Updates
May 26, 2016
The NAIC Model Third Party Administrator Act and almost every state that has enacted laws regulating TPAs require such agreements to comply with the following:
  • The TPA shall not act without a written agreement between a TPA and the insurer.
  • The written agreement must contain all the provisions required by state TPA laws.
  • The written agreement must be retained as part of the official records of both the insurer and the TPA for the duration of the agreement and for a prescribed number of years thereafter.
While almost every state that has enacted TPA laws imposes the above requirements pertaining to administrative service agreements, there are a number of states that also have affirmative requirements to file the agreements with state insurance regulators or report the existence of such agreements to the regulators within prescribed time periods. To assist our TPA and insurer clients comply globally with all the TPA laws under the state insurance codes, we have created a national regulatory addendum, which contains the mandated statutory provisions.

To view the full alert, please click here.