| 1 | 1 | | 89R2289 SCL-F |
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| 2 | 2 | | By: Wharton H.B. No. 3508 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to an insurer's responsibility to review and audit a |
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| 10 | 10 | | third-party administrator. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. The heading to Section 4151.1042, Insurance |
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| 13 | 13 | | Code, is amended to read as follows: |
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| 14 | 14 | | Sec. 4151.1042. RESPONSIBILITIES OF INSURER; [SEMIANNUAL] |
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| 15 | 15 | | AUDIT AND REVIEW REQUIREMENTS. |
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| 16 | 16 | | SECTION 2. Section 4151.1042(c), Insurance Code, is amended |
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| 17 | 17 | | to read as follows: |
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| 18 | 18 | | (c) If an administrator administers benefits for more than |
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| 19 | 19 | | 100 certificate holders, injured employees, plan participants, or |
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| 20 | 20 | | policyholders on behalf of an insurer, the insurer shall, at least |
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| 21 | 21 | | semiannually, conduct a review of the operations of the |
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| 22 | 22 | | administrator. At least biennially, the insurer shall conduct an |
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| 23 | 23 | | [on-site] audit of the operations of the administrator. |
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| 24 | 24 | | SECTION 3. This Act takes effect September 1, 2025. |
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