| (a) PEOs subject to this subchapter. This subchapter
applies to a PEO sponsoring a self-funded employee health benefit
plan if:
(1) its primary business location is in this state;
or
(2) a majority of the eligible employees of at least
one of its clients are employed in this state; or
(3) the primary business location of at least one of
its clients is in this state, where no other state contains a majority
of that employer's eligible employees.
(b) PEOs not subject to this subchapter. This subchapter
does not apply to a PEO sponsoring an employee health benefit plan
that consists only of benefits provided through a group insurance
policy or evidence of coverage that guarantees the payment of claims
for all eligible benefits issued by a carrier authorized to do business
in this state.
(c) License and certificate of approval required. A
PEO to which this subchapter applies may not offer a self-funded employee
health benefit plan unless the PEO is:
(1) licensed and in good standing with TDLR; and
(2) has a certificate of approval from TDI issued under
this subchapter.
(d) Insurance Code Chapter 846. Insurance Code Chapter
846, concerning Multiple Employer Welfare Arrangements, does not apply
to a plan sponsored by a PEO unless:
(1) a PEO that does not have a certificate of approval
to sponsor a PEO plan under this subchapter performs activities that
require a certificate of authority under Chapter 846; or
(2) an approved PEO files a withdrawal plan that is
approved by the commissioner, and relinquishes its certificate of
approval as a PEO plan sponsor under this subchapter.
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