(a) Notice of TDLR action against approved PEO's license.
The commissioner will limit, suspend, or cancel an approved PEO's
certificate of approval in response to an action by TDLR against the
approved PEO's license.
(b) Notice of TDLR's contemplated action. An approved
PEO must notify the commissioner through TDI's licensing section within
10 business days of first receiving notice that TDLR is contemplating
taking action against its license. The approved PEO's notice to the
commissioner must include a copy of TDLR's notice.
(c) Limitation or suspension of certificate of approval.
If the commissioner receives notice that TDLR is contemplating taking
action against an approved PEO's license, at the commissioner's discretion
the approved PEO's certificate of approval may be limited or suspended.
While an approved PEO's certificate of approval is suspended, the
approved PEO cannot contract with a new client to allow enrollment
of new plan participants. When the commissioner receives satisfactory
notice that all outstanding issues between TDLR and the approved PEO
are resolved to TDLR's satisfaction, TDI will remove the limitation
or suspension of the approved PEO's certificate of approval.
(d) Notice of TDLR action terminating license. If TDLR
revokes an approved PEO's license, the approved PEO must terminate
its health benefit plan in compliance with §13.580 of this title
(relating to Withdrawal from Market). An approved PEO must notify
the commissioner through TDI's licensing section within 10 business
days of receiving notice that TDLR has revoked its license. The approved
PEO's notice to the commissioner must include:
(1) a copy of TDLR's notice of termination; and
(2) confirmation that the approved PEO will file its
withdrawal plan within 30 days.
(e) Cancellation. When an approved PEO has fulfilled
all requirements of its withdrawal plan, the commissioner will cancel
the approved PEO's certificate of approval.
(f) Reapplication. If TDLR later reinstates the PEO's
license or grants the PEO a new license in good standing, the PEO
may reapply to TDI for a certificate of approval in order to sponsor
another plan under this subchapter.
|