Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB553 Compare Versions

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4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 553 By: Montgomery of the Senate
7	37
8	38		and
9	39
10		-	Tedford and Sneed of the
11		-	House
	40	+	Sneed of the House
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16	45		An Act relating to the Third-party Administrator Act;
17	46		amending 36 O.S. 2021, Section 1450, which relates to
18	47		licensure; removing requi rement for certain ap plicant
19	48		to submit certain documentation; requiring certain
20	49		applications and fees to be submitted and paid
21	50		electronically; requiring renewal fee prior to
22	51		reinstatement of certain license; providing renewal
23	52		procedure for certain expired license; requiring
24	53		certain report from expired licensees; conforming
25	54		language; requiring certain updates to administrato r
26	55		information by certain date; requiring certain
27	56		administrator respond to certain inquiries by certain
28	57		date; updating statutory language; and providing an
29	58		effective date.
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34		-	SUBJECT: Third-party administrators
35		-
36	63		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
37		-
38	64		SECTION 1. AMENDATORY 36 O.S. 2021, Section 1450, is
39	65		amended to read as follows:
40		-
41	66		Section 1450. A. No person shall act as or present himself or
42	67		herself to be an administrator, as defined by the prov isions of the
43	68		Third-party Administrator Act, in this state, unless the person
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44	96		holds a valid license as an administrator which is issued by the
45	97		Insurance Commissioner.
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48		-	ENR. S. B. NO. 553 Page 2
49	98		B. An administrator shall not be eligible for a nonresident
50	99		administrator license under this section if the administrator does
51	100		not hold a home state certificate of authority or license in a state
52	101		that has adopted the Third-party Administrator Act or that applies
53	102		substantially similar provisions as are contained in the Third-party
54	103		Administrator Act to that administrator. If the Third -party
55	104		Administrator Act in the ad ministrator’s home state does not extend
56	105		to stop-loss insurance, but if the home state otherwise applies
57	106		substantially similar provisions as are contained in the Third-party
58	107		Administrator Act to that administrator, then that omission shall
59	108		not operate to disqualify the administrator from receiving a
60	109		nonresident administrator license in this state.
61		-
62	110		1. “Home state” means the United States jurisdiction that has
63	111		adopted the Third-party Administrator Act or a substantially similar
64	112		law governing third-party administrators and which has been
65	113		designated by the administrator as its principal regulator. The
66	114		administrator may designate either its state of incorporation or its
67	115		principal place of business within the United States if that
68	116		jurisdiction has adopted the T hird-party Administrator Act or a
69	117		substantially similar law governing third-party administrators. If
70	118		neither the administrator’s state of incorporation nor its principal
71	119		place of business within the United States has adopted the Third -
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72	147		party Administrator Act or a substantially similar law governing
73	148		third-party administrators, then the third-party administrator shall
74	149		designate a United States jurisdiction in which it does business an d
75	150		which has adopted the Third-party Administrator Act or a
76	151		substantially similar law governing third-party administrators. For
77	152		purposes of this paragraph, “United States jurisdiction” means the
78	153		District of Columbia or a state or territory of th e United States.
79		-
80	154		2. “Nonresident administrator ” means a person who is applying
81	155		for licensure or is licensed in any state other than the
82	156		administrator’s home state.
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84	157		C. In the case of a partnership which has been licensed, each
85	158		general partner shall be licensed and shall qualify therefore as
86	159		though an individual licensee. The C ommissioner shall charge a full
87	160		additional license fee and a separate license shall be issued for
88	161		each individual so named in such a the license. The partnership
89	162		shall notify the Commissioner within thirty (30) days if any
90	163		individual licensed on its behalf has been ter minated, or is no
91		-
92		-	ENR. S. B. NO. 553 Page 3
93	164		longer associated with or employed by the partnership. Any person
94	165		making application as an administrator or currently licensed as an
95	166		administrator under the Third-party Administrators Administrator Act
96	167		shall provide a National Association of Insurance Commissioner
97	168		Commissioners (NAIC) Biographical Affidavit and a comprehensive
98	169		review of the backgrou nd report by an independent third-party NAIC-
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99	197		approved vendor as required for domestic insurers purs uant to the
100	198		insurance laws of this state.
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102	199		D. An application for an administrator’s license shall be in a
103	200		form prescribed by the Commissioner and shall be ac companied by a
104	201		fee of One Hundred Dollars ($100.00). The application shall be
105	202		filed and the fee shall be paid electronically in a form and manner
106	203		prescribed by the Commissioner. This fee shall not be refundable if
107	204		the application is denied or refused for any reason by either the
108	205		applicant or the Commissioner.
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110	206		E. The administrator’s license shall continue in force no
111	207		longer than twelve (12) months from the original month of issuance.
112	208		Upon filing a renewal form pre scribed by the Commissioner,
113	209		accompanied by a fee of One Hundred Dollars ($100.00), the license
114	210		may be renewed annually for a one-year term. Late application for
115	211		renewal of a license shall require a fee of doubl e the amount of the
116	212		original license fee. The renewal shall be filed, and the fee shall
117	213		be paid electronically in a form and manner prescribed by the
118	214		Commissioner. A license that expires for failure to submit a
119	215		renewal application may be reinstated withi n ninety (90) days after
120	216		the expiration date by electronically submitting a fee in an amount
121	217		of Two Hundred Dollars ($200.00) in a form and manner prescribed by
122	218		the Commissioner and any other transaction or other fee deemed
123	219		necessary by the Commissioner . All applications received after the
124	220		license has expired for more than ninety (90) days shall include a
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125	248		detailed report of administrator services provided in this state
126	249		during the period of expired licensure. The administrator shall
127	250		submit, together with the application for renewal, a list of the
128	251		names and addresses of the persons with whom the administrator has
129	252		contracted in accordance with Section 1443 of this title. The
130	253		Commissioner shall hold this information confide ntial except as
131	254		provided in Section 1443 of this title.
