40-4103.Requirements of risk retention groupschartered in foreign states; examination by commissioner, when; compliance withorder in voluntary dissolution or delinquency proceeding; domestic or foreignchartered groups; taxation; other insurance laws applicable; disclaimerrequired on policies; prohibited acts.Risk retention groups chartered in states other than this state seeking to dobusiness as a risk retention group in this state shall observe and abide by thelaws of this state as follows:
(a) Notice of operations and designation of commissioner asagent. Before offering insurance in this state, a risk retention groupshall submit to the commissioner:
(1) A statement identifying the state or states in which the riskretention group is chartered and licensed as a liability insurance company,date of chartering, its principal place of business and such otherinformation including information on its membership, as the commissioner ofthis state may require to verify that the risk retention group is qualifiedunder subsection (k) of K.S.A. 40-4101 and amendments thereto;
(2) a copy of its plan of operations or a feasibility study andrevisions of such plan or study submitted to its state of domicile; but theprovision relating to the submission of a plan of operation or afeasibility study shall not apply with respect to any line orclassification of liability insurance which:
(A) Was defined in the product liability risk retention act of 1981before October 27, 1986; and
(B) was offered before such date by any risk retention group which hadbeen chartered and operating for not less than three years before such date;
(3) a statement of registration which designates the commissioner asits agent for the purpose of receiving service of legal documents orprocess; and
(4) a notification fee in the amount of $250.
(b) Financial condition. Any risk retention group doing businessin this state shall submit to the commissioner:
(1) A copy of the group's financial statement submitted to its stateof domicile, which shall be certified by an independent public accountantand contain a statement of opinion on loss and loss adjustment expensereserves made by a member of the American academy of actuaries or aqualified loss reserve specialist (under criteria established by thenational association of insurance commissioners);
(2) a copy of each examination of the risk retention group as certifiedby the commissioner or public official conducting the examination;
(3) upon request by the commissioner, a copy of any audit performed withrespect to the risk retention group; and
(4) such information as may be required to verify its continuingqualification as a risk retention group under subsection (k) of K.S.A.40-4101 and amendments thereto.
(c) Taxation. (1) All premiums paid for coverages within thisstate to risk retention groups chartered outside this state shall besubject to taxation at the samerate and subject to the same interest, fines and penalties for nonpaymentas that provided by K.S.A. 40-246c and amendments thereto. Risk retentiongroups chartered or licensed in this state shall be taxed in accordancewith K.S.A. 40-252, and amendments thereto.
(2) To the extent agents or brokers are utilized, they shall reportand pay the taxes for the premiums for risks which they have placed with oron behalf of a risk retention group not chartered in this state.
(3) To the extent agents or brokers are not utilized or fail to paythe tax, each risk retention group shall pay the tax for risks insuredwithin the state. Further, each risk retention group shall report allpremiums paid to it for risks insured within the state.
(d) Compliance with unfair claims settlement practices law. Anyrisk retention group, its agents and representatives, shall comply withsubsection (9) of K.S.A. 40-2404 and amendments thereto.
(e) Deceptive, false or fraudulent practices. Any risk retentiongroup shall comply with the laws of this state regarding deceptive, falseor fraudulent acts or practices. However, if the commissioner seeks aninjunction regarding such conduct, the injunction shall be obtained from acourt of competent jurisdiction.
(f) Examination regarding financial condition. Any risk retentiongroup shall submit to an examination in accordance with K.S.A. 40-222 and40-223, and amendments thereto, by the commissioner to determine itsfinancial condition if the commissioner of the jurisdiction in which thegroup is chartered has not initiated an examination or does not initiate anexamination within 60 days after a request by the commissioner of this state.
(g) Notice to purchasers. Any policy issued by a risk retentiongroupshall contain in 10 point type on the front page and the declaration page,the following notice:
NOTICE
This policy is issued by your risk retention group. Your riskretention group may not be subject to all of the insurance laws andregulations of your state. State insurance insolvency guaranty funds arenot available for your risk retention group.
(h) Prohibited acts regarding solicitation or sale. The followingacts by a risk retention group are hereby prohibited:
(1) The solicitation or sale of insurance by a risk retention group toany person who is not eligible for membership in such group; and
(2) the solicitation or sale of insurance by, or operation of, a riskretention group that is in a hazardous financial condition or is financiallyimpaired.
(i) Prohibition on ownership by an insurance company. No riskretention group shall be allowed to do business in this state if aninsurance company is directly or indirectly a retention group all of whosemembers are insurance companies.
(j) Prohibited coverage. No risk retention group may offerinsurance policy coverage prohibited by the laws of this state or declaredunlawful by the supreme court of the state of Kansas.
(k) Delinquency proceedings. A risk retention group not charteredin this state and doing business in this state must comply with a lawful orderissued in a voluntary dissolution proceeding or in a delinquency proceedingcommenced by a state insurance commissioner if there has been a finding offinancial impairment after an examination under subsection (f) of this section.
History: L. 1986, ch. 166, § 3;L. 1987, ch. 172, § 3;L. 1992, ch. 154, § 5; July 1.
