Missouri Laws 375.1290 – Policyholder’s right to reject, procedures — second and third notices, when ..
1. Every policyholder shall have the right to reject the transfer and novation of their contract of insurance. Policyholders electing to reject the assumption transaction shall return to the transferring insurer the preaddressed postage-paid response card or other written notice and indicate thereon that the assumption is rejected.
2. Payment of the next premium to the assuming company after the notice of transfer is received shall be deemed to indicate the policyholder’s acceptance of the transfer to the assuming insurer, and a novation shall be deemed to have been effected, provided that the premium notice clearly states that payment of the premium to the assuming insurer shall constitute acceptance of the transfer. However, the premium notice shall also provide a method for the insured to pay the premium while reserving the right to reject the transfer.
Terms Used In Missouri Laws 375.1290
- 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
3. After no fewer than twelve months from the mailing of the initial notice of transfer required under subsection 1 of section 375.1287, if positive consent to the transfer and assumption has not been received and consent has not been deemed to have occurred under subsection 2 of this section, the transferring company shall send to the policyholder a second notice of transfer as specified in subsection 1 of section 375.1287. After no fewer than twenty-four months from the mailing of the initial notice of transfer, if positive consent to the transfer and assumption has not been received and consent has not been deemed to have occurred under subsection 2 of this section, the transferring company shall send to the policyholder a third and final notice of transfer. If the policyholder does not reject the transfer during the six-month period immediately following the date on which the transferring insurer mails the third and final notice of transfer, the policyholder’s consent will be deemed to have occurred and novation of the contract will be effected.
4. The transferring insurer will be deemed to have received the response card or other written notice on the date it is postmarked. A policyholder may also send a response card or other written notice by facsimile or other electronic transmission or by registered mail, express delivery or courier service, in which case the response card shall be deemed to have been received by the assuming insurer on the date of actual receipt by the transferring insurer.