40-1618. Same; information required to be filed with insurance commissioner; notice and hearing on merger; approval, when; costs.
40-1618
40-1618. Same; information required to be filed with insurancecommissioner; notice and hearing on merger; approval, when; costs.(a) No merger under this act shall occur unless, in advance ofthe proposed merger, the following information has been filed with thecommissioner of insurance: (1) The agreement of merger; (2) a verified scheduleby the actuaries of the insurance entities interested in merging, showing thatthe legal reserves for the subscribers of each insurance entity as of December31 of the preceding year are not less than the amount that would be required ofa Kansas domestic reciprocal or interinsurance exchange; (3) a pro formafinancial statement showing that, upon approval of the merger by thecommissioner of insurance, the surviving insurance entity will continue tosatisfy the financial requirements to transact all of the line or lines ofinsurance in all jurisdictions where it is presently authorized to transactbusiness; and (4) any other information which may be requested by thecommissioner of insurance.
(b) After notice and a hearing in accordance with the Kansas administrativeprocedure act, the commissioner of insurance shall approve the mergerunless the commissioner of insurance determines that any one of the followingexist or would result from the merger, in which event the commissioner ofinsurance shall disapprove the merger: (1) The insurance entities proposing tomerge have not complied with the provisions of this act; (2) the merger of thetwo insurance entities is not in the best interests of the subscribers of ArmedForces Insurance Exchange; (3) after the merger, Armed Forces InsuranceExchange would be in violation of any of the laws of this state; or (4) theeffect of the merger would be to substantially lessen competition in insurancein this state.
(c) The parties proposing to merge under this act shall bear all costsassociated with the hearing required by this section.
History: L. 1992, ch. 72, § 4; May 7.