215 ILCS 5/531.05
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XXXIII 1/2 - Life and Health Insurance Guaranty Association

 (from Ch. 73, par. 1065.80-5)Sec. 531.05. Definitions. As used in this Act:"Account" means either of the 2 accounts created under Section  531.06."Association" means the Illinois Life and Health Insurance  Guaranty Association created under Section 531.06."Authorized assessment" or the term "authorized" when used in the context of assessments means a resolution by the Board of Directors has been passed whereby an assessment shall be called immediately or in the future from member insurers for a specified amount. An assessment is authorized when the resolution is passed."Benefit plan" means a specific employee, union, or association of natural persons benefit plan."Called assessment" or the term "called" when used in the context of assessments means that a notice has been issued by the Association to member insurers requiring that an authorized assessment be paid within the time frame set forth within the notice. An authorized assessment becomes a called assessment when notice is mailed by the Association to member insurers."Director" means the Director of Insurance of this State."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 under Section 531.03."Covered person" means any person who is entitled to the  protection of the Association as described in Section 531.02."Covered contract" or "covered policy" means any policy or contract within the scope  of this Article under Section 531.03."Extra-contractual claims" shall include, but are not limited to, claims relating to bad faith in the payment of claims, punitive or exemplary damages, or attorneys' fees and costs."Health benefit plan" means any hospital or medical expense policy or certificate or      health maintenance organization subscriber contract or any other similar health      contract. "Health benefit plan" does not include:(1) accident only insurance;(2) credit insurance;(3) dental only insurance;(4) vision only insurance;(5) Medicare supplement insurance;(6) benefits for long-term care, home health care,     community-based care, or any               combination thereof;(7) disability income insurance;(8) coverage for on-site medical clinics; or(9) specified disease, hospital confinement     indemnity, or limited benefit health              insurance if the types of coverage do not provide coordination of benefits and          are provided under separate policies or certificates."Impaired insurer" means (A) a member insurer which, after the effective date of this amendatory Act of the 96th General Assembly, is not an insolvent insurer, and is placed under an order of rehabilitation or conservation by a court of competent jurisdiction or (B)  a member insurer deemed by the Director after the effective date of this amendatory Act of the 96th General Assembly to be potentially unable to fulfill its contractual obligations and not an insolvent insurer."Insolvent insurer" means a member insurer that, after the effective date of this amendatory Act of the 96th General Assembly, is placed under a final order of liquidation by a court of competent jurisdiction with a finding of insolvency."Member insurer" means an insurer or health maintenance organization licensed or holding a certificate of authority to transact in this State any kind of insurance or health maintenance organization business for which coverage is provided under Section 531.03 of this Code and includes an insurer or health maintenance organization whose license or certificate of authority in this State may have been suspended, revoked, not renewed, or voluntarily withdrawn or whose certificate of authority may have been suspended pursuant to Section 119 of this Code, but does not include:(1) a hospital or medical service organization,     whether profit or nonprofit;(2) (blank);(3)       any burial society organized under Article     XIX of this Code, any fraternal benefit society organized under Article XVII of this Code, any mutual benefit association organized under Article XVIII of this Code, and any foreign fraternal benefit society licensed under Article VI of this Code;(4) a mandatory State pooling plan;(5) a mutual assessment company or other person that     operates on an assessment basis;(6)       an insurance exchange;(7)      an organization that is permitted to issue     charitable gift annuities pursuant to Section 121-2.10 of this Code;(8)          any health services plan corporation     established pursuant to the Voluntary Health Services Plans Act;(9)          any dental service plan corporation     established pursuant to the Dental Service Plan Act; or(10)         an entity similar to any of the above."Moody's Corporate Bond Yield Average" means the Monthly Average  Corporates as published by Moody's Investors Service, Inc., or any successor  thereto."Owner" of a policy or contract and "policyholder", "policy owner", and "contract owner" mean the person who is identified as the legal owner under the terms of the policy or contract or who is otherwise 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 properly recorded as the owner on the books of the member insurer. The terms owner, contract owner, policyholder, and policy owner do not include persons with a mere beneficial interest in a policy or contract."Person" means an individual, corporation, limited liability company, partnership, association, governmental body or entity, or voluntary organization."Plan sponsor" means:(1) the employer in the case of a benefit plan     established or maintained by a single employer;(2) the employee organization in the case of a     benefit plan established or maintained by an employee organization; or(3)   in a case of a benefit plan established or     maintained by 2 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."Premiums" mean amounts or considerations, by whatever name called, received on covered policies or contracts less returned premiums, considerations, and deposits and less dividends and experience credits."Premiums" does not include:(A) amounts or considerations received for policies     or contracts or for the portions of policies or contracts for which coverage is not provided under Section 531.03 of this Code except that assessable premium shall not be reduced on account of the provisions of subparagraph (iii) of paragraph (b) of subsection (2) of Section 531.03 of this Code relating to interest limitations and the provisions of paragraph (b) of subsection (3) of Section 531.03 relating to limitations with respect to one individual, one participant, and one policy owner or contract owner;(B)   premiums in excess of $5,000,000 on an     unallocated annuity contract not issued under a governmental retirement benefit plan (or its trustee) established under Section 401, 403(b) or 457 of the United States Internal Revenue Code; or(C)   with respect to multiple nongroup policies of     life insurance owned by one owner, whether the policy owner or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, premiums in excess of $5,000,000 with respect to these policies or contracts, regardless of the number of policies or contracts held by the owner."Principal place of business" of a plan sponsor or a person other than a natural person means the single state in which the natural persons who establish policy for the direction, control, and coordination of the operations of the entity as a whole primarily exercise that function, determined by the Association in its reasonable judgment by considering the following factors:(A) the state in which the primary executive and     administrative headquarters of the entity is located;(B) the state in which the principal office of the     chief executive officer of the entity is located;(C) the state in which the board of directors (or     similar governing person or persons) of the entity conducts the majority of its meetings;(D) the state in which the executive or management     committee of the board of directors (or similar governing person or persons) of the entity conducts the majority of its meetings;(E) the state from which the management of the     overall operations of the entity is directed; and(F) 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.  However, in the case of a plan sponsor, if more than 50% of the participants in the benefit plan are employed in a single state, that state shall be deemed to be the principal place of business of the plan sponsor.The principal place of business of a plan sponsor of a benefit plan described in paragraph (3) of the definition of "plan sponsor" shall be deemed to be 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 that, in lieu of a specific or clear designation of a principal place of business, shall be deemed to be the principal place of business of the employer or employee organization that has the largest investment in the benefit plan in question."Receivership court" means the court in the insolvent or impaired insurer's state having jurisdiction over the conservation, rehabilitation, or liquidation of the member insurer."Resident" means a person to whom a contractual obligation is owed and who resides in this State on the date of entry of a court order that determines a member insurer to be an impaired insurer or a court order that determines a member insurer to be an insolvent insurer. 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. Citizens of the United States that are either (i) residents of foreign countries or (ii) residents of United States possessions, territories, or protectorates that do not have an association similar to the Association created by this Article, shall be deemed residents of the state of domicile of the member insurer that issued the policies or contracts."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."State" means a state, the District of Columbia, Puerto Rico, and a United States possession, territory, or protectorate."Supplemental contract" means a written agreement entered into for the distribution of proceeds under a life, health, or annuity policy or a life, health, or annuity contract."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.  (Source: P.A. 100-687, eff. 8-3-18.)