Maine Revised Statutes Title 24-A Sec. 764 – Rights of policyholder
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1. Right to reject. Every policyholder has the right to reject the transfer and novation of the contracts of insurance. A policyholder electing to reject the assumption transaction shall return to the transferring insurer the preaddressed, postage-paid response card or other written notice and indicate on the response card that the assumption is rejected.
[PL 1993, c. 603 (NEW).]
Terms Used In Maine Revised Statutes Title 24-A Sec. 764
- Assuming insurer: means the insurer that acquires an insurance obligation or risk from the transferring insurer pursuant to an assumption reinsurance agreement. See Maine Revised Statutes Title 24-A Sec. 761
- Contract: A legal written agreement that becomes binding when signed.
- Home service business: means insurance business on which premiums are collected on a weekly or monthly basis by an agent of the insurer. See Maine Revised Statutes Title 24-A Sec. 761
- Notice of transfer: means the written notice to policyholders required by section 764, subsection 1. See Maine Revised Statutes Title 24-A Sec. 761
- Policyholder: means an individual or entity that has the right to terminate or otherwise alter the terms of a contract of insurance. See Maine Revised Statutes Title 24-A Sec. 761
- registered mail: when used in connection with any requirement for notice by mail shall mean either registered mail or certified mail. See Maine Revised Statutes Title 1 Sec. 72
- Transferring insurer: means the insurer that transfers an insurance obligation risk to an assuming insurer pursuant to an assumption reinsurance agreement. See Maine Revised Statutes Title 24-A Sec. 761
2. Payment of premium. Payment of the next premium to the assuming company after notice is received is determined to indicate the policyholder’s acceptance of the transfer to the assuming insurer and a novation is determined to have been effected if the premium notice clearly states that payment of the premium to the assuming insurer constitutes acceptance of the transfer. The premium notice must also provide a method for the policyholder to pay the premium while reserving the right to reject the transfer. With respect to a home service business or any other business not using premium notices, the disclosures and procedural requirements of this subsection are to be set forth in the notice of transfer required by section 763, subsection 1, paragraph A and in the assumption certificate.
[PL 1995, c. 329, §6 (AMD).]
3. Additional notice. No fewer than 24 months after the mailing of the initial notice of transfer required under section 763, if positive consent to the transfer and assumption has not been received or consent has not been determined to have occurred under subsection 1, the transferring company shall send to the policyholder a 2nd and final notice of transfer as specified in section 763, subsection 1. If the policyholder does not reject the transfer during the one-month period immediately following the date on which the transferring insurer mailed the 2nd and final notice of transfer, the policyholder’s consent is determined to have occurred and novation of the contract is effected. With respect to the home service business, the 24 and one-month periods must be measured from the date of delivery of the notice of transfer pursuant to section 763, subsection 1, paragraph A.
[PL 1993, c. 603 (NEW).]
4. Response cards. The transferring insurer is deemed to have received the response card on the date it is postmarked. A policyholder may also send a response card by facsimile or other electronic transmission or by registered mail, express delivery or courier service, in which case the response card is determined to have been received by the assuming insurer on the date of actual receipt by the transferring insurer.
[PL 1993, c. 603 (NEW).]
SECTION HISTORY
PL 1993, c. 603 (NEW). PL 1995, c. 329, §6 (AMD).