Indiana Administrative Code › Title 760 - DEPARTMENT OF INSURANCE › Article 1 - GENERAL PROVISIONS › Rule 68 - Multiple Employer Welfare Arrangements › Section 68-2 - Certificate of registration

Current through July 10, 2024
Authority: IC
				  27-1-34-9
Affected: IC 4-21.5-5; IC 27-1-25; IC 27-1-34; IC
				  27-16-2-13
Sec. 2.
(a) A MEWA
				may not engage in business in Indiana without first obtaining a certificate of
				registration from the department.
(b) To obtain a certificate of registration,
				a MEWA shall submit an application for a certificate of registration. The
				application shall be on a form prescribed by the department. The application
				shall be completed and submitted along with the following information:
(1) Copies of all articles, bylaws,
				agreements, trusts, or other documents describing the rights and obligations of
				employers, employees, and beneficiaries.
(2) Audited financial statements of the MEWA
				and a projection of the assets, liabilities, income, and expenses of the MEWA
				for the next twelve (12) months.
(3) Proof of a fidelity bond, which shall
				protect against acts of fraud or dishonesty in servicing the MEWA, covering
				each person responsible for servicing the MEWA in an amount equal to:
(A) the greater of ten percent (10%) of the
				premiums and contributions received by the MEWA; or
(B) ten percent (10%) of the benefits paid;
				during the preceding calendar year, with a minimum of ten thousand dollars
				($10,000) and a maximum of five hundred thousand dollars ($500,000). No
				additional bond shall be required of a third party administrator licensed under
				IC 27-1-25. (4) A business plan for the MEWA, including the proposed marketing
				and sales plan and documents.
(5) An opinion from a qualified actuary
				satisfactory to the commissioner showing that the MEWA will be operated in
				accordance with sound actuarial principles.
(6) A certification by the applicant that
				the:
(A) MEWA is in compliance with all
				applicable provisions of the Employee Retirement Income Security Act of 1974
				(29 U.S.C. Section
				1001 et seq.); or
(B) applicant is exempt from the Employee
				Retirement Income Security Act of 1974 including the basis for the asserted
				exemption.
(7) Copies of
				the following:
(A) Plan documents.
(B) Evidence of coverage.
(C) Organizational chart illustrating all
				entities affiliated with the MEWA.
(D) Agreements with service
				providers.
(8) A
				statement of the costs of coverage to be charged, including an itemization of
				amounts for administration, reserves, and other expenses associated with
				operation of the MEWA.
(9) Names
				and addresses of the following:
(A) The
				association or group of employers sponsoring the MEWA.
(B) The members of the board of trustees or
				directors, as applicable, of the MEWA. Biographical affidavits shall be
				submitted on the form prescribed by the National Association of Insurance
				Commissioners for insurers for the following:
(i) The members of the board of trustees or
				directors, as applicable.
(ii) All
				other persons with decision making authority for the MEWA.
(C) If not an association, at least two (2)
				employers.
(10) The
				application fee required by section 17 of this rule.