500.7001 Definitions. Sec. 7001. As used in this chapter: (a) “Board” means the board of trustees of the multiple employer welfare arrangement security fund. (b) “Cash reserves” means federally guaranteed obligations that have a fixed recoverable principal amount or an irrevocable and unconditional letter of credit. (c) “Covered claim” means an obligation of an insolvent […]
500.7004 Employee welfare benefit plan as multiple employer welfare arrangement; certificate of authority required; applicability of chapter. Sec. 7004. A person shall not establish or maintain an employee welfare benefit plan which is a multiple employer welfare arrangement in this state unless the MEWA obtains and maintains a certificate of authority pursuant to this chapter. […]
500.7006 Benefits to which authorized MEWA limited. Sec. 7006. A MEWA authorized under this chapter shall be limited to providing the following benefits: (a) Medical, dental, optical, surgical, or hospital care benefits. (b) Benefits in event of sickness, accident, disability, or death. (c) Prepaid legal services. History: Add. 1986, Act 121, Eff. July 1, 1986 […]
500.7010 Application for certificate of authority; form; submission of application and other documents to commissioner; examination of application and documents; investigation; examination under oath of certain persons. Sec. 7010. (1) A person wishing to establish an employee welfare benefit plan which is a multiple employer welfare arrangement shall apply for a certificate of authority on […]
500.7011 Conditions to issuance of certificate of authority. Sec. 7011. The commissioner shall not issue a certificate of authority to a MEWA unless all of the following conditions have been met: (a) The commissioner is satisfied that: (i) The employers in the MEWA are members of an association or group of 2 or more businesses […]
500.7012 Fees; payment and collection; service of process; designation and purpose of fees. Sec. 7012. (1) The commissioner shall collect, and the persons affected shall pay to the commissioner, the following fees: (a) Filing fee to accompany application for certificate of authority………………….. $ 200.00. (b) Certificate of authority………………….. $ 25.00. (c) Filing fee for annual […]
500.7014 Issuance of certificate of authority; refusal to grant certificate; notice of refusal; request for and conduct of hearing. Sec. 7014. After examination and investigation, the commissioner shall issue a certificate of authority to the MEWA if the commissioner is satisfied that the MEWA is in a stable and unimpaired financial condition and that the […]
500.7018 Temporary certificate; organization of proposed MEWA; opening books to commissioner; condition to issuance of final certificate. Sec. 7018. (1) The MEWA, upon receipt of its initial certificate of authority, which shall be a temporary certificate, shall proceed to the completion of organization of the proposed MEWA. (2) A MEWA shall open its books to […]
500.7020 Issuance of policies by MEWA; premium or premium deposit; contingent premium; restoration of cash reserves. Sec. 7020. (1) The policies issued by the MEWA shall provide for a premium or premium deposit payable in cash and, except as herein provided, for a contingent premium at least equal to 1 month’s premium or premium deposit, […]
500.7022 Name of MEWA; proof of existence of MEWA. Sec. 7022. No MEWA authorized under this chapter shall take any name which is the same as or closely resembles the name of any other MEWA doing business in this state. A MEWA shall transact its business under its own name, and shall not adopt any […]
500.7024 Powers of MEWA. Sec. 7024. Every MEWA, unless otherwise provided, or inconsistent with this chapter, shall have power: (a) To have succession, by its name, for the term stated in its trust agreement, which shall be in perpetuity unless otherwise specified. (b) To sue and be sued, complain and defend, in any court of […]
500.7026 Articles, bylaws, and trust agreement of MEWA and amendments thereto; filing; approval; form for trust agreement; notice of meeting; voting rights; powers to be exercised by board of trustees; restrictions on trustees. Sec. 7026. (1) The articles, bylaws, and trust agreement of the MEWA and all amendments thereto shall be filed with and approved […]
500.7028 Duties of trustees; limitation on liability of trustee. Sec. 7028. The trustees of a MEWA shall give the attention and exercise the vigilance, diligence, care, and skill that prudent persons use in like or similar circumstances. Trustees shall be responsible for all operations of the MEWA and shall take all necessary precautions to safeguard […]
500.7030 Officers and agents; selection and appointment; authority and duties; removal; bond. Sec. 7030. The board of trustees shall select such officers as designated in the articles or bylaws and may appoint agents as they may deem necessary for the transaction of the business of the MEWA. All officers and agents shall respectively have such […]
500.7032 Compensation of trustee, officer, or employee. Sec. 7032. (1) A MEWA shall not pay any salary, compensation, or emolument to any officer or trustee of the MEWA, unless the payment is first authorized by a majority vote of the board of trustees of the MEWA. (2) A trustee, officer, or employee of a MEWA […]
500.7034 Trustee or officer; prohibited conduct; violation as felony; penalty. Sec. 7034. (1) A trustee or officer of a MEWA shall not knowingly and intentionally, directly or indirectly, receive any money or valuable thing for negotiating, procuring, recommending, or aiding in any purchase by or sale to the MEWA of any property or any loan […]
***** 500.7040 THIS SECTION IS AMENDED EFFECTIVE MARCH 29, 2023: See 500.7040.amended ***** 500.7040 Financial statements and reports required to be filed; commingling of cash reserves prohibited. Sec. 7040. (1) Each MEWA transacting business in this state shall file all of the following with the commissioner: (a) Within 90 days after the end of each […]
***** 500.7040.amended THIS AMENDED SECTION IS EFFECTIVE MARCH 29, 2023 ***** 500.7040.amended Financial statements and reports required to be filed; commingling of cash reserves prohibited. Sec. 7040. (1) Each MEWA transacting business in this state shall file all of the following with the director: (a) Within 180 days after the end of each fiscal year, […]
500.7044 Notice to individual covered by plan. Sec. 7044. A MEWA, in connection with an employee welfare benefit plan, shall provide the following written notice to each individual covered by the plan: (a) The fact that individuals covered by the plan are only partially insured. (b) The fact that in the event the plan or […]
500.7050 Examination of affairs of MEWA; access to books, records, and documents; examination of trustees, officers, agents, and employees; payment and disposition of assessment. Sec. 7050. The commissioner, or any person appointed by the commissioner, shall have the power to examine the affairs of any MEWA, and for such purposes shall have free access to […]
