{"data":{"id":"us-ky/krs-304.42-050","jurisdiction":"us-ky","citation":"KRS 304.42-050","heading":"Definitions for subtitle.","body":"As used in this subtitle:\n(1) \"Account\" means either of the three (3) accounts created under KRS 304.42-060;\n(2) \"Association\" means the Kentucky Life and Health Insurance Guaranty Association\ncreated under KRS 304.42-060;\n(3) \"Authorized assessment\" or the term \"authorized\" when used in the context of\nassessments means a resolution by the board of directors has been passed whereby\nan assessment will be called immediately or in the future from member insurers for\na specific amount. An assessment is authorized when the resolution is passed;\n(4) \"Benefit plan\" means a specific employee, union, or association of natural persons\nbenefit plan;\n(5) \"Called assessment\" or the term \"called\" when used in the context of assessments\nmeans that a notice has been issued by the association to member i nsurers requiring\nthat an authorized assessment be paid within the time frame set forth within the\nnotice. An authorized assessment becomes a called assessment when notice is\nmailed by the association to member insurers;\n(6) \"Contractual obligation\" means any obligation under a policy or contract or a\ncertificate under a group policy or contract, or portion thereof, for which coverage is\nprovided under KRS 304.42-030;\n(7) \"Covered contract\" or \"covered policy\" mean any policy or contract or portion of a\npolicy or contract for which coverage is provided under KRS 304.42-030;\n(8) \"Extracontractual claims\" include but are not limited to claims relating to bad faith\nin the payment of claims, punitive or exemplary damages, and attorneys' fees and\ncosts;\n(9) \"Health benefit plan\" means any hospital or medical expense policy or certificate, or\nhealth maintenance organization subscriber contract or any other similar health\ncontract, except:\n(a) Accident-only insurance;\n(b) Credit insurance;\n(c) Dental-only insurance;\n(d) Vision-only insurance;\n(e) Medicare Supplement insurance;\n(f) Benefits for long -term care, home health care, community -based care, or any\ncombination thereof;\n(g) Disability income insurance;\n(h) Coverage for on-site medical clinics; or\n(i) Specified disease, hospital confinement indemnity, or limited benefit health\ninsurance if the coverage:\n1. Does not provide coordination of benefits; and\n2. Is provided under separate policies or certificates;\n(10) \"Impaired insurer\" means a member insurer  which, after June 17, 1978, is not an\ninsolvent insurer and is placed under an order of rehabilitation or conservation by a\ncourt of competent jurisdiction;\n(11) \"Insolvent insurer\" means a member insurer which after June 17, 1978, is placed\nunder an order of liquidation by a court of competent jurisdiction with a finding of\ninsolvency;\n(12) \"Member insurer\" means any insurer or health maintenance organization licensed or\nauthorized to transact in this state any kind of insurance or health maintenance\norganization business for which coverage is provided under KRS 304.42 -030, and\nincludes any insurer or health maintenance organization whose license or certificate\nof authority in this state may have been suspended, revoked, not renewed, or\nvoluntarily withdrawn, but does not include:\n(a) A nonprofit hospital, medical -surgical, dental, and health service corporation,\nas defined by Subtitle 32 of this chapter;\n(b) A fraternal benefit society;\n(c) A mandatory state pooling plan;\n(d) An assessment or cooperative i nsurer or any entity that operates on an\nassessment basis;\n(e) An insurance exchange;\n(f) Any entity similar to the above; or\n(g) A limited health service organization;\n(13) \"Moody's corporate bond yield average\" means the monthly average corporates as\npublished by Moody's Investors Service, Inc., or any successor thereto;\n(14) \"Owner\" of a policy or contract, \"policyholder,\" \"policy owner,\" and \"contract\nowner\" mean the person who is identified as the legal owner under the terms of the\npolicy or contract or who is otherwise vested with legal title to the policy or contract\nthrough a valid assignment completed in accordance with the terms of the policy or\ncontract and properly recorded as the owner on the books of the member insurer.\nThe terms \"owner,\" \"cont ract owner,\" \"policyholder,\" and \"policy owner\" do not\ninclude persons with a mere beneficial interest in a policy or contract;\n(15) \"Person\" means any individual, corporation, limited liability company, partnership,\nassociation, governmental body or entity, or voluntary organization;\n(16) \"Plan sponsor\" means:\n(a) The employer in the case of a benefit plan established or maintained by a\nsingle employer;\n(b) The employee organization in the case of a benefit plan established or\nmaintained by an employee organization; or\n(c) In a case of a benefit plan established or maintained by two (2) or more\nemployers or jointly by one (1) or more employers and one (1) or more\nemployee organizations, the association, committee, joint board of trustees, or\nother similar group of representatives of the parties who establish or maintain\nthe benefit plan;\n(17) (a) \"Premiums\" means amounts or considerations, by whatever name called,\nreceived on covered policies or contracts less returned premiums,\nconsiderations, and deposits, and less dividends and experience credits.