The bill, S.B. No. 1151, amends the Insurance Code to clarify an insurer's responsibilities regarding the oversight of third-party administrators. The heading of Section 4151.1042 is updated to reflect new requirements for audits and reviews, replacing the term "semiannual" with "audit and review requirements." Additionally, the bill specifies that if an administrator manages benefits for over 100 certificate holders, the insurer must conduct a review of the administrator's operations at least semiannually.

Furthermore, the bill modifies the frequency and nature of audits, removing the requirement for an "on-site" audit and instead mandating that insurers conduct audits of the administrator's operations at least biennially. This change aims to streamline the oversight process while ensuring that insurers maintain adequate scrutiny over 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)