44-6205. Notice requirements.

(1) The transferring insurer shall provide or cause to be provided to each policyholder a notice of transfer by first-class mail addressed to the policyholder's last-known address or to the address to which premium notices or other policy documents are sent or, with respect to home-service business, by personal delivery with acknowledged receipt. A notice of transfer shall also be sent to the transferring insurer's agents or brokers of record on the affected policies.

(2) The notice of transfer shall state or provide:

(a) The date the transfer and novation of the policyholder's contract of insurance is proposed to take place;

(b) The names, addresses, and telephone numbers of the assuming insurer and transferring insurer;

(c) That the policyholder has the right to either accept or reject the transfer and novation;

(d) The procedures and time limit for accepting or rejecting the transfer and novation;

(e) A summary of any effect that accepting or rejecting the transfer and novation will have on the policyholder's rights;

(f) A statement that the assuming insurer is authorized to write the type of business being assumed in the state where the policyholder resides or is otherwise authorized, as provided in the Assumption Reinsurance Act, to assume such business;

(g) The name and address of the person at the transferring insurer to whom the policyholder should send its written statement of acceptance or rejection of the transfer and novation;

(h) The address and telephone number of the insurance department of the state where the policyholder resides so that the policyholder may write or call such insurance department for further information regarding the financial condition of the assuming insurer;

(i) The following information regarding both insurers:

(i) Ratings for the last five years if available, or for such lesser period as is available, from two nationally recognized insurance rating services acceptable to the director, including the rating service's explanation of the rating's meaning. If ratings are unavailable for any year of the five-year period, this shall also be disclosed;

(ii) The annual statement balance sheet as of December 31 for the previous two years if available, or for such lesser period as is available, and as of the date of the most recent quarterly statement; and

(iii) An explanation of the reason for the transfer; and

(j) Such other information as the director may by rule and regulation require.

(3) A notice of transfer in a form identical or substantially similar to a form prescribed by the director shall be deemed to comply with the requirements of subsection (2) of this section.

(4) The notice of transfer shall include a preaddressed, postage-paid response card which a policyholder may return as its written statement of acceptance or rejection of the transfer and novation.

(5) The notice of transfer proposed to be used shall be filed with the director as part of the prior approval requirement set forth in subsection (1) of section 44-6206.

Source