375.1285.  Definitions. — As used in sections 375.1280 to 375.1295, the following terms mean:

  (1)  "Assuming insurer", the insurer which acquires an insurance obligation or risk from the transferring insurer pursuant to an assumption reinsurance agreement;

  (2)  "Assumption reinsurance agreement", any contract which both:

  (a)  Transfers insurance obligations or risks of existing or in-force contracts of insurance from a transferring insurer to an assuming insurer; and

  (b)  Is intended to effect a novation of the transferred contract of insurance with the result that the assuming insurer becomes directly liable to the policyholders of the transferring insurer and the transferring insurer's insurance obligations or risks under such contracts are extinguished;

  (3)  "Contract of insurance", any written agreement between an insurer and policyholder pursuant to which the insurer, in exchange for premium or other consideration, agrees to assume an obligation or risk of the policyholder, or to make payments on behalf of or to the policyholder or its beneficiaries; it shall include but not be limited to all property, casualty, life, health, accident, surety, title, and annuity business authorized to be written pursuant to the insurance laws of this state;

  (4)  "Notice of transfer", the written notice to policyholders required by section 375.1287;

  (5)  "Policyholder", any individual or entity which has the right to terminate or otherwise alter the terms of a contract of insurance.  It includes any certificate holder whose certificate is in force on the proposed effective date of the assumption, if the certificate holder has the right to keep the certificate in force without change in benefit following termination of the group policy.  The rights to keep the certificate in force referred to in this section shall not include the right to elect individual coverage under the Consolidated Omnibus Budget Reconciliation Act, ("COBRA" ) section 601, et seq., or the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. 1161 et seq.;

  (6)  "Transferring insurer", the insurer which transfers an insurance obligation or risk to an assuming insurer pursuant to an assumption reinsurance agreement.