5.__Board of directors.__"Board of directors" means the board of directors of the association.

6.__Called assessment.__"Called assessment" or "called" when used in the context of assessments means that a notice has been issued by the association to member insurers requiring that an authorized assessment be paid within the time frame set forth within the notice; an authorized assessment becomes a called assessment when notice is mailed by the association to member insurers.

7.__Contractual obligation.__"Contractual obligation" means an obligation under a policy or contract or certificate under a group policy or contract, or portion thereof, for which coverage is provided under section 4603.

8.__Covered policy.__"Covered policy" means a policy or contract or portion of a policy or contract for which coverage is provided under section 4603.

9.__Extra-contractual claims.__"Extra-contractual claims" includes, for example, claims relating to bad faith in the payment of claims, punitive or exemplary damages or attorney's fees and costs.

10.__Impaired insurer.__"Impaired insurer" means a member insurer that, after the effective date of this section, is not an insolvent insurer and is placed under an order of rehabilitation or conservation by a court of competent jurisdiction.

11.__Insolvent insurer.__"Insolvent insurer" means a member insurer that, after the effective date of this section, is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency.

12.__Member insurer.__"Member insurer" means an insurer that is licensed or that holds a certificate of authority to transact in this State any kind of insurance for which coverage is provided under section 4603 and includes an insurer whose license or certificate of authority in this State may have been suspended, revoked, not renewed or voluntarily withdrawn, but does not include:

A.__A hospital or medical service organization, whether profit or nonprofit;

B.__A health maintenance organization;