| (a) Marketing material. An approved PEO's marketing
material discussing the plan and trust must be fair and accurate,
and must not represent the plan or a prospective client's projected
contributions to be assessed for coverage under the plan in a way
that is materially inaccurate or misleading.
(b) Offer of enrollment. An approved PEO must offer
enrollment in the plan to the covered employees of any client that
agrees to meet the terms and conditions of the PEO's professional
employer services agreement and elects to enroll its covered employees
in the plan.
(c) Guaranteed renewability. A PEO may not deny a client
whose employees are covered under the plan continued access to coverage
under the terms of the plan, other than:
(1) for nonpayment of contributions;
(2) for fraud or other intentional misrepresentation
of material fact by the client;
(3) for noncompliance with material plan provisions;
(4) because the plan is ceasing to offer any coverage
in a geographic area;
(5) in the case of a plan that offers benefits through
a network plan, there is no longer any individual enrolled through
the client who lives, resides, or works in the service area of the
network plan and the plan applies this paragraph uniformly without
regard to the claims experience of clients or any health status-related
factor in relation to such individuals or their dependents; or
(6) for failure to meet the terms of an applicable
collective bargaining agreement, to renew a collective bargaining
or other agreement requiring or authorizing contributions to the plan,
or to employ employees covered by such an agreement.
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