Missouri Revised Statutes













Chapter 375

Provisions Applicable to All Insurance Companies

←375.1287

Section 375.1290.1

375.1292→

August 28, 2015

Policyholder's right to reject, procedures--second and third notices, when--response deemed received, when.

375.1290. 1. Every policyholder shall have the right to reject the

transfer and novation of their contract of insurance. Policyholders electing

to reject the assumption transaction shall return to the transferring insurer

the preaddressed postage-paid response card or other written notice and

indicate thereon that the assumption is rejected.



2. Payment of the next premium to the assuming company after the notice

of transfer 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. However, the premium notice shall also provide a

method for the insured to pay the premium while reserving the right to reject

the transfer.



3. After no fewer than twelve months from the mailing of the initial

notice of transfer required under subsection 1 of section 375.1287, if

positive consent to the transfer and assumption has not been received and

consent has not been deemed to have occurred under subsection 2 of this

section, the transferring company shall send to the policyholder a second

notice of transfer as specified in subsection 1 of section 375.1287. After

no fewer than twenty-four months from the mailing of the initial notice of

transfer, if positive consent to the transfer and assumption has not been

received and consent has not been deemed to have occurred under subsection 2

of this section, the transferring company shall send to the policyholder a

third and final notice of transfer. If the policyholder does not reject the

transfer during the six-month period immediately following the date on which

the transferring insurer mails the third and final notice of transfer, the

policyholder's consent will be deemed to have occurred and novation of the

contract will be effected.



4. The transferring insurer will be deemed to have received the response

card or other written notice on the date it is postmarked. A policyholder

may also send a response card or other written notice 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.



(L. 1993 H.B. 709 § 17)







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