KANSAS STATUTES AND CODES

40-5202. Same; definitions.

40-5202

Chapter 40.--INSURANCE Article 52.--ASSUMPTION REINSURANCE AGREEMENTS

40-5202. Same; definitions.For the purposes of this act:

(a) "Assuming insurer" means the insurer that acquires an insuranceobligationor risk, or both,from the transferring insurer pursuant to an assumption reinsurance agreement.

(b) "Assumption reinsurance agreement" means any contract that both:

(1) Transfers insurance obligations or risks, or both, of existing orin-force contracts ofinsurance from a transferring insurer to an assuming insurer; and

(2) is intended to effect a novation of the transferred contract of insurancewith the result that theassuming insurer becomes directly liable to the policyholders of thetransferring insurer and thetransferring insurer's insurance obligations or risks, or both, under thecontracts are extinguished.

(c) "Commissioner" means the commissioner of insurance as defined byK.S.A. 40-102 and amendments thereto, unless the context requires otherwise.

(d) "Contract of insurance" means any written agreement between an insurerand policyholderpursuant to which the insurer, in exchange for premium or other consideration,agrees to assumean obligation or risk, or both, of the policyholder or to make payments onbehalf of, or to, thepolicyholder or its beneficiaries. Contract of insurance includes all property,casualty, life, health,accident, surety, title and annuity business authorized to be written pursuantto the insurance lawsof this state.

(e) "Home service business" means insurance business on which premiums arecollected on aweekly or monthly basis by an agent of the insurer.

(f) "Notice of transfer" means the written notice to policyholders requiredbyK.S.A. 2009 Supp.40-5203 andamendments thereto.

(g) "Policyholder" means any individual or entity which has the right toterminate or otherwisealter the terms of a contract of insurance.

Policyholder includes any certificateholder whose certificate is in force onthe proposed effective date of the assumption, if the certificateholder has theright to keep the certificate in force without change in benefit followingtermination of the group policy.

The right to keep the certificate in force shall not include the right to electindividual coverage under the consolidated omnibus budget reconciliation act("COBRA") section 601 et seq., of the employee retirement income security actof 1974, as amended, 29 U.S.C. 1161 et seq.

(h) "Transferring insurer" means the insurer which transfers an insuranceobligation or risk, orboth, to an assuming insurer pursuant to an assumption reinsurance agreement.

(i) This section shall take effect on and after July 1, 2004.

History: L. 2004, ch. 128, § 7; May 20.