375.1290. Policyholder's right to reject, procedures--second and third notices, when--response deemed received, when.
Policyholder's right to reject, procedures--second and third notices,when--response deemed received, when.
375.1290. 1. Every policyholder shall have the right toreject the transfer and novation of their contract of insurance.Policyholders electing to reject the assumption transaction shallreturn to the transferring insurer the preaddressed postage-paidresponse card or other written notice and indicate thereon thatthe assumption is rejected.
2. Payment of the next premium to the assuming companyafter the notice of transfer is received shall be deemed toindicate the policyholder's acceptance of the transfer to theassuming insurer, and a novation shall be deemed to have beeneffected, provided that the premium notice clearly states thatpayment of the premium to the assuming insurer shall constituteacceptance of the transfer. However, the premium notice shallalso provide a method for the insured to pay the premium whilereserving the right to reject the transfer.
3. After no fewer than twelve months from the mailing ofthe initial notice of transfer required under subsection 1 ofsection 375.1287, if positive consent to the transfer andassumption has not been received and consent has not been deemedto have occurred under subsection 2 of this section, thetransferring company shall send to the policyholder a secondnotice of transfer as specified in subsection 1 of section375.1287. After no fewer than twenty-four months from themailing of the initial notice of transfer, if positive consent tothe transfer and assumption has not been received and consent hasnot been deemed to have occurred under subsection 2 of thissection, the transferring company shall send to the policyholdera third and final notice of transfer. If the policyholder doesnot reject the transfer during the six-month period immediatelyfollowing the date on which the transferring insurer mails thethird and final notice of transfer, the policyholder's consentwill be deemed to have occurred and novation of the contract willbe effected.
4. The transferring insurer will be deemed to have receivedthe response card or other written notice on the date it ispostmarked. A policyholder may also send a response card orother written notice by facsimile or other electronictransmission or by registered mail, express delivery or courierservice, in which case the response card shall be deemed to havebeen received by the assuming insurer on the date of actualreceipt by the transferring insurer.
(L. 1993 H.B. 709 § 17)