Section 12-11-27 - Minimum coverage standards for an association of employers(a) The minimum standards which an insured association of employers shall meet to qualify its members for obtaining temporary disability insurance coverage are: (1) The association must be a bona fide organization a charter, constitution, and by-laws or other documentation identifying its purpose, scope, and function. It must have a stable roster of members and assured continuity of operation.(2) The association's membership must be in the same or a closely related industry or have some common interest binding the membership. It must have been formed for a purpose other than obtaining coverage under the statute.(3) The association shall submit a certification in the format prescribed by the department.(b) The minimum standards which a self-insured association of employers shall meet to qualify its members for temporary disability insurance coverage are: (1) The association shall meet all requirements of section 12-11-27(a).(2) The association shall establish a special temporary disability insurance fund in its treasury from which payments received from members for coverage shall be deposited and disbursements paid out.(3) The association shall have a central office staffed by association personnel to administer temporary disability insurance functions such as: collect and remit premiums; receive, process, and pay claims; and prepare reports to the director.(4) The association shall meet the self-insurance requirements of section 392-41, HRS, and this chapter.(5) The association shall provide the name of its authorized representatives to the director.(c) Participation in any association plan does not release an employer from any obligation under the statute. The association's plan of benefits shall be accepted as the employer's method of providing benefits. The association shall act as the employer's agent only for those functions relating to the providing of benefits.(d) There shall be no individual underwriting in an association plan.[Eff 5/11/81] (Auth: HRS § 392-91) (Imp: HRS §§ 392-3, 392-41)