Ending self-funding, runoff period, and plan dissolution

1. Termination. A multiple employer welfare arrangement may terminate its self-funded authority and cease to provide coverage effective at the end of a fund year. The multiple employer welfare arrangement must notify the commissioner within ninety days of its decision to terminate. A multiple employer welfare arrangement may not terminate its self-funding authority less than ninety days prior to the end of the fund year in question. The voluntary termination of self-funding authority does not constitute multiple employer welfare arrangement dissolution under subsection 4. 2. Revocation. The commissioner shall, by order, revoke the authority of a multiple employer welfare arrangement to self-fund upon no less than ten days' written notice if any of the following events occur or conditions develop, and if the commissioner determines that the conditions are material: a. Failure of the multiple employer welfare arrangement to comply with this chapter or with other applicable North Dakota laws or rules or the applicable laws and rules of any other state; b. Failure of the multiple employer welfare arrangement to comply with any lawful order of the commissioner or the lawful order of the commissioner of another state; c. Commission by the multiple employer welfare arrangement of a prohibited practice as defined by North Dakota Century Code chapter 26.1-04 or in related rules; or d. A deterioration of the multiple employer welfare arrangement's financial integrity to the extent that its present or future ability to meet its obligations is or will be significantly impaired. 3. Runoff multiple employer welfare arrangement. A multiple employer welfare arrangement must continue to exist as a runoff multiple employer welfare arrangement after its authority to self-fund has ended, for the purpose of paying claims, preparing reports, and administering transactions associated with the period during which the multiple employer welfare arrangement provided coverage. A runoff multiple employer welfare arrangement must continue to comply with this chapter and with other applicable North Dakota laws and rules. 4. Dissolution. A multiple employer welfare arrangement, including a runoff multiple employer welfare arrangement, must apply to the commissioner for authorization to dissolve. An application must be approved or disapproved within sixty days of receipt. Dissolution without authorization is prohibited and void and does not absolve a multiple employer welfare arrangement or runoff multiple employer welfare arrangement from fulfilling its continuing obligations and does not absolve its members from assessments under subsection 3 of section 45-06-14-14. The multiple employer welfare arrangement's assets at dissolution must be distributed to the members and covered persons as provided in the bylaws. Authorization to dissolve must be granted if either of the following conditions is met: a. The multiple employer welfare arrangement demonstrates that it has no outstanding liabilities, including incurred but not reported liabilities; or b. The multiple employer welfare arrangement has obtained an irrevocable commitment from a licensed insurer to pay all outstanding liabilities and to provide all related services, including the payment of claims, preparation of reports, and the administration of transactions associated with the period during which the multiple employer welfare arrangement provided coverage.