S.B. No. 1151 amends the Insurance Code to clarify an insurer's responsibilities regarding the oversight of third-party administrators. The bill changes the heading of Section 4151.1042 to "RESPONSIBILITIES OF INSURER; AUDIT AND REVIEW REQUIREMENTS," reflecting a broader scope of responsibilities. Additionally, it specifies that if an administrator manages benefits for more than 100 certificate holders, the insurer is required to conduct a review of the administrator's operations at least semiannually. The bill also modifies the frequency of audits, removing the requirement for an "on-site" audit and instead mandating that audits be conducted at least biennially.

The changes aim to enhance the accountability of insurers in their oversight of third-party administrators, ensuring that they regularly review and audit their operations to protect the interests of policyholders. The bill is set to take effect on September 1, 2025, following its passage in both the Senate and the House with unanimous support.

Statutes affected:
Introduced: Insurance Code 4151.1042 (Insurance Code 4151)
Senate Committee Report: Insurance Code 4151.1042 (Insurance Code 4151)
Engrossed: Insurance Code 4151.1042 (Insurance Code 4151)
House Committee Report: Insurance Code 4151.1042 (Insurance Code 4151)
Enrolled: Insurance Code 4151.1042 (Insurance Code 4151)