ORS 750.309
Requirements for trust


The following requirements apply to the trust carrying out a multiple employer welfare arrangement:

(1)

The trust must hold and maintain adequate facilities for purposes of the multiple employer welfare arrangement and either must have sufficient personnel to service the employee benefit plan or must contract with a third party administrator licensed under ORS chapter 744 as a third party administrator to provide such services. For purposes of satisfying the requirements of this subsection, the trust may use the premises, facilities and personnel of the association or group of employers and pay reasonable compensation to the association or group for such use.

(2)

The trust must hold and maintain an excess loss insurance policy issued to the board of trustees in the name of the multiple employer welfare arrangement by an insurer authorized to transact casualty or health insurance in Oregon. Except as provided in this subsection, the policy must insure the multiple employer welfare arrangement against its liabilities for health benefits with regard to any one participant in excess of 10 percent of the capital and surplus of the trust. A trust may demonstrate to the Director of the Department of Consumer and Business Services that the trust is capable of supporting an exposure exceeding 10 percent of the capital and surplus of the trust. The trust may make such a demonstration only by means of a certification by a qualified actuary that the capital and surplus of the trust is sufficient to support the increased exposure. In any event, such a trust shall not have any exposure exceeding 15 percent of the capital and surplus of the trust. For purposes of this subsection, “participant” refers individually to each person benefited as a separate subject under the plan operated by the multiple employer welfare arrangement. The following also apply to a policy required under this subsection:

(a)

The coverage must be evidenced by a binder or policy.

(b)

The excess loss insurance policy must contain a provision that it may not be terminated for any reason by any person unless the Director of the Department of Consumer and Business Services receives a written notice of termination from the insurer at least 30 days before the effective date of the termination.

(c)

If more than one policy is purchased, the expiration dates of all such policies must be the same.

(3)

The trust must possess and thereafter maintain capital or surplus, or any combination thereof, of not less than $250,000 or an amount equal to 35 percent of incurred claims for the preceding 12-month period by the trust, whichever is greater. However, the required amount under this subsection may not be more than $500,000.

(4)

As a guarantee of the due execution of the trust obligation under the benefit plan or plans to be entered into by the trust in accordance with ORS 750.301 (Definitions for ORS 750.301 to 750.341) to 750.341 (Requirement for multiple employer welfare arrangement to become traditional insurer), the trust must make and maintain a deposit with the Department of Consumer and Business Services as provided in this subsection. The deposit required under this subsection is in addition to the capital and surplus or other amount required to be possessed and maintained by the trust under subsection (3) of this section and may not be included in or counted toward the required capital and surplus or other amount. The following provisions apply to the deposit:

(a)

As a condition of obtaining a certificate of multiple employer welfare arrangement, a trust shall make an initial deposit in an amount that is the greater of $50,000 or the amount of the deposit required under paragraph (b) of this subsection.

(b)

The amount of the deposit to be maintained under this subsection shall be the lesser of $250,000 or a current required amount calculated by determining the average monthly amount of claims paid by the trust during the preceding 12-month period and multiplying the average monthly amount by three. The current required amount of the deposit shall be calculated as of March 31, June 30, September 30 and December 31 of each calendar year.

(5)

In lieu of the deposit required by subsection (4) of this section, a trust may file and maintain a surety bond or such other bond or cash or securities in the sum of $250,000 as are authorized by the Insurance Code.

(6)

A trust carrying out a multiple employer welfare arrangement that is established after January 1, 1993, shall maintain the deposit required under subsection (4) of this section during the first four calendar quarters described in subsection (4)(b) of this section following the issuance of its certificate of multiple employer welfare arrangement as provided in this subsection. At the beginning of the second, third and fourth calendar quarters after such a trust receives its certificate of multiple employer welfare arrangement, the current required amount of the deposit to be maintained by the trust shall be calculated by determining the average monthly amount of claims paid during the preceding quarter. Beginning with the fifth calendar quarter following the issuance of its certificate of multiple employer welfare arrangement, the trust shall maintain the deposit as provided in subsection (4) of this section. [1993 c.615 §6; 1999 c.196 §14]
Note: See note under 750.301 (Definitions for ORS 750.301 to 750.341).

Source: Section 750.309 — Requirements for trust, https://www.­oregonlegislature.­gov/bills_laws/ors/ors750.­html.

750.003
Purpose
750.005
Definitions
750.015
Management to include representatives of public
750.025
Restricting distribution of income
750.035
Regulation of hospital care associations under prior law
750.045
Required capitalization
750.055
Other provisions applicable to health care service contractors
750.059
Exemption of group practice maintenance organizations from reimbursement requirement for services provided by state hospital or state-approved program
750.065
Payment or reimbursement for services within scope of practice of optometrists
750.085
Offer of replacement coverage upon order of liquidation
750.095
Requirements of contract between provider and subscriber
750.301
Definitions for ORS 750.301 to 750.341
750.303
Conditions for use of multiple employer welfare arrangement
750.305
Application for certificate
750.307
Requirements for association or group
750.309
Requirements for trust
750.311
Multiple employer welfare arrangements established in another state
750.313
Issuance or refusal of certificate of multiple employer welfare arrangement
750.315
Maintenance of reserves
750.317
Board of trustees
750.318
Officers and persons appointed to act on behalf of board
750.319
Salaries
750.321
Assessment
750.323
Notice of coverage under plan
750.325
Filings by trust
750.327
Examinations
750.329
Taxation
750.331
Prohibited activities for trustee or officer
750.333
Applicable provisions of Insurance Code
750.335
Delinquency proceedings
750.337
Exclusion from membership in guaranty funds, joint underwriting associations and other pools
750.339
Liability of excess loss insurer
750.341
Requirement for multiple employer welfare arrangement to become traditional insurer
750.505
Definitions for ORS 750.505 to 750.715
750.515
Certificate of registration required
750.525
Inapplicability of ORS 750.505 to 750.715 to certain legal services
750.535
Registration requirements
750.545
Application
750.555
Issuance of certificate of registration
750.565
Duration of certificate
750.575
Grounds for suspension or revocation of certificate or refusal to issue or renew certificate
750.585
Written provider agreement with providing attorney
750.595
Membership agreement
750.605
Unfair, discriminatory or misleading provisions in agreements prohibited
750.615
Deposit to reimburse members for unearned premiums required
750.625
Paying providing attorney contingent on claims experience prohibited
750.635
Registered agent and registered office in state required
750.645
Annual report
750.655
Filing schedule of legal service rates required
750.675
Filing of provider and membership agreement with director
750.685
Indemnification insurance or bond required
750.695
ORS 750.505 to 750.715 not to affect regulation of practice of law
750.705
Application of Insurance Code
750.715
Rules
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