HB 3508
AN ACT relating to an insurer's responsibility to review and audit a
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Requires insurers to more closely monitor third-party administrators managing benefits for over 100 certificate holders, injured employees, or policyholders. Specifically, insurers must conduct a review of the administrator's operations at least twice a year and perform a comprehensive audit at least every two years to ensure proper management and compliance. The new requirements aim to increase oversight and protect the interests of plan participants by mandating regular operational reviews of administrators.
Subject Areas
Bill Text
relating to an insurer's responsibility to review and audit a BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Section 4151.1042, Insurance Code, is amended to read as follows: Sec. 4151.1042. RESPONSIBILITIES OF INSURER; [SEMIANNUAL] SECTION 2. Section 4151.1042(c), Insurance Code, is amended (c) If an administrator administers benefits for more than 100 certificate holders, injured employees, plan participants, or policyholders on behalf of an insurer, the insurer shall, at least semiannually, conduct a review of the operations of the administrator. At least biennially, the insurer shall conduct an [on-site] audit of the operations of the administrator. SECTION 3. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to an insurer's responsibility to review and audit a
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