Section R. 500.822 - Maintenance of excess loss insurance policies with specific retention amount; maintenance of aggregate excess loss insurance; expiration dates of multiple excess loss insurance policiesRule 2. All of the following requirements are applicable to a MEWA which seeks authorization in this state or which has authorization to operate in this state:
(a) A MEWA shall submit, for approval by the commissioner, a policy or policies of specific excess loss insurance, as required by section 7011(c) of the code.(b) Except as provided in subdivision (c) of this rule, a MEWA shall demonstrate to the commissioner that the proposed specific retention amount would not be detrimental to the solvency and stability of the MEWA, considering the plan's past and expected experience, size, reserves, contribution rates, and proposed excess rates.(c) A MEWA which submits a policy for excess loss insurance with a specific retention level of not more than $25,000.00 shall not be required to meet the requirements set forth in subdivision (b) of this rule.(d) A MEWA shall not change the retention level for a specific excess policy without the prior written approval of the insurance commissioner.(e) A MEWA shall not be required to purchase an aggregate excess loss policy unless the commissioner determines that coverage is necessary. The determination shall be based upon the financial solvency and stability of the MEWA, considering the plan's past and expected experience, size, reserves, expenses, and contribution rates. An aggregate excess loss policy purchased by a MEWA shall provide for the insurer to assume all liability in excess of an annual aggregate attachment point.(f) If more than 1 excess loss insurance policy is obtained in fulfillment of the excess loss requirements, the policy expiration dates shall be the same.Mich. Admin. Code R. 500.822