Notice of transfer, form, contents, filing with director, when--priorapproval required, period for approval, factors for director toconsider in reviewing request--penalty for violation.
375.1287. 1. A notice of transfer regarding an assumption reinsuranceagreement shall be provided to the policyholders of a transferring insurer inthe following manner:
(1) The transferring insurer shall provide or cause to be provided toeach policyholder a notice of transfer by first class mail, addressed to thepolicyholder's last known address or to the address to which premium noticesor other policy documents are sent or, with respect to home service business,by personal delivery with acknowledged receipt. A notice of transfer shallalso be sent to the transferring insurer's agents and brokers of record on theaffected policies;
(2) The notice of transfer shall state or provide:
(a) The date on which the transfer and novation of the policyholder'scontract of insurance is proposed to take place;
(b) The name and addresses and telephone numbers of the transferringinsurer and assuming insurer;
(c) That the policyholder has the right to either consent to or rejectthe transfer and novation;
(d) The procedures and time limit for consenting to or rejecting thetransfer and novation;
(e) A summary of any effect that consenting to or rejecting the transferand novation will have on the policyholder's rights;
(f) A statement that the assuming insurer is licensed to write the typeof business being assumed in the state where the policyholder resides, or isotherwise authorized, as provided herein, to assume such business;
(g) The name and address of the person at the transferring insurer towhom the policyholder should send its written statement of acceptance orrejection of the transfer and novation;
(h) The address and phone number of the insurance department where thepolicyholder resides so that the policyholder may write or call its insurancedepartment for further information regarding the financial condition of theassuming insurer; and
(i) The following financial data for both companies:
a. Ratings for the last five years if available or for such lesserperiod as is available from two nationally recognized insurance ratingservices acceptable to the director including the rating service's explanationof the rating's meaning. If ratings are unavailable for any year of thefive-year period, this shall also be disclosed;
b. A balance sheet as of December thirty-first for the previous threeyears if available or for such lesser period as is available and as of thedate of the most recent quarterly statement;
c. A copy of the management's discussion and analysis that was filed asa supplement to the previous year's annual statement; and
d. An explanation of the reason for the transfer;
(3) Notice in a form identical or substantially similar to thefollowing, or as specified by the director of the department of insurance,financial institutions and professional registration by regulation, shall bedeemed to comply with the requirements of this subsection:
(FIRST, SECOND OR THIRD AND FINAL)
NOTICE OF TRANSFER
IMPORTANT: THIS NOTICE AFFECTS YOUR CONTRACT RIGHTS.
PLEASE READ IT CAREFULLY.
TRANSFER OF POLICY
The (name of assuming insurance company) has agreed to replace us as yourinsurer under (insert policy/certificate name and number) effective (insertdate). The (assuming insurance company's) principal place of business is(insert address) and certain financial information concerning both companiesare attached, including: (1) ratings for the last five years if available orfor such lesser period as is available from two nationally recognizedinsurance rating services; (2) balance sheets for the previous three years ifavailable or for such lesser period as is available and as of a date no laterthan ninety days prior to the current date; (3) a copy of the management'sdiscussion and analysis that was filed as a supplement to the previous year'sannual statement; and (4) an explanation of the reason for the transfer. Youmay obtain additional information concerning (name of assuming insurancecompany) from reference materials in your local library or by contacting yourstate insurance director at (insert address). The (name of assuming insurancecompany) is licensed to write this coverage in your state.
Your Rights
You may choose to accept or reject the transfer of your policy to (name ofassuming insurance company). If you want your policy transferred, you mustnotify us in writing immediately by signing and returning the enclosedpreaddressed, postage-paid or by writing to us at: (Insert name, address andfacsimile number of contact person.) Payment of your premiums to the assumingcompany will also constitute acceptance of the transaction. However, a methodwill be provided to allow you to pay the premium while reserving the right toreject the transfer. If you reject the transfer, you may keep your policywith us or exercise any option under your policy. If we do not receive awritten rejection from you within thirty months of our first notice oftransfer, (insert date of initial mailing), you will, as a matter of law, haveconsented to the transfer. However, before this consent is final, you will beprovided a second notice, twelve months after our first notice, and a thirdand final notice, twenty-four months after our first notice. After the thirdand final notice is provided, you will have only six months to reply. If youhave paid your premium to (the assuming insurance company) without reservingyour right to reject the transfer, you will not receive a subsequent notice.
