The Vermont Statutes Online
Banking and Insurance
TRANSFER AND ASSUMPTION OF INSURANCE CONTRACTS
As used in this
"Assuming insurer" means the insurer which acquires an insurance
obligation or risk from the transferring insurer pursuant to an assumption
"Assumption reinsurance agreement" means any contract, whether or not
coupled with a reinsurance or indemnity agreement, which:
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.
"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.
service business" means insurance business on which premiums are collected
on a weekly or monthly basis by an agent of the insurer.
of transfer" means the written notice to policyholders required by
subsection 8204(a) of this title.
"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.
"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.)