(a) Management of approved PEO. An approved PEO must
be managed by competent and trustworthy individuals. An individual
responsible for risk management, financial reporting, underwriting,
claims, or investment functions of the plan and trust must be eligible
for licensure based on the guidelines established in Chapter 1, Subchapter
D of this title (relating to Effect of Criminal Conduct) and hold
any necessary licenses as required by the Insurance Code.
(b) Initial plan administration. An approved PEO must
contract with a third party administrator to perform the day-to-day
operations of the plan until the plan's trustees have contracted with
a third party administrator to perform the day-to-day operations of
the plan as provided in §13.555 of this title (relating to Trustees'
Responsibility and Authority).
(c) Location of books and records. An approved PEO
may request to maintain the plan and trust's books and records outside
this state in compliance with Insurance Code Chapter 803.
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