{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-635","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-635","heading":"License eligibility requirements - Filing of contracts","body":"A. To meet the requirements for issuance of a license and to\n\nmaintain a MEWA, a MEWA must be nonprofit and either:\n\n1. a. established by a trade association, industry\n\nassociation or professional association of employers\n\nor professionals that has a constitution or bylaws and\n\nthat has been organized and maintained in good faith\n\nfor a continuous period of five (5) years for purposes\n\nother than that of obtaining or providing insurance,\n\nor\n\nb. established by an association that has a current M-1\n\nform filed with and accepted by the United States\n\nDepartment of Labor showing Oklahoma as the state of\n\noperation and:\n\n(1) is formed in accordance with the applicable\n\nprovisions of 29 CFR 2510, or\n\n(2) was previously established or is newly formed in\n\naccordance with federal regulatory guidance\n\neffective prior to August 20, 2018, or\n\nc. operated pursuant to a trust agreement by a board of\n\ntrustees that has complete fiscal control over the\n\nMEWA and that is responsible for all operations of the\n\nMEWA. Except as provided in this paragraph, the\n\ntrustees must:\n\n(1) be owners, shareholders, partners, officers,\n\ndirectors, or employees of one or more employers\n\nin the MEWA. With the Commissioner's approval, a\n\nperson who is not such an owner, shareholder,\n\npartner, officer, director, or employee may serve\n\nas a trustee if that person possesses the\n\nexpertise required for such service. A trustee\n\nmay not be an owner, shareholder, partner,\n\nofficer or employee of the administrator or\n\nservice company of the MEWA,\n\n(2) have the authority to approve applications of\n\nassociation members for participation in the\n\nMEWA, and\n\n(3) have the authority to contract with an authorized\n\nadministrator or service company to administer\n\nthe operations of the MEWA,\n\nd. neither offered nor advertised to the public\n\ngenerally,\n\ne. operated in accordance with sound actuarial\n\nprinciples, and\n\nf. offered only after Two Hundred Thousand Dollars\n\n($200,000.00) of cash or federally guaranteed\n\nobligations of less than five-year maturity that have\n\na fixed or recoverable principal amount or such other\n\ninvestments as the Commissioner may authorize by rule\n\nis titled in such a manner that it may not be traded,\n\nsold or otherwise expended without the consent of the\n\nCommissioner; provided, the funds shall be taken into\n\naccount in determining whether the MEWA is actuarially\n\nsound, and evidence of the investment shall be filed\n\nwith the Commissioner; or\n\n2. a. operated pursuant to a trust agreement for a trust\n\nwhich has its situs in this state, is operated\n\npursuant to a trust agreement by a board of trustees\n\nthat has complete fiscal control over the MEWA, is\n\nresponsible for all operations of the MEWA, and which\n\nhas as one of its trustees a financial institution\n\nwhich is independent of the entity which established\n\nthe MEWA. Except as provided in this paragraph, the\n\nboard of trustees must have owners, shareholders,\n\npartners, officers, directors or employees of one or\n\nmore employers in the MEWA. With the Commissioner's\n\napproval, a person who is not such an owner,\n\nshareholder, partner, officer, director or employee\n\nmay serve as a trustee if that person possesses the\n\nexpertise required for such service. A trustee shall\n\nnot be an owner, shareholder, partner, officer,\n\ndirector or employee of the administrator or service\n\ncompany of the MEWA,\n\nb. operated and administered in a manner that causes all\n\nassets of the MEWA to be held in trust until paid\n\neither:\n\n(1) for the benefit of individuals who receive\n\nmedical, dental or similar benefits from the\n\nMEWA, or\nexpertise required for such service. A trustee shall\n\nnot be an owner, shareholder, partner, officer,\n\ndirector or employee of the administrator or service\n\ncompany of the MEWA,\n\nb. operated and administered in a manner that causes all\n\nassets of the MEWA to be held in trust until paid\n\neither:\n\n(1) for the benefit of individuals who receive\n\nmedical, dental or similar benefits from the\n\nMEWA, or\n\n(2) for the expenses of the MEWA, such as the fees of\n\nthe trustee, licensed agents, administrator,\n\nservice company, and all expenses of complying\n\nwith the provisions of this act,\n\nc. offered only to employers for the benefit of their\n\nemployees,\n\nd. operated in accordance with sound actuarial\n\nprinciples, and\n\ne. offered only after Two Hundred Thousand Dollars\n\n($200,000.00) of cash or federally guaranteed\n\nobligations of less than five-year maturity that have\n\na fixed or recoverable principal amount or such other\n\ninvestments as the Commissioner may authorize by rule\n\nis titled in such a manner that it may not be traded,\n\nsold or otherwise expended without the consent of the\n\nInsurance Commissioner; provided, the funds shall be\n\ntaken into account in determining whether the MEWA is\n\nactuarially sound, and evidence of the investment\n\nshall be filed with the Commissioner.