(a) A multiple employer welfare arrangement:
(1) may refuse to provide coverage to an employer in accordance with the arrangement's underwriting standards and criteria;
(2) shall accept or reject the entire group of individuals who meet the participation criteria and who choose coverage; and
(3) may exclude only those employees or dependents who have declined coverage.
(b) On issuance of coverage to an employer, each multiple employer welfare arrangement shall provide coverage to the employees who meet the participation criteria without regard to an individual's health status related factors.