Insurance Policy Transfer Act

Summary

Insurance Policy Transfer Act - Requires an insurer to notify a policyholder before the insurer enters into a transfer agreement or transfers the policyholder's insurance contract to another insurer, provided that such requirement shall not apply to: (1) a transfer agreement or transaction in which the transferring insurer continues to remain directly liable for its insurance obligations, risks, or both, under the insurance contracts subject to the transfer agreement; (2) the substitution of one insurer for another upon the expiration of insurance coverage pursuant to statutory or contractual requirements and the issuance of a new insurance contract by another insurer; (3) the transfer of insurance contracts pursuant to mergers or consolidations of two or more insurers to the extent that those transactions are regulated by the laws of the affected State or States; and (4) an insurer subject to a judicial order of liquidation or rehabilitation. Sets forth provisions regarding the form and content of such notice. Requires the written consent of the policyholder or a beneficiary before an insurer can enter into a transfer agreement or transfer an insurance contract pursuant to a transfer agreement unless: (1) the transferring insurer and the assuming insurer are rated by the same three insurance company rating organizations for each of the three years immediately preceding the transfer; (2) such rating is the highest possible rating or is a higher rating than the transferring insurer; and (3) the policyholder or beneficiary has been provided with the required notice between February 28 and May 1 of each of the three years immediately preceding the transfer and has not responded to the notice with an objection to the transfer or transaction within 90 days after the third notice is sent. Allows the policyholder or the Attorney General to bring an action for relief in the appropriate United States district court if an insurer violates this Act. Empowers the district court to grant such relief as is necessary or appropriate to redress a violation of this Act, including permanent or temporary injunctive relief, compensatory damages, punitive damages, and costs, including reasonable attorney's fees.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 25 March 1994

  ViewDownloadOpen at official source

• Introduced in Senate (PDF)

  Introduced in Senate · EN · 25 March 1994

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 25 March 1994

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.