1. (a) Each self-funded multiple-employer welfare arrangement transacting business in this state shall file annually with the Insurance Commissioner statements and reports described in subdivisions (a)(1) and (2) of this section, as follow:

   1. (1) Within ninety (90) days of the end of the MEWA's fiscal year, financial statements audited by a certified public accountant, or within such time period as extended by the commissioner for good cause; and

   2. (2)

      1. (A) Within ninety (90) days of the end of the MEWA's fiscal year, or within such time period as extended by the commissioner for good cause, an actuarial opinion prepared and certified by an actuary who is not an employee of the multiple-employer welfare arrangement and who is:

2. (i) A fellow of the Society of Actuaries;

   1. (ii) A member of the American Academy of Actuaries; or

      1. (iii) An enrolled actuary under the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1241 and 1242.

      2. (B) The actuarial opinion shall include:

         1. (i) A description of the actuarial soundness of the multiple-employer welfare arrangement, including any recommended actions that the multiple-employer welfare arrangement should take to improve its actuarial soundness;
         2. (ii) The recommended amount of cash reserves the multiple-employer welfare arrangement should maintain, which shall not be less than the greater of twenty percent (20%) of the total contributions in the preceding plan year or twenty percent (20%) of the total estimated contributions for the current plan year;
         3. (iii) A calculation of cash reserves with proper actuarial regard for known claims, paid and outstanding, a history of incurred but not reported claims, claims handling expenses, unearned premium, an estimate for bad debts, a trend factor, and a margin for error; and
         4. (iv) The recommended level of specific and aggregate stop-loss insurance the multiple-employer welfare arrangement should maintain.

3. (b) The cash reserves as required by the Finance Division of the State Insurance Department shall be maintained in cash or federally guaranteed obligations of less than five-year maturity that have a fixed or recoverable principal amount or such other investments as the commissioner has authorized by rule.

   1. (c)
   2. (1) The commissioner shall review the statements and reports required by subsection (a) of this section.
   3. (2) The commissioner shall automatically renew a multiple-employer welfare arrangement's certificate of authority on January 1 of each year unless the commissioner finds that the multiple-employer welfare arrangement does not meet the requirements of this part.
   4. (3) At renewal, a self-funded MEWA shall provide the reports or statements required in this section in addition to any modifications of documents required under 23 CAR §§ 147-105, 147-106, 147-107, and 147-111, that have changed from the previous plan year.

Codification Notes: “MEWA” means multiple-employer welfare arrangement.