1. (a) No Partnership Long-Term Care Insurance Policy or Certificate shall be sold, transferred, or otherwise ceded to another Issuer without first having obtained approval from the Commissioner of the Department of Insurance.

2. (b) The Commissioner of the Department of Insurance shall not approve any sale, transfer, or ceding of any Partnership Long-Term Care Insurance Policy or Certificate if such action would result in premium increases for either the transferred Policy or Certificate holders or the Partnership Policies or Certificates that were not transferred, unless the Commissioner determines such a sale, transfer, or ceding to be in the public interest. The provision does not apply to:

   1. (1) any reinsurance agreement or transaction in which the ceding Issuer continues to remain directly liable for its insurance obligations or risks under the contracts of insurance subject to the reinsurance agreement; and
   2. (2) the ceding Issuer remains responsible for complying with all requirements of this Chapter and those imposed by Insurance Code Sections 1070 et seq. and 1090 et seq.
3. (c) Self-funded Issuers not subject to compliance with the California Insurance Code are exempt from the requirements of this Section.

Pursuant to the authority granted by Welfare and Institutions Code Section 22005(e) and Insurance Code Section 12921, the following shall apply:

Note: Authority cited: Section 22009(a), Welfare and Institutions Code. Reference: Section 22005, Welfare and Institutions Code.

History

1. New section filed 8-30-93 as an emergency; operative 8-30-93 (Register 93, No. 36). Submitted for printing only pursuant to section 22009, Welfare and Institutions Code.

2. Certificate of Compliance as to 8-30-93 order, including amendment of first paragraph and new subsection (c) transmitted to OAL 12-30-93 and filed 1-28-94 (Register 94, No. 4).

3. Amendment of subsections (a) and (b) filed 10-1-98 as an emergency; operative 10-1-98. Submitted to OAL for printing only pursuant to Welfare and Institutions Code section 22009(d) (Register 98, No. 41). A Certificate of Compliance must be transmitted to OAL by 1-29-99 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 10-1-98 order transmitted to OAL 1-28-99 and filed 3-15-99 (Register 99, No. 12).