40-4311. Reinsurance authority; requirements and limitation; credit for reserves on risks ceded. - Kansas Statutes

40-4311

Chapter 40.--INSURANCE Article 43.--CAPTIVE INSURANCE COMPANIES

      40-4311.   Reinsurance authority; requirements and limitation; credit forreserves on risks ceded.(a) Any captive insurance company may provide reinsurance, comprised inarticles 9 and 11 of chapter 40 of the Kansas Statutes Annotated as limited bysubsection (a)(3) of K.S.A. 40-4302, and amendments thereto on risksceded by any other captive insurance company.

      (b)   Any risks or portions of risks of any captive insurance company that isreinsured shall be ceded to an insurance company that is authorized to transactbusiness in this state or that has been approved by the commissioner. A captiveinsurance company may take credit for reserves on risks or portions of risksceded. The commissioner may require any other documents, financial informationor other evidence that such a reinsurer will be able to provide adequatesecurity for its financial obligations. The commissioner may deny authorizationor impose any limitations on the activities of a reinsurer that, in suchcommissioner's judgment, are necessary and proper to provide adequate securityfor the ceding captive insurance company and for the protectionand consequent benefit of the public at large.

      (c)   Any aircraft captive insurance company may provide reinsurance,comprised in articles 9 and 11 of chapter 40 of the Kansas StatutesAnnotated as limited by subsection (a) (3) of K.S.A. 40-4302,and amendments thereto, on risks ceded by an insurance company which is anaffiliated company and is authorized to transact business in the state ofKansas, if the requirements of either paragraph (1) or (2) of subsection(b) of K.S.A. 40-221a, and amendments thereto, are met by the cedinginsurer with respect to the reinsurance provided by the aircraft captive.

      History:   L. 1988, ch. 156, § 11; L. 1990, ch. 177, § 3; April 5.