40-901. Kinds of business authorized; paid-up capital and surplus requirements; limitations on size of a single risk.
40-901
40-901. Kinds of business authorized; paid-up capital and surplusrequirements; limitations on size of a single risk.It shall be lawful for any stock fire insurance company organized underthe laws of this state, the United States, or any other country, stateor territory, and authorized to transact business in this state, havinga paid-up capital of not less than $450,000, a surplus of $300,000and a deposit equal to the minimum capital stock tomake contracts of insurance or to cede or receive reinsurance thereon,for such of the following kinds of business as are specified in itsarticles of incorporation, namely:
(a) To make insurance upon property or any valuable interest thereonagainst loss or damage caused by fire, lightning, or other electricaldisturbances, earthquake, windstorm, cyclone, tornado, tempest, hail,frost, snow, ice, sleet, weather or climatic condition, including excessor deficiency of moisture, flood, rain, or drought, a rising of thewaters of the ocean or its tributaries, bombardment, invasion,insurrection, riot, civil war or commotion, military or usurped power,explosion, other than the explosion of steam boilers, or the breaking offlywheels, against loss or damage from any cause to trees, crops andfarm products.
(b) To make insurance against loss or damage to property and againstthe liability of the insured for loss or damage to the property ofothers caused by water entering through leaks or openings in buildingsor from the breakage or leakage of sprinklers, pumps, water pipes,plumbing and all tanks, apparatus, conduits and containers designated tobring water into buildings or for its storage or utilization therein, orcaused by the falling of a tank, tank platform or supports, and againstloss or damage from any cause to such sprinklers, pumps, water pipes,plumbing, tanks, apparatus, conduits or containers.
(c) To make insurance upon teams, automobiles and all vehicles,airplanes, seaplanes, dirigibles and other aircraft: (1) Against allloss or damage to the same, their fittings and contents from any cause,including the hazards of burglary, theft or other criminal act,vandalism or malicious mischief. (2) Against loss or damage to property,including legal liability therefor, caused by the operation, maintenanceand use of the same.
(d) To make insurance against loss or damage to vessels, craft,aircraft, automobiles and vehicles of every kind, excluding automobilesoperating under their own power or while in storage not incidental totransportation, as well as all goods, freights, cargoes, merchandise,effects, disbursements, profits, moneys, bullion, precious stones,securities, choses in action, evidence of debt, valuable papers,bottomry and respondentia interests, and all kinds of property andinterests herein in respect to, pertaining to or in connection with anyor all risks or perils of navigation, transit or transportation,including war risks, on or under any seas or waters, on land or in theair, or while being assembled, packed, crated, baled, compressed orsimilarly prepared for shipment or while awaiting the same, or duringany delays, storage, transshipment or reshipment incidental thereto;including marine builders' risks and war risks; and from loss or damageto persons or property in connection with or appertaining to marine,inland marine, transit or transportation insurance, including loss ordamage to either, arising out of or in connection with the construction,repair, operation, maintenance or use of the subject matter of suchprimary insurance (but not including life insurance or surety bonds),but except as herein specified shall not mean insurance against loss byreason of bodily injury to the person.
(e) Against loss or damage to property from any casualty, power toinsure against which is not prohibited by the laws of this state orexclusively delegated by this code to any other class or kind ofcompany.
(f) And against consequential loss or damage arising from any of thecauses above enumerated.
(g) Against loss or damage to horses, cattle, other livestock anddomestic animals by accident, theft or death, or against any known orcontingent event whatever which may lawfully be the subject ofinsurance.
And generally to do and perform all other matters and things properto promote these objects. No insurance companyorganized under the laws of this state transacting business in thisstate shall expose itself to loss on any one risk or hazard to an amountexceeding 10% of its paid-up capital and surplus, unlessthe excess shall be reinsured in some other company duly authorized totransact similar business in this state or as otherwise provided in theinsurance code, and no insurance company not organized under thelaws of this state and transacting business in this state shall exposeitself to loss on any one risk or hazard to an amount exceeding 10%of its paid-up capital and surplus unless the excess shallbe reinsured either in some company duly authorized to transact similarbusiness in this state or as provided by the laws of such company'sdomiciliary state. Any stock company with charterpowers so to do and having a paid-up capital stock of at least $900,000and a surplus of at least $600,000, may in addition to the kinds andclasses of business mentioned in this section, transact the kinds andclasses of business mentioned in K.S.A. 40-1102, and amendments thereto, includingsurety bonds and except as herein specified, insurance against loss byreason of bodily injuries as provided for in K.S.A.40-1102, and amendments thereto, and shall maintain all reservesrequired by law for the kindsand class of business transacted. Anycompany executing suretyship obligations shall be subject to theprovisions of K.S.A. 40-1107, and amendments thereto. Until May 1,1989, stock insurers which wereauthorized to transact business in Kansas after January 1, 1969,but before January 1, 1984, shall berequired to have paid-up capital stock, surplus and deposits equal tothat which was required by this section prior to the passage of this act.After May1, 1989, such companies shall comply with the paid-up capital stock,surplus and deposit requirements provided by this act.
Until May 1, 1989, companies doing business in this state on January 1,1969, shall be required to have a paid-up capital stock, surplus anddeposit equal to that required of such companies prior to the passage ofthis act. On and after May 1, 1989, companies doing business in this stateon January 1, 1969, shall be required to have a paid-up capital stock,surplus and deposit equal to that required of all other companies to whomthis section applies immediately prior to the passage of this act.
On and after May 1, 1994, companies doing business in this state onJanuary 1, 1969, shall comply with the paid-up capital, surplus and depositrequirements provided by this act.
No provision of this act shall require insurance companies doingbusiness in this state on January 1, 1969, which have subsequently becomeauthorized to transact business in accordance with a different article ofchapter 40 of the Kansas Statutes Annotated to comply with the paid-upcapital, surplus and deposit requirements of this act until May 1, 1994.
History: L. 1927, ch. 231, 40-901; L. 1951, ch. 294, § 1; L. 1965,ch. 300, §3; L. 1967, ch. 261, § 1; L. 1969, ch. 237, § 3; L. 1970, ch. 179,§ 1; L. 1971, ch. 167, § 1; L. 1972, ch. 184, § 1; L. 1984, ch.169, § 3; July 1.