- A small employer carrier may establish a class of business only to reflect substantial differences in expected claims experience or administrative costs related to the following reasons:
- The small employer carrier uses more than one (1) type of system for the marketing and sale of health benefit plans to small employers;
- The small employer carrier has acquired a class of business from another small employer carrier; or
- The small employer carrier provides coverage through an association with membership of not less than twenty-five (25) small employers which has been formed for purposes other than obtaining insurance.
- A small employer carrier may establish up to nine (9) separate classes of business under subsection (1).
- The commissioner may establish regulations to provide for a period of transition in order for a small employer carrier to come into compliance with subsection (2) in the instance of acquisition of an additional class of business from another small employer carrier.
- The commissioner may approve the establishment of additional classes of business upon application to the commissioner and a finding by the commissioner that such action would enhance the efficiency and fairness of the small employer marketplace.
