§ 27-53.1-3 - Definitions. - Rhode Island Statutes

SECTION 27-53.1-3

   § 27-53.1-3  Definitions. – (a) "Assuming insurer" means the insurer which acquires an insurance obligationand/or risk from the transferring insurer pursuant to an assumption reinsuranceagreement.

   (b) "Assumption reinsurance agreement" means any contractwhich both:

   (1) Transfers insurance obligations and/or risks of existingor in-force contracts of insurance from a transferring insurer to an assuminginsurer; and

   (2) Is intended to effect a novation of the transferredcontract of insurance with the result that the assuming insurer becomesdirectly liable to the policyholders of the transferring insurer and thetransferring insurer's insurance obligations and/or risks under the contractsare extinguished.

   (c) "Contract of insurance" means any written agreementbetween an insurer and policyholder pursuant to which the insurer, in exchangefor premium or other consideration, agrees to assume an obligation and/or riskof the policyholder or to make payments on behalf of, or to, the policyholderor its beneficiaries; it shall include all property, casualty, life, health,accident, surety, title insurance transacted by insurers not domiciled in RhodeIsland and annuity business authorized to be written pursuant to the insurancelaws of this state.

   (d) "Home service business" means insurance business on whichpremiums are collected on a weekly or monthly basis by an agent of the insurer.

   (e) "Notice of transfer" means the written notice topolicyholders required by § 27-53.1-4(a).

   (f) "Policyholder" means any individual or entity that hasthe right to terminate or otherwise alter the terms of a contract of insurance.It includes any certificate holder whose certificate is in force on theproposed effective date on the assumption, if the certificate holder has theright to keep the certificate in force without change in benefit followingtermination of the group policy. The right to keep the certificate in forcereferred to in this section shall not include the right to elect individualcoverage under the Consolidated Omnibus Budget Reconciliation Act ("COBRA"), 42U.S.C. § 403 et seq., or Section 601 et seq., of the Employee RetirementIncome Security Act of 1974, 29 U.S.C. 1161 et seq.

   (g) "Transferring insurer" means the insurer that transfersan insurance obligation and/or risk to an assuming insurer pursuant to anassumption reinsurance agreement.