# K.S.A. § 40-4304: 40-4304 - Capital requirements

> Kansas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4304

## Section

- **Citation:** K.S.A. § 40-4304
- **Heading:** 40-4304 - Capital requirements
- **Jurisdiction:** Kansas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** KS Code / Chapter 40 / Article 43 / Section 40-4304

## Text

40-4304. Capital requirements. (a) No captive insurance company shall be issued a certificate of authority unless such company shall possess and thereafter maintain unimpaired paid-in capital and surplus of not less than:

(1) $250,000, in the case of a pure captive insurance company;

(2) $500,000, in the case of an association captive insurance company incorporated as a stock insurer; and

(3) $100,000, in the case of a protected cell captive insurance company.

(b) Such capital may be in the form of cash or, upon approval of the commissioner, an irrevocable letter of credit issued by a bank chartered by the state of Kansas or the United States comptroller of currency, domiciled in Kansas, and approved by the commissioner.

(c) In connection with the issuance of a certificate of authority, the commissioner may prescribe additional minimum capital and surplus based upon the type, volume and nature of the insurance business transacted.

(d) Loans of minimum capital and surplus funds shall be prohibited. Notwithstanding the foregoing, the minimum capital and surplus funds may be received by the issuance of a surplus note as approved by the commissioner.

(e) No pure captive insurance company shall make a loan or an investment in its parent company or affiliates without prior written approval of the commissioner, and any such loan or investment shall be evidenced by documentation approved by the commissioner.

## Nearby sections

- [K.S.A. § 40-4301 40-4301 - Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4301.md)
- [K.S.A. § 40-4302 40-4302 - Certificate of authority to provide insurance coverage; certain risks not authorized to be covered; requirements for doing business; documents and information required to be filed with commissioner; examination and registration fees; issuance of certificate of authority; privacy protections in court proceedings.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4302.md)
- [K.S.A. § 40-4303 40-4303 - Name of company; exceptions.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4303.md)
- [K.S.A. § 40-4304 40-4304 - Capital requirements.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4304.md)
- [K.S.A. § 40-4306 40-4306 - Incorporation of companies; incorporators, number and residency requirements; petition of commissioner for issuance of certificate that company promotes welfare of state; certificate and articles of incorporation to be filed with secretary of state; organization fee; capital stock requirements; board of directors, residency requirements; application of general corporation code.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4306.md)
- [K.S.A. § 40-4307 40-4307 - Annual report of financial condition.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4307.md)
- [K.S.A. § 40-4308 40-4308 - Examination of companies; report; orders; confidentiality.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4308.md)
- [K.S.A. § 40-4309 40-4309 - Suspension or revocation of certificate of authority; grounds.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4309.md)
- [K.S.A. § 40-4310 40-4310 - Investments; restrictions and limitations.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4310.md)
- [K.S.A. § 40-4311 40-4311 - Reinsurance authority; requirements and limitation; credit for reserves on risks ceded.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4311.md)
- [K.S.A. § 40-4312 40-4312 - No requirement to join rating or policy form organization.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4312.md)
- [K.S.A. § 40-4313 40-4313 - Companies prohibited from joining or benefiting from insolvency guarantee funds; notice.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4313.md)
- [K.S.A. § 40-4314 40-4314 - Taxation of captive insurance companies and redomesticating captive insurance companies.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4314.md)
- [K.S.A. § 40-4315 40-4315 - Statutes regulating trade practices applicable to certain insurance provided by captive insurance companies.](https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4315.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_KS_C40_A43_S40-4304. Check the current official text before relying on it. Not legal advice.