Definitions.

The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:

Accredited state—A state which is accredited by NAIC for compliance with the NAIC Financial Regulation Standards or successor standards.

Act—The Insurance Company Law of 1921 (40 P. S. § § 341—991).

Alien insurer—An insurer incorporated or organized under the laws of a foreign nation or of a province or territory other than a state of the United States, the Commonwealth of Puerto Rico or the District of Columbia.

Commissioner—The Insurance Commissioner of the Commonwealth.

Department—The Insurance Department of the Commonwealth.

Foreign insurer—An insurer, other than an alien insurer, not incorporated or organized under the laws of the Commonwealth. For purposes of this chapter, the term also includes a United States branch of an alien assuming insurer which branch is not entered through and licensed to transact insurance or reinsurance in this Commonwealth.

NAIC—National Association of Insurance Commissioners.

Qualified United States financial institution—

(i) An institution which meets the following qualifications. The institution:

(A) Is organized or, in the case of a United States office of a foreign banking organization, licensed, under the laws of the United States or a state thereof.

(B) Is regulated, supervised and examined by Federal or state authorities having regulatory authority over banks and trust companies.

(C) Has been determined by either the Commissioner or the Securities Valuation Office of the NAIC or a successor thereto to meet the standards of financial condition and standing considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the Commissioner.

(ii) For purposes of specifying institutions that are eligible to act as a fiduciary of a trust, an institution that meets the following qualifications. The institution:

(A) Is organized, or in the case of a United States branch or agency office of a foreign banking organization, licensed, under the laws of the United States or a state thereof and has been granted authority to operate with fiduciary powers.

(B) Is regulated, supervised and examined by Federal or state authorities having regulatory authority over banks and trust companies.