§431:16-205  Definitions.  As used in

this part:

     "Account" means any of the three

accounts created under section 431:16-206(a).

     "Association" means the Hawaii life

and disability insurance guaranty association created under section 431:16-206.

     "Authorized assessment" or

"authorized" when used in the context of assessments means a

resolution by the board of directors that has been passed whereby an assessment

will be called immediately or in the future from member insurers for a specified

amount.

     "Called assessment" or

"called" when used in the context of assessments means a notice that

has been issued by the association to member insurers requiring that an

authorized assessment be paid within the time frame set forth within the

notice.

     "Contractual obligation" means any

obligation under a policy or contract or certificate under a group policy or

contract, or portion thereof for which coverage is provided under section

431:16-203.

     "Covered policy" means any policy or

contract or portion of a policy or contract for which coverage is provided

under section 431:16-203.

     "Extra-contractual claims" shall

include, but not be limited to, claims relating to bad faith in the payment of

claims, punitive or exemplary damages, or attorneys' fees and costs.

     "Impaired insurer" means a member

insurer that after July 1, 1988, is not an insolvent insurer, and is

placed under an order of rehabilitation or conservation by a court of competent

jurisdiction.

     "Insolvent insurer" means a member

insurer that after July 1, 1988, is placed under an order of liquidation by a

court of competent jurisdiction with a finding of insolvency.

     "Member insurer" means any insurer

licensed or who holds a certificate of authority to transact in this State any

kind of insurance for which coverage is provided under section 431:16‑203,

and includes any insurer whose license or certificate of authority in this

State may have been suspended, revoked, not renewed, or voluntarily withdrawn,

but does not include:

     (1)  A nonprofit hospital or medical service

organization;

     (2)  A health maintenance organization;

     (3)  A fraternal benefit society;

     (4)  A mandatory state pooling plan;

     (5)  A mutual assessment company or any entity that

operates on an assessment basis;

     (6)  An insurance exchange;

     (7)  An organization that has a certificate or license

limited to the issuance of charitable gift annuities; or

     (8)  Any entity similar to any of the above.

     "Moody's Corporate Bond Yield

Average" means the Monthly Average Corporates as published by Moody's

Investors Service, Inc., or any successor thereto.

     "Owner", "policy owner", or

"contract owner" means the person who is identified as the legal

owner under the terms of the policy or contract or who is otherwise vested with

legal title to the policy or contract through a valid assignment completed in

accordance with the terms of the policy or contract and properly recorded as

the owner on the books of the insurer.  The terms "owner",

"contract owner", and "policy owner" do not include persons

with a mere beneficial interest in a policy or contract.

     "Person" means any individual,

corporation, limited liability company, partnership, association, governmental

body or entity, or voluntary organization.

     "Premiums" means amounts and

considerations received on covered policies or contracts less premiums,

considerations and deposits returned thereon, and less dividends and experience

credits thereon.  Premiums does not include any amounts or consideration

received for any policies or contracts or for the portions of any policies or

contracts for which coverage is not provided under section 431:16-203(b) except

that assessable premium shall not be reduced on accounts under section 431:16‑203(b)(2)(C)

relating to interest limitations and section 431:16-203(c)(2) relating to limitations

with respect to any one life and any one contract holder.  Premiums shall also not include:

     (1)  Premiums on an unallocated

annuity contract; or

     (2)  Premiums in excess of

$5,000,000, regardless of:

         (A)  The number of policies or contracts held

by the owner, with respect to multiple non-group policies of life insurance

owned by one owner;

         (B)  Whether the policy owner is an individual,

firm, corporation, or other person; and

         (C)  Whether the persons insured are officers,

managers, employees, or other persons.

     "Receivership court" means the court

in the insolvent or impaired insurer's state having jurisdiction over the

conservation, rehabilitation, or liquidation of the insurer.

     "Resident"

means a person to whom a contractual obligation is owed and who resides in this

State on the date of entry of a court order that determines a member insurer to

be an impaired insurer or an insolvent insurer.  A person may be a resident of

only one state, which in the case of a person other than a natural person shall

be its principal place of business.  Citizens of the United States who are:

     (1)  Residents of foreign countries; or

     (2)  Residents of United States possessions,

territories, or protectorates that do not have an association similar to the

association created by this part,

shall be deemed residents of the state of domicile

of the insurer that issued the policies or contracts.

     "State" means a state, the District

of Columbia, Puerto Rico, or a United States possession, territory, or

protectorate.

     "Structured settlement annuity" means

an annuity purchased to fund periodic payments for a plaintiff or other

claimant in payment for or with respect to personal injury suffered by the

plaintiff or other claimant.

     "Supplemental contract" means a

written agreement entered into for the distribution of proceeds under a life,

health, or annuity policy or life, health, or annuity contract.

     "Unallocated annuity contract" means

any annuity contract or group annuity certificate that is not issued to and

owned by an individual, except to the extent of any annuity benefits guaranteed

to an individual by an insurer under such contract or certificate. [L 1987, c

347, pt of §2; am L 2004, c 122, §74; am L 2012, c 250, §5]

 

Note

 

  The 2012 amendment shall not apply to proceedings in which a

member insurer is placed under an order of liquidation prior to July 1, 2012. 

L 2012, c 250, §15.