California Insurance Code § 1067.04

As used in this article: (a) “Account” means either of the two accounts created under Section 1067.05. (b) “Association” means the California Life and Health Insurance Guarantee Association created pursuant to Section 1067.05. (c) “Authorized assessment” means an assessment, to be called immediately or in the future from member insurers for a specified amount, that is authorized by a resolution of the board of directors. “Authorized,” when used in the context of assessments, means authorized by a resolution of the board of directors. An assessment is authorized when this resolution is passed. (d) “Benefit plan” means a specific employee, union, or association of natural persons benefit plan. (e) “Called assessment” means an assessment as to which a notice has been issued by the association to member insurers requiring that an authorized assessment be paid within a timeframe set forth in the notice. “Called,” when used in the context of assessments, means required by notice to be paid by member insurers. An authorized assessment becomes a called assessment when notice is mailed by the association to member insurers. (f) “Commissioner” means the Insurance Commissioner. (g) “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 1067.02. (h) “Covered policy” means a policy or contract or portion of a policy or contract for which coverage is provided under Section 1067.02. (i) “Extracontractual claims” shall include, for example, claims relating to bad faith in the payment of claims, punitive or exemplary damages, or attorney’s fees and costs. (j) “Impaired insurer” means a member insurer which, after the effective date of this article, is not an insolvent insurer, and is placed under an order of rehabilitation or conservation by a court of competent jurisdiction. (k) “Insolvent insurer” means a member insurer that, after October 1, 1990, is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency. (l) “Member insurer” means any insurer licensed or which holds a certificate of authority to transact in this state any kind of insurance for which coverage is provided under Section 1067.02 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whose license or certificate of authority in this state may have been suspended, revoked, not renewed, or voluntarily withdrawn, but does not include any of the following: (1) A hospital or medical service organization, whether for profit or nonprofit. (2) A health maintenance organization. (3) A fraternal benefit society. (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 has a certificate or license limited to the issuance of charitable gift annuities. (8) A grants and annuities society holding a certificate of authority under Section 11520. (9) An entity similar to any of the above. (m) “Moody’s Corporate Bond Yield Average” means the Monthly Average Corporates as published by Moody’s Investors Service, Inc., or any successor thereto. (n) “Owner” of a policy or contract and “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 insurer. The terms owner, contract owner, and policy owner do not include persons with a mere beneficial interest in a policy or contract. (o) “Person” means an individual, corporation, limited liability company, partnership, association, governmental body or entity, or voluntary organization. (p) “Plan sponsor” means any of the fo

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