40-5203. Same; notice to policyholders; contents.
40-5203
40-5203. Same; notice to policyholders;contents.(a) The transferring insurer shall provide or cause to beprovidedto eachpolicyholder a notice of transfer by first-class mail, addressed to thepolicyholder's last knownaddress or to the address to which premium notices or other policy documentsare sent or, withrespect to home service business, by personal delivery with acknowledgedreceipt. A notice oftransfer shall also be sent to the transferring insurer's agents or brokers ofrecord on the affectedpolicies.
(b) The notice of transfer shall state or provide:
(1) The date the transfer and novation of the policyholder's contract ofinsurance is proposed totake place;
(2) the name, address and telephone number of the assuming and transferringinsurer;
(3) that the policyholder has the right to either consent to or reject thetransfer and novation;
(4) the procedures and time limit for consenting to or rejecting the transferand novation;
(5) a summary of any effect that consenting to or rejecting the transfer andnovation will have onthe policyholder's rights;
(6) a statement that the assuming insurer is licensed to write the type ofbusiness being assumedin the state where the policyholder resides, or is otherwise authorized, asprovided herein, toassume such business;
(7) the name and address of the person at the transferring insurer to whomthe policyholdershould send its written statement of acceptance or rejection of the transferand novation;
(8) the address and phone number of the insurance department where thepolicyholder resides sothat the policyholder may write or call the insurance department for furtherinformation regarding the financial condition of the assuming insurer;
(9) the following financial data for both companies:
(A) Ratings for the last five years if available or for such lesser period asis available from twonationally recognized insurance rating services acceptable to the commissionerincluding therating service's explanation of the meaning of the ratings. If ratings areunavailable for any yearof the five-year period, this shall also be disclosed;
(B) a balance sheet as of December 31 for the previous three years, ifavailable, or for such lesserperiod as is available and as of the date of the most recent quarterlystatement;
(C) a copy of the management's discussion and analysis that was filed as asupplement to theprevious year's annual statement; and
(D) an explanation of the reason for the transfer.
(c) Notice in a form identical or substantially similar to the form set forthin this act shall bedeemed to comply with the requirements of subsection (b) of this section andamendments thereto.
(d) The notice of transfer shall include a pre-addressed, postage-paidresponse card which apolicyholder may return as such policyholder's written statement of acceptanceor rejection of thetransfer and novation.
(e) The notice of transfer shall be filed as part of the prior approvalrequirement.
(f) This section shall take effect on and after July 1, 2004.
History: L. 2004, ch. 128, § 8; May 20.