405-C:7 Minimum General Eligibility; Prohibitions. –
I. Each multiple-caregiver self-insured risk coverage arrangement shall meet the following minimum eligibility requirements, and any additional requirements as the commissioner may require:
(a) The arrangement shall qualify as a non-profit or for-profit entity;
(b) The arrangement shall be established or maintained by or on behalf of 2 or more properly licensed homogeneous entities providing at least one of the services of child care, day care, foster care placement, or behavioral health services, which shall be governed by formal governance documents, which may include any one or more of the following:
(1) A charter;
(2) A constitution;
(3) Bylaws; or
(4) A trust.
(c) The arrangement shall be operated by officers or a board of trustees which shall have complete fiscal control over the arrangement and which shall be responsible for all operations of the arrangement. The officers or trustees selected shall be owners, partners, officers, directors, or employees of participating entities in the arrangement. An officer or trustee may not be an owner, officer, or employee of the administrator or service company of the arrangement. The officers or trustees shall have the authority to approve applications of entities for participation in the arrangement, provided that any entity that terminates its participation shall be prohibited from rejoining for a period of 2 years.
(d) Appropriate action by ordinance, resolution or other action pursuant to law of the governing bodies of the participating entities shall be necessary before any such agreement may enter into force.
(e) The arrangement shall not be offered nor advertised to the public generally.
(f) The arrangement shall be operated in accordance with sound actuarial principles.
II. The following activities shall be prohibited:
(a) An employee or official of a participating nonprofit corporation in a joint self-insurance arrangement shall not directly or indirectly receive anything of value for services rendered in connection with the operation and management of the arrangement other than the salary and benefits provided by his or her employer or the reimbursement of expenses reasonably incurred in furtherance of the operation or management of the arrangement.
(b) An employee or official of a participating covered entity shall not accept or solicit anything of value for personal benefit or for the benefit of others under circumstances in which it can be reasonably inferred that the employee's or official's independence of judgment is impaired with respect to the management and operation of the arrangement.
(c) No joint self-insurance arrangement approved under this chapter shall require that any civil action or alternative dispute resolution procedure brought in connection to the self-insurance arrangement be brought in a jurisdiction other than New Hampshire.