For purposes of this chapter, the following

definitions shall apply: (a) “Consumer operated and oriented plan” means a nonprofit member organization or nonprofit member corporation that has been established consistent with the requirements of

Section of PPACA and Subpart F (commencing with

Section 156.500) of Part of Subchapter B of Subtitle A of Title of the Code of Federal Regulations and remains in full compliance with those requirements.

A consumer operated and oriented plan shall also be known as a “CO-OP.” (b) “Formation board” means the initial board of directors of a CO-OP before it has begun accepting enrollment and had an election by the members of the CO-OP to the board of directors. (c) “Member” includes all individuals, including dependents, 18 years of age or older covered under health insurance policies issued by the CO-OP insurer. (d) “Operational board” means the board of directors elected by the members of the CO-OP after it has begun accepting enrollment under its health insurance policies. (e) “PPACA” means the federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), and any rules or regulations issued thereunder. (f) “Nonprofit member organization” or “nonprofit member corporation” means a nonprofit public benefit corporation organized under

Part 2 (commencing with

Section 5110) of Division of Title of the Corporations Code, a nonprofit mutual benefit corporation organized under

Part 3 (commencing with

Section 7110) of Division of Title of the Corporations Code, or a similar entity organized under applicable provisions of the Corporations Code, or in the case of a foreign corporation, a nonprofit public benefit corporation, a mutual benefit corporation, or a similar entity organized under nonprofit laws in a state other than California. (g) “Solvency loan” means a loan provided by the federal Centers for Medicare and Medicaid Services to a nonprofit member organization or nonprofit member corporation seeking to become licensed as a CO-OP insurer, to be used to assist in meeting the state’s solvency and reserve requirements. (h) “Start-up loan” means a loan provided by the federal Centers for Medicare and Medicaid Services to a nonprofit member organization or nonprofit member corporation seeking to become licensed as a CO-OP insurer, to be used for allowed expenses associated with establishing a CO-OP, as further specified by PPACA.