132		-
133	255		F. 1. The administrator’s license shall be issued or renewed
134	256		by the Commissioner unless, after notice and opportunity for
135		-
136		-	ENR. S. B. NO. 553 Page 4
137	257		hearing, the Commissioner determines that the administrator is not
138	258		competent, trustworthy, or financi ally responsible, or has had any
139	259		insurance license denied for cause by any state, has been convicted
140	260		or has pleaded guilty or nolo contendere to any felony or to a
141	261		misdemeanor involving moral turpitude or dishonesty.
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143	262		2. The administrator shall report to the Insurance Commissioner
144	263		any administrative or criminal action taken against the
145	264		administrator in another jurisdiction or by another governmental
146	265		agency in this state within thirty (30) calendar days of the final
147	266		disposition of the matter. This report s hall include a copy of the
148	267		order, consent to order, copy of any payment required as a result of
149	268		the administrative or criminal action, or other relevant legal
150	269		documents.
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152	270		3. Any entity making application to the Oklahoma Insurance
153	271		Department as a third-party administrator (TPA) or within thirty
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154	299		(30) days of a change for a licensed TPA shall provide current
155	300		National Association of Insurance Commissioners (NAIC) Biographical
156	301		Affidavits and independent third -party background reports from a
157	302		NAIC-approved vendor on behalf of all officers, directors and key
158	303		managerial personnel of the TPA, and individuals with a ten percent
159	304		(10%) or more beneficial ownership in the TPA and the TPA ’s ultimate
160	305		controlling person (affiant) as required for insur ers pursuant to
161	306		the laws of this state.
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163	307		G. After notice and opportunity for hearing, and upon
164	308		determining that the administrator has violated any of the
165	309		provisions of the Oklahoma Insurance Code or upon finding reasons
166	310		for which the issuance or nonrenewal of such license could have been
167	311		denied, the Commissioner may either suspend or revoke an
168	312		administrator’s license or assess a civil penalty of not more than
169	313		Five Thousand Dollars ($5,000.00) for each occurrence. The payment
170	314		of the penalty may be enforced in the same manner as civil judgments
171	315		may be enforced.
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173	316		H. Any person who is acting as or presenting himself or herself
174	317		to be an administrator without a valid license shall be subject,
175	318		upon conviction, to a fine of not less than One Thousand Dollars
176	319		($1,000.00) nor more than T en Thousand Dollars ($10,000.00) for each
177	320		occurrence. This fine shall be in addition to any other penalties
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179		-	ENR. S. B. NO. 553 Page 5
180	321		which may be imposed for violations of the Oklahoma Insurance Code
181	322		or other laws of this state.
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183	350		I. Except as provided for in subsections F and G of this
184	351		section, any person convicted of violating any provisions of the
185	352		Third-party Administrator Act shall be guilty of a misdemeanor and
186	353		shall be subject to a fine of not more than One Thousand Dollars
187	354		($1,000.00).
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189	355		J. Each administrator shall electronically submit, in a form
190	356		and manner prescribed by the Commissioner, any change of legal
191	357		business name, “doing business as” or assumed name, address, service
192	358		agent contact information, or contact email address, and any
193	359		necessary fees within thirty (30) days after the change occurred.
194	360		Any submission of a change under this subsection that is received
195	361		more than thirty (30) days after the change occurred shall be
196	362		accompanied by a fee of Fi fty Dollars ($50.00).
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198	363		K. Upon receipt of any inqui ry from the Insurance Commissio ner,
199	364		a licensed administrator shall furnish the Commissioner with an
200	365		adequate response to the inquiry within twenty (20) days from
201	366		receipt of the inquiry.
202		-
203	367		SECTION 2. This act shall become effective November 1, 2023.
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206		-	ENR. S. B. NO. 553 Page 6
207		-	Passed the Senate the 21st day of March, 2023.
208		-
209		-
210		-
211		-	Presiding Officer of the Senat e
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214		-	Passed the House of Representatives the 24th day of April, 2023.
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218		-	Presiding Officer of the House
219		-	of Representatives
220		-
221		-	OFFICE OF THE GOVERNOR
222		-	Received by the Office of the Governor this _______ _____________
223		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
224		-	By: _______________________________ __
225		-	Approved by the Governor of the State of Oklahoma this _____ ____
226		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
227		-
228		-	_________________________________
229		-	Governor of the State of Oklahoma
230		-
231		-
232		-	OFFICE OF THE SECRETARY OF STATE
233		-	Received by the Office of the Secretary of State this _______ ___
234		-	day of __________________, 20 _______, at _______ o'clock _______ M.
235		-	By: _______________________________ __
	369	+	COMMITTEE REPORT BY: COMMITTEE ON INSURANCE , dated 04/04/2023 - DO
	370	+	PASS.