Relating to an insurer’s responsibility to review and audit a third-party administrator.
relating to an insurer’s responsibility to review and audit a
third-party administrator.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 4151.1042, Insurance
Code, is amended to read as follows:
Sec. 4151.1042. RESPONSIBILITIES OF INSURER; [SEMIANNUAL]
AUDIT AND REVIEW REQUIREMENTS.
SECTION 2. Section 4151.1042(c), Insurance Code, is amended
to read as follows:
(c) If an administrator administers benefits for more than
100 certificate holders, injured employees, plan participants, or
policyholders on behalf of an insurer, the insurer shall, at least
semiannually, conduct a review of the operations of the
administrator. At least biennially, the insurer shall conduct an
[on-site] audit of the operations of the administrator.
SECTION 3. This Act takes effect September 1, 2025.
