Board

1. Structure. A multiple employer welfare arrangement must have a board of trustees consisting of at least three persons, who must be officials or employees of the members of the multiple employer welfare arrangement or of the sponsoring association of the multiple employer welfare arrangement. No member may have more than one representative on the board, unless the multiple employer welfare arrangement has only two members, in which case each member must have at least one representative on the board. No trustee may be an employee of, or receive compensation from, the multiple employer welfare arrangement's service company, financial administrator, or insurer. A trustee may be an employee, agent, or representative of the sponsoring association. Trustees shall be elected by the membership or appointed by the sponsoring association. A majority of the trustees must be employees of members and be covered by the benefits provided by the multiple employer welfare arrangement. One trustee shall be designated the chairperson. The board shall meet no less than four times annually. 2. Duties. The board is responsible for operation of the multiple employer welfare arrangement. The board may delegate some or all of its responsibilities to the chairperson or other trustees between board meetings. All responsibilities of the multiple employer welfare arrangement not expressly delegated by the board or this chapter are the responsibility of the board. The board shall, at a minimum, have the following responsibilities: a. Exercise fiduciary responsibility for the multiple employer welfare arrangement's operation and financial condition; b. Select, supervise, and evaluate the service company, financial administrator, accountant, insurer, and any other contractors; c. On the basis of the multiple employer welfare arrangement's overall financial condition, authorize changes in premium, reserve, or investment practices and declare assessments or dividends as appropriate; d. Approve all reports concerning the multiple employer welfare arrangement's operations and status and oversee filing of reports with the commissioner; e. Monitor delinquent premiums, loss experience, and the financial condition of individual members and authorize disciplinary action or expulsion as appropriate; f. Accept or reject applications for membership; g. As permitted by the bylaws, make or recommend changes to the bylaws for the improvement of the multiple employer welfare arrangement's operation and financial integrity; and h. Monitor the multiple employer welfare arrangement's compliance with all statutes and rules governing its operation.