The commissioner may exempt from the application of K.S.A. 40-2c01 through 40-2c27 , and amendments thereto, any domestic property and casualty insurer which:
(a) Writes direct business only in this state;
(b) writes direct annual premiums of $2,000,000 or less; and
(c) assumes no reinsurance in excess of 5% of direct premiums written.