40-3005. Definitions.
40-3005
40-3005. Definitions.As used in this act:
(a) "Account" means either of the three accounts created underK.S.A. 40-3006 and amendments thereto;
(b) "association" means the Kansas life and health insuranceguaranty association created under K.S.A. 40-3006, and amendmentsthereto;
(c) "commissioner" means the commissioner of insurance of thisstate;
(d) "contractual obligation" means any obligation of a policy or contractor certificate under a group policyor contract, or portion thereof, for which coverage is provided under K.S.A.40-3003 and amendments thereto;
(e) "covered policy" means any policy or contract within the scopeof this act under K.S.A. 40-3003 and amendments thereto;
(f) "impaired insurer" means a member insurer which, after theeffective date of this act,is not an insolvent insurer, and which: (1) Is deemed by the commissionerto be potentially unable to fulfill its contractual obligations; or
(2) is placed under an order of rehabilitation or conservation by acourt of competent jurisdiction;
(g) "insolvent insurer" means a member insurer which, after the effective dateof this act, is placed under an order of liquidation by a court ofcompetent jurisdiction with a finding of insolvency;
(h) "member insurer" means any insurer licensed or holding acertificate of authority to transact in this state any kind of insurancefor which coverage is provided under K.S.A. 40-3003 and amendments thereto,and includes any insurer whose license or certificate of authority in thisstate may have been suspended, revoked, nonrenewed or voluntarilywithdrawn, but does not include: (1) A nonprofit hospital or medicalservice 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 assessmentbasis; or
(6) an insurance exchange, except a reciprocal or interinsuranceexchange governed by the provisions of article 16 of chapter 40 of theKansas Statutes Annotated, and amendments thereto;
(i) "Moody's corporate bond yield average" means the monthly averagecorporates as published by Moody's investors service, inc., or any successorthereto;
(j) "provider" means a person who is entitled to receive compensation forproviding medical services to an insured covered under any health insurancecontract or policy issued by a member insurer, regardless of whether theprovider is obligated by statute or by agreement with the member insurer tohold any insured covered by any health insurance contract or policy harmlessfrom liability for services;
(k) "premiums" meansamounts received on covered policies or contracts less premiums,considerations and deposits returned thereon, and less dividends andexperience credits thereon. Premiums does not include any amounts receivedfor any policies or contracts or for the portions of any policies orcontracts for which coverage is not provided under subsection (b) of K.S.A.40-3003 and amendments thereto, except that assessable premiums shall notbe reduced on accounts for subsection (n)(3) of K.S.A. 40-3008 andamendments thereto relating to interestlimitations and subsection (o)(2) of K.S.A. 40-3008 and amendments theretorelating to limitations with respect to any onelife and any one contract holder. Premiums shall not include any premiumson any unallocated annuity contract;
(l) "person" means any individual, corporation,partnership,association, voluntary organization or provider;
(m) "resident" means any person who resides in this stateat thetimea member insurer is determined to be an impaired or insolvent insurer andto whom a contractual obligation is owed. A person may be a resident ofonly one state which, in the case of a person other than a natural person,shall be its principal place of business;
(n) "unallocated annuity contract" means any annuitycontract or groupannuity certificate which is not issued to and owned by an individual,except to the extent of any annuity benefits guaranteed to an individual byan insurer under such contract or certificate; and
(o) "supplemental contract" means any agreement enteredinto for thedistribution of policy or contract proceeds.
History: L. 1972, ch. 190, § 5;L. 1986, ch. 180, § 3;L. 2001, ch. 21, § 2; March 22.