As used in this part:

“Account” means any of the three accounts created under section 431:16-206(a).

“Association” means the Hawaii life and disability insurance guaranty association created under § 431:16-206.

“Authorized assessment” or “authorized” when used in the context of assessments means a resolution by the board of directors that has been passed whereby an assessment will be called immediately or in the future from member insurers for a specified amount.

“Called assessment” or “called” when used in the context of assessments means a notice that 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.

“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 § 431:16-203.

“Covered policy” means any policy or contract or portion of a policy or contract for which coverage is provided under § 431:16-203.

“Extra-contractual claims” shall include, but not be limited to, claims relating to bad faith in the payment of claims, punitive or exemplary damages, or attorneys’ fees and costs.

“Impaired insurer” means a member insurer that after July 1, 1988, is not an insolvent insurer, and is placed under an order of rehabilitation or conservation by a court of competent jurisdiction.

“Insolvent insurer” means a member insurer that after July 1, 1988, is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency.

“Member insurer” means any insurer licensed or who holds a certificate of authority to transact in this State any kind of insurance for which coverage is provided under § 431:16-203, 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whose license or certificate of authority in this State may have been suspended, revoked, not renewed, or voluntarily withdrawn, but does not include:

(1) A nonprofit hospital or medical service organization;

(2) A health maintenance organization;

(3) A fraternal benefit society;

(4) A mandatory state pooling plan;

(5) A mutual assessment company or any entity 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; or

(8) Any 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”, “policy owner”, or “contract owner” means 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.

“Person” means any individual, corporation, limited liability company, partnership, association, governmental body or entity, or voluntary organization.

“Premiums” means amounts and considerations 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 or consideration received for any policies or contracts or for the portions of any policies or contracts for which coverage is not provided under section 431:16-203(b) except that assessable premium shall not be reduced on accounts under section 431:16-203(b)(2)(C) relating to interest limitations and section 431:16-203(c)(2) relating to limitations with respect to any one life and any one contract holder. Premiums shall also not include:

(1) Premiums on an unallocated annuity contract; or

(2) Premiums in excess of $5,000,000, regardless of:

(A) The number of policies or contracts held by the owner, with respect to multiple non-group policies of life insurance owned by one owner;

(B) Whether the policy owner is an individual, firm, corporation, or other person; and

(C) Whether the persons insured are officers, managers, employees, or other persons.

“Receivership court” means the court in the insolvent or impaired insurer‘s state having jurisdiction over the conservation, rehabilitation, or liquidation of the 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 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 who are:

(1) Residents of foreign countries; or

(2) Residents of United States possessions, territories, or protectorates that do not have an association similar to the association created by this part,

shall be deemed residents of the state of domicile of the insurer that issued the policies or contracts.

“State” means a state, the District of Columbia, Puerto Rico, or a United States possession, territory, or protectorate.

“Structured settlement annuity” means an annuity purchased 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.

“Supplemental contract” means a written agreement entered into for the distribution of proceeds under a life, health, or annuity policy or life, health, or annuity contract.

“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.