§ 58-56-2. Definitions.
§ 58‑56‑2. Definitions.
The following definitionsapply in this Article:
(1) Affiliate. Anyperson who, directly or indirectly, through one or more intermediaries,controls, is controlled by, or is under common control with a specified entityor person.
(2) Control. Defined inG.S. 58‑19‑5(2).
(3) Insurance. Anycoverage offered or provided by an insurer.
(4) Insurer. A personwho undertakes to provide life or health insurance or benefits in this Statethat are subject to this Chapter. The term "insurer" does not includea bona fide employee benefit plan established by an employer, an employeeorganization, or both, for which the insurance laws of this State are preemptedpursuant to the Employee Retirement Income Security Act of 1974.
(5) Third party administrator.A person who directly or indirectly solicits or effects coverage of,underwrites, collects charges or premiums from, or adjusts or settles claims onresidents of this State, or residents of another state from offices in thisState, in connection with life or health insurance or annuities, except any ofthe following:
a. An employer onbehalf of its employees or the employees of one or more of its affiliates.
b. A union on behalf ofits members.
c. An insurer that islicensed under Articles 1 through 67 of this Chapter or that is acting as aninsurer with respect to a policy lawfully issued and delivered by it andpursuant to the laws of a state in which the insurer is licensed to writeinsurance.
d. An agent or brokerwho is licensed by the Commissioner to sell life or health insurance and whoseactivities are limited exclusively to the sale of insurance.
e. A creditor on behalfof its debtors with respect to insurance covering a debt between the creditorand its debtors.
f. A trust and itstrustees, agents, and employees acting pursuant to the trust established inconformity with 29 U.S.C. § 186.
g. A trust exempt fromtaxation under section 501(a) of the Internal Revenue Code and its trustees andemployees acting pursuant to the trust, or a custodian and the custodian'sagents or employees acting pursuant to a custodian account that meets therequirements of section 401(f) of the Internal Revenue Code.
h. A financialinstitution subject to supervision or examination by federal or state bankingauthorities, or a mortgage lender, to the extent the financial institution ormortgage lender collects and remits premiums to licensed insurance agents orauthorized insurers in connection with loan payments.
i. An attorney‑at‑lawwho adjusts or settles claims in the normal course of business as an attorney‑at‑lawand who does not collect charges or premiums in connection with life or healthinsurance or annuities.
j. An adjusterlicensed by the Commissioner whose activities are limited to adjustment ofclaims.
k. A person who actssolely as a TPA of one or more bona fide employee benefit plans established byan employer, an employee organization, or both, for which the insurance laws ofthis State are preempted pursuant to the Employee Income Security Act of 1974.The person shall comply with the requirements of G.S. 58‑56‑51(f).
l. A managing generalagent as defined in G.S. 58‑34‑2(a)(3), whose activities arelimited exclusively to the scope of the activities set forth in the managinggeneral agency contract filed by an insurer with the Commissioner in accordancewith G.S. 58‑34‑2(i).
(6) TPA. A third partyadministrator.
(7) Underwriting. Thisterm includes the acceptance of employer or individual applications forcoverage of individuals in accordance with the written rules of the insurer,the planning and coordination of an insurance program, and the ability toprocure bonds and excess insurance. (1991, c. 627, s. 1; 2005‑215, s. 16.)