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

Agent—

1. (i) A National bank, state bank or trust company that does any of the following:

   1. (A) Maintains an account in its name in a clearing corporation.
   2. (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.

2. (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—

3. (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.

4. (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—

5. (i) A National bank, Federal savings bank, state bank or trust company that is:

   1. (A) Capitalized as required by the standards adopted by United States banking regulators.
   2. (B) Either regulated by Federal or state banking laws or a member of the Federal Reserve System.
   3. (C) Legally qualified to accept custody of securities as required under § 148a.3 (relating to requirements for custodial agreements).

6. (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:

   1. (A) Incorporated or organized under the laws of a foreign country.
   2. (B) Regulated as a bank by that country’s government, or an agency thereof.
   3. (C) Capitalized as required by the standards adopted by international banking authorities.

   4. (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—

   5. (i) A written statement that:

      1. (A) States the specific purpose of the requested action.
      2. (B) Identifies the specific transaction or type of transaction to which the requested action relates.
      3. (C) Contains the signature of at least one authorized person.
      4. (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.

   6. (ii) The verbal instructions of an authorized person if:

      1. (A) The custodian is able to verify with a reasonable degree of certainty the identity of the sender.

      2. (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:

      3. (i) An insurance company, association or exchange.
      4. (ii) A reciprocal or interinsurance exchange.
      5. (iii) An employers’ mutual liability insurance association.
      6. (iv) A nonprofit health plan corporation, whether operating a hospital plan or a professional health services plan, or both.
      7. (v) A fraternal benefit society or beneficial association.
      8. (vi) A health maintenance organization.
      9. (vii) A preferred provider organization.
      10. (viii) The Industry Placement Facility under The Pennsylvania Fair Plan Act (40 P. S. § § 1600.101—1600.502).

      11. (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—80a-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—

      12. (i) Certificated securities and uncertificated securities as defined in 13 Pa.C.S. § 8102.

      13. (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.