§ 27-53.1-1. Purpose. This chapter provides for the regulation of the transfer and novation of contracts of insurance by way of assumption reinsurance. It defines assumption reinsurance and establishes notice and disclosure requirements which protect and define the rights and obligations of policyholders, regulators, and the parties to assumption reinsurance agreements. History of Section.P.L. 1996, […]
§ 27-53.1-2. Scope. (a) This chapter applies to any insurer authorized in this state which either assumes or transfers the obligations and/or risks on contracts of insurance pursuant to an assumption reinsurance agreement. (b) This chapter does not apply to: (1) Any reinsurance agreement or transaction in which the ceding insurer continues to remain directly […]
§ 27-53.1-3. Definitions. (a) “Assuming insurer” means the insurer which acquires an insurance obligation and/or risk from the transferring insurer pursuant to an assumption reinsurance agreement. (b) “Assumption reinsurance agreement” means any contract which both: (1) Transfers insurance obligations and/or risks of existing or in-force contracts of insurance from a transferring insurer to an assuming […]
§ 27-53.1-4. Notice requirements. (a) Notice to policyholders, agents and brokers. (1) The transferring insurer shall provide or cause to be provided to each policyholder a notice of transfer by first-class mail, addressed to the policyholder’s last known address or to the address to which premium notices or other policy documents are sent or, with […]
§ 27-53.1-5. Policyholder rights. (a) Policyholders shall have the right to reject the transfer and novation of their contracts of insurance. Policyholders electing to reject the assumption transaction shall return to the transferring insurer the pre-addressed, postage-paid response card or other written notice and indicate on it that the assumption is rejected (collectively referred to […]
§ 27-53.1-6. Effect of consent. If a policyholder consents to the transfer pursuant to § 27-53.1-5, or if the transfer is effected under § 27-53.1-7, there shall be a novation of the contract of insurance subject to the assumption reinsurance agreement with the result that the transferring insurer shall be relieved of all insurance obligations […]
§ 27-53.1-7. Commissioner’s discretion. If an insurer domiciled in this state or in a jurisdiction having a substantially similar law is deemed by the domiciliary commissioner to be in hazardous financial condition or an administrative proceeding has been instituted against it for the purpose of reorganizing or conserving the insurer, and the transfer of the […]
§ 27-53.1-8. Notice of transfer. NOTICE OF TRANSFER IMPORTANT: THIS NOTICE AFFECTS YOUR CONTRACT RIGHTS. PLEASE READ IT CAREFULLY. Transfer of Policy The [ABC Insurance Company] has agreed to replace us as your insurer under [insert policy/certificate name and number] effective [insert date]. The [ABC Insurance Company’s] principal place of business is [insert address] and […]
