§ 58-10-40. Effect of consent. - North Carolina Statutes

§ 58‑10‑40. Effect of consent.

If a policyholder consents tothe transfer under G.S. 58‑10‑35 or if the transfer is effectedunder G.S. 58‑10‑45, there shall be a novation of the policy,subject to the assumption reinsurance agreement, with the result that thetransferring insurer is thereby relieved of all insurance obligations or riskstransferred under the assumption reinsurance agreement and the assuming insureris directly and solely liable to the policyholder for those insuranceobligations or risks. (1995, c. 318, s. 1.)