40-1209. Advancements to company; annual report; commission or promotion expenses prohibited; approval of commissioner to issue or retire certificates of indebtedness. - Kansas Statutes

40-1209

Chapter 40.--INSURANCE Article 12.--MUTUAL INSURANCE COMPANIES OTHER THAN LIFE

      40-1209.   Advancements to company; annual report; commission or promotionexpenses prohibited; approval of commissioner to issue or retire certificatesof indebtedness.Any director, officer or member of any such company, or any other person, mayadvance to such company any sum or sums of money necessary for the purposes ofits business or to enable it to comply with any of the requirements of the lawsof this state, and such moneys and such interest thereon as may have beenagreed upon, not exceeding an amount equal to 1 1/2 percentage points belowthe maximum rate of interest prescribed by subsection (b) of K.S.A. 16-207 andamendments thereto for real estate transactions. The rate of interest to beapplied to any specific certificate of indebtedness shall be calculated usingthe most immediate prior month's usury rate published by the secretary of statein the Kansas register. The sum or sums of money advanced pursuant to thisauthorization and any interest thereon shall be payable only out of the surplusremaining after providing for all reserves and other liabilities, and shall nototherwise be a liability or claim against the company or any of its assets. Nocommission or promotion expenses shall be paid in connection with the advanceof any such money to the company, and the amount of such advance shall bereported in each annual statement. [Provided, however,]* Such certificates ofindebtedness shall not be issued nor retired and no interest thereon shall bepaid without the approval of the commissioner of insurance who must besatisfied that all requirements of the law have been met.

      History:   L. 1927, ch. 231, 40-1209; L. 1939, ch. 211, § 5; L. 1992,ch. 35, § 1; April 9.