Terms used in this chapter mean:

(1) “Affiliated entity,” any entity, in the same corporate system as the captive insurance company, owned or controlled, directly or indirectly, by a parent or subsidiary, or a member organization by virtue of control, operation, or management. In the case of a trust captive insurance company or, if approved by the director, a special purpose captive insurance company, an affiliated entity of a trust which holds ownership interest in the captive insurance company also includes any other trust created by the settlor, the settlor’s grandparents or their descendants, the settlor’s spouse, or any trust created by any one of the aforementioned persons;

(1A) “Agency captive insurance company,” an insurance company that is:

(a) Owned or controlled by an insurance agency, brokerage, or reinsurance intermediary, or an affiliate thereof, or under common ownership or control with the agency, brokerage, or reinsurance intermediary, and that only insures the risks of insurance or annuity contracts placed by or through the agency, brokerage, or reinsurance intermediary; or

(b) Owned or controlled by a producer of service contracts or warranties, and that only insures or reinsures the contractual liability arising out of service contracts or warranties sold through such producer.

For purposes of this subdivision, common ownership or control means ownership of thirty percent or more of the voting securities of an entity or such other form of ownership or control as the director approves. For purposes of this subdivision, producer means an individual, agent, broker, or agency that is licensed by a state‘s insurance division or department to sell insurance;

(2) “Association,” any legal association of entities, the members of the organization of which:

(a) Own, control, or hold with power to vote all of the outstanding voting securities of a group captive insurance company incorporated as a stock insurer or nonprofit corporation; or

(b) Have complete voting control over group captive insurance company formed as a limited liability company;

(3) “Captive insurance company,” any insurance company licensed under chapter 58-46;

(4) “Controlled unaffiliated business,” any person or entity that is not in the corporate system of a parent and its affiliated entities and has an existing contractual relationship for its control, operation, or management with the parent or one of its affiliated entities;

(5) “Director,” the director of the Division of Insurance;

(5A) “Entity,” a corporation, business trust, cooperative corporation, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity;

(5B) “Governing board,” in the case of a corporation, its board of directors; in the case of a member managed limited liability company, its board of members; in the case of a manager managed limited liability company, its board of managers; in the case of a partnership, its general partner; in the case of a business trust or trust, its trustee; and in the case of any other entity not defined, the person in charge of managing its business affairs;

(6) “Group,” any association of entities with substantially similar or related risks, the members of which collectively own, control, or hold with power to vote all of the outstanding voting securities or other ownership interest of a group captive insurance company;

(7) “Group captive insurance company,” any entity licensed under this chapter that insures the risks of the member organizations of the group, the risks of the affiliated entities of the member organizations, or the risks of the association;