California Insurance Code

§ 742.24

INS § 742.24 Effective Jan 1, 2006Div. 1 · Part 2 · Ch. 1 · Art. 4.7

Statute text

To be eligible for a certificate of compliance, a self-funded or partially self-funded multiple employer welfare arrangement shall meet all of the following requirements:

(a)Be nonprofit.

(b)Be established and maintained by a trade association, industry association, professional association, or by any other business group or association of any kind that has a constitution or bylaws specifically stating its purpose, and have been organized and maintained in good faith with at least 200 paid members and operated actively for a continuous period of five years, for purposes other than that of obtaining or providing health care coverage benefits to its members. An association is a California mutual benefit corporation comprised of a group of individuals or employers who associate based solely on participation in a specified profession or industry, accepting for membership any individual or employer meeting its membership criteria, which do not condition membership directly or indirectly on the health or claims history of any person, and which uses membership dues solely for and in consideration of the membership and membership benefits.

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Legislative history

Amended by Stats. 2005, Ch. 218, Sec. 1. Effective January 1, 2006.