SB3781 - Insurance Business Transfer Act

• Creates the Insurance Business Transfer Act establishing procedures for insurers to transfer blocks of insurance business to other insurers without obtaining affirmative consent from policyholders or reinsureds.

• Requires applicants to file a comprehensive transfer plan with the Department of Insurance including financial statements, actuarial reports, independent expert reports, and governance analysis; Director has 60 business days (extendable 30 days) to review and authorize court filing.

• Mandates notice to insurance regulators in all relevant jurisdictions, guaranty associations, reinsurers, policyholders, and the public within 15 days of triggering the requirement, with a 60-day comment period before court approval hearing.

• Court may approve transfers if finding no material adverse impact on policyholders or claimants, issuing an implementation order that effects statutory novation, extinguishes transferring insurer's obligations, and transfers all rights and liabilities to the assuming insurer.

• Applicants must pay nonrefundable fees to the Department and bear costs of any independent professionals retained by the Director; assumes insurers consent to ongoing Director oversight of transferred business operations, management, and solvency.