§ 40-246i — Definitions

Kansas § 40-246i

• Jurisdiction: Kansas
• Ch. 40: INSURANCE
• Art. 2: GENERAL PROVISIONS

Text

The following definitions shall apply to K.S.A. 40-246b through 40-246e, and amendments thereto, and K.S.A. 40-246g, and amendments thereto:
(a) "Exempt commercial purchaser" means any person purchasing commercial insurance that, at the time of placement, meets the following requirements:
(1) The person employs or retains a qualified risk manager to negotiate insurance coverage;
(2) the person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of $100,000 in the immediately preceding 12 months; and
(3) the person:
(A) Possesses a net worth in excess of $20,040,000, except that this amount shall be adjusted every five years by publication in the Kansas register by the commissioner of insurance to account for the percentage change in the consumer price index;
(B) generates annual revenues in excess of $55,100,000, except that this amount shall be adjusted every five years by publication in the Kansas register by the commissioner of insurance to account for the percentage change in the consumer price index;
(C) employs more than 500 full-time or full-time-equivalent employees per insured entity or is a member of an affiliated group employing more than 1,000 employees in the aggregate;
(D) is a not-for-profit organization or public entity generating annual budgeted expenditures of at least $33,060,000, except that this amount shall be adjusted every five years by publication in the Kansas register by the commissioner of insurance to account for the percentage change in the consumer price index; or
(E) is a municipality with a population in excess of 50,000 persons.
(b) "Home state": (1) In general, except as provided in subparagraph (2), the term "home state" means, with respect to an insured:
(A) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or
(B) if 100% of the insured risk is located out of the state referred to in paragraph (1)(A), the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated.
(2) If more than one insured from an affiliated group are named insureds on a single non-admitted insurance contract, the term "home state" means the home state, as determined pursuant to paragraph (1), of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract.
(c) "Nonadmitted insurer" means an insurer that is not authorized or admitted to transact the business of insurance under the law of the home state, but does not include a risk retention group as that term is defined in 15 U.S.C. § 3901(a)(4), as in effect on July 1, 2015.
(d) "Principal place of business" means, with respect to determining the home state of the insured, the state where the insured maintains its headquarters and where the insured's high-level officers direct, control and coordinate the business activities of the insured.
(e) "Surplus lines insurance" means insurance procured by a surplus lines licensee from a surplus lines insurer as permitted under the law of the home state. "Surplus lines insurance" shall also mean excess lines insurance as may be defined by applicable state law.

Legislative History

L. 2015, ch. 83, § 5; L. 2021, ch. 108, § 4; July 1.