License Required for TPAs

[LOGO] DAVID Y. IGE GOVERNOR JOSH GREEN LIEUTENANT GOVERNOR STATE OF HAWAII DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS INSURANCE DIVISION 335 MERCHANT STREET, ROOM 213, HONOLULU, HAWAII 96813 P.O. BOX 3614, HONOLULU, HAWAII 96811 Phone Number: (808) 586-2790 Fax Number: (808) 587-6714 insurance.hawaii.gov CATHERINE P. AWAKUNI COLÓN DIRECTOR JO ANN M. UCHIDA TAKEUCHI DEPUTY DIRECTOR COLIN M. HAYASHIDA INSURANCE COMMISSIONER July 10, 2019 MEMORANDUM 2019-7LIC TO: All Life and Health Insurers and Third Party Administrators ("TPAs") FROM: Colin M. Hayashida, Insurance Commissioner Colin M. Hayashida SUBJECT: License Required for TPAs Act 072, signed into law by Governor David Y. Ige on June 7, 2019, requires a Third Party Administrator ("TPA" or "Administrator") to be licensed with the Insurance Commissioner ("Commissioner"). Act 072 takes effect on January 1, 2020. A TPA is defined as a person who collects charges or premiums from, or who adjusts or settles claims on, residents of the State of Hawaii in connection with self-insurance, stop-loss, or life insurance coverage, accident and health