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

“Basic insurance coverage.” The limits of medical professional liability insurance required under section 711(d).¹

“Claims made.” Medical professional liability insurance that insures those claims made or reported during a period which is insured and excludes coverage for a claim reported subsequent to the period even if the claim resulted from an occurrence during the period which was insured.

“Claims period.” The period from September 1 to the following August 31.

“Deficit.” A joint underwriting association loss which exceeds the sum of earned premiums collected by the joint underwriting association and investment income.

“Department.” The Insurance Department of the Commonwealth.

“Fund.” The Medical Care Availability and Reduction of Error (Mcare) Fund established in section 712.²

“Fund coverage limits.” The coverage provided by the Medical Care Availability and Reduction of Error Fund under section 712.

“Government.” The Government of the United States, any state, any political subdivision of a state, any instrumentality of one or more states or any agency, subdivision or department of any such government, including any corporation or other association organized by a government for the execution of a government program and subject to control by a government or any corporation or agency established under an interstate compact or international treaty.

“Health care business or practice.” The number of patients to whom health care services are rendered by a health care provider within an annual period.

“Health care provider.” A participating health care provider or nonparticipating health care provider.

“Joint underwriting association.” The Pennsylvania Professional Liability Joint Underwriting Association established in section 731.³

“Joint underwriting association loss.” The sum of the administrative expenses, taxes, losses, loss adjustment expenses, unearned premiums and reserves, including reserves for losses incurred and losses incurred but not reported, of the joint underwriting association.

“Licensure authority.” The State Board of Medicine, the State Board of Osteopathic Medicine, the State Board of Podiatry, the Department of Public Welfare and the Department of Health.

“Medical professional liability insurance.” Insurance against liability on the part of a health care provider arising out of any tort or breach of contract causing injury or death resulting from the furnishing of medical services which were or should have been provided.

“Nonparticipating health care provider.” A health care provider as defined in section 103⁴ that conducts 20% or less of its health care business or practice within this Commonwealth.

“Participating health care provider.” A health care provider as defined in section 103 that conducts more than 20% of its health care business or practice within this Commonwealth or a nonparticipating health care provider who chooses to participate in the fund.

“Prevailing primary premium.” The schedule of occurrence rates approved by the commissioner for the joint underwriting association.