§8203. Definitions

Link to law: http://legislature.vermont.gov/statutes/section/08/157/08203
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

157

:
TRANSFER AND ASSUMPTION OF INSURANCE CONTRACTS











 

§

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 of existing or in-force contracts of insurance

from a transferring insurer to an assuming insurer; and

(B) is intended

to effect a novation of the transferred contract of insurance with the result

that the assuming insurer becomes directly and solely liable to the

policyholders of the transferring insurer and the transferring insurer's

insurance obligations or risks under the contracts are extinguished.

(3)

"Contract of insurance" means any written agreement between an

insurer and policyholder pursuant to which the insurer, in exchange for premium

or other consideration, agrees to assume an obligation or risk of the policyholder

or to make payments on behalf of, or to, the policyholder or any beneficiary.

"Contract of insurance" includes all property, casualty, life,

health, accident, surety, title, and annuity business authorized to be written

pursuant to the insurance laws of this State.

(4) "Home

service business" means insurance business on which premiums are collected

on a weekly or monthly basis by an agent of the insurer.

(5) "Notice

of transfer" means the written notice to policyholders required by

subsection 8204(a) of this title.

(6)

"Policyholder" means any individual or entity who owns or has the

right to terminate or otherwise alter the terms of a contract of insurance. It

includes any certificateholder whose certificate is in force on the proposed

effective date of the assumption, if the certificateholder has the right to

keep the certificate in force without change in benefit following termination

of the group policy. The right to keep the certificate in force referred to in

this subdivision shall not include the right to elect individual coverage

arising out of a group contract continued pursuant to the Consolidated Omnibus

Budget Reconciliation Act ("COBRA"), Section 601, et seq., of the

Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1161

et seq. or subchapter 2 of chapter 107 of this title.

(7)

"Transferring insurer" means the insurer which transfers an insurance

obligation or risk to an assuming insurer pursuant to an assumption reinsurance

agreement. (Added 1993, No. 235 (Adj. Sess.), § 7.)
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