The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise:

“Actuarially appropriate loss reserves” shall mean those reserves needed to pay known claims for compensation and expenses associated therewith and claims for compensation incurred but not reported and expenses associated therewith.

“Administrator” means an individual, partnership or corporation engaged by a fund's plan committee to carry out the policies established by the plan committee and to provide day-to-day management of the fund.

“Compensation” includes compensation paid under this act or the Occupational Disease Act.

“Department” means the Department of Labor and Industry of the Commonwealth.

“Employer” means an employer as defined in section 103¹ of this act or as defined in section 103 of the Occupational Disease Act,² where applicable.

“Excess insurance” means insurance purchased from an insurance company appropriately approved or authorized or licensed in this Commonwealth covering losses in excess of an amount established between the group and the insurer up to the limits of coverage set forth in the insurance contract on a specific per occurrence or per accident or annual aggregate basis.

“Fund” means a group self-insurance fund organized by employers to pool workers' compensation liabilities and approved by the department under the authority of this act. A fund shall not be deemed to be an insurer or insurance company and shall not be subject to the provisions of the insurance laws and regulations, except as specifically otherwise provided herein.

“Homogeneous employer” means employers who have been assigned to the same classification series for at least one year or are engaged in the same or similar types of business, including political subdivisions.

“Independent actuary” means a member in good standing of the Casualty Actuarial Society or a member in good standing of the American Academy of Actuaries who has been identified by the Academy as meeting its qualification standards for signing casualty loss reserve opinions. Said actuary must not be an officer, director or employe of the fund or a member of the fund for which he or she is providing reports, certifications or services.

“Insolvent fund” means the inability of a fund to pay its outstanding liabilities as they mature as may be shown either by an excess of its required reserves and other liabilities over its assets or by not having sufficient assets to reinsure all of its outstanding liabilities after paying all accrued claims owed by it.

“Permit” means the document issued by the department to a fund which authorizes the fund to operate as a fund under the provisions of this act.

“Plan committee” means a committee composed of representatives of each employer participating in a fund.

“Political subdivision” means any county, city, borough, incorporated town, township, school district, vocational school district and county institution district, municipal authority or other entity created by a political subdivision pursuant to law.

“Security” means surety bonds, cash, negotiable securities of the United States Government or the Commonwealth or other negotiable securities, such as letters of credit, acceptable to the department which are posted by the fund to guaranty the payment of compensation.

“Surplus” means that amount of moneys found in the trust to be in excess of all fixed costs and incurred losses attributed to the pool net any occurrence or aggregate excess insurance.

“Trust” means a written contract signed by the members of the fund which separates the legal and equitable rights to the moneys held by an independent trustee as a fiduciary for the benefit of employes of employers participating in the fund.