ORS 742.158
Rejection of transfer by policyholder
- payment of premium as acceptance of transfer
- failure of policyholder to respond to notice
(1)
A policyholder or certificate holder described in ORS 742.156 (Notice of transfer under assumption reinsurance agreement) may reject the transfer and novation of the policy under an assumption reinsurance agreement to which ORS 742.150 (Approval by director) applies. A policyholder or certificate holder electing to reject the assumption transaction must give notice of rejection according to the manner of response established by rule.(2)
If the premium notice sent by an assuming insurer to a policyholder or a certificate holder described in ORS 742.156 (Notice of transfer under assumption reinsurance agreement) satisfies the requirements of this subsection, payment of any premium to the assuming insurer during the 12-month period after the notice is received constitutes the policyholder’s acceptance of the transfer to the assuming insurer. Upon such a payment, a novation is effected. The premium notice must state that payment of the premium to the assuming insurer constitutes acceptance of the transfer and must provide a method for the policyholder to pay the premium while reserving the right to reject the transfer. This subsection does not apply to a policy for which premiums are collected on a weekly or monthly basis by an insurance producer who is an agent of the insurer nor to any other insurance not using premium notices.(3)
After not less than 12 months from the mailing of the first notice of transfer required under ORS 742.156 (Notice of transfer under assumption reinsurance agreement), if the transferring insurer has not received the consent to or rejection of the transfer and assumption from a policyholder or consent by the policyholder has not occurred under subsection (2) of this section, the transferring insurer shall send to the policyholder a second and final notice of transfer. The notice must conform to the requirements established under ORS 742.156 (Notice of transfer under assumption reinsurance agreement) and must also state that the policyholder must accept or reject the transfer not later than the 30th day after the postmark date. Failure by the policyholder to accept or reject the transfer during that period constitutes consent by the policyholder and novation of the contract will be effected. For a policy for which premiums are collected on a weekly or monthly basis by an insurance producer who is an agent of the insurer or for any other insurance not using premium notices, the 12-month period and the 30-day period shall be measured from the date of delivery of the notice of transfer provided under ORS 742.156 (Notice of transfer under assumption reinsurance agreement).(4)
If a policyholder responds to the notice of transfer by mail, receipt of the response by the transferring insurer occurs on the date the response is postmarked. If a policyholder responds to the notice of transfer by facsimile or other electronic transmission or by registered mail, express delivery or courier service, receipt of the response by the transferring insurer occurs on the date of actual receipt by the transferring insurer.(5)
If the notice of transfer for a policy for which premiums are collected on a weekly or monthly basis by an insurance producer who is an agent of the insurer or for any other insurance not using premium notices satisfies the requirements of this subsection, payment of any premium to the assuming insurer during the 12-month period after the notice is received constitutes the policyholder’s acceptance of the transfer to the assuming insurer. Upon such a payment, a novation is effected. The notice of transfer must state that payment of the premium to the assuming insurer constitutes acceptance of the transfer and must provide a method for the policyholder to pay the premium while reserving the right to reject the transfer. [1995 c.30 §6; 2003 c.364 §101]
Source:
Section 742.158 — Rejection of transfer by policyholder; payment of premium as acceptance of transfer; failure of policyholder to respond to notice, https://www.oregonlegislature.gov/bills_laws/ors/ors742.html.
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