§1144a Clarification of Church Welfare Plan Status Under State Insurance Law

Summary

Treat a church's welfare plan as if it were a single-employer plan that pays claims from general church money or buys insurance with that money when certain State insurance laws apply. The State laws covered are those that require the church plan or the church group running it to be licensed, or laws that only deal with the plan’s solvency or insolvency (including State guaranty funds). Church plan — defined in section 414(e) of title 26 and section 1002(33) of this title. Reimburses costs from general church assets — means paying costs from church funds rather than spreading risk like an insurer, for the State laws named above. Welfare plan — a church plan that provides benefits such as medical care, disability, death, unemployment, vacation, training, day care, scholarships, or prepaid legal services; it does not include outside insurers, HMOs, or other businesses that deal with the plan. For enforcing the State insurance laws that apply, the church plan must be treated and regulated like a State-licensed insurer. Except for that enforcement rule, this only decides how State insurance law treats the plan and does not change the plan’s legal status or the rights of participants or beneficiaries, including those who pay into the plan.