Definitions.

The following words and terms, when used in this chapter, have the following meanings:

Actuary—A member of the American Academy of Actuaries or an individual who has demonstrated to the satisfaction of the Department that he has the educational background necessary for the practice of actuarial science and that he has not less than 7 years’ actuarial experience.

Annual statement—The National Association of Insurance Commissioners (NAIC) convention blank for property and casualty companies adopted by the Commissioner under section 320 of The Insurance Company Law of 1921 (40 P. S. § 443).

Commissioner—The Insurance Commissioner of the Commonwealth.

Department—The Insurance Department of the Commonwealth.

Insurance company—A licensed stock or mutual fire or casualty insurer, licensed reciprocal insurance exchange, employers mutual liability insurance association organized under section 636 of the Insurance Company Law of 1921 (40 P. S. § 781) or the State Workmen’s Insurance Fund.

Loss adjustment expense reserves—The amount set aside as of the annual statement date to provide for the future costs of settling worker’s compensation losses whether or not specifically allocated to a given claim.

Loss reserves—The amount set aside as of the annual statement date to provide for the payment of future losses under worker’s compensation policies issued by insurance companies.