Okla. Stat. tit. 36, § 36-637: Application for license

Each MEWA shall file with the Insurance Commissioner an

application for a license on a form prescribed by the Commissioner

and signed under oath by officers of the association or the

administrator of the MEWA. The application shall include or have

attached the following:

1. A copy of any articles of incorporation, constitution and

bylaws of any association;

2. A list of the names, addresses and official capacities with

the MEWA of the individuals who will be responsible for the

management and conduct of the affairs of the MEWA, including all

trustees, officers and directors. Such individuals shall fully

disclose the extent and nature of any contracts or arrangements

between them and the MEWA, including possible conflicts of interest;

3. A copy of the articles of incorporation, bylaws or trust

agreement that governs the operation of the MEWA;

4. A copy of the policy, contract, certificate, summary plan

description or other evidence of the benefits and coverages provided

to covered employees, including a table of the rates charged or

proposed to be charged for each form of such contract. A qualified

actuary shall certify that:

a. the rates are neither inadequate, nor excessive, nor

unfairly discriminatory,

b. the rates are appropriate for the classes of risks for

which that have been computed, and

c. an adequate description of the rating methodology has

been filed with the Commissioner and such methodology

follows consistent and equitable actuarial principles.

For purposes of this section and Section 639 of this title, a

"qualified actuary" is an actuary who is a Fellow of the Society of

Actuaries (FSA), a member of the American Academy of Actuaries, or

an Enrolled Actuary under the Employee Retirement Income Security

Act of 1974, 29 U.S.C., Section 1001 et seq., and has experience in

establishing rates for a self-insured trust and health services

being provided;

5. Any administrator retained by the MEWA must be a licensed

third-party administrator. The MEWA must provide proof of a

fidelity bond which shall protect against acts of fraud or

dishonesty in servicing the MEWA, covering each person responsible

for servicing the MEWA, in an amount equal to the greater of ten

percent (10%) of the contributions received by the MEWA or ten

percent (10%) of the benefits paid, during the preceding calendar

year, with a minimum amount requirement of Twenty Thousand Dollars

($20,000.00) and a maximum amount requirement of Five Hundred

Thousand Dollars ($500,000.00);

6. A copy of the MEWA's stop-loss agreement. The stop-loss

insurance agreement must be issued by an insurer authorized to do

business in this state and must provide both specific and aggregate

coverage with an aggregate retention of no more than one hundred

twenty-five percent (125%) of the expected claims for the next plan

year and a specific retention amount as annually indicated in the

actuarial opinion;

7. In the initial application, a feasibility study, made by a

qualified actuary with an opinion acceptable to the Commissioner,

that addresses market potential, market penetration, market

competition, operating expenses, gross revenues, net income, total

assets and liabilities, cash flow and other items as the

Commissioner requires. The study shall be for the greater of three

(3) years or until the MEWA has been projected to be profitable for

twelve (12) consecutive months. The study must show that the MEWA

would not, at any month end of the projection period, have less than

ninety percent (90%) of the reserves as required by a qualified

actuary;

8. A copy of an audited financial statement of the MEWA

prepared by an independent licensed certified public accountant;

9. A copy of every contract between the MEWA and any

administrator or service company; and

10. Such additional information as the Commissioner may

reasonably require.