40-4004. Consideration and approval or disapproval of plan by commissioner; hearings. - Kansas Statutes

40-4004

Chapter 40.--INSURANCE Article 40.--CONVERSION OF DOMESTIC MUTUAL INSURER INTO DOMESTIC STOCK INSURER

      40-4004.   Consideration and approval or disapproval of plan bycommissioner; hearings.(a) The commissioner shall examine the plan submittedpursuant to subsection (b) or (c) of K.S.A. 40-4002, and amendmentsthereto. As a part of suchexamination, thecommissioner shall ordera hearing on the planto be conducted in accordance with the provisions of the Kansasadministrative procedure actand shall give not less than 20 days' written noticeof the date of hearing to the insurer and give not less than 20 days'written notice to policyholders by publication or otherwise. Thecommissionershall approve the plan if the commissioner finds that:

      (1)   The plan of conversion is fair and equitable topolicyholders;

      (2)   the plan of conversion complies with the provisionsof this act;

      (3)   the plan of conversion does not unjustlyenrich any director, officer, agent or employee of theinsurer; and

      (4)   the new stock insurer would meet minimumrequirements to be issued a certificate of authority bythe commissioner to transact business inthis state and the continued operations of the new stockinsurer would not be hazardous to existing or futurepolicyholders or the public.

      (b)   The amount of consideration provided by the convertinginsurer to policyholders shall be deemed to be fair andequitable pursuant to subsection (a), if theconsideration is at least the amount of statutory surplusattributable to contributions of policyholders.

      (c)   Upon submission of a plan of conversion, thecommissioner may request any additionaldocuments or information in the possession of the insurer orits affiliates as are reasonably necessary to enable thecommissioner to make the findings required bythis section for the approval of the plan.

      History:   L. 1985, ch. 154, § 4;L. 1986, ch. 318, § 44;L. 1987, ch. 181, § 2;L. 1988, ch. 356, § 129;L. 1997, ch. 107, § 6; July 1.