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A BILL TO BE ENTITLED
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AN ACT
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relating to an insurer's responsibility to review and audit a |
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third-party administrator. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 4151.1042, Insurance |
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Code, is amended to read as follows: |
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Sec. 4151.1042. RESPONSIBILITIES OF INSURER; [SEMIANNUAL] |
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AUDIT AND REVIEW REQUIREMENTS. |
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SECTION 2. Section 4151.1042(c), Insurance Code, is amended |
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to read as follows: |
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(c) If an administrator administers benefits for more than |
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100 certificate holders, injured employees, plan participants, or |
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policyholders on behalf of an insurer, the insurer shall, at least |
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semiannually, conduct a review of the operations of the |
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administrator. At least biennially, the insurer shall conduct an |
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[on-site] audit of the operations of the administrator. |
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SECTION 3. This Act takes effect September 1, 2025. |