You may want to check the national webpage for KD. I know my nationals has our legacy policy out there for anyone to read.
But we consider nieces, cousins and stepdaughters/stepsisters legacys too.

But as w/ most sororities being a legacy just means that they're a lot more reluctant to drop you. Nothing's guraranteed.
As for my chapter, we definitely paid attention if a girl was a legacy to another chapter. We'd pay extra attention to anything she said about that chapter too.
For instance, one rushee told be "My sister is an XYZ, I guess chapters really do vary from school to school." After she said this, I was no longer terrified that we would lose her to them. If I thought she was dying to be one, I would've suggested dropping her earlier. Why waste time w/ a girl that is unlikely to be dropped by her favorite house?
Another thing we paid attention to is how active the alum is in that sorority. One legacy's mother was a regional officer. A chapter would be nuts to drop her. Again, why waste time w/ girls you know you're not going to get?
Maybe my chapter is an exception by paying so much attention to other chapters legacies. But it's such a good feeling when you get other houses legacies to join yours.