As used in this chapter unless the context otherwise requires:
1. "Commissioner" means the commissioner of insurance.
2. "Insurer" means any person who obtains a certificate of authority under this chapter.
3. "Legal insurance" means the assumption of a contractual obligation to provide specified legal services or reimbursements for legal expenses in consideration of a specified payment for an interval of time, regardless of whether the payment is made by the beneficiaries individually or by a third person for the beneficiaries, in such a manner that the total cost incurred by assuming the obligation is to be spread directly or indirectly among a group of persons. "Contractual obligation" as used in this subsection includes any arrangement giving rise to a reasonable expectation of an enforceable right. "Legal insurance" does not include the provision of or reimbursement for legal services incidental to other insurance coverages.
a. A retainer contract made with an individual client with the fee based on an estimate of the nature and amount of services that will be provided to the specific client, or a similar contract made with a group of clients involved in the same or closely related legal matter, such as a class action.
b. A plan providing limited benefits on simple legal matters on an informal basis, not involving a legally binding promise, in the context of an employment, educational, or similar relationship.
c. Legal services provided through unions or employee associations to their members in matters relating to simple legal matters on an informal basis.
d. Legal services provided through an agency of the federal or state government or governmental subdivision to its employees.
The following are not considered insurance or legal insurance under the insurance laws of this state:
90 Acts, ch 1150, §2
Referred to in § 523F.22
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