44-6204. Terms, defined.

345 words·~2 min read·/ne/chapter-44/44-6204

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

For purposes of the Assumption Reinsurance Act:

(1)Assuming insurer shall mean the insurer which acquires an insurance obligation or risk from the transferring insurer pursuant to an assumption reinsurance agreement;

(2)Assumption reinsurance agreement shall mean any contract which both:

(a)Transfers insurance obligations or risks of existing contracts of insurance or contracts of insurance which are in force 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 liable to the policyholders of the transferring insurer and the transferring insurer's insurance obligations or risks under such contract of insurance are extinguished;

(3)Contract of insurance shall mean 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 its beneficiaries. The term shall include all lines of insurance specified in section 44-201 ;

(4)Director shall mean the Director of Insurance;

(5)Notice of transfer shall mean the written notice to the policyholders required by section 44-6205 ;

(6)Policyholder shall mean any individual or entity which has the right to terminate or otherwise alter the terms of a contract of insurance. The term shall include any certificate holder whose certificate is in force on the proposed effective date of the assumption if the certificate holder has the right to keep the certificate in force without change in benefit following termination of the group policy. Such rights to keep the certificate in force shall not include the right to elect individual coverage under sections 44-1640 to 44-1645 or the federal Consolidated Omnibus Budget Reconciliation Act, section 601 et seq., of the federal Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. 1161 et seq.; and

(7)Transferring insurer shall mean the insurer which transfers an insurance obligation or risk to an assuming insurer pursuant to an assumption reinsurance agreement.