40-4103.Requirements of risk retention groupschartered in foreign states; examination by commissioner, when; compliance withorder in voluntary dissolution or delinquency proceeding; domestic or foreignchartered groups; taxation; other insurance laws applicable; disclaimerrequired on policies; prohibited acts.Risk retention groups chartered in states other than this state seeking to dobusiness as a risk retention group in this state shall observe and abide by thelaws of this state as follows:
(a) Notice of operations and designation of commissioner asagent. Before offering insurance in this state, a risk retention groupshall submit to the commissioner:
(1) A statement identifying the state or states in which the riskretention group is chartered and licensed as a liability insurance company,date of chartering, its principal place of business and such otherinformation including information on its membership, as the commissioner ofthis state may require to verify that the risk retention group is qualifiedunder subsection (k) of K.S.A. 40-4101 and amendments thereto;
(2) a copy of its plan of operations or a feasibility study andrevisions of such plan or study submitted to its state of domicile; but theprovision relating to the submission of a plan of operation or afeasibility study shall not apply with respect to any line orclassification of liability insurance which:
(A) Was defined in the product liability risk retention act of 1981before October 27, 1986; and
(B) was offered before such date by any risk retention group which hadbeen chartered and operating for not less than three years before such date;
(3) a statement of registration which designates the commissioner asits agent for the purpose of receiving service of legal documents orprocess; and
(4) a notification fee in the amount of $250.
(b) Financial condition. Any risk retention group doing businessin this state shall submit to the commissioner:
(1) A copy of the group's financial statement submitted to its stateof domicile, which shall be certified by an independent public accountantand contain a statement of opinion on loss and loss adjustment expensereserves made by a member of the American academy of actuaries or aqualified loss reserve specialist (under criteria established by thenational association of insurance commissioners);
(2) a copy of each examination of the risk retention group as certifiedby the commissioner or public official conducting the examination;
(3) upon request by the commissioner, a copy of any audit performed withrespect to the risk retention group; and
(4) such information as may be required to verify its continuingqualification as a risk retention group under subsection (k) of K.S.A.40-4101 and amendments thereto.
(c) Taxation. (1) All premiums paid for coverages within thisstate to risk retention groups chartered outside this state shall besubject to taxation at the samerate and subject to the same interest, fines and penalties for nonpaymentas that provided by K.S.A. 40-246c and amendments thereto. Risk retentiongroups chartered or licensed in this state shall be taxed in accordancewith K.S.A. 40-252, and amendments thereto.
(2) To the extent agents or brokers are utilized, they shall reportand pay the taxes for the premiums for risks which they have placed with oron behalf of a risk retention group not chartered in this state.
(3) To the extent agents or brokers are not utilized or fail to paythe tax, each risk retention group shall pay the tax for risks insuredwithin the state. Further, each risk retention group shall report allpremiums paid to it for risks insured within the state.
(d) Compliance with unfair claims settlement practices law. Anyrisk retention group, its agents and representatives, shall comply withsubsection (9) of K.S.A. 40-2404 and amendments thereto.
(e) Deceptive, false or fraudulent practices. Any risk retentiongroup shall comply with the laws of this state regarding deceptive, falseor fraudulent acts or practices. However, if the commissioner seeks aninjunction regarding such conduct, the injunction shall be obtained from acourt of competent jurisdiction.
(f) Examination regarding financial condition. Any risk retentiongroup shall submit to an examination in accordance with K.S.A. 40-222 and40-223, and amendments thereto, by the commissioner to determine itsfinancial condition if the commissioner of the jurisdiction in which thegroup is chartered has not initiated an examination or does not initiate anexamination within 60 days after a request by the commissioner of this state.
(g) Notice to purchasers. Any policy issued by a risk retentiongroupshall contain in 10 point type on the front page and the declaration page,the following notice:
NOTICE
This policy is issued by your risk retention group. Your riskretention group may not be subject to all of the insurance laws andregulations of your state. State insurance insolvency guaranty funds arenot available for your risk retention group.
(h) Prohibited acts regarding solicitation or sale. The followingacts by a risk retention group are hereby prohibited:
(1) The solicitation or sale of insurance by a risk retention group toany person who is not eligible for membership in such group; and
(2) the solicitation or sale of insurance by, or operation of, a riskretention group that is in a hazardous financial condition or is financiallyimpaired.
(i) Prohibition on ownership by an insurance company. No riskretention group shall be allowed to do business in this state if aninsurance company is directly or indirectly a retention group all of whosemembers are insurance companies.
(j) Prohibited coverage. No risk retention group may offerinsurance policy coverage prohibited by the laws of this state or declaredunlawful by the supreme court of the state of Kansas.
(k) Delinquency proceedings. A risk retention group not charteredin this state and doing business in this state must comply with a lawful orderissued in a voluntary dissolution proceeding or in a delinquency proceedingcommenced by a state insurance commissioner if there has been a finding offinancial impairment after an examination under subsection (f) of this section.
History: L. 1986, ch. 166, § 3;L. 1987, ch. 172, § 3;L. 1992, ch. 154, § 5; July 1.
