Okla. Stat. tit. 36, § 36-635

A. To meet the requirements for issuance of a license and to

maintain a MEWA, a MEWA must be nonprofit and either:

1. a. established by a trade association, industry

association or professional association of employers

or professionals that has a constitution or bylaws and

that has been organized and maintained in good faith

for a continuous period of five (5) years for purposes

other than that of obtaining or providing insurance,

or

b. established by an association that has a current M-1

form filed with and accepted by the United States

Department of Labor showing Oklahoma as the state of

operation and:

(1) is formed in accordance with the applicable

provisions of 29 CFR 2510, or

(2) was previously established or is newly formed in

accordance with federal regulatory guidance

effective prior to August 20, 2018, or

c. operated pursuant to a trust agreement by a board of

trustees that has complete fiscal control over the

Oklahoma Statutes - Title 36. Insurance Page 157

MEWA and that is responsible for all operations of the

MEWA. Except as provided in this paragraph, the

trustees must:

(1) be owners, shareholders, partners, officers,

directors, or employees of one or more employers

in the MEWA. With the Commissioner's approval, a

person who is not such an owner, shareholder,

partner, officer, director, or employee may serve

as a trustee if that person possesses the

expertise required for such service. A trustee

may not be an owner, shareholder, partner,

officer or employee of the administrator or

service company of the MEWA,

(2) have the authority to approve applications of

association members for participation in the

MEWA, and

(3) have the authority to contract with an authorized

administrator or service company to administer

the operations of the MEWA,

d. neither offered nor advertised to the public

generally,

e. operated in accordance with sound actuarial

principles, and

f. offered only after Two Hundred Thousand Dollars

($200,000.00) of cash or federally guaranteed

obligations of less than five-year maturity that have

a fixed or recoverable principal amount or such other

investments as the Commissioner may authorize by rule

is titled in such a manner that it may not be traded,

sold or otherwise expended without the consent of the

Commissioner; provided, the funds shall be taken into

account in determining whether the MEWA is actuarially

sound, and evidence of the investment shall be filed

with the Commissioner; or

2. a. operated pursuant to a trust agreement for a trust

which has its situs in this state, is operated

pursuant to a trust agreement by a board of trustees

that has complete fiscal control over the MEWA, is

responsible for all operations of the MEWA, and which

has as one of its trustees a financial institution

which is independent of the entity which established

the MEWA. Except as provided in this paragraph, the

board of trustees must have owners, shareholders,

partners, officers, directors or employees of one or

more employers in the MEWA. With the Commissioner's

approval, a person who is not such an owner,

shareholder, partner, officer, director or employee

Oklahoma Statutes - Title 36. Insurance Page 158

may serve as a trustee if that person possesses the

expertise required for such service. A trustee shall

not be an owner, shareholder, partner, officer,

director or employee of the administrator or service

company of the MEWA,

b. operated and administered in a manner that causes all

assets of the MEWA to be held in trust until paid

either:

(1) for the benefit of individuals who receive

medical, dental or similar benefits from the

MEWA, or
expertise required for such service. A trustee shall

not be an owner, shareholder, partner, officer,

director or employee of the administrator or service

company of the MEWA,

b. operated and administered in a manner that causes all

assets of the MEWA to be held in trust until paid

either:

(1) for the benefit of individuals who receive

medical, dental or similar benefits from the

MEWA, or

(2) for the expenses of the MEWA, such as the fees of

the trustee, licensed agents, administrator,

service company, and all expenses of complying

with the provisions of this act,

c. offered only to employers for the benefit of their

employees,

d. operated in accordance with sound actuarial

principles, and

e. offered only after Two Hundred Thousand Dollars

($200,000.00) of cash or federally guaranteed

obligations of less than five-year maturity that have

a fixed or recoverable principal amount or such other

investments as the Commissioner may authorize by rule

is titled in such a manner that it may not be traded,

sold or otherwise expended without the consent of the

Insurance Commissioner; provided, the funds shall be

taken into account in determining whether the MEWA is

actuarially sound, and evidence of the investment

shall be filed with the Commissioner.

B. 1. The MEWA shall issue to each covered employee a policy,

contract, certificate, summary plan description, or other evidence

of the benefits and coverages provided. The policy, contract,

certificate, summary plan description, or other evidence of the

benefits, coverages provided, premium rates to be charged and any

contracts between the MEWA and any administrator or service company,

including any changes to those documents, must be filed with the

Oklahoma Insurance Department. The evidence of benefits and

coverages provided shall contain, in boldface type on the face page

of the policy and the certificate, the following statement: "THE

BENEFITS AND COVERAGES DESCRIBED HEREIN ARE PROVIDED THROUGH A TRUST

FUND ESTABLISHED BY A GROUP OF EMPLOYERS (name of MEWA). THE TRUST

FUND IS NOT SUBJECT TO ANY INSURANCE GUARANTY ASSOCIATION. OTHER

RELATED FINANCIAL INFORMATION IS AVAILABLE FROM YOUR EMPLOYER OR

FROM THE (name of MEWA). EXCESS INSURANCE IS PROVIDED BY A LICENSED

INSURANCE COMPANY TO COVER CERTAIN CLAIMS WHICH EXCEED CERTAIN

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AMOUNTS. THIS IS THE ONLY SOURCE OF FUNDING FOR THESE BENEFITS AND

COVERAGES."

2. If applicable, the same documents shall contain in boldface

type on the face page of the policy and the certificate: "THE

BENEFITS AND COVERAGE DESCRIBED HEREIN ARE FUNDED BY CONTRIBUTIONS

FROM EMPLOYERS, EMPLOYEES, AND OTHER INDIVIDUALS ELIGIBLE FOR

COVERAGE."

3. Any statement required by this subsection is not required on

identification cards issued to covered employees or other insureds.

C. The Commissioner shall not grant or continue a license to

any MEWA if the Commissioner reasonably deems that:

1. Any trust, manager or administrator is incompetent,

untrustworthy, or so lacking in insurance expertise as to make the

operations of the MEWA hazardous to the potential and existing

insureds;

2. Any trustee, manager or administrator has been found guilty

of or has pled guilty or no contest to a felony, a crime involving

moral turpitude, or a crime punishable by imprisonment of one (1)

year or more under the law of any state or country, whether or not a

judgment or conviction has been entered; or

3. Any trustee, manager or administrator has had any type of

insurance license justifiably revoked in this or any other state.

D. To qualify for and retain a license, a MEWA shall file all

contracts with administrators or service companies with the

Commissioner, and report any changes in such contracts to the

Commissioner in advance of their implementation. The Commissioner

shall have the authority to cause any contract with an administrator
y type of

insurance license justifiably revoked in this or any other state.

D. To qualify for and retain a license, a MEWA shall file all

contracts with administrators or service companies with the

Commissioner, and report any changes in such contracts to the

Commissioner in advance of their implementation. The Commissioner

shall have the authority to cause any contract with an administrator

or service company to be renegotiated if the Commissioner reasonably

determines that the charges under any such contract are excessively

high in light of the services being delivered under the contract.

E. An initial filing fee of One Thousand Dollars ($1,000.00) is

required for licensure. Each subsequent year the MEWA is in

operation, an annual fee of Two Hundred Fifty Dollars ($250.00)

shall be required.

F. Failure to maintain compliance with the eligibility

requirements established by this section is a ground for denial,

suspension or revocation of the license of a MEWA.