\n\nB. 1. The MEWA shall issue to each covered employee a policy,\n\ncontract, certificate, summary plan description, or other evidence\n\nof the benefits and coverages provided. The policy, contract,\n\ncertificate, summary plan description, or other evidence of the\n\nbenefits, coverages provided, premium rates to be charged and any\n\ncontracts between the MEWA and any administrator or service company,\n\nincluding any changes to those documents, must be filed with the\n\nOklahoma Insurance Department. The evidence of benefits and\n\ncoverages provided shall contain, in boldface type on the face page\n\nof the policy and the certificate, the following statement: \"THE\n\nBENEFITS AND COVERAGES DESCRIBED HEREIN ARE PROVIDED THROUGH A TRUST\n\nFUND ESTABLISHED BY A GROUP OF EMPLOYERS (name of MEWA). THE TRUST\n\nFUND IS NOT SUBJECT TO ANY INSURANCE GUARANTY ASSOCIATION. OTHER\n\nRELATED FINANCIAL INFORMATION IS AVAILABLE FROM YOUR EMPLOYER OR\n\nFROM THE (name of MEWA). EXCESS INSURANCE IS PROVIDED BY A LICENSED\n\nINSURANCE COMPANY TO COVER CERTAIN CLAIMS WHICH EXCEED CERTAIN\n\nAMOUNTS. THIS IS THE ONLY SOURCE OF FUNDING FOR THESE BENEFITS AND\n\nCOVERAGES.\"\n\n2. If applicable, the same documents shall contain in boldface\n\ntype on the face page of the policy and the certificate: \"THE\n\nBENEFITS AND COVERAGE DESCRIBED HEREIN ARE FUNDED BY CONTRIBUTIONS\n\nFROM EMPLOYERS, EMPLOYEES, AND OTHER INDIVIDUALS ELIGIBLE FOR\n\nCOVERAGE.\"\n\n3. Any statement required by this subsection is not required on\n\nidentification cards issued to covered employees or other insureds.\n\nC. The Commissioner shall not grant or continue a license to\n\nany MEWA if the Commissioner reasonably deems that:\n\n1. Any trust, manager or administrator is incompetent,\n\nuntrustworthy, or so lacking in insurance expertise as to make the\n\noperations of the MEWA hazardous to the potential and existing\n\ninsureds;\n\n2. Any trustee, manager or administrator has been found guilty\n\nof or has pled guilty or no contest to a felony, a crime involving\n\nmoral turpitude, or a crime punishable by imprisonment of one (1)\n\nyear or more under the law of any state or country, whether or not a\n\njudgment or conviction has been entered; or\n\n3. Any trustee, manager or administrator has had any type of\n\ninsurance license justifiably revoked in this or any other state.\n\nD. To qualify for and retain a license, a MEWA shall file all\n\ncontracts with administrators or service companies with the\n\nCommissioner, and report any changes in such contracts to the\n\nCommissioner in advance of their implementation. The Commissioner\n\nshall have the authority to cause any contract with an administrator\ny type of\n\ninsurance license justifiably revoked in this or any other state.\n\nD. To qualify for and retain a license, a MEWA shall file all\n\ncontracts with administrators or service companies with the\n\nCommissioner, and report any changes in such contracts to the\n\nCommissioner in advance of their implementation. The Commissioner\n\nshall have the authority to cause any contract with an administrator\n\nor service company to be renegotiated if the Commissioner reasonably\n\ndetermines that the charges under any such contract are excessively\n\nhigh in light of the services being delivered under the contract.\n\nE. An initial filing fee of One Thousand Dollars ($1,000.00) is\n\nrequired for licensure. Each subsequent year the MEWA is in\n\noperation, an annual fee of Two Hundred Fifty Dollars ($250.00)\n\nshall be required.\n\nF. Failure to maintain compliance with the eligibility\n\nrequirements established by this section is a ground for denial,\n\nsuspension or revocation of the license of a MEWA.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"1c3e8f88cb14c3fde6bc29ceb23d630224945ec67703061cfaf24c57969a6df8","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-634","next":"us-ok/okla.-stat.-tit.-36-36-636"},"notice":"GroundRules: Original legal text. Not legal advice."}