Effect of Transfer
If you accept this transfer, (name of assuming insurance company) will be yourinsurer. It will have direct responsibility to you for the payment of allclaims, benefits and for all other policy obligations. We will no longer haveany obligations to you. If you accept this transfer, you should make allpremium payments and claims submissions to (name of assuming insurancecompany) and direct all questions to (name of assuming insurance company). Ifyou have any further questions about this agreement, you may contact (name oftransferring insurance company) or (name of assuming insurance company).
Sincerely,.........................
(Name of Transferring (Name of Assuming Insurance Company
Insurance Company Address Address Telephone Number)
Telephone Number)
For your convenience, we have enclosed a preaddressed postage-paid responsecard. Please take time now to read the enclosed notice and complete andreturn the response card to us.
(Notice Date)
RESPONSE CARD
...... Yes, I accept the transfer of my policy from (name of transferringcompany) to (name of assuming company).
...... No, I reject the proposed transfer of my policy from (name oftransferring company) to (name of assuming company) and wish to retain mypolicy with (name of transferring company). (Date) ...............(Signature) ........................... Name:........................................... Street Address:................................. City, State, Zip:...............................
(4) The notice to transfer shall include a preaddressed, postage-paidresponse card which a policyholder may return as its written statement ofacceptance or rejection of the transfer and novation;
(5) The notice of transfer proposed to be used shall be filed as part ofthe prior approval requirement set forth below in subdivision (1) ofsubsection 2 of this section.
2. (1) Prior approval by the director is required for any transactionwhere an insurer domiciled in this state assumes or transfers obligations orrisks on contracts of insurance under an assumption reinsurance agreement. Noinsurer licensed in this state shall transfer obligations or risks oncontracts of insurance owned by policyholders residing in this state to anyinsurer that is not licensed in this state. An insurer domiciled in thisstate shall not assume obligations or risks on contracts of insurance owned bypolicyholders residing in any other state unless it is licensed in the otherstate, or the insurance regulatory official of that state has approved suchassumption in writing;
(2) Any licensed foreign insurer that enters into an assumptionreinsurance agreement, which transfers the obligations or risks on contractsof insurance owned by policyholders residing in this state, shall file orcause to be filed the assumption certificate with the director of thedepartment of insurance, financial institutions and professional registrationof this state, a copy of the notice of transfer, and an affidavit that thetransaction is subject to substantially similar requirements in the state ofdomicile of both the transferring and assuming insurer;
(3) Any licensed foreign insurer that enters into an assumptionreinsurance agreement, which transfers the obligations or risks on contractsof insurance owned by policyholders residing in this state, shall obtain theprior approval of the director of the department of insurance, financialinstitutions and professional registration of this state and shall be subjectto all other requirements of sections 375.1280 to 375.1295 unless thetransferring and assuming insurers are subject to assumption reinsurancerequirements adopted by statute or regulation in the jurisdiction of theirdomicile which are substantially similar to sections 375.1280 to 375.1295;
(4) No insurer required to receive approval of assumption reinsurancetransactions under this section shall enter into an assumption reinsurancetransaction until:
(a) Thirty days after the director has received a request for approvaland has not within such period disapproved such transaction; or
(b) The director shall have approved the transaction within thethirty-day period;
(5) The following factors, along with such other factors as the directordeems appropriate under the circumstances, shall be considered by the directorin reviewing the request for approval:
(a) The financial condition of the transferring and assuming insurer andthe effect the transaction will have on the financial condition of eachcompany;
(b) The competence, experience and integrity of those persons whocontrol the operation of the assuming insurer;
(c) The plans or proposals the assuming party has with respect to theadministration of the policies subject to the proposed transfer;
(d) Whether the transfer is fair and reasonable to the policyholders ofboth companies;
(e) Whether the notice of transfer to be provided by the insurer isfair, adequate and not misleading; and
(f) Whether the transfer lessens competition or restrains trade.
3. Any officer, director or stockholder of any insurer violating orconsenting to the violation of any provision of subsection 2 of this sectionis guilty of a class D felony.
