SENATE BILL No. 592

July 10, 2001, Introduced by Senator BULLARD and referred to the Committee on Financial Services.

A bill to amend 1984 PA 218, entitled

"Third party administrator act,"

by amending sections 14 and 18 (MCL 550.914 and 550.918); and to

repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 14. (1) The commissioner shall issue a certificate of

2 authority to operate as a TPA if the commissioner is satisfied

3 that all of the following conditions are met: (a) The TPA has

4 in its employ at least 1 administrative services manager who is

5 licensed under section 16 and who is responsible for the daily

6 operation of the TPA. (b) The THE TPA has adequate facilities,

7 personnel, and managers to act as a third party administrator.

8 (2) If the commissioner disapproves an application for a

9 certificate of authority, he or she shall notify the applicant in

10 writing of the reasons for the disapproval.

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1 (3) A TPA shall continue to meet the conditions required

2 under subsection (1) after the certificate of authority is

3 issued. However, if a TPA fails to meet the requirements of

4 subsection (1) because of a manager's death, incapacity, resigna-

5 tion, or dismissal, the TPA shall have 30 days to comply with

6 subsection (1). Upon request and for good cause shown, the com-

7 missioner may grant to a TPA a reasonable extension beyond the

8 30-day time limit within which the TPA shall comply with subsec-

9 tion (1).

10 Sec. 18. (1) The commissioner shall collect, and the per-

11 sons affected shall pay to the commissioner, the following fees:

12 (a) Filing fee to accompany application for third

13 party administrator's certificate of authority......... $200.00.

14 (b) Certificate of authority for a third party

15 administrator ........................................ $ 25.00.

16 (c) Filing fee for annual statement of a third

17 party administrator, each year......................... $ 25.00.

18 (d) Fee for administrative services manager

19 examination............................................ $ 10.00.

20 (e) Filing fee to accompany application for admin-

21 istrative services manager's license................... $ 10.00.

22 (2) Fees paid under this section shall be designated for the

23 insurance bureau to cover the additional costs incurred as a

24 result of this act.

25 Enacting section 1. Sections 16 and 62 of the third party

26 administrator act, 1984 PA 218, MCL 550.916 and 550.962, are

27 repealed.

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