Missouri Laws 375.1285 – Definitions
As used in sections 375.1280 to 375.1295, the following terms mean:
(1) “Assuming insurer”, the insurer which acquires an insurance obligation or risk from the transferring insurer pursuant to an assumption reinsurance agreement;
Terms Used In Missouri Laws 375.1285
- 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.
- following: when used by way of reference to any section of the statutes, mean the section next preceding or next following that in which the reference is made, unless some other section is expressly designated in the reference. See Missouri Laws 1.020
- Insurer: all insurance companies, reciprocals, or interinsurance exchanges transacting the business of insurance in this state. See Missouri Laws 375.001
- 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.
- Policy: a contract of insurance providing fire and extended coverage insurance, whether separately or in combination with other coverages, on owner-occupied habitational property not exceeding two families. See Missouri Laws 375.001
- Property: includes real and personal property. See Missouri Laws 1.020
- State: when applied to any of the United States, includes the District of Columbia and the territories, and the words "United States" includes such district and territories. See Missouri Laws 1.020
(2) “Assumption reinsurance agreement”, any contract which both:
(a) Transfers insurance obligations or risks of existing or in-force contracts of insurance from a transferring insurer to an assuming insurer; and
(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 such contracts are extinguished;
(3) “Contract of insurance”, 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 of the policyholder, or to make payments on behalf of or to the policyholder or its beneficiaries; it shall include but not be limited to all property, casualty, life, health, accident, surety, title, and annuity business authorized to be written pursuant to the insurance laws of this state;
(4) “Notice of transfer”, the written notice to policyholders required by section 375.1287;
(5) “Policyholder”, any individual or entity which has the right to terminate or otherwise alter the terms of a contract of insurance. It includes any certificate holder whose certificate is in force on the proposed effective date of the assumption, if the certificate holder has the right to keep the certificate in force without change in benefit following termination of the group policy. The rights to keep the certificate in force referred to in this section shall not include the right to elect individual coverage under the Consolidated Omnibus Budget Reconciliation Act, (“COBRA” ) section 601, et seq., or the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1161 et seq.;
(6) “Transferring insurer”, the insurer which transfers an insurance obligation or risk to an assuming insurer pursuant to an assumption reinsurance agreement.