§ 43-55-07 — Benefit plans

1. Both a client and a professional employer organization are deemed to be an employer
for purposes of sponsoring retirement and welfare benefit plans for a covered
employee.
2. A fully insured welfare benefit plan offered to the covered employees of a professional
employer organization is considered a single employer welfare benefit plan and may
not be considered a multiple employer welfare arrangement.
3. For purposes of chapter 26.1-36.3, a professional employer organization is considered
the employer of all of its covered employees, and all covered employees of any client
participating in a health benefit plan sponsored by a single professional employer
organization are considered employees of the professional employer organization.
4. If a professional employer organization offers to its covered employees any health
benefit plan that is not fully insured by an authorized insurer, the plan must:
a. Utilize an authorized third-party administrator;
b. Hold all plan assets, including participant contributions, in a trust account;
c. Provide sound reserves for the plan as determined using generally accepted
actuarial standards; and
d. Provide written notice to each covered employee participating in the benefit plan
that the plan is self-insured or is not fully insured.