Notice of transfer, form, contents, filing with director, when--priorapproval required, period for approval, factors for director toconsider in reviewing request--penalty for violation.
375.1287. 1. A notice of transfer regarding an assumption reinsuranceagreement shall be provided to the policyholders of a transferring insurer inthe following manner:
(1) The transferring insurer shall provide or cause to be provided toeach policyholder a notice of transfer by first class mail, addressed to thepolicyholder's last known address or to the address to which premium noticesor other policy documents are sent or, with respect to home service business,by personal delivery with acknowledged receipt. A notice of transfer shallalso be sent to the transferring insurer's agents and brokers of record on theaffected policies;
(2) The notice of transfer shall state or provide:
(a) The date on which the transfer and novation of the policyholder'scontract of insurance is proposed to take place;
(b) The name and addresses and telephone numbers of the transferringinsurer and assuming insurer;
(c) That the policyholder has the right to either consent to or rejectthe transfer and novation;
(d) The procedures and time limit for consenting to or rejecting thetransfer and novation;
(e) A summary of any effect that consenting to or rejecting the transferand novation will have on the policyholder's rights;
(f) A statement that the assuming insurer is licensed to write the typeof business being assumed in the state where the policyholder resides, or isotherwise authorized, as provided herein, to assume such business;
(g) The name and address of the person at the transferring insurer towhom the policyholder should send its written statement of acceptance orrejection of the transfer and novation;
(h) The address and phone number of the insurance department where thepolicyholder resides so that the policyholder may write or call its insurancedepartment for further information regarding the financial condition of theassuming insurer; and
(i) The following financial data for both companies:
a. Ratings for the last five years if available or for such lesserperiod as is available from two nationally recognized insurance ratingservices acceptable to the director including the rating service's explanationof the rating's meaning. If ratings are unavailable for any year of thefive-year period, this shall also be disclosed;
b. A balance sheet as of December thirty-first for the previous threeyears if available or for such lesser period as is available and as of thedate of the most recent quarterly statement;
c. A copy of the management's discussion and analysis that was filed asa supplement to the previous year's annual statement; and
d. An explanation of the reason for the transfer;
(3) Notice in a form identical or substantially similar to thefollowing, or as specified by the director of the department of insurance,financial institutions and professional registration by regulation, shall bedeemed to comply with the requirements of this subsection:
(FIRST, SECOND OR THIRD AND FINAL)
NOTICE OF TRANSFER
IMPORTANT: THIS NOTICE AFFECTS YOUR CONTRACT RIGHTS.
PLEASE READ IT CAREFULLY.
TRANSFER OF POLICY
The (name of assuming insurance company) has agreed to replace us as yourinsurer under (insert policy/certificate name and number) effective (insertdate). The (assuming insurance company's) principal place of business is(insert address) and certain financial information concerning both companiesare attached, including: (1) ratings for the last five years if available orfor such lesser period as is available from two nationally recognizedinsurance rating services; (2) balance sheets for the previous three years ifavailable or for such lesser period as is available and as of a date no laterthan ninety days prior to the current date; (3) a copy of the management'sdiscussion and analysis that was filed as a supplement to the previous year'sannual statement; and (4) an explanation of the reason for the transfer. Youmay obtain additional information concerning (name of assuming insurancecompany) from reference materials in your local library or by contacting yourstate insurance director at (insert address). The (name of assuming insurancecompany) is licensed to write this coverage in your state.
Your Rights
You may choose to accept or reject the transfer of your policy to (name ofassuming insurance company). If you want your policy transferred, you mustnotify us in writing immediately by signing and returning the enclosedpreaddressed, postage-paid or by writing to us at: (Insert name, address andfacsimile number of contact person.) Payment of your premiums to the assumingcompany will also constitute acceptance of the transaction. However, a methodwill be provided to allow you to pay the premium while reserving the right toreject the transfer. If you reject the transfer, you may keep your policywith us or exercise any option under your policy. If we do not receive awritten rejection from you within thirty months of our first notice oftransfer, (insert date of initial mailing), you will, as a matter of law, haveconsented to the transfer. However, before this consent is final, you will beprovided a second notice, twelve months after our first notice, and a thirdand final notice, twenty-four months after our first notice. After the thirdand final notice is provided, you will have only six months to reply. If youhave paid your premium to (the assuming insurance company) without reservingyour right to reject the transfer, you will not receive a subsequent notice.
