11 NCAC 22 .0103. GENERAL ELIGIBILITY

(a)  Each PEO shall provide to the Commissioner documentation that the PEO sponsored health benefit plan is operated pursuant to a trust agreement by a board of trustees that has fiscal control over and is responsible for all operations of the health benefit plan.

(b)  Trustees of the trust may be owners, partners, officers, directors, or employees of the PEO or of one or more of the PEO's client employers.  With the Commissioner's approval, a person who is not an owner, partner, officer, director or employee may serve as a trustee. Trustees may contract with a licensed third party administrator to administer the operations of the trust.

(c)  The trust shall provide benefits solely for the PEO's employees or the assigned employees, or both. 

(d)  Any profits from the operation of a trust shall be invested in securities in accordance with G.S. 58‑7‑160 through G.S. 58‑7‑200. Interest or other profits accrued or received from the securities shall be used to stabilize premium rates or provide other benefits for the insured employees on which the PEO and the Commissioner agree.

 

History Note:        Authority G.S. 58‑2‑40; 58‑89A‑15; 58-89A-105; 58‑89A-106;

Eff. April 1, 2010.