The Kansas Protected Cell Captive Insurance Company Act establishes a framework for the formation and operation of both incorporated and protected cell captive insurance companies. This legislation allows for the creation of protected cells that segregate assets and liabilities for different participants, and it specifies that these companies can be formed as stock insurers, mutual corporations, nonprofit corporations, or limited liability companies. The act introduces a provisional certificate of authority for these companies and expands the types of insurance they can provide. It also amends existing statutes to extend the time between financial examinations and requires detailed reporting for each protected cell, while mandating prior written approval from the commissioner for participant contracts.

Additionally, the bill clarifies the legal treatment of protected cells in legal actions, ensuring that actions against a protected cell captive insurance company without specifying the protected cells will be treated as actions against the general account only. It introduces provisions for converting protected cells into other forms of captive insurance companies with the commissioner's consent and revises capital and surplus requirements, including reduced application and renewal fees. The bill also grants the commissioner authority for market regulation examinations and outlines the confidentiality of examination reports. Furthermore, it modifies the tax structure for captive insurance companies, establishing a maximum tax limit on premiums and ensuring no additional taxes are levied by the state. The act will take effect upon publication in the statute book.

Statutes affected:
As introduced: 40-4302, 40-4304, 40-4308, 45-215, 40-4312, 40-4314