Kansas Statutes 40-5202. Same; definitions
For the purposes of this act:
(a) “Assuming insurer” means the insurer that acquires an insurance obligation or risk, or both, from the transferring insurer pursuant to an assumption reinsurance agreement.
Terms Used In Kansas Statutes 40-5202
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Property: includes personal and real property. See Kansas Statutes 77-201
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Kansas Statutes 77-201
(b) “Assumption reinsurance agreement” means any contract that both:
(1) Transfers insurance obligations or risks, or both, of existing or in-force contracts of insurance from a transferring insurer to an assuming insurer; and
(2) is intended to effect a novation of the transferred contract of insurance with the result that the assuming insurer becomes directly liable to the policyholders of the transferring insurer and the transferring insurer’s insurance obligations or risks, or both, under the contracts are extinguished.
(c) “Commissioner” means the commissioner of insurance as defined by Kan. Stat. Ann. § 40-102, and amendments thereto, unless the context requires otherwise.
(d) “Contract of insurance” means any written agreement between an insurer and policyholder pursuant to which the insurer, in exchange for premium or other consideration, agrees to assume an obligation or risk, or both, of the policyholder or to make payments on behalf of, or to, the policyholder or its beneficiaries. Contract of insurance includes all property, casualty, life, health, accident, surety, title and annuity business authorized to be written pursuant to the insurance laws of this state.
(e) “Home service business” means insurance business on which premiums are collected on a weekly or monthly basis by an agent of the insurer.
(f) “Notice of transfer” means the written notice to policyholders required by Kan. Stat. Ann. § 40-5203, and amendments thereto.
(g) “Policyholder” means any individual or entity which has the right to terminate or otherwise alter the terms of a contract of insurance.
Policyholder includes any certificateholder whose certificate is in force on the proposed effective date of the assumption, if the certificateholder has the right to keep the certificate in force without change in benefit following termination of the group policy.
The right to keep the certificate in force shall not include the right to elect individual coverage under the consolidated omnibus budget reconciliation act (“COBRA”) section 601 et seq., of the employee retirement income security act of 1974, as amended, 29 U.S.C. §§ 1161 et seq.
(h) “Transferring insurer” means the insurer which transfers an insurance obligation or risk, or both, to an assuming insurer pursuant to an assumption reinsurance agreement.
(i) This section shall take effect on and after July 1, 2004.