\n(b) \"Premiums\" does not include:\n1. Amounts or considerations received for any policies or contracts or for\nthe portions of policies or contracts for which coverage is not provided\nunder KRS 304.42 -030(2), except that assessable premium shall not be\nreduced on account of KRS 304.42 -030(2)(b)3. relating to interest\nlimitations and KRS 304.42 -030(3)(b) relating to limitations with\nrespect to one (1) individual and one (1) policy or contract owner; and\n2. With respect to multiple nongroup policies of life insurance owned by\none (1) owner, whethe r the policy or contract owner is an individual,\nfirm, corporation, or other person, and whether the persons insured are\nofficers, managers, employees, or other persons, premiums in excess of\none million dollars ($1,000,000) with respect to these policies or\ncontracts, regardless of the number of policies or contracts held by the\nowner;\n(18) (a) \"Principal place of business\" of a plan sponsor or a person other than a natural\nperson means the single state in which the natural persons who establish\npolicy for  the direction, control, and coordination of the operations of the\nentity as a whole primarily exercise the function, determined by the\nassociation in its reasonable judgment by considering the following factors:\n1. The state in which the primary executive  and administrative\nheadquarters of the entity is located;\n2. The state in which the principal office of the chief executive officer of\nthe entity is located;\n3. The state in which the board of directors or similar governing person or\npersons of the entity conducts the majority of its meetings;\n4. The state in which the executive or management committee of the board\nof directors or similar governing person or persons of the entity conducts\nthe majority of its meetings;\n5. The state from which the management  of the overall operations of the\nentity is directed; and\n6. In the case of a benefit plan sponsored by affiliated companies\ncomprising a consolidated corporation, the state in which the holding\ncompany or controlling affiliate has its principal place of b usiness as\ndetermined using the above factors.\nHowever, in the case of a plan sponsor, if more than fifty percent (50%) of the\nparticipants in the benefit plan are employed in a single state, that state shall\nbe deemed to be the principal place of business of the plan sponsor.\n(b) The principal place of business of a plan sponsor of a benefit plan described in\nsubsection (16)(c) of this section shall be deemed to be the principal place of\nbusiness of the association, committee, joint board of trustees, or other similar\ngroup of representatives of the parties who establish or maintain the benefit\nplan that, in lieu of a specific or clear designation of a principal place of\nbusiness, shall be deemed to be the principal place of business of the employer\nor employee organization that has the largest investment in the benefit plan or\nquestion;\n(19) \"Receivership court\" means the court in the insolvent or impaired insurer's state\nhaving jurisdiction over the conservation, rehabilitation, or liquidation of the\nmember insurer;\n(20) \"Resident\" means any person to whom a contractual obligation is owed and who\nresides in this state on the date when a member insurer is determined to be an\nimpaired or insolvent insurer, whichever occurs first. A person may be a resident o f\nonly one (1) state, which in the case of a person other than a natural person shall be\nits principal place of business. Citizens of the United States that are either residents\nof foreign countries or residents of United States possessions, territories, o r\nprotectorates that do not have an association similar to the association created by\nthis subtitle shall be deemed residents of the state of domicile of the member insurer\nthat issued the policies or contracts;\n(21) \"Structured settlement annuity\" means a n annuity purchased in order to fund\nperiodic payments for a plaintiff or other claimant in payment for or with respect to\npersonal injury suffered by the plaintiff or other claimant;\n(22) \"State\" means a state, the District of Columbia, Puerto Rico, and a  United States\npossession, territory, or protectorate;\n(23) \"Supplemental contract\" means a written agreement entered into for the distribution\nof proceeds under a life, health, or annuity policy or contract; and\n(24) \"Unallocated annuity contract\" means a ny annuity contract or group annuity\ncertificate which is not issued to and owned by an individual, except to the extent of\nany annuity benefits guaranteed to an individual by an insurer under such contract\nor certificate.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48762","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:58Z","sha256":"b044672e71e2a0f761ea644e536ed62a79b6b7817de39211ad7bd54f3056a736","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.42-040","next":"us-ky/krs-304.42-060"},"notice":"GroundRules: Original legal text. Not legal advice."}