Vermont Statutes Title 8 Sec. 8206
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Terms Used In Vermont Statutes Title 8 Sec. 8206
- Assuming insurer: means the insurer that acquires an insurance obligation or risk from the transferring insurer pursuant to an assumption reinsurance agreement. See
- Assumption reinsurance agreement: means any contract, whether or not coupled with a reinsurance or indemnity agreement, that:
- Contract: A legal written agreement that becomes binding when signed.
- Policyholder: means any individual or entity who owns or has the right to terminate or otherwise alter the terms of a contract of insurance. See
- Transferring insurer: means the insurer that transfers an insurance obligation or risk to an assuming insurer pursuant to an assumption reinsurance agreement. See
§ 8206. Effect of consent
If a policyholder consents or is deemed to have consented to the transfer pursuant to section 8205 of this title or if the transfer is effected under subsection 8207(b) of this title, there shall be a novation of the contract of insurance subject to the assumption reinsurance agreement with the result that the transferring insurer shall thereby be relieved of all insurance obligations or risks transferred under the assumption reinsurance agreement and the assuming insurer shall become directly and solely liable to the policyholder for those insurance obligations or risks. (Added 1993, No. 235 (Adj. Sess.), § 7.)