Michigan Laws 500.7086 – Security fund as creditor of insolvent MEWA; reimbursement from insolvent MEWA
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 500.7086
- Board: means the board of trustees of the multiple employer welfare arrangement security fund. See Michigan Laws 500.7001
- Covered claim: means an obligation of an insolvent MEWA to pay a claim that is covered by the MEWA to a covered employee or dependent who is a resident of this state. See Michigan Laws 500.7001
- Dependent: A person dependent for support upon another.
- Fund: means the multiple employer welfare arrangement security fund. See Michigan Laws 500.7001
- MEWA: means that term as defined in section 3 of the employee retirement income security act of 1974, Public Law 93-406, 88 Stat. See Michigan Laws 500.7001
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
The security fund after paying a covered claim to an employee or dependent shall have all the rights of a creditor of the insolvent MEWA to the extent of benefits it paid. The board shall have the right and obligation to obtain reimbursement from an insolvent MEWA for any money paid out as benefits to the covered participants of the insolvent MEWA, including expenses pertinent to payments or recovery thereof.