§4605-A. Definitions






As used in this chapter, unless the context otherwise indicates, the following terms
have the following meanings. [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]








1. Account. 
"Account" means any one of the 3 accounts created under section 4606.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








2. Association. 
"Association" means the Maine Life and Health Insurance Guaranty Association created
under section 4606.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








3. Authorized assessment. 
"Authorized assessment" or "authorized" when used in the context of assessments
means that a resolution by the board of directors of the association has been passed
whereby an assessment will be called immediately or in the future from member insurers
for a specified amount; an assessment is authorized when the resolution is passed.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








4. Benefit plan. 
"Benefit plan" means a specific employee, union or association of natural persons
benefit plan.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








5. Board of directors. 
"Board of directors" means the board of directors of the association.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








6. Called assessment. 
"Called assessment" or "called" when used in the context of assessments means that
a notice 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; an authorized
assessment becomes a called assessment when notice is mailed by the association to
member insurers.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








7. Contractual obligation. 
"Contractual obligation" means an obligation under a policy or contract or certificate
under a group policy or contract, or portion thereof, for which coverage is provided
under section 4603.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








8. Covered policy. 
"Covered policy" means a policy or contract or portion of a policy or contract for
which coverage is provided under section 4603.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








9. Extra-contractual claims. 
"Extra-contractual claims" includes, for example, claims relating to bad faith in
the payment of claims, punitive or exemplary damages or attorney's fees and costs.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








10. Impaired insurer. 
"Impaired insurer" means a member insurer that, after the effective date of this
section, is not an insolvent insurer and is placed under an order of rehabilitation
or conservation by a court of competent jurisdiction.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








11. Insolvent insurer. 
"Insolvent insurer" means a member insurer that, after the effective date of this
section, is placed under an order of liquidation by a court of competent jurisdiction
with a finding of insolvency.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








12. Member insurer. 
"Member insurer" means an insurer that is licensed or that holds a certificate of
authority to transact in this State any kind of insurance for which coverage is provided
under section 4603 and includes an insurer whose license or certificate of authority
in this State may have been suspended, revoked, not renewed or voluntarily withdrawn,
but does not include:





A. A hospital or medical service organization, whether profit or nonprofit; [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]











B. A health maintenance organization; [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]











C. A fraternal benefit society; [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]











D. A mandatory state pooling plan; [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]











E. A mutual assessment company or other person that operates on an assessment basis; [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]











F. An insurance exchange; [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]











G. An organization that has a certificate or license limited to the issuance of charitable
gift annuities under this Title; or [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]











H. An entity similar to any of those listed in this subsection. [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]








[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








13. Moody's Corporate Bond Yield Average. 
"Moody's Corporate Bond Yield Average" means the monthly average corporates as published
by Moody's Investors Service, Inc., or any successor to that index.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








14. Owner. 
"Owner" with respect to a policy or contract and "policy owner" and "contract owner"
mean 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. "Owner,"
"contract owner" and "policy owner" do not include persons with a mere beneficial
interest in a policy or contract.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








15. Person. 
"Person" means an individual, corporation, limited liability company, partnership,
association, governmental body or entity or voluntary organization.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








16. Premiums. 
"Premiums" means amounts or considerations by whatever name called received on
covered policies or contracts less returned premiums, considerations and deposits
and less dividends and experience credits. "Premiums" does not include amounts or
considerations received for policies or contracts or for the portions of policies
or contracts for which coverage is not provided under section 4603, except that assessable
premiums may not be reduced on account of the provisions of section 4603 relating
to interest limitations and relating to limitations with respect to one individual,
one participant and one contract owner. "Premiums" does not include:





A. Premiums on an unallocated annuity contract; or [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]











B. With respect to multiple nongroup policies of life insurance owned by one owner,
whether the policy owner is an individual, firm, corporation or other person, and
whether the persons insured are officers, managers, employees or other persons, premiums
in excess of $5,000,000 with respect to these policies or contracts, regardless of
the number of policies or contracts held by the owner. [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]








[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








17. Principal place of business. 
"Principal place of business" has the following meaning.





A. "Principal place of business" of a plan sponsor or a person other than a natural
person means the single state in which the natural persons who establish policy for
the direction, control and coordination of the operations of the entity as a whole
primarily exercise that function, determined by the association in its reasonable
judgment by considering the following factors:



(1) The state in which the primary executive and administrative headquarters of
the entity is located;






(2) The state in which the principal office of the chief executive officer of the
entity is located;






(3) The state in which the board of directors of the entity or similar governing
body of the entity conducts the majority of its meetings;






(4) The state in which the executive or management committee of the board of directors
of the entity or similar governing body of the entity conducts the majority of its
meetings;






(5) The state from which the management of the overall operations of the entity
is directed; and






(6) In the case of a benefit plan sponsored by affiliated companies comprising a
consolidated corporation, the state in which the holding company or controlling affiliate
has its principal place of business as determined using the factors listed in subparagraphs
(1) to (5). However, in the case of a plan sponsor, if more than 50% of the participants
in the benefit plan are employed in a single state, that state is deemed to be the
principal place of business of the plan sponsor. [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]














B. The principal place of business of a plan sponsor of a benefit plan is deemed to
be the principal place of business of the association, committee, joint board of trustees
or other similar group of representatives of the parties who establish or maintain
the benefit plan, which, in lieu of a specific or clear designation of a principal
place of business, is deemed to be the principal place of business of the employer
or employee organization that has the largest investment in the benefit plan in question. [2005, c. 346, §5 (NEW); 2005, c. 346, §16 (AFF).]








[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








18. Receivership court. 
"Receivership court" means the court in the impaired or insolvent insurer's state
having jurisdiction over the conservation, rehabilitation or liquidation of the insurer.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








19. Resident. 
"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 a court order that determines a member insurer to be
an insolvent insurer, whichever occurs first. A person may be a resident of only
one state, which in the case of a person other than a natural person is its principal
place of business. Citizens of the United States that are either residents of foreign
countries or residents of United States possessions, territories or protectorates
that do not have an association similar to the association created by this chapter
are deemed residents of the state of domicile of the insurer that issued the policies
or contracts.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








20. Structured settlement annuity. 
"Structured settlement annuity" means an annuity purchased in order 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.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








21. State. 
"State" means a state, the District of Columbia, Puerto Rico or a United States
possession, territory or protectorate.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








22. Supplemental contract. 
"Supplemental contract" means a written agreement entered into for the distribution
of proceeds under a life, health or annuity policy or contract.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]








23. Unallocated annuity contract. 
"Unallocated annuity contract" means an 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 the contract or certificate.


[
2005, c. 346, §5 (NEW);
2005, c. 346, §16 (AFF)
.]





SECTION HISTORY

2005, c. 346, §5 (NEW).
2005, c. 346, §16 (AFF).