ENTITLED An Act to modernize the process for annual audits of third-party insurance administrators.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That 58-29D-13 be AMENDED:
58-29D-13. If an insurer utilizes the services of an administrator, the insurer is responsible for determining the benefits, premium rates, underwriting criteria and claims payment procedures applicable to such coverage and for securing reinsurance, if any. The rules pertaining to these matters shall be provided, in writing, by the insurer to the administrator. The responsibilities of the administrator as to any of these matters shall be set forth in the written agreement between the administrator and the insurer. It is the sole responsibility of the insurer to provide for competent administration of its programs.
In cases where an administrator administers benefits for more than one hundred certificate holders on behalf of an insurer, the insurer must, at least semiannually, conduct a review of the operations of the administrator. At least one review must be an audit of the operations of the administrator, whether conducted on-site or virtually.
An Act to modernize the process for annual audits of third-party insurance administrators.
I certify that the attached Act originated in the:
Chief Clerk
Speaker of the House
Attest:
Chief Clerk
President of the Senate
Attest:
Secretary of the Senate
File No. ____ Chapter No. ______
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Received at this Executive Office this _____ day of _____________,
2024 at ____________M.
By for the Governor
The attached Act is hereby approved this ________ day of ______________, A.D., 2024
ss. Office of the Secretary of State
Filed ____________, 2024 at _________ o'clock __M.
Secretary of State
By Asst. Secretary of State
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