(1) A small employer stop-loss insurance contract shall:

1. (a) be issued to the small employer to provide insurance to the group health benefit plan, not the employees of the small employer;
2. (b) use a standard application form developed by the commissioner by administrative rule;
3. (c) have a contract term with guaranteed rates for at least 12 months, without adjustment, unless there is a change in the benefits provided under the small employer's health plan during the contract period;
4. (d) include both a specific attachment point and an aggregate attachment point in a contract;
5. (e) align stop-loss plan benefit limitations and exclusions with a small employer's health plan benefit limitations and exclusions, including any annual or lifetime limits in the employer's health plan;
6. (f) have an annual specific attachment point that is at least $10,000;
7. (g) have an annual aggregate attachment point that may not be less than 90% of expected claims;

8. (h) pay stop-loss claims:

   1. (i) incurred during the contract period; and
   2. (ii) submitted within 12 months after the expiration date of the contract; and
9. (i) include provisions to cover incurred and unpaid claims if a small employer plan terminates.

(2) A small employer stop-loss contract shall not:

1. (a) include lasering; and
2. (b) pay claims directly to an individual employee, member, or participant.