2006 Kansas Code - 40-3005

      40-3005.   Definitions. As used in this act:

      (a)   "Account" means either of the three accounts created under K.S.A. 40-3006 and amendments thereto;

      (b)   "association" means the Kansas life and health insurance guaranty association created under K.S.A. 40-3006, and amendments thereto;

      (c)   "commissioner" means the commissioner of insurance of this state;

      (d)   "contractual obligation" means any obligation of a policy or contract or certificate under a group policy or 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 scope of this act under K.S.A. 40-3003 and amendments thereto;

      (f)   "impaired insurer" means a member insurer which, after the effective date of this act, is not an insolvent insurer, and which: (1) Is deemed by the commissioner to be potentially unable to fulfill its contractual obligations; or

      (2)   is placed under an order of rehabilitation or conservation by a court of competent jurisdiction;

      (g)   "insolvent insurer" means a member insurer which, after the effective date of this act, is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency;

      (h)   "member insurer" means any insurer licensed or holding a certificate of authority to transact in this state any kind of insurance for which coverage is provided under K.S.A. 40-3003 and amendments thereto, and includes any insurer whose license or certificate of authority in this state may have been suspended, revoked, nonrenewed or voluntarily withdrawn, but does not include: (1) A nonprofit hospital or medical service organization;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 assessment basis; or

      (6)   an insurance exchange, except a reciprocal or interinsurance exchange governed by the provisions of article 16 of chapter 40 of the Kansas Statutes Annotated, and amendments thereto;

      (i)   "Moody's corporate bond yield average" means the monthly average corporates as published by Moody's investors service, inc., or any successor thereto;

      (j)   "provider" means a person who is entitled to receive compensation for providing medical services to an insured covered under any health insurance contract or policy issued by a member insurer, regardless of whether the provider is obligated by statute or by agreement with the member insurer to hold any insured covered by any health insurance contract or policy harmless from liability for services;

      (k)   "premiums" means amounts received on covered policies or contracts less premiums, considerations and deposits returned thereon, and less dividends and experience credits thereon. Premiums does not include any amounts received for any policies or contracts or for the portions of any policies or contracts for which coverage is not provided under subsection (b) of K.S.A. 40-3003 and amendments thereto, except that assessable premiums shall not be reduced on accounts for subsection (n)(3) of K.S.A. 40-3008 and amendments thereto relating to interest limitations and subsection (o)(2) of K.S.A. 40-3008 and amendments thereto relating to limitations with respect to any one life and any one contract holder. Premiums shall not include any premiums on 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 state at the time a member insurer is determined to be an impaired or insolvent insurer and to whom a contractual obligation is owed. A person may be a resident of only 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 annuity contract or group annuity certificate which 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; and

      (o)   "supplemental contract" means any agreement entered into for the distribution of policy or contract proceeds.

      History:   L. 1972, ch. 190, § 5; L. 1986, ch. 180, § 3; L. 2001, ch. 21, § 2; March 22.