33-52-11. Purpose of article.

This article is adopted to provide options to address the limitations in the current methods available to insurers to transfer or assume blocks of insurance business in an efficient and cost-effective manner that: provides needed legal finality for such transfers in order to provide for improved operational and capital efficiency for insurance companies; stimulates the economy by attracting segments of the insurance industry to this state; makes this state an attractive home jurisdiction for insurance companies; encourages economic growth and increased investment in the financial services sector; and increases the availability of quality insurance industry jobs in this state. These purposes are accomplished by providing a basis and procedures for the transfer and novation of policies from a transferring insurer to an assuming insurer by way of an insurance business transfer plan without the affirmative consent of policyholders or reinsureds. The novation is effected by court order. This article establishes the requirements for notice and disclosure and standards and procedures for the approval of the transfer and novation by the Commissioner and the Superior Court of Fulton County pursuant to an insurance business transfer plan. This article shall not limit or restrict other means of effecting a transfer or novation.