MI SB1085

Requires Multiple Employer Welfare Arrangements (MEWAs) to include an actuarial opinion regarding reserves for known claims and incurred but not reported claims in their audited financial statements filed with the director within 180 days after each fiscal year end.

Specifies that the actuarial opinion must be rendered by an actuary approved by the director or who has 5 or more years of experience in the field.

Requires MEWAs to maintain minimum cash reserves of not less than 25% of aggregate contributions in the current fiscal year or not less than 35% of claims paid in the preceding fiscal year, whichever is greater.

Mandates reserves be calculated using proper actuarial methods accounting for known claims, incurred but not reported claims history, claims handling expenses, unearned premiums, bad debt estimates, and trend factors.

Requires cash reserves to be maintained in a separate, identifiable account and not commingled with other MEWA funds.