The bill amends the Insurance Code to clarify an insurer's responsibilities regarding the oversight of third-party administrators. Specifically, it changes the heading of Section 4151.1042 to "RESPONSIBILITIES OF INSURER; AUDIT AND REVIEW REQUIREMENTS," removing the term "SEMIANNUAL" from the previous heading. Additionally, the bill modifies subsection (c) to require insurers to conduct a review of the administrator's operations at least semiannually if the administrator manages benefits for more than 100 certificate holders, injured employees, plan participants, or policyholders. The requirement for insurers to conduct an "on-site" audit has been deleted, but they are still mandated to perform an audit of the administrator's operations at least biennially.

This legislation aims to enhance the accountability of insurers in their oversight of third-party administrators, ensuring that they regularly review and audit their operations to maintain compliance and protect the interests of policyholders. The bill is set to take effect on September 1, 2025.

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