KANSAS STATUTES AND CODES

40-2,157. Material acquisitions or dispositions of assets, defined; assets subject to act; information required to be disclosed.

40-2,157

Chapter 40.--INSURANCE Article 2.--GENERAL PROVISIONS

40-2,157. Material acquisitions or dispositions ofassets, defined; assetssubject to act; information required to be disclosed.(a) Acquisitions or dispositions of assets need not bereported pursuant to subsection (a) of K.S.A. 40-2,156, if theacquisitions ordispositions are not material. For purposes of this act, a materialacquisition or disposition is one, or the aggregate of a series of relatedacquisitions or dispositions in a 30 day period, that is non-recurring, not inthe ordinary course of business and involves more than 5% of the reportinginsurer's total admitted assets as reported in its most recent statement offinancial condition filed with the commissioner.

(b) (1) Asset acquisitions subject to this act include every purchase,lease, exchange, merger, consolidation, succession or other acquisition exceptthe construction or development of real property by or for the reportinginsurer or the acquisition of materials for such purpose.

(2) Asset dispositions subject to this act include every sale, lease,exchange, merger, consolidation, mortgage, hypothecation, assignment (whetherfor the benefit of creditors or otherwise), abandonment, destruction or otherdisposition.

(c) The following information is required to be disclosed in any report of amaterial acquisition or disposition of assets:

(1) Date of the transaction;

(2) manner of acquisition or disposition;

(3) description of the assets involved;

(4) nature and amount of the consideration given or received;

(5) purpose of, or reason for, the transaction;

(6) manner by which the amount of consideration was determined;

(7) gain or loss recognized or realized as a result of thetransaction; and

(8) name or names of the person or persons from whom the assetswereacquired or to whom they were disposed.

History: L. 1994, ch. 89, § 2; July 1.