§ 8201. Purpose

§ 8201. Purpose The purpose of this chapter is to regulate the transfer and novation of contracts of insurance, including annuities, through the assumption of the contract. (Added 1993, No. 235 (Adj. Sess.), § 7.)

§ 8202. Scope

§ 8202. Scope (a) The requirements of this chapter apply to any insurer authorized to transact business in this State who contracts to assume or transfer the obligations or risks on contracts of insurance, including annuities, pursuant to an assumption reinsurance agreement. (b) This chapter does not apply to: (1) any reinsurance agreement or transaction […]

§ 8203. Definitions

§ 8203. Definitions As used in this chapter: (1) “Assuming insurer” means the insurer which acquires an insurance obligation or risk from the transferring insurer pursuant to an assumption reinsurance agreement. (2) “Assumption reinsurance agreement” means any contract, whether or not coupled with a reinsurance or indemnity agreement, which: (A) transfers insurance obligations or risks […]

§ 8204. Assumption, transfer, and notice requirements

§ 8204. Assumption, transfer, and notice requirements (a) Except as provided in, and subject to, subsection 8207(d) of this title, 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 […]

§ 8205. Policyholder rights

§ 8205. Policyholder rights (a) Policyholders shall have the right to accept or 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 thereon that the assumption is rejected (collectively referred […]

§ 8206. Effect of consent

§ 8206. Effect of consent If a policyholder consents or is deemed to have consented to the transfer pursuant to section 8205 of this title or if the transfer is effected under subsection 8207(b) of this title, there shall be a novation of the contract of insurance subject to the assumption reinsurance agreement with the […]

§ 8207. Commissioner’s powers

§ 8207. Commissioner’s powers (a) Except as provided in subsection 8204(f) of this title, the Commissioner shall approve all forms used by an insurer in a transaction under this subchapter, including the notice of transfer, the assumption contract, any related reinsurance or indemnity contract, the proposed assumption certificate, and any proposed premium or other notice […]

§ 8208. Form of notice of transfer

§ 8208. Form of notice of transfer NOTICE OF TRANSFER IMPORTANT: THIS NOTICE AFFECTS YOUR CONTRACT RIGHTS. PLEASE READ IT CAREFULLY. The AB Insurance company has agreed to replace us as your insurer under (insert policy/certificate name and number) effective (insert date). The AB Insurance Company’s principal place of business is (insert address). Financial information […]