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. It specifies that if an administrator manages benefits for more than 100 certificate holders, injured employees, plan participants, or policyholders, the insurer is required to conduct a review of the administrator's operations at least semiannually. Additionally, the bill mandates that the insurer perform an audit of the administrator's operations at least biennially.

The bill also removes the requirement for an "on-site" audit, allowing for more flexibility in how audits are conducted. This change aims to streamline the auditing process while ensuring that insurers maintain oversight of third-party administrators. The provisions of this act will take effect on September 1, 2025.

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)