| (a) Initial deposit or letter of credit. Before receiving
a certificate of approval, a PEO applying for a certificate of approval
must establish a deposit of at least 25 percent of the attachment
point of the aggregate limit included in the plan's stop-loss insurance
agreement or establish a letter of credit for that amount.
(b) Proof of deposit. The commissioner adopts by reference
both Statutory Deposit Transaction Form, Form No. FIN407 (rev.1115),
and Declaration of Trust Form, Form No. FIN453 (rev.1115). Both forms
are available on TDI's website. An applicant must give proof of its
deposit on both TDI's Statutory Deposit Transaction Form and TDI's
Declaration of Trust Form.
(c) Continuing deposit or letter of credit. An approved
PEO sponsoring a plan must maintain a deposit or letter of credit
of at least 25 percent of the attachment point of the aggregate limit
included in the plan's stop-loss insurance agreement.
(d) Deposit to be held for TDI's control. Any deposit
must be held for TDI's control and may not be withdrawn or substituted
without the commissioner's approval.
|
