The following words and terms, when used in this chapter,
have the following meanings, unless the context clearly indicates otherwise:
Agent-
(i) A National bank, state bank or trust
company that does any of the following:
(A)
Maintains an account in its name in a clearing corporation.
(B) Is a member of the Federal Reserve System
through which a custodian participates in a clearing corporation or the Federal
Reserve book-entry system.
(ii) With respect to securities issued by
institutions organized or existing under the laws of a foreign country or
securities used to meet the deposit requirements under the laws of a foreign
country as a condition of doing business in that country, the term may include
a corporation organized or existing under the laws of a foreign country and
legally qualified under those laws to accept custody of securities.
Authorized person-A person authorized in
writing by an insurer's board of directors to issue instructions relating to
the insurer's securities held by a custodian.
Clearing corporation-
(i) A clearing corporation as defined in
13 Pa.C.S. §
8102
(relating to definitions) and organized for the purpose of effecting
transactions in securities by computerized book-entry.
(ii) With respect to securities issued by
institutions organized or existing under the laws of a foreign country or
securities used to meet the deposit requirements under the laws of a foreign
country as a condition of doing business in that country, the term may include
a corporation organized or existing under the laws of a foreign country and
legally qualified under those laws to effect transactions in securities by
computerized book-entry.
Custodian-
(i) A National bank, Federal savings bank,
state bank or trust company that is:
(A)
Capitalized as required by the standards adopted by United States banking
regulators.
(B) Either regulated by
Federal or state banking laws or a member of the Federal Reserve
System.
(C) Legally qualified to
accept custody of securities as required under §
148a.3 (relating to requirements
for custodial agreements).
(ii) With respect to securities issued by
institutions organized or existing under the laws of a foreign country or
securities used to meet deposit requirements under the laws of a foreign
country as a condition of doing business in that country, the term may include
a bank that is:
(A) Incorporated or organized
under the laws of a foreign country.
(B) Regulated as a bank by that country's
government, or an agency thereof.
(C) Capitalized as required by the standards
adopted by international banking authorities.
(D) Legally qualified to accept custody of
securities as required under §
148a.3.
Department-The Insurance Department of the
Commonwealth.
Federal Reserve book-entry system-The
computerized systems sponsored by the United States Department of the Treasury
and certain agencies and instrumentalities of the United States for holding and
transferring securities of the United States Government and its agencies and
instrumentalities in Federal Reserve Banks through banks that are members of
the Federal Reserve System or that otherwise have access to the computerized
systems.
Foreign country-A nation, province or
territory other than the United States or a state thereof.
Instructions-
(i) A written statement that:
(A) States the specific purpose of the
requested action.
(B) Identifies
the specific transaction or type of transaction to which the requested action
relates.
(C) Contains the signature
of at least one authorized person.
(D) Is received by letter, facsimile or other
form of electronic transmission whereby a custodian is able to verify with a
reasonable degree of certainty the identity of the sender.
(ii) The verbal instructions of an authorized
person if:
(A) The custodian is able to
verify with a reasonable degree of certainty the identity of the
sender.
(B) The verbal instructions
are confirmed within 24 hours by written instructions.
Insurer-The following entities domiciled and
licensed to transact business in this Commonwealth:
(i) An insurance company, association or
exchange.
(ii) A reciprocal or
interinsurance exchange.
(iii) An
employers' mutual liability insurance association.
(iv) A nonprofit health plan corporation,
whether operating a hospital plan or a professional health services plan, or
both.
(v) A fraternal benefit
society or beneficial association.
(vi) A health maintenance
organization.
(vii) A preferred
provider organization.
(viii) The
Industry Placement Facility under The Pennsylvania Fair Plan Act (40 P. S.
§§
1600.101-1600.502).
(ix) A joint underwriting association under
Article VII of the Health Care Services Malpractice Act (40 P. S.
§§
1301.801-1301.811).
Investment company-An entity registered and
regulated as an investment company under the Investment Company Act of 1940 (
15 U.S.C.A. §§ 80a -1-80 a-64).
Investment company securities-Stocks or
shares issued by an investment company.
Registered form-A form of certificated
security as defined in
13 Pa.C.S. §
8102.
Securities-
(i) Certificated securities and
uncertificated securities as defined in
13 Pa.C.S. §
8102.
(ii) The term includes short-term and
long-term investments but does not include investment company securities.
State-A state, territory or possession of the United
States.