Effect of Transfer
If you accept this transfer, (name of assuming insurance company) will be yourinsurer. It will have direct responsibility to you for the payment of allclaims, benefits and for all other policy obligations. We will no longer haveany obligations to you. If you accept this transfer, you should make allpremium payments and claims submissions to (name of assuming insurancecompany) and direct all questions to (name of assuming insurance company). Ifyou have any further questions about this agreement, you may contact (name oftransferring insurance company) or (name of assuming insurance company).
Sincerely,.........................
(Name of Transferring (Name of Assuming Insurance Company
Insurance Company Address Address Telephone Number)
Telephone Number)
For your convenience, we have enclosed a preaddressed postage-paid responsecard. Please take time now to read the enclosed notice and complete andreturn the response card to us.
(Notice Date)
RESPONSE CARD
...... Yes, I accept the transfer of my policy from (name of transferringcompany) to (name of assuming company).
...... No, I reject the proposed transfer of my policy from (name oftransferring company) to (name of assuming company) and wish to retain mypolicy with (name of transferring company). (Date) ...............(Signature) ........................... Name:........................................... Street Address:................................. City, State, Zip:...............................
(4) The notice to transfer shall include a preaddressed, postage-paidresponse card which a policyholder may return as its written statement ofacceptance or rejection of the transfer and novation;
(5) The notice of transfer proposed to be used shall be filed as part ofthe prior approval requirement set forth below in subdivision (1) ofsubsection 2 of this section.
2. (1) Prior approval by the director is required for any transactionwhere an insurer domiciled in this state assumes or transfers obligations orrisks on contracts of insurance under an assumption reinsurance agreement. Noinsurer licensed in this state shall transfer obligations or risks oncontracts of insurance owned by policyholders residing in this state to anyinsurer that is not licensed in this state. An insurer domiciled in thisstate shall not assume obligations or risks on contracts of insurance owned bypolicyholders residing in any other state unless it is licensed in the otherstate, or the insurance regulatory official of that state has approved suchassumption in writing;
(2) Any licensed foreign insurer that enters into an assumptionreinsurance agreement, which transfers the obligations or risks on contractsof insurance owned by policyholders residing in this state, shall file orcause to be filed the assumption certificate with the director of thedepartment of insurance, financial institutions and professional registrationof this state, a copy of the notice of transfer, and an affidavit that thetransaction is subject to substantially similar requirements in the state ofdomicile of both the transferring and assuming insurer;
(3) Any licensed foreign insurer that enters into an assumptionreinsurance agreement, which transfers the obligations or risks on contractsof insurance owned by policyholders residing in this state, shall obtain theprior approval of the director of the department of insurance, financialinstitutions and professional registration of this state and shall be subjectto all other requirements of sections 375.1280 to 375.1295 unless thetransferring and assuming insurers are subject to assumption reinsurancerequirements adopted by statute or regulation in the jurisdiction of theirdomicile which are substantially similar to sections 375.1280 to 375.1295;
(4) No insurer required to receive approval of assumption reinsurancetransactions under this section shall enter into an assumption reinsurancetransaction until:
(a) Thirty days after the director has received a request for approvaland has not within such period disapproved such transaction; or
(b) The director shall have approved the transaction within thethirty-day period;
(5) The following factors, along with such other factors as the directordeems appropriate under the circumstances, shall be considered by the directorin reviewing the request for approval:
(a) The financial condition of the transferring and assuming insurer andthe effect the transaction will have on the financial condition of eachcompany;
(b) The competence, experience and integrity of those persons whocontrol the operation of the assuming insurer;
(c) The plans or proposals the assuming party has with respect to theadministration of the policies subject to the proposed transfer;
(d) Whether the transfer is fair and reasonable to the policyholders ofboth companies;
(e) Whether the notice of transfer to be provided by the insurer isfair, adequate and not misleading; and
(f) Whether the transfer lessens competition or restrains trade.
3. Any officer, director or stockholder of any insurer violating orconsenting to the violation of any provision of subsection 2 of this sectionis guilty of a class D felony.
