40-4004. Consideration and approval or disapproval of plan by commissioner; hearings. (a) The commissioner shall examine the plan submitted pursuant to subsection (b) or (c) of K.S.A. 40-4002, and amendments thereto. As a part of such examination, the commissioner shall order a hearing on the plan to be conducted in accordance with the provisions of the Kansas administrative procedure act and shall give not less than 20 days' written notice of the date of hearing to the insurer and give not less than 20 days' written notice to policyholders by publication or otherwise. The commissioner shall approve the plan if the commissioner finds that:
(1) The plan of conversion is fair and equitable to policyholders;
(2) the plan of conversion complies with the provisions of this act;
(3) the plan of conversion does not unjustly enrich any director, officer, agent or employee of the insurer; and
(4) the new stock insurer would meet minimum requirements to be issued a certificate of authority by the commissioner to transact business in this state and the continued operations of the new stock insurer would not be hazardous to existing or future policyholders or the public.
(b) The amount of consideration provided by the converting insurer to policyholders shall be deemed to be fair and equitable pursuant to subsection (a), if the consideration is at least the amount of statutory surplus attributable to contributions of policyholders.
(c) Upon submission of a plan of conversion, the commissioner may request any additional documents or information in the possession of the insurer or its affiliates as are reasonably necessary to enable the commissioner to make the findings required by this 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.
Structure Kansas Statutes
Article 40 - Conversion Of Domestic Mutual Insurer Into Domestic Stock Insurer
40-4001 Conversion authority; review by commissioner; act to be liberally construed.
40-4003a Plan of conversion; terms and conditions.
40-4003b Same; establishment of closed block for policyholder dividends.
40-4003c Continuation in force of policies; extinguishment of policyholder rights.
40-4004 Consideration and approval or disapproval of plan by commissioner; hearings.
40-4005 Same; meeting for approval by policyholders.
40-4006 Limitation on ownership of voting stock of converted insurer; violations; remedies.
40-4007 Prohibition on certain persons benefiting from assistance in conversion.
40-4009 Directors and officers of mutual insurer, service.
40-4010 Securities issued under plan exempt from securities laws.
40-4011 Actions challenging validity of conversion; security required.
40-4012 Rules and regulations.
40-4013 Commissioner to charge insurer for expenses.
40-4014 Filing amended articles of incorporation with secretary of state.