40-2a01. United States government obligations; call options. Any insurance company other than life heretofore or hereafter organized under any law of this state may invest with the direction or approval of a majority of its board of directors or authorized committee thereof, any of its funds, or any part thereof in bonds or other evidences of indebtedness issued, assumed or guaranteed by the United States of America, or by any agency or instrumentality thereof. Such insurance company may write call options on government obligations permitted under this section which it owns. Call options may be purchased for the sole purpose of closing out a position taken previously with respect to one or more options having been written. The purchase of a call option for any reason other than as a closing transaction and the writing of naked (uncovered) call options are hereby prohibited.
Any United States government obligation owned by an insurance company obligated under an unexpired written call option shall be valued at the lesser of the striking price or value established in accordance with the method of valuation as prescribed by the commissioner of insurance for financial reporting purposes.
"Striking price" means the price per United States government obligation, exclusive of selling costs, the company would receive should the call option be exercised by the holder.
History: L. 1972, ch. 173, § 1; L. 1989, ch. 134, § 1; July 1.
Structure Kansas Statutes
Article 2a - Investments By Other Than Life Insurance Companies
40-2a01 United States government obligations; call options.
40-2a02 State, District of Columbia, territorial and municipal obligations.
40-2a03 Canadian government, provincial and municipal obligations.
40-2a04 Foreign government obligations.
40-2a05 Business entity obligations; definitions.
40-2a06 Equipment trust obligations or conditional sales contract.
40-2a07 Preferred and guaranteed stocks; definitions.
40-2a08 Equity interests; call options.
40-2a10 Bank certificates of deposit.
40-2a11 Savings and loan shares or deposits.
40-2a12 Real estate bonds and mortgages.
40-2a18 Real estate investment trusts.
40-2a19 Prior lawful investments.
40-2a20 Adoption of nominee name; designation of bank as trustee.
40-2a22 Investment companies; money market mutual funds.
40-2a24 Financial futures contracts; definitions; use for hedging purposes; definitions.
40-2a25 Mortgage related securities.
40-2a26 Medium and lower grade obligations; definitions.
40-2a27 Same; limitations; exceptions; insurance company required to adopt written investment plan.
40-2a28 Investment in asset-backed securities; conditions; definitions.