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) "Benefit plan" means a specific employee, union, or association of natural persons benefit plan.
     (4) "Contractual obligation" means any obligation under covered policies.
     (5) "Covered policy" means any policy or contract within the scope of this part under 33-10-201(4) through (10).
     (6) "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.
     (7) "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.
     (8) (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 33-10-201 and 33-10-224 and includes any insurer whose license or certificate of authority may have been suspended, revoked, not renewed, or voluntarily withdrawn.
     (b) The term does not include:
     (i) a health service corporation;
     (ii) a health maintenance organization;
     (iii) a fraternal benefit society;
     (iv) a mandatory state pooling plan;
     (v) a mutual assessment company or any entity that operates on an assessment basis;
     (vi) an insurance exchange;
     (vii) an organization that has a certificate or license limited to the issuance of charitable gift annuities; or
     (viii) an entity similar to any of the entities listed in subsections (8)(b)(i) through (8)(b)(vii).
     (9) "Moody's corporate bond yield average" means the monthly average corporates as published by Moody's investors service, inc., or its successor.
     (10) "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.
     (11) "Person" means any individual, corporation, limited liability company, partnership, association, governmental body or entity, or voluntary organization.
     (12) "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.
     (13) (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 33-10-201(10), except that an assessable premium may not be reduced based on 33-10-201(10)(c) relating to interest limitations and 33-10-224 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.
     (14) "Principal place of business" of a plan sponsor means:
     (a) the state in which more than 50% of the participants in the benefit plan are employed;
     (b) with respect to a plan sponsor as defined in 33-10-202(12)(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, or, in lieu of specific or clear designation of a principal place of business, the principal place of business of the employer or employee organization that has the largest investment in the benefit plan in question; or
     (c) if 50% of the participants are not employed in a single state, the single state in which the individuals who establish policies for the direction, control, and coordination of the operations of the plan sponsor 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 of the plan sponsor is located;
     (ii) the state in which the principal office of the chief executive officer of the plan sponsor is located;
     (iii) the state in which the board of directors or similar governing person or persons of the plan sponsor conduct its meetings;
     (iv) the state in which the executive or management committee of the board of directors or similar governing person or persons of the plan sponsor conduct the majority of its meetings;
     (v) the state from which the management of the overall operations of the plan sponsor 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.
     (15) "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.
     (16) "Resident" means a person who resides in this state at the time that the impairment is determined and to whom contractual obligations are owed. 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.
     (17) "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.
     (18) "Supplemental contract" means a written agreement entered into for the distribution of proceeds under a life, health, or annuity policy or contract.
     (19) "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.

     History: En. 40-5805 by Sec. 5, Ch. 245, L. 1974; R.C.M. 1947, 40-5805(1), (2), (4) thru (10); amd. Sec. 140, Ch. 575, L. 1981; amd. Sec. 2, Ch. 576, L. 1987; amd. Sec. 57, Ch. 596, L. 1993; amd. Sec. 40, Ch. 379, L. 1995; amd. Sec. 145, Ch. 42, L. 1997; amd. Sec. 20, Ch. 531, L. 1997; amd. Sec. 4, Ch. 195, L. 2003.