40-4103.Requirements of risk retention groupschartered in foreign states; examination by commissioner, when; compliance withorder in voluntary dissolution or delinquency proceeding; domestic or foreignchartered groups; taxation; other insurance laws applicable; disclaimerrequired on policies; prohibited acts.Risk retention groups chartered in states other than this state seeking to dobusiness as a risk retention group in this state shall observe and abide by thelaws of this state as follows:
(a) Notice of operations and designation of commissioner asagent. Before offering insurance in this state, a risk retention groupshall submit to the commissioner:
(1) A statement identifying the state or states in which the riskretention group is chartered and licensed as a liability insurance company,date of chartering, its principal place of business and such otherinformation including information on its membership, as the commissioner ofthis state may require to verify that the risk retention group is qualifiedunder subsection (k) of K.S.A. 40-4101 and amendments thereto;
(2) a copy of its plan of operations or a feasibility study andrevisions of such plan or study submitted to its state of domicile; but theprovision relating to the submission of a plan of operation or afeasibility study shall not apply with respect to any line orclassification of liability insurance which:
(A) Was defined in the product liability risk retention act of 1981before October 27, 1986; and
(B) was offered before such date by any risk retention group which hadbeen chartered and operating for not less than three years before such date;
(3) a statement of registration which designates the commissioner asits agent for the purpose of receiving service of legal documents orprocess; and
(4) a notification fee in the amount of $250.
(b) Financial condition. Any risk retention group doing businessin this state shall submit to the commissioner:
(1) A copy of the group's financial statement submitted to its stateof domicile, which shall be certified by an independent public accountantand contain a statement of opinion on loss and loss adjustment expensereserves made by a member of the American academy of actuaries or aqualified loss reserve specialist (under criteria established by thenational association of insurance commissioners);
(2) a copy of each examination of the risk retention group as certifiedby the commissioner or public official conducting the examination;
(3) upon request by the commissioner, a copy of any audit performed withrespect to the risk retention group; and
(4) such information as may be required to verify its continuingqualification as a risk retention group under subsection (k) of K.S.A.40-4101 and amendments thereto.
(c) Taxation. (1) All premiums paid for coverages within thisstate to risk retention groups chartered outside this state shall besubject to taxation at the samerate and subject to the same interest, fines and penalties for nonpaymentas that provided by K.S.A. 40-246c and amendments thereto. Risk retentiongroups chartered or licensed in this state shall be taxed in accordancewith K.S.A. 40-252, and amendments thereto.
(2) To the extent agents or brokers are utilized, they shall reportand pay the taxes for the premiums for risks which they have placed with oron behalf of a risk retention group not chartered in this state.
(3) To the extent agents or brokers are not utilized or fail to paythe tax, each risk retention group shall pay the tax for risks insuredwithin the state. Further, each risk retention group shall report allpremiums paid to it for risks insured within the state.
(d) Compliance with unfair claims settlement practices law. Anyrisk retention group, its agents and representatives, shall comply withsubsection (9) of K.S.A. 40-2404 and amendments thereto.
(e) Deceptive, false or fraudulent practices. Any risk retentiongroup shall comply with the laws of this state regarding deceptive, falseor fraudulent acts or practices. However, if the commissioner seeks aninjunction regarding such conduct, the injunction shall be obtained from acourt of competent jurisdiction.
(f) Examination regarding financial condition. Any risk retentiongroup shall submit to an examination in accordance with K.S.A. 40-222 and40-223, and amendments thereto, by the commissioner to determine itsfinancial condition if the commissioner of the jurisdiction in which thegroup is chartered has not initiated an examination or does not initiate anexamination within 60 days after a request by the commissioner of this state.
(g) Notice to purchasers. Any policy issued by a risk retentiongroupshall contain in 10 point type on the front page and the declaration page,the following notice:
NOTICE
This policy is issued by your risk retention group. Your riskretention group may not be subject to all of the insurance laws andregulations of your state. State insurance insolvency guaranty funds arenot available for your risk retention group.
(h) Prohibited acts regarding solicitation or sale. The followingacts by a risk retention group are hereby prohibited:
(1) The solicitation or sale of insurance by a risk retention group toany person who is not eligible for membership in such group; and
(2) the solicitation or sale of insurance by, or operation of, a riskretention group that is in a hazardous financial condition or is financiallyimpaired.
(i) Prohibition on ownership by an insurance company. No riskretention group shall be allowed to do business in this state if aninsurance company is directly or indirectly a retention group all of whosemembers are insurance companies.
(j) Prohibited coverage. No risk retention group may offerinsurance policy coverage prohibited by the laws of this state or declaredunlawful by the supreme court of the state of Kansas.
(k) Delinquency proceedings. A risk retention group not charteredin this state and doing business in this state must comply with a lawful orderissued in a voluntary dissolution proceeding or in a delinquency proceedingcommenced by a state insurance commissioner if there has been a finding offinancial impairment after an examination under subsection (f) of this section.
History: L. 1986, ch. 166, § 3;L. 1987, ch. 172, § 3;L. 1992, ch. 154, § 5; July 1.
