§ 27-53.1-5. Policyholder rights.
(a) Policyholders shall have the right to reject the transfer and novation of their contracts
of insurance. Policyholders electing to reject the assumption transaction shall return
to the transferring insurer the pre-addressed, postage-paid response card or other
written notice and indicate on it that the assumption is rejected (collectively referred
to as the "Response Card�).
(b) Payment of any premium to the assuming company during the twenty-four month (24) period
after notice is received shall be deemed to indicate the policyholder's acceptance
of the tra
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§ 27-53.1-5. Policyholder rights.
(a) Policyholders shall have the right to reject the transfer and novation of their contracts
of insurance. Policyholders electing to reject the assumption transaction shall return
to the transferring insurer the pre-addressed, postage-paid response card or other
written notice and indicate on it that the assumption is rejected (collectively referred
to as the "Response Card�).
(b) Payment of any premium to the assuming company during the twenty-four month (24) period
after notice 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. The premium notice
shall also provide a method for the policyholder to pay the premium while reserving
the right to reject the transfer. With respect to any home service business or any
other business not using premium notices, the disclosures and procedural requirements
of this subsection are to be set forth in the notice of transfer required by § 27-53.1-4 and in the assumption certificate.
(c) After no fewer than twenty-four (24) months from the mailing of the initial notice
of transfer required under § 27-53.1-4(a), if positive consent to, or rejection of, the transfer and assumption has not been
received or consent has not been deemed to have occurred under subsection (b) of this
section, the transferring company shall send to the policyholder a second and final
notice of transfer as specified in § 27-53.1-4(a). If the policyholder does not accept or reject the transfer during the one-month
period immediately following the date on which the transferring insurer mails the
second and final notice of transfer, the policyholder's consent will be deemed to
have occurred and novation of the contract will be effected. With respect to the home
service business, or any other business not using premium notices, the twenty-four
(24) and one-month periods shall be measured from the date of delivery of the notice
of transfer pursuant to § 27-53.1-4(a)(1).
(d) The transferring insurer will be deemed to have received the response card on the
date it is postmarked. A policyholder may also send its response card 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.