TPA Registration Requirements for Admitted Insurers

THE STATE 01ALASKA Department of Commerce, Community, and Economic Development DIVISION OF INSURANCE GOVERNOR BILL WALKER BULLETIN B 16-12 TO: ALL COMPANIES AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF ALASKA AND OTHER INTERESTED PARTIES RE: TPA REGISTRATION REQUIREMENTS FOR ADMITTED INSURERS P.O. Box 110805 Juneau, AK 99811-0805 Main: 907.465.2515 Fax: 907.465.3422 The Alaska Division of Insurance (division) received an inquiry concerning whether an admitted insurer, acting as a Third Party Administrator (TPA) in this state, is required to additionally register with the division as a TPA. Alaska Statute (AS) 2 l .27.630(a) requires a person, who acts as, or represents to be, a TP A in this state or relative to a subject resident, located, or to be performed in this state, to be registered under this chapter or in another jurisdiction. Further, the statute requires a person, who acts as, or represents to be, a TP A representing an insurer domiciled in this state regarding a risk located outside this state, to be registered in this state. AS 21.27.630 exempts certain entities from the TPA registration requirement. AS 21.27 .630 (k) states "An insurer that holds a certificate of authority issued by the director and is in good standing under this title is not required to be registered as a thirdparty administrator in this state." However, AS 21.27.630 ({)provides: "A person that is not required to be registered as a third-party administrator under (e) - (k) of this section must file a certification with the director that the person meets the requirements for exemption." Therefore, an admitted insurer in good standing with the division acting as, or representing to be, a TP A in this state, is not required to additionally register as a TP A in this state, however, the insurer is required to file a certification with the division indicating the insurer meets the requirements for exemption under AS 21.27.630(k). If the division determines the insurer meets the requirements for exemption, the exemption certification will be approved and the certification will continue in perpetuity or until such time the insurer no longer is eligible for the exemption. Any admitted insurer acting as, or representing to be, a TP A in this state without having obtained an approved exemption certification from the division may be subject to enforcement actions and fines. Note also, the division's exemption certification approval is specific to an insurer meeting the requirements under AS 21.27.650(/). Even if an insurer obtains an exemption certification approval from the division, the insurer must still meet all other applicable TPA statutorv reguirements including the operating reguirements for TPAs under AS 21.27 .650. Notwithstanding the exemption certification approval, the division maintains its regulatory authority over an insurer's TP A transactions in this state. The TP A exemption filing form, along with instructions on how to file, can be found on the DOI website at https:/ /www .commerce.alaska. eov/web/portals/11 /pub/Licensing/F orms/08-243 .pdf. If you have questions regarding this bulletin, please contact the Division of Insurance at, P. 0. Box 110805, Juneau, AK 99811-0805; (907) 465-2515; or at insurance@alaska.gov. Dated November ~' 2016.