Notice of transfer, form, contents, filing with director, when--priorapproval required, period for approval, factors for director toconsider in reviewing request--penalty for violation.
375.1287. 1. A notice of transfer regarding an assumption reinsuranceagreement shall be provided to the policyholders of a transferring insurer inthe following manner:
(1) The transferring insurer shall provide or cause to be provided toeach policyholder a notice of transfer by first class mail, addressed to thepolicyholder's last known address or to the address to which premium noticesor other policy documents are sent or, with respect to home service business,by personal delivery with acknowledged receipt. A notice of transfer shallalso be sent to the transferring insurer's agents and brokers of record on theaffected policies;
(2) The notice of transfer shall state or provide:
(a) The date on which the transfer and novation of the policyholder'scontract of insurance is proposed to take place;
(b) The name and addresses and telephone numbers of the transferringinsurer and assuming insurer;
(c) That the policyholder has the right to either consent to or rejectthe transfer and novation;
(d) The procedures and time limit for consenting to or rejecting thetransfer and novation;
(e) A summary of any effect that consenting to or rejecting the transferand novation will have on the policyholder's rights;
(f) A statement that the assuming insurer is licensed to write the typeof business being assumed in the state where the policyholder resides, or isotherwise authorized, as provided herein, to assume such business;
(g) The name and address of the person at the transferring insurer towhom the policyholder should send its written statement of acceptance orrejection of the transfer and novation;
(h) The address and phone number of the insurance department where thepolicyholder resides so that the policyholder may write or call its insurancedepartment for further information regarding the financial condition of theassuming insurer; and
(i) The following financial data for both companies:
a. Ratings for the last five years if available or for such lesserperiod as is available from two nationally recognized insurance ratingservices acceptable to the director including the rating service's explanationof the rating's meaning. If ratings are unavailable for any year of thefive-year period, this shall also be disclosed;
b. A balance sheet as of December thirty-first for the previous threeyears if available or for such lesser period as is available and as of thedate of the most recent quarterly statement;
c. A copy of the management's discussion and analysis that was filed asa supplement to the previous year's annual statement; and
d. An explanation of the reason for the transfer;
(3) Notice in a form identical or substantially similar to thefollowing, or as specified by the director of the department of insurance,financial institutions and professional registration by regulation, shall bedeemed to comply with the requirements of this subsection:
(FIRST, SECOND OR THIRD AND FINAL)
NOTICE OF TRANSFER
IMPORTANT: THIS NOTICE AFFECTS YOUR CONTRACT RIGHTS.
PLEASE READ IT CAREFULLY.
TRANSFER OF POLICY
The (name of assuming insurance company) has agreed to replace us as yourinsurer under (insert policy/certificate name and number) effective (insertdate). The (assuming insurance company's) principal place of business is(insert address) and certain financial information concerning both companiesare attached, including: (1) ratings for the last five years if available orfor such lesser period as is available from two nationally recognizedinsurance rating services; (2) balance sheets for the previous three years ifavailable or for such lesser period as is available and as of a date no laterthan ninety days prior to the current date; (3) a copy of the management'sdiscussion and analysis that was filed as a supplement to the previous year'sannual statement; and (4) an explanation of the reason for the transfer. Youmay obtain additional information concerning (name of assuming insurancecompany) from reference materials in your local library or by contacting yourstate insurance director at (insert address). The (name of assuming insurancecompany) is licensed to write this coverage in your state.
Your Rights
You may choose to accept or reject the transfer of your policy to (name ofassuming insurance company). If you want your policy transferred, you mustnotify us in writing immediately by signing and returning the enclosedpreaddressed, postage-paid or by writing to us at: (Insert name, address andfacsimile number of contact person.) Payment of your premiums to the assumingcompany will also constitute acceptance of the transaction. However, a methodwill be provided to allow you to pay the premium while reserving the right toreject the transfer. If you reject the transfer, you may keep your policywith us or exercise any option under your policy. If we do not receive awritten rejection from you within thirty months of our first notice oftransfer, (insert date of initial mailing), you will, as a matter of law, haveconsented to the transfer. However, before this consent is final, you will beprovided a second notice, twelve months after our first notice, and a thirdand final notice, twenty-four months after our first notice. After the thirdand final notice is provided, you will have only six months to reply. If youhave paid your premium to (the assuming insurance company) without reservingyour right to reject the transfer, you will not receive a subsequent notice.
