K.S.A. 40-4317

The commissioner may adopt such rules and regulations relating to captive insurance companies as are necessary to carry out the provisions of this act. The commissioner, on a case-by-case basis, may by order, exempt a captive insurance company from the provisions of this act and any rule or regulation adopted by the commissioner that, as reasonably determined by the commissioner, based on such factors deemed relevant by the commissioner, consistent with the purposes of this act, are inappropriate to apply to such captive insurance company.