1. (a) A small employer carrier may establish a separate class of business only to reflect substantial differences in expected claims experience or administrative costs related to the following reasons:

   1. (1) the small employer carrier uses more than one type of system for the marketing and sale of health benefit plans to small employers;
   2. (2) the small employer carrier has acquired a class of business from another small employer carrier; or
   3. (3) the small employer carrier provides coverage to one or more association groups.
2. (b) A small employer carrier may establish up to 4 separate classes of business under subsection (a).
3. (c) The Director may approve the establishment of additional classes of business upon application to the Director and a finding by the Director that such action would enhance the efficiency and fairness of the small employer marketplace.

(Source: P.A. 91-510, eff. 1-1-00.)