SECTION 7.1902. Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Business plan--The comprehensive, detailed plan by which the multiple-employer welfare arrangement conducts or proposes to conduct its business.

(2) Employee welfare benefit plan--Any plan, fund, or program established or maintained by an employer or employers as members of an association or group of five or more businesses in the same trade or industry, to the extent that such plan, fund, or program is established or maintained for the purpose of providing for its participants or their beneficiaries those benefits which are permitted under the Insurance Code, Article 3.95-4. Such plan must, at a minimum, clearly set out the rights, privileges, duties, and obligations of employers, employees, and beneficiaries with respect to the multiple-employer welfare arrangement. The plan must clearly set forth benefits intended to be provided under the plan, persons to whom the benefits are intended to be provided, the source of funding for such intended benefits, and a clear and complete procedure for the application for, and collection of, such benefits by beneficiaries of the plan.

(3) Multiple-employer welfare arrangement--An employee welfare benefit plan, or any other arrangement which is established or maintained for the purpose of offering or providing any benefit described in the Insurance Code, Article 3.95-4, and restated in §7.1908 of this title (relating to Benefits Allowed To Be Provided by Multiple-Employer Welfare Arrangements) to the employees of two or more employers (including one or more self-employed individuals), or to their beneficiaries, provided that the arrangement describes an entity which meets either or both of the following criteria:

(A) one or more of the employer members in the multiple-employer welfare arrangement is either domiciled in this state or has its principal headquarters or principal administrative office in this state; or

(B) the multiple-employer welfare arrangement solicits an employer that is domiciled in this state or has its principal headquarters or principal administrative office in this state.

Source Note: The provisions of this §7.1902 adopted to be effective May 27, 1994, 19 TexReg 3686.