity that is legally doing business in this state; the term shall alsoinclude all entities or persons which are controlled by or affiliated with anyof the foregoing. The determination of whether any entity or person iscontrolled by or affiliated with another shall be made by applying theprinciples set forth in subsections (b) or (c) of section 414 of the internalrevenue code of 1986, as in effect on January l, 1993, except that allreferencestherein to "80%" shall be changedto 51%.
(e) This section shall not be interpreted to define all instances in whichan insurable interest exists.
(f) The provisions of this section shall apply to all insurance contracts inforce on or after the effective date of this section.
