40-5207. Same; effect of similar law in another state.

40-5207

Chapter 40.--INSURANCE
Article 52.--ASSUMPTION REINSURANCE AGREEMENTS

      40-5207.   Same; effect of similar law in anotherstate.If an insurer domiciled in this state or in a jurisdictionhaving asubstantially similarlaw is deemed by the domiciliary commissioner to be in hazardous financialcondition or anadministrative proceeding has been instituted against it for the purpose ofreorganizing orconserving the insurer, and the transfer of the contracts of insurance is inthe best interest of thepolicyholders, as determined by the domiciliary commissioner, a transfer andnovation may be effected notwithstanding the provisions of this act. This mayinclude a form of implied consentand adequate notification to the policyholder of the circumstances requiringthe transfer asapproved by the commissioner.

      This section shall take effect on and after July 1, 2004.

      History:   L. 2004, ch. 128, § 12; May 20.