KRS 304.9-051: Definitions for KRS 304.9-052 and 304.9-371 to 304.9-377.

As used in KRS 304.9-052 and 304.9-371 to 304.9-377:

(1) (a) An "administrator" is an individual or business entity that collects charges or

premiums from, or that adjusts or settles claims on, residents of this state in

connection with life insurance, health insurance, annuities, nonprofit hospital,

medical-surgical, dental, and health service corporation contracts, health

maintenance organization contracts, or other life, health, or annuity benefit

plans.

(b) The following are not considered to be acting as an administrator:

1. An employer acting on behalf of its employees or the employees of one

(1) or more subsidiary or affiliated corporations of the employer;

2. A union on behalf of its members;

3. An insurer, which is acting as the insurer with respect to the contract if

the insurer is authorized or permitted to transact business in Kentucky or

if the contract is lawfully delivered or issued for delivery by it in and

pursuant to the laws of a state in which it was authorized or permitted to

do business;

4. A life or health insurance agent licensed in Kentucky whose activities

are limited exclusively to the sale of insurance;

5. A creditor on behalf of its debtors with respect to insurance covering a

debt between the creditor and its debtors;

6. A trust, its trustees, agents, and employees acting thereunder,

established in conformity with 29 U.S.C. sec. 186;

7. A trust exempt from taxation und er 26 U.S.C. sec. 501(a), its trustees,

and employees acting thereunder, or a custodian, its agents, and

employees acting pursuant to a custodian account which meets the

requirements of 26 U.S.C. sec. 401(f);

8. A bank, credit union, or other financial ins titution which is subject to

supervision or examination by federal or state banking authorities;

9. A credit card issuing company which advances for and collects

premiums or charges from its credit card holders who have authorized it

to do so, if the company does not adjust or settle claims;

10. An individual who:

a. Adjusts or settles claims in the normal course of practice or

employment as an attorney-at-law; and

b. Does not collect charges or premiums in connection with

coverages issued by insurers; or

11. An individual working for a business entity that is licensed as an

administrator to the extent that the individual's job responsibilities are

subject to the supervision and control of the business entity.

(2) An "insured" is a person covered under an in surance contract, nonprofit hospital,

medical-surgical, dental, and health service corporation contract, health

maintenance organization contract, or other source of benefits.