(1)Prior approval by the director shall be required for any transaction by which an insurer domiciled in this state assumes or transfers obligations or risks on contracts of insurance under an assumption reinsurance agreement. An insurer authorized to transact business in this state shall not transfer obligations or risks on contracts of insurance owned by policyholders residing in this state to any insurer that is not authorized to transact business in this state. An insurer domiciled in this state shall not assume obligations or risks on contracts of insurance owned by policyholders residing in any other state unless it is authorized to transact business in the other state or the insurance department of that state has approved such assumption.
(2)A foreign or alien insurer authorized t
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(1) Prior approval by the director shall be required for any transaction by which an insurer domiciled in this state assumes or transfers obligations or risks on contracts of insurance under an assumption reinsurance agreement. An insurer authorized to transact business in this state shall not transfer obligations or risks on contracts of insurance owned by policyholders residing in this state to any insurer that is not authorized to transact business in this state. An insurer domiciled in this state shall not assume obligations or risks on contracts of insurance owned by policyholders residing in any other state unless it is authorized to transact business in the other state or the insurance department of that state has approved such assumption.
(2) A foreign or alien insurer authorized to transact business in this state that enters into an assumption reinsurance agreement which transfers the obligations or risks on contracts of insurance owned by policyholders residing in this state shall file or cause to be filed the assumption certificate with the director, a copy of the notice of transfer and an affidavit that the transaction is subject to assumption reinsurance requirements adopted by statute or regulation in the state of domicile or port-of-entry state of both the transferring insurer and assuming insurer which are substantially similar to those contained in the Assumption Reinsurance Act.
(3) A foreign or alien insurer authorized to transact business in this state that enters into an assumption reinsurance agreement which transfers the obligations or risks on contracts of insurance owned by policyholders residing in this state shall obtain prior approval of the director and be subject to all other requirements of the act unless the transferring insurer and assuming insurer are subject to assumption reinsurance requirements adopted by statute or regulation in the state of their domicile or port-of-entry state which are substantially similar to those contained in the act.
(4) An insurer required to receive approval of assumption reinsurance transactions under this section shall not enter into an assumption reinsurance transaction until:
(a) Thirty days after the director has received a request for approval and has not within such period disapproved such transaction; or
(b) The director has approved the transaction within the thirty-day period.
(5) The following factors, along with such other factors as the director deems appropriate under the circumstances, shall be considered by the director in reviewing a request for approval:
(a) The financial condition of the transferring insurer and assuming insurer and the effect the transaction will have on the financial condition of each insurer;
(b) The competence, experience, and integrity of those persons who control the operation of the assuming insurer;
(c) The plans or proposals the assuming insurer has with respect to the administration of the policies subject to the proposed transfer;
(d) Whether the transfer is fair and reasonable to the policyholders of both insurers; and
(e) Whether the notice of transfer to be provided by the insurer is fair, adequate, and not misleading.