Sec. 3. Definitions
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In this Act, the following definitions shall apply: The term covered public health emergency means any outbreak of infectious disease or pandemic— for which an emergency is declared, on or after January 1, 2021, under the Public Health Service Act; and that is certified by the Secretary of Health and Human Services, as a public health emergency. The Secretary may not delegate or designate to any other officer, employee, or person, any determination under this paragraph of whether, during the effective period of the Program, a covered public health emergency has occurred.
The term affiliate means, with respect to an participating insurer, any entity that controls, is controlled by, or is under common control with the insurer. The term business interruption insurance means commercial lines of property and casualty insurance coverage, including event cancellation insurance or other non-property contingent business interruption insurance, provided or made available for losses resulting from periods of suspended business operations, including losses from a covered public health emergency, or a civil order related to a covered public health emergency, whether provided under broader coverage for property and casualty losses or separately.
An entity has control over another entity, if— the entity directly or indirectly or acting through 1 or more other persons owns, controls, or has power to vote 25 percent or more of any class of voting securities of the other entity; the entity controls in any manner the election of a majority of the directors or trustees of the other entity; or the Secretary determines, after notice and opportunity for hearing, that the entity directly or indirectly exercises a controlling influence over the management or policies of the other entity.
An entity, including any affiliate thereof, does not have control over another entity, if, as of January 1, 2021, the entity is acting as an attorney-in-fact, as defined by the Secretary, for the other entity and such other entity is a reciprocal insurer, provided that the entity is not, for reasons other than the attorney-in-fact relationship, defined as having control under subparagraph (A). The term direct earned premium means a direct earned premium for property and casualty insurance issued by any participating insurer for insurance against losses occurring in the United States.
The term event means a trade show, consumer show, exhibition, fair, conference, convention, meeting, seminar, charity event, auction, gala dinner, competition, sporting event, film or television production, award show, or other similar event. The term event cancellation insurance means insurance that indemnifies an insured for losses that occur as a consequence of— cancellation, abandonment, or rescheduling of an event; or non-appearance at an event of a principal speaker. The term insured loss means any loss resulting from a covered public health emergency that is covered by primary or excess business interruption insurance issued by a participating insurer if such loss occurs— within the United States; and during the period that the covered public health emergency for such area is in effect.
The term insurer means any entity, including any affiliate thereof— that is— licensed or admitted to engage in the business of providing primary or excess insurance in any State; not licensed or admitted as described in clause (i), if it is an eligible surplus line carrier listed on the Quarterly Listing of Alien Insurers of the NAIC, or any successor thereto; approved for the purpose of offering property and casualty insurance by a Federal agency in connection with maritime, energy, or aviation activity; a State residual market insurance entity or State workers' compensation fund; or any other entity described in section 4(f), to the extent provided in the rules of the Secretary issued under section 4(f); that receives direct earned premiums for any type of commercial property and casualty insurance coverage, other than in the case of entities described in subsections
(d)and
(f)of section 4; and that meets any other criteria that the Secretary may reasonably prescribe. Such term includes captive insurers and other self-insurance arrangements by municipalities and other entities (such as workers' compensation self-insurance programs and State workers' compensation reinsurance pools). The term insurer deductible means, with respect to a participating insurer— the value of the participating insurer's direct earned premiums during the immediately preceding calendar year, multiplied by 5 percent; and notwithstanding subparagraph (A), for any calendar year, if a participating insurer has not had a full year of operations during the calendar year immediately preceding such calendar year, such portion of the direct earned premiums of the participating insurer as the Secretary determines appropriate, subject to appropriate methodologies established by the Secretary for measuring such direct earned premiums. The term NAIC means the National Association of Insurance Commissioners. The term participating insurer means, with respect to a calendar year, an insurer that has elected pursuant to section 4(a)(3) to participate in the Pandemic Risk Reinsurance Program under this Act for such calendar year. The term person means any individual, business or nonprofit entity (including those organized in the form of a partnership, limited liability company, corporation, or association), trust or estate, or a State or political subdivision of a State or other governmental unit. The term Program means the Pandemic Risk Reinsurance Program established by this Act. The term property and casualty insurance — means commercial lines of property and casualty insurance, including excess insurance, workers’ compensation insurance, and event cancellation insurance; and does not include— Federal crop insurance issued or reinsured under the Federal Crop Insurance Act ( 7 U.S.C. 1501 et seq.), or any other type of crop or livestock insurance that is privately issued or reinsured; private mortgage insurance (as such term is defined in section 2 of the Homeowners Protection Act of 1998 ( 12 U.S.C. 4901 )) or title insurance; financial guaranty insurance issued by monoline financial guaranty insurance corporations; insurance for medical malpractice; health or life insurance, including group life insurance; flood insurance provided under the National Flood Insurance Act of 1968 ( 42 U.S.C. 4001 et seq.); reinsurance or retrocessional reinsurance; commercial automobile insurance; burglary and theft insurance; surety insurance; professional liability insurance; or farm owners multiple peril insurance. The term Secretary means the Secretary of the Treasury. The term State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam, each of the United States Virgin Islands, and any territory or possession of the United States. The term United States means the several States. With respect to any reference to a date in this Act, such day shall be construed— to begin at 12:01 a.m. on that date; and to end at midnight on that date.
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