# K.S.A. § 40-3303: 40-3303 - Domestic insurer's acquisition of subsidiaries; authorized investments > Kansas · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3303 ## Section - **Citation:** K.S.A. § 40-3303 - **Heading:** 40-3303 - Domestic insurer's acquisition of subsidiaries; authorized investments - **Jurisdiction:** Kansas - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** KS Code / Chapter 40 / Article 33 / Section 40-3303 ## Text 40-3303. Domestic insurer's acquisition of subsidiaries; authorized investments. (a) Any domestic insurer, either by itself or in cooperation with one or more persons, may organize or acquire one or more subsidiaries otherwise permitted under Kansas law. (b) In addition to investments in common stock, preferred stock, debt obligations and other securities permitted under all other sections of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, a domestic insurer may also: (1) Invest in common stock, preferred stock, debt obligations and other securities of one or more subsidiaries, amounts which do not exceed the lesser of 10% of the insurer's assets or 50% of the insurer's surplus as regards policyholders, if after such investments, the insurer's surplus as regards policyholders will be reasonable in relation to the insurer's outstanding liabilities and adequate to meet its financial needs. In calculating the amount of such investments, investments in domestic or foreign insurance subsidiaries and health maintenance organizations shall be excluded, and there shall be included: (A) Total net moneys or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary whether or not represented by the purchase of capital stock or issuance of other securities; and (B) all amounts expended in acquiring additional common stock, preferred stock, debt obligations and other securities; and all contributions to the capital or surplus of a subsidiary subsequent to its acquisition or formation. (2) Invest any amount in common stock, preferred stock, debt obligations and other securities of one or more subsidiaries engaged or organized to engage exclusively in the ownership and management of assets authorized as investments for the insurer provided that each subsidiary agrees to limit its investments in any asset so that such investments will not cause the amount of the total investment of the insurer to exceed any of the investment limitations specified in article 2a or article 2b of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, applicable to the insurer. For the purpose of this paragraph, "the total investment of the insurer" shall include: (A) Any direct investment by the insurer in an asset; and (B) the insurer's proportionate share of any investment in an asset by any subsidiary of the insurer, which shall be calculated by multiplying the amount of the subsidiary's investment by the percentage of the ownership of the subsidiary. (3) With the approval of the commissioner, invest any greater amount in common stock, preferred stock, debt obligations or other securities of one or more subsidiaries; provided that after the investment the insurer's surplus as regards policyholders will be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs. (c) Investments in common stock, preferred stock, debt obligations or other securities of subsidiaries made pursuant to subsection (b) shall not be subject to any of the otherwise applicable restrictions or prohibitions contained in chapter 40 of the Kansas Statutes Annotated, and amendments thereto, applicable to such investments of insurers. (d) Whether any investment made pursuant to subsection (b) meets the applicable requirements of that subsection is to be determined before the investment is made, by calculating the applicable investment limitations as though the investment had already been made, taking into account the then outstanding principal balance on all previous investments in debt obligations, and the value of all previous investments in equity securities as of the day they were made, net of any return of capital invested, not including dividends. ned before the investment is made, by calculating the applicable investment limitations as though the investment had already been made, taking into account the then outstanding principal balance on all previous investments in debt obligations, and the value of all previous investments in equity securities as of the day they were made, net of any return of capital invested, not including dividends. (e) If an insurer ceases to control a subsidiary, it shall dispose of any investment therein made pursuant to this section within three years from the time of the cessation of control or within such further time as the commissioner may prescribe, unless at any time after the investment shall have been made, the investment shall have met the requirements for investment under any other section of chapter 40 of the Kansas Statutes Annotated, and amendments thereto, including, without limitation, K.S.A. 40-2a16 or K.S.A. 40-2b13, and amendments thereto. ## Nearby sections - [K.S.A. § 40-3301 40-3301 - Declaration of public interest and policy.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3301.md) - [K.S.A. § 40-3302 40-3302 - Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3302.md) - [K.S.A. § 40-3303 40-3303 - Domestic insurer's acquisition of subsidiaries; authorized investments.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3303.md) - [K.S.A. § 40-3304 40-3304 - Transactions affecting control of domestic insurer; approval of commissioner; statement filed with commissioner, contents, authorization of commissioner to set and publish filing fee; substitution of securities registration statement; disapproval of transaction, hearing; consolidated hearing and opt-out; retainer of professionals and experts to assist review; exempt transactions; violations; jurisdiction of courts; service of process.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3304.md) - [K.S.A. § 40-3305 40-3305 - Insurers of an insurance holding company system subject to registration; annual groups capital calculation and NAIC liquidity stress test framework, when required.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3305.md) - [K.S.A. § 40-3306 40-3306 - Insurer deemed by commissioner to be in hazardous financial condition; deposit or bond required, when; amount of deposit; disposition of records, data and premiums held by affiliate of an insurer.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3306.md) - [K.S.A. § 40-3307 40-3307 - Examination of registered insurers; powers of commissioner; expert advisers; expenses, liability of insurers; subpoenas.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3307.md) - [K.S.A. § 40-3308 40-3308 - Confidentiality of information and documents disclosed to or filed with commissioner.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3308.md) - [K.S.A. § 40-3309 40-3309 - Rules, regulations and orders of commissioner; hearings.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3309.md) - [K.S.A. § 40-3310 40-3310 - Enjoining violations; illegally acquired securities; effect on shareholder voting; injunctions; seizure or sequestration of illegally acquired securities; situs of ownership of domestic insurer's securities.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3310.md) - [K.S.A. § 40-3311 40-3311 - Violations of act; penalties.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3311.md) - [K.S.A. § 40-3315 40-3315 - Liquidation or rehabilitation of insurer; what is recoverable by receiver.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3315.md) - [K.S.A. § 40-3316 40-3316 - Supervisory college; powers of commissioner.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3316.md) - [K.S.A. § 40-3317 40-3317 - Citation of act.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3317.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A33_S40-3303. 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