500.7001 Definitions.

Sec. 7001.

    As used in this chapter:

    (a) "Board" means the board of trustees of the multiple employer welfare arrangement security fund.

    (b) "Cash reserves" means federally guaranteed obligations that have a fixed recoverable principal amount or an irrevocable and unconditional letter of credit.

    (c) "Covered claim" means an obligation of an insolvent MEWA to pay a claim that is covered by the MEWA to a covered employee or dependent who is a resident of this state.

    (d) "Employee welfare benefit plan" means that term as defined in section 3 of the employee retirement income security act of 1974, Public Law 93-406, 88 Stat. 829, 29 U.S.C. 1002.

    (e) "Fund" means the multiple employer welfare arrangement security fund.

    (f) "Insolvent MEWA" means a MEWA authorized to do business in this state for which a domiciliary or ancillary receiver has been appointed in this state.

    (g) "Letter of credit" means a letter of credit that meets all of the following requirements:

    (i) Is issued by a federally insured financial institution.

    (ii)  Is issued upon such terms and in a form approved by the commissioner.

    (iii)  Is subject to draw by the commissioner, upon giving 5 business days' written notice to the MEWA, or by the MEWA for the subscriber's benefit if the MEWA is unable to pay claims as they come due.

    (h) "Multiple employer welfare arrangement" or "MEWA" means that term as defined in section 3 of the employee retirement income security act of 1974, Public Law 93-406, 88 Stat. 829, 29 U.S.C. 1002, which meets either or both of the following criteria:

    (i) One or more of the employer members in the MEWA is either domiciled in this state or has its principal headquarters or principal administrative office in this state.

    (ii)  The MEWA solicits an employer that is domiciled in this state or has its principal headquarters or principal administrative office in this state.