Sec. 38a-862. (Formerly Sec. 38-305). Definitions.
Sec. 38a-862. (Formerly Sec. 38-305). Definitions. As used in sections 38a-858
to 38a-875, inclusive:
(1) "Account" means either of the two accounts created under section 38a-863;
(2) "Association" means the Connecticut Life and Health Insurance Guaranty Association created under section 38a-863;
(3) "Authorized assessment" or "authorized" when used in the context of assessments means a resolution that has been passed by the board of directors of the association
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;
(4) "Benefit plan" means a specific employee, union or association of natural persons benefit plan;
(5) "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 in the notice. An authorized
assessment becomes a called assessment when notice is mailed by the association to
member insurers;
(6) "Commissioner" means the Insurance Commissioner of this state;
(7) "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 38a-860;
(8) "Covered policy" means any policy or contract within the scope of section
38a-860;
(9) "Entity" means a person other than a natural person;
(10) "Impaired insurer" means a member insurer that, after October 1, 1972, is not
an insolvent insurer, and is placed under an order of rehabilitation or conservation by
a court of competent jurisdiction;
(11) "Insolvent insurer" means a member insurer that after October 1, 1972, is
placed under an order of liquidation by a court of competent jurisdiction with a finding
of insolvency;
(12) "Member insurer" means any insurer licensed or who holds a certificate of
authority to issue in this state any kind of insurance to which sections 38a-858 to 38a-875, inclusive, apply under section 38a-860, and may include an insurer whose license
in this state has been suspended, revoked or voluntarily withdrawn. "Member insurer"
does not include a health care center;
(13) "Moody's corporate bond yield average" means the monthly average corporates as published by Moody's Investors Service, Inc., or any successor thereto;
(14) "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. "Owner", "contract owner" and "policy owner" does not
include a person with a mere beneficial interest in a policy or contract;
(15) "Plan sponsor" means: (A) The employer in the case of a benefit plan established or maintained by a single employer; (B) the employee organization in the case
of a benefit plan established or maintained by an employee organization; or (C) in the
case of a benefit plan established or maintained by two or more employers or jointly
by one or more employers and one or more employee organizations, the association,
committee, joint board of trustees or other similar group of representatives of the parties
who establish or maintain the benefit plan;
(16) "Premiums" means amounts or considerations, by whatever name called, received on covered policies or contracts less premiums, considerations and deposits returned thereon, and less dividends and experience credits thereon. "Premiums" does not
include (A) any amounts or considerations received for any policies or contracts or
for the portions of any policies or contracts for which coverage is not provided under
subsection (f) of section 38a-860, except that assessable premium shall not be reduced
on account of subparagraph (C) of subdivision (2) of subsection (f) of section 38a-860,
relating to interest limitations, and subdivision (2) of subsection (g) of section 38a-860,
relating to limitations with respect to any one individual, any one participant and any
one contract owner; provided that "premiums" shall not include any premiums in excess
of five million dollars on any unallocated annuity contract not issued under a governmental retirement benefit plan established under Section 401, 403(b) or 457 of the Internal
Revenue Code of 1986, or any subsequent corresponding internal revenue code of the
United States, as from time to time amended, or (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 five million dollars with respect
to such policies or contracts, regardless of the number of policies or contracts held by
the owner;
(17) "Person" means any individual, corporation, limited liability company, partnership, association or voluntary organization;
(18) "Principal place of business" of a plan sponsor or an entity means the single
state in which the natural persons who establish policy for the direction, control and
coordination of the operations of the plan sponsor or entity as a whole primarily exercise
that function, as determined by the association in its reasonable judgment by considering
the factors set forth in subparagraphs (A) to (G), inclusive, of this subdivision: (A) The
state in which the primary executive and administrative headquarters of the plan sponsor
or entity is located; (B) the state in which the principal office of the chief executive officer
of the plan sponsor or entity is located; (C) the state in which the board of directors, or
similar governing person or persons, of the plan sponsor or entity conducts the majority
of its meetings; (D) the state in which the executive or management committee of the
board of directors, or similar governing person or persons, of the plan sponsor or entity
conducts the majority of its meetings; (E) the state from which the management of the
overall operations of the plan sponsor or entity is directed; (F) 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 set forth in subparagraphs (A) to (E), inclusive, of this
subdivision; and (G) notwithstanding subparagraphs (A) to (F), inclusive, of this subdivision, in the case of a plan sponsor, if more than fifty per cent of the participants in the
benefit plan are employed in a single state, that state shall be deemed to be the principal
place of business of the plan sponsor. The principal place of business of a plan sponsor
of a benefit plan described in subparagraph (C) of subdivision (15) of this section shall
be 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 that, in lieu of a specific or clear designation of a principal
place of business, shall be 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;
(19) "Receivership court" means the court in the insolvent or impaired insurer's
state having jurisdiction over the conservation, rehabilitation or liquidation of the insurer;
(20) "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 an entity shall be its principal place of business. Citizens of the
United States that are either (A) residents of foreign countries, or (B) residents of United
States possessions, territories or protectorates that do not have an association similar
to the association created by sections 38a-858 to 38a-875, inclusive, shall be deemed
residents of the state of domicile of the insurer that issued the policies or contracts;
(21) "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;
(22) "Supplemental contract" means any agreement entered into for the distribution
of policy or contract proceeds under a life, health or annuity policy or contract; and
(23) "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.
(1972, P.A. 280, S. 5; P.A. 77-614, S. 163, 610; P.A. 80-482, S. 323, 345, 348; P.A. 88-76, S. 6, 10; P.A. 90-243, S.
153; P.A. 93-57, S. 11; P.A. 95-79, S. 151, 189; P.A. 01-67, S. 2; P.A. 02-24, S. 4.)
History: P.A. 77-614 placed insurance commissioner within the department of business regulation and made insurance
department a division within that department, effective January 1, 1979; P.A. 80-482 restored insurance commissioner
and division to prior independent status and abolished the department of business regulation; P.A. 88-76 revised the
definitions of "account", "contractual obligation", "premiums" and "resident", and added definitions of "Moody's corporate
bond yield average", "supplemental contract" and "unallocated annuity contract"; P.A. 90-243 amended the definition of
"member insurer" to exclude "health care center"; Sec. 38-305 transferred to Sec. 38a-862 in 1991; P.A. 93-57 redefined
"member insurer"; P.A. 95-79 redefined "person" to include a limited liability company, effective May 31, 1995; P.A. 01-67 changed alphabetic Subdiv. designators to numeric designators, defined "authorized assessment", "authorized", "benefit
plan", "called assessment", "called", "entity", "insolvent insurer", "owner", "policy owner", "contract owner", "plan
sponsor", "principal place of business", "receivership court", and "structured settlement annuity", redefined "impaired
insurer", "premiums", "resident" and "supplemental contract", and made technical changes; P.A. 02-24 substituted "exercise" for "exercises" in Subdiv. (18).