40-4309. Suspension or revocation of certificate of authority; grounds.
40-4309
40-4309. Suspension or revocation of certificate of authority; grounds.(a) The certificate of authority of a captive insurancecompany to do an insurance business in this state may be suspended orrevoked by the commissioner for any of the following reasons:
(1) Insolvency or impairment of capital or surplus;
(2) failure to meet the requirements of K.S.A. 40-4304 or40-4305;
(3) refusal or failure to submit the report, required byK.S.A. 40-4307, or any other report or statement required by law orby lawfulorder of the commissioner;
(4) failure to comply with the provisions of its own articles ofincorporation or bylaws;
(5) failure to submit to examination or any legal obligation relativethereto, as required by K.S.A 40-4308;
(6) refusal or failure to pay the cost of examination as required byK.S.A. 40-4308;
(7) use of methods that, although not otherwise specifically prohibitedby law, nevertheless render its operation detrimental or its conditionunsound with respect to the public or to its policyholders;
(8) failure otherwise to comply with the laws of this state.
(b) If the commissioner finds, upon examination, hearing or otherevidence, that any captive insurance company has committed any of the actsspecified in subsection (a), such commissioner may suspend or revoke suchlicense if such commissioner deems it in the best interest of the publicand the policyholders of such captive insurance company, notwithstandingany other provision of this act.
History: L. 1988, ch. 156, § 9; July 1.