Third Party Administrator (TPA) [Insurance]

Exam

No exam

Education

None

Experience

None

Background check

Required

Third Party Administrators operate and administer self-insured plans, multiple employer trusts, and multiple employee welfare arrangements for a fee, commission or other charge. Such plans provide life and accident/health/sickness coverages to residents of this State. The TPA's administrative duties under contract to such plans include charging and collecting premiums from persons covered by the plan for immediate deposit into a plan bank account; keeping books and records on plan business, including accounting for premium payments in the plan's bank accounts; buying reinsurance contracts to protect plan assets; and settling and paying medical and death claims against the plan. TPA's who must register with the State do not include an employer administering an employee plan, trade unions, insurance companies, or insurance agents or adjusters. Requirements: 1) Must be competent, trustworthy, and financially responsible. 2) Must not be a convicted felon. 3) Must post $25,000 surety bond (some exceptions). 4) Must have service or administration contracts with at least one plan with Arkansas enrollees. Initial Registration fee: $100.00, Renewal fee: $100.00