The bill amends the Insurance Code to clarify an insurer's responsibilities regarding the review and audit of third-party administrators. Specifically, it changes the heading of Section 4151.1042 to reflect "Audit and Review Requirements" and removes the term "semiannual" from the previous language, indicating a shift in the frequency of required reviews.

Additionally, the bill stipulates that if an administrator manages benefits for over 100 certificate holders, injured employees, plan participants, or policyholders, the insurer must conduct a review of the administrator's operations at least semiannually. Furthermore, it mandates that the insurer perform an audit of the administrator's operations at least biennially, replacing the previous requirement for an "on-site" audit. This legislation is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Insurance Code 4151.1042 (Insurance Code 4151)