Maine Revised Statutes Title 24-A Sec. 6609 – Liability of participants
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1. Liability of each employer participant. The liability of each employer participant for the obligations of the multiple-employer welfare arrangement is joint and several.
[PL 1993, c. 688, §1 (NEW).]
Terms Used In Maine Revised Statutes Title 24-A Sec. 6609
- arrangement: means an employer welfare benefit plan or any other arrangement that is established or maintained for the purpose of offering or providing health benefits to the employees of 2 or more employers or to their beneficiaries. See Maine Revised Statutes Title 24-A Sec. 6601
- Contract: A legal written agreement that becomes binding when signed.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Participation agreement: means the document pursuant to which an employer undertakes and agrees to fulfill the obligation of employers imposed by the declaration of trust. See Maine Revised Statutes Title 24-A Sec. 6601
2. Contingent assessment liability. Each employer participant has a contingent assessment liability pursuant to section 6610 for payment of actual losses and expenses incurred while the participation agreement was in force.
[PL 1993, c. 688, §1 (NEW).]
3. Statement of contingent liability. Each participation agreement or contract issued by the arrangement must contain a statement of the contingent liability of employer participants. Both the application for participation and the participation agreement must contain, in contrasting color and not less than 10-point type, the following statement: “This is a fully assessable contract. In the event the arrangement is unable to pay its obligations, participating employers will be required to contribute through an equitable assessment the money necessary to meet any unfulfilled obligations.”
[PL 1993, c. 688, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW).