(b) Unless such time is extended by the commissioner, within sixty (60) days of the filing of the completed application, the commissioner shall issue a certificate of authority provided that the provisions of this part are satisfied and the conditions in subdivisions (b)(1) – (15) of this section have been met, as follows:

1. (1) The employers in the multiple-employer welfare arrangement have formed a valid MEWA as defined under 23 CAR § 147-103(7) and are composed of at least two (2) employers;
2. (2) The employee welfare plan of the association or group in the multiple-employer welfare arrangement is controlled and sponsored directly by participating employers, participating employees, or both;
3. (3) The association or group of employers in the multiple-employer welfare arrangement is a not-for-profit organization;
4. (4) For an association-sponsored multiple-employer welfare arrangement, the association has been organized and maintained in good faith in active existence for at least two (2) years for purposes other than that of obtaining insurance or insuring members, employees, or employees of members of the association for the benefit of persons other than the association or its officers or trustees;
5. (5) The multiple-employer welfare arrangement has within its own organization adequate facilities and competent personnel, as determined by the commissioner, to service the employee benefit plan or has contracted with a third-party administrator that holds a current certificate of authority to engage in business in the State of Arkansas;

6. (6) The multiple-employer welfare arrangement:

   1. (A) Has applications from not less than two (2) employers and will provide similar benefits for not less than two hundred (200) separate participating employees; and
   2. (B) The annual gross premiums or contributions to the plan will be not less than:

(i) Twenty thousand dollars ($20,000) for a plan that provides only vision benefits;

1. (ii) Seventy-five thousand dollars ($75,000) for a plan that provides only dental benefits; and

   1. (iii) Two hundred thousand dollars ($200,000) for all other plans;

2. (7)

   1. (A) The multiple-employer welfare arrangement possesses a written commitment, binder, or policy for stop-loss insurance issued by an insurer that has a certificate of authority to transact business in the State of Arkansas, providing not less than thirty (30) days’ notice to the commissioner of any cancellation or nonrenewal of coverage.
   2. (B) This instrument shall provide both specific and aggregate coverage with an aggregate retention of no more than one hundred twenty-five percent (125%) of the amount of expected claims for the next plan year and any specific retention amount as determined by the Finance Division of the State Insurance Department;
3. (8) Both the specific and aggregate coverage will require all claims to be submitted within ninety (90) days after the claim is incurred and provide a twelve-month claims incurred period and a fifteen-month paid claims period for each policy year;
4. (9) The contributions shall be set to fund at least one hundred percent (100%) of the aggregate retention plus all other costs of the multiple-employer welfare arrangement;
5. (10) If the required reserves exceed the greater of forty percent (40%) of the total contributions for the current plan year or forty percent (40%) of the total contributions expected for the current plan year, the contributions may be reduced to fund less than one hundred percent (100%) of the aggregate retention plus all other costs of the multiple-employer welfare arrangement, but in no event less than the level of contributions necessary to fund the minimum reserves required;
6. (11) The reserves shall be established before a certificate of authority is issued;
7. (12) The multiple-employer welfare arrangement has established a procedure for handling claims for benefits in the event of dissolution of the multiple-employer welfare arrangement;
8. (13) The multiple-employer welfare arrangement has obtained the required fidelity bond;
9. (14) The multiple-employer welfare arrangement has submitted its plan document or any instrument describing the rights and obligations of the employers, employees, and beneficiaries with respect to the multiple-employer welfare arrangement; and

10. (15) The multiple-employer welfare arrangement has submitted a summary plan description and has filed for review any notifications such as an identification card, policy, or contract, in connection with the employee welfare benefit plan, which notifications include any of the disclosures set out in subdivisions (b)(15)(A) – (D) of this section, as follows:

    1. (A) That the multiple-employer welfare arrangement is insured from stop-loss insurance;
    2. (B) That in the event the plan or the multiple-employer welfare arrangement does not ultimately pay medical expenses that are eligible for payment under the plan for any reason, the participating employer or its participating employee covered by the plan may be liable for those expenses;
    3. (C) That, if applicable, the plan does not participate in the guaranty fund, such disclosure being provided in the same notice format required of insurers and health maintenance organizations in this state; and

    4. (D) The toll-free number for the complaints section of the State Insurance Department’s consumer services division.

       1. (c) Unless excepted by statute or by this part, a multiple-employer welfare arrangement may commence doing business in this state only after it receives its initial certificate of authority.
       2. (d) The multiple-employer welfare arrangement shall appoint the commissioner as its registered agent for service of process, by filing same on the prescribed form.