Maine Revised Statutes Title 24-A Sec. 761 – Definitions
Current as of: 2023 | Check for updates
|
Other versions
As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings. [PL 1993, c. 603 (NEW).]
1. Assuming insurer. “Assuming insurer” means the insurer that acquires an insurance obligation or risk from the transferring insurer pursuant to an assumption reinsurance agreement.
[PL 1993, c. 603 (NEW).]
Terms Used In Maine Revised Statutes Title 24-A Sec. 761
- 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.
- 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
- Assumption reinsurance agreement: means a contract that both:
A. See Maine Revised Statutes Title 24-A Sec. 761Contract: A legal written agreement that becomes binding when signed. Contract of insurance: means a 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 of the policyholder or to make payments on behalf of, or to, the policyholder or its beneficiaries. See Maine Revised Statutes Title 24-A Sec. 761 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 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. 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 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 United States: includes territories and the District of Columbia. See Maine Revised Statutes Title 1 Sec. 72
2. Assumption reinsurance agreement. “Assumption reinsurance agreement” means a contract that both:
A. Transfers insurance obligations or risks of existing or in-force contracts of insurance from a transferring insurer to an assuming insurer; and [PL 1993, c. 603 (NEW).]
B. 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 under the contracts are extinguished. [PL 1993, c. 603 (NEW).]
[PL 1993, c. 603 (NEW).]
3. Contract of insurance. “Contract of insurance” means a 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 of the policyholder or to make payments on behalf of, or to, the policyholder or its beneficiaries. Contract of insurance may include property, casualty, life, health, accident, surety, title and annuity business authorized to be written pursuant to the insurance laws of this State.
[PL 1993, c. 603 (NEW).]
4. Home service business. “Home service business” means insurance business on which premiums are collected on a weekly or monthly basis by an agent of the insurer.
[PL 1993, c. 603 (NEW).]
5. Notice of transfer. “Notice of transfer” means the written notice to policyholders required by section 764, subsection 1.
[PL 1993, c. 603 (NEW).]
6. Policyholder. “Policyholder” means an individual or entity that has the right to terminate or otherwise alter the terms of a contract of insurance. It includes a 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 referred to in this section does not include the right to elect individual coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, COBRA, of the Employee Retirement Income Security Act of 1974, as amended, 29 United States Code § 1161 to 1168.
[PL 1993, c. 603 (NEW).]
7. Transferring insurer. “Transferring insurer” means the insurer that transfers an insurance obligation risk to an assuming insurer pursuant to an assumption reinsurance agreement.
[PL 1993, c. 603 (NEW).]
SECTION HISTORY
PL 1993, c. 603 (NEW).