56-12-203 - Part definitions.
56-12-203. Part definitions.
As used in this part, unless the context otherwise requires:
(1) Account means any of the four (4) accounts created by § 56-12-205;
(2) Association means the Tennessee life and health insurance guaranty association created by § 56-12-205;
(3) Commissioner means the commissioner of commerce and insurance;
(4) Contractual obligation means any obligation under a policy or contract or certificate under a group policy or contract, or portion thereof, for which coverage is provided by § 56-12-204;
(5) Covered policy means any policy or contract within the scope of this part as set forth by § 56-12-204;
(6) Impaired insurer means a member insurer that, after July 1, 1989, is not an insolvent insurer, and:
(A) Is deemed by the commissioner to be potentially unable to fulfill its contractual obligations; or
(B) Is placed under an order of rehabilitation or conservation by a court of competent jurisdiction;
(7) Insolvent insurer means a member insurer which, after July 1, 1989, is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency;
(8) Member insurer means any insurer or nonprofit hospital and medical service organization licensed or holding a certificate of authority to transact in this state any kind of insurance for which coverage is provided by § 56-12-204, and includes any insurer whose license or certificate of authority in this state may have been suspended, revoked, not renewed or voluntarily withdrawn, but does not include:
(A) A health maintenance organization;
(B) A fraternal benefit society;
(C) A mandatory state pooling plan;
(D) A mutual assessment company or any entity that operates on an assessment basis;
(E) An insurance exchange;
(F) Any entity similar to any of the above; or
(G) An organization that has a certificate or license limited to the issuance of charitable gift annuities;
(9) Moody's Corporate Bond Yield Average means the Monthly Average Corporates as published by Moody's Investors Service, Inc., or any successor thereto;
(10) Person means any individual, corporation, partnership, association or voluntary organization;
(11) 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 by § 56-12-204(b), except that assessable premiums shall not be reduced on accounts for § 56-12-204(b)(2)(C) relating to interest limitations, and § 56-12-204(c)(2) relating to limitations with respect to any one (1) life and any one (1) contract holder;
(12) 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 (1) state, which in the case of a person other than a natural person shall be its principal place of business;
(13) Supplemental contract means any agreement entered into for the distribution of policy or contract proceeds; and
(14) Unallocated annuity contract means any annuity contract or group annuity certificate that 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.
[Acts 1988, ch. 1032, § 4; 1995, ch. 110, § 1; 2000, ch. 895, § 12.]