Effect of Transfer
If you accept this transfer, (name of assuming insurance company) will be yourinsurer. It will have direct responsibility to you for the payment of allclaims, benefits and for all other policy obligations. We will no longer haveany obligations to you. If you accept this transfer, you should make allpremium payments and claims submissions to (name of assuming insurancecompany) and direct all questions to (name of assuming insurance company). Ifyou have any further questions about this agreement, you may contact (name oftransferring insurance company) or (name of assuming insurance company).
Sincerely,.........................
(Name of Transferring (Name of Assuming Insurance Company
Insurance Company Address Address Telephone Number)
Telephone Number)
For your convenience, we have enclosed a preaddressed postage-paid responsecard. Please take time now to read the enclosed notice and complete andreturn the response card to us.
(Notice Date)
RESPONSE CARD
...... Yes, I accept the transfer of my policy from (name of transferringcompany) to (name of assuming company).
...... No, I reject the proposed transfer of my policy from (name oftransferring company) to (name of assuming company) and wish to retain mypolicy with (name of transferring company). (Date) ...............(Signature) ........................... Name:........................................... Street Address:................................. City, State, Zip:...............................
(4) The notice to transfer shall include a preaddressed, postage-paidresponse card which a policyholder may return as its written statement ofacceptance or rejection of the transfer and novation;
(5) The notice of transfer proposed to be used shall be filed as part ofthe prior approval requirement set forth below in subdivision (1) ofsubsection 2 of this section.
2. (1) Prior approval by the director is required for any transactionwhere an insurer domiciled in this state assumes or transfers obligations orrisks on contracts of insurance under an assumption reinsurance agreement. Noinsurer licensed in this state shall transfer obligations or risks oncontracts of insurance owned by policyholders residing in this state to anyinsurer that is not licensed in this state. An insurer domiciled in thisstate shall not assume obligations or risks on contracts of insurance owned bypolicyholders residing in any other state unless it is licensed in the otherstate, or the insurance regulatory official of that state has approved suchassumption in writing;
(2) Any licensed foreign insurer that enters into an assumptionreinsurance agreement, which transfers the obligations or risks on contractsof insurance owned by policyholders residing in this state, shall file orcause to be filed the assumption certificate with the director of thedepartment of insurance, financial institutions and professional registrationof this state, a copy of the notice of transfer, and an affidavit that thetransaction is subject to substantially similar requirements in the state ofdomicile of both the transferring and assuming insurer;
(3) Any licensed foreign insurer that enters into an assumptionreinsurance agreement, which transfers the obligations or risks on contractsof insurance owned by policyholders residing in this state, shall obtain theprior approval of the director of the department of insurance, financialinstitutions and professional registration of this state and shall be subjectto all other requirements of sections 375.1280 to 375.1295 unless thetransferring and assuming insurers are subject to assumption reinsurancerequirements adopted by statute or regulation in the jurisdiction of theirdomicile which are substantially similar to sections 375.1280 to 375.1295;
(4) No insurer required to receive approval of assumption reinsurancetransactions under this section shall enter into an assumption reinsurancetransaction until:
(a) Thirty days after the director has received a request for approvaland has not within such period disapproved such transaction; or
(b) The director shall have approved the transaction within thethirty-day period;
(5) The following factors, along with such other factors as the directordeems appropriate under the circumstances, shall be considered by the directorin reviewing the request for approval:
(a) The financial condition of the transferring and assuming insurer andthe effect the transaction will have on the financial condition of eachcompany;
(b) The competence, experience and integrity of those persons whocontrol the operation of the assuming insurer;
(c) The plans or proposals the assuming party has with respect to theadministration of the policies subject to the proposed transfer;
(d) Whether the transfer is fair and reasonable to the policyholders ofboth companies;
(e) Whether the notice of transfer to be provided by the insurer isfair, adequate and not misleading; and
(f) Whether the transfer lessens competition or restrains trade.
3. Any officer, director or stockholder of any insurer violating orconsenting to the violation of any provision of subsection 2 of this sectionis guilty of a class D felony.
