Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-95 - Transfer of insurance contracts › Section 284-95-030 - Definitions, applications, and procedures

Current through Register Vol. 24-14, July 15, 2024
(1) "A transfer of insurance contracts" means
			 a transaction in which a transferring company, as defined in subsection (3) of
			 this section, transfers one or more insurance contracts, together with all or
			 substantially all of the liabilities and obligations under any such insurance
			 contracts, to an assuming company, as defined in subsection (4) of this
			 section, so that the rights of policyowners under the contracts are directly
			 affected. This includes a transfer of the type deceptively known as "assumption
			 reinsurance." This regulation is not intended to apply to a case of true
			 reinsurance, where an insurer obtains additional security for the original
			 undertaking.
(2) "Consent to
			 transfer," in the context of this regulation, means the active and affirmative
			 consent of each policyowner, as defined in subsection (5) of this section. This
			 consent must be in writing, signed by the policyowner. It will not be presumed.
			 It must be made after sufficient notice and disclosure concerning the proposed
			 transfer, and concerning both the transferring company and the assuming
			 company, as more fully set forth in WAC
			 284-95-040 and
			 284-95-050. Where a group
			 insurance contract is concerned, the consent required is that of the group
			 policyowner. Where the holder of a certificate of group insurance meets the
			 criteria set forth in subsection (5) of this section, then the certificate
			 holder is the policyowner, for the purpose of obtaining consent.
(3) "Transferring company" means the
			 insurance company, fraternal benefit society, health care service contractor,
			 or health maintenance organization which proposes to transfer one or more
			 insurance contracts, together with all or substantially all of the liabilities
			 arising under any such insurance contract, to an assuming company.
(4) "Assuming company" means the insurance
			 company, fraternal benefit society, health care service contractor, or health
			 maintenance organization which proposes to acquire one or more insurance
			 contracts, together with all or substantially all of the liabilities arising
			 under any such insurance contracts or contracts, from a transferring
			 company.
(5) "Policyowner" means
			 any individual or entity which has the right to either agree or not agree to
			 alter the terms of an insurance contract and includes any person issued a
			 certificate under a group insurance contract if such contract vests in that
			 person rights that the owner of the group contract may not terminate.
(6) "An insurance contract," for purposes of
			 this regulation, includes a life or disability insurance policy, an annuity
			 contract, and a contract issued by a health care service contractor or health
			 maintenance organization.
Statutory Authority:
				  RCW
				  48.02.060(3)(a),
				  48.01.030 and
				  48.30.010. 91-23-064 (Order R
				  91-9), §
										284-95-030, filed 11/18/91,
				  effective 12/19/91.