HB 5029 - Third-Party Administrator Licensing and Regulation

• Requires third-party administrators to obtain a license from the Insurance Commissioner, effective October 1, 2010, unless exempt under specified conditions.

• Establishes licensing requirements including submission of NAIC uniform application, audited financial statements showing positive net worth, business plan details, and biographical information on individuals responsible for conducting affairs.

• Mandates written agreements between third-party administrators and insurers covering authorized activities, premium collection procedures, claims handling, compensation terms, and termination provisions.

• Requires third-party administrators to maintain fiduciary accounts for collected premiums and charges, keep detailed records for five years, provide semi-annual reviews by insurers administering benefits for more than 100 certificate holders, and file annual audited financial reports with the Commissioner.

• Authorizes Insurance Commissioner to suspend or revoke licenses for unsound financial condition, violations of insurance law, improper claims handling, failure to pass qualification standards, or insolvency; allows immediate suspension without advance notice in emergency circumstances.