The Nevada Division of Insurance (“Division”) recently issued Bulletin 18-006 to provide guidance to TPAs regarding the due date for filing their annual reports with the Division pursuant to NRS 683A.08528.
NRS 683A.8528(1) provides that TPAs must file their annual reports to the Division no later than 90 days after the end of the TPA’s fiscal year or within such other period as the Division may allow. The statute was amended during the 2015 Nevada Legislative session, changing the prior due date which had been July 1st of each year. For a typical TPA whose fiscal year ends December 31, this means that the annual report – including financial statements reviewed by an independent CPA – must be filed by March 31 (March 30 in leap years).
Per Bulletin 18-006, the Division announced that while it has in the past granted TPAs extensions to this filing deadline, going forward extensions to the filing due date for annual reports may be granted at the Division’s discretion only if a TPA can demonstrate an inability to meet the filing deadline due to extraordinary circumstances. Examples of extraordinary circumstances cited by the Division include natural disasters or an unforeseen catastrophic event causing the loss of records, property or staff. An example of what the Division does not consider to be an unforeseen or unavoidable cause for delay that warrants extension to the filing deadline is the time constraints of a CPA working with the TPA.
The Bulletin also states that annual reports received after the due date or extended due date will subject the TPA to an administrative fine or other regulatory action. Pursuant to NRS 683A.0892(1)(e), the Division may in addition to or in lieu of the suspension or revocation of a TPA’s Certificate of Registration, impose a $2,000 fine for each act or violation.
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By leveraging its extensive experience representing TPAs, our TPA team helps clients avoid the learning curve and related cost implications that can be experienced by working with companies or attorneys less familiar with the regulatory and compliance needs of TPAs.
For questions regarding this information, please contact one of the authors, a member of Polsinelli’s Third Party Administrators practice, or your Polsinelli attorney.