33-10-202. Definitions. As used in this part, the following definitions apply:
(1) "Account" means either of the two accounts created under 33-10-203.
(2) "Association" means the Montana life and health insurance guaranty association created under 33-10-203.
(3) "Authorized assessment" or "authorized" when used in the context of assessments means a specified amount of money authorized for collection from member insurers by a resolution of the board of directors established in 33-10-204. The authorized assessment may be called for immediately or in the future. The assessment is authorized when the board passes the resolution.
(4) "Benefit plan" means a benefit plan for a specific employee, union, or association of natural persons.
(5) "Called", when used in the context of assessments, means that the association has issued a notice to member insurers requiring that an authorized assessment be paid within the timeframe set forth within the notice. An authorized assessment becomes a called assessment when the association mails the notice to member insurers.
(6) "Contractual obligation" means an obligation under any of the following for which coverage is provided in this part:
(a) a policy or contract;
(b) a certificate under a group policy or contract; or
(c) a portion of a policy or contract or a portion of a certificate.
(7) "Covered policy" means any policy or contract or portion of a policy or contract for which coverage is provided within the scope of this part.
(8) "Extracontractual claims" includes but is not limited to those claims relating to bad faith in the payment of claims, punitive or exemplary damages, or attorney fees and costs.
(9) "Impaired insurer" means a member insurer that is not an insolvent insurer and that is placed under an order of rehabilitation or supervision by a court of competent jurisdiction.
(10) "Insolvent insurer" means a member insurer that is placed under an order of liquidation by a court of competent jurisdiction upon a finding of insolvency.
(11) (a) "Member insurer" means an insurer that is licensed or that holds a certificate of authority to transact any kind of insurance in this state for which coverage is provided under this part and includes any insurer whose license or certificate of authority in this state may have been suspended, revoked, not renewed, or voluntarily withdrawn.
(b) The term does not include:
(i) a health service corporation;
(ii) a hospital or medical service organization, whether for profit or not for profit;
(iii) a health maintenance organization;
(iv) a fraternal benefit society;
(v) a mandatory state pooling plan;
(vi) a mutual assessment company or any other person that operates on an assessment basis;
(vii) an insurance exchange;
(viii) an organization that has a certificate or license limited to the issuance of charitable gift annuities; or
(ix) an entity similar to any of the entities listed in subsections (11)(b)(i) through (11)(b)(viii).
(12) "Moody's corporate bond yield average" means the monthly average corporates as published by Moody's investors service, inc., or its successor.
(13) (a) "Owner", "contract owner", and "policyowner" mean the person who is identified as the legal owner under the terms of a policy or contract or who is 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 who is properly recorded as the owner on the books of the insurer.
(b) The terms do not include a person with a mere beneficial interest in a policy or a contract.
(14) "Person" means any individual, corporation, limited liability company, partnership, association, governmental body or entity, or voluntary organization.
(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) (a) "Premiums" means the amount or consideration received on covered policies or contracts less return premiums, considerations, and deposits, and less dividends and experience credits.
(b) The term does not include:
(i) amounts or considerations received for policies or contracts or for the portions of policies or contracts for which coverage is not provided pursuant to this part, except that an assessable premium may not be reduced based on 33-10-224(2)(b) relating to interest limitations and 33-10-224(3)(b) relating to one individual, one participant, and one contract owner;
(ii) premiums in excess of $5 million on an unallocated annuity contract not issued under a governmental retirement benefit plan or the plan's trustee established under section 401, 403(b), or 457 of the Internal Revenue Code; or
(iii) premiums in excess of $5 million with respect to multiple nongroup policies of life insurance owned by one owner, whether the policyowner is an individual, firm, corporation, or other person and whether the persons insured are officers, managers, employees, or other persons, regardless of the number of policies or contracts held by the owner.
(17) "Principal place of business" means:
(a) in the case of a plan sponsor, the state in which more than 50% of the participants in the benefit plan are employed;
(b) if 50% of the participants of a benefit plan are not employed in a single state and for a person other than an individual, the single state in which the individuals who establish policies for the direction, control, and coordination of the operations of the entity as a whole primarily exercise that function, as determined by the association in its reasonable judgment by considering the following factors:
(i) the state in which the primary executive and administrative headquarters is located;
(ii) the state in which the principal office of the chief executive officer is located;
(iii) the state in which the board of directors or similar governing persons conduct its meetings;
(iv) the state in which the executive or management committee of the board of directors or similar governing person or persons conduct the majority of their meetings;
(v) the state from which the management of the overall operations is directed; and
(vi) 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 above factors; or
(c) with respect to a plan sponsor defined in subsection (15)(c), 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 specific or clear designation of a principal place of business, is the principal place of business of the employer or employee organization that has the largest investment in the benefit plan in question.
(18) "Receivership court" means the court in the insolvent or impaired insurer's state that has jurisdiction over the supervision, rehabilitation, or liquidation of the insurer.
(19) "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. A person may be a resident of only one state, and in the case of a person other than an individual, the person is a resident of the state where its principal place of business is located. Citizens of the United States who are either residents of foreign countries or residents of the possessions, territories, or protectorates of the United States and who do not have an association similar to the association created by this part must be considered residents of the state of domicile of the insurer that issued the policies or contracts.
(20) "State" means a state, the District of Columbia, the Commonwealth of Puerto Rico, or a United States possession, territory, or protectorate.
(21) "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.
(22) "Supplemental contract" means a written agreement entered into for the distribution of proceeds under a life, health, or annuity policy or a life, health, or annuity contract.
(23) "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 annuity benefits guaranteed to an individual by the insurer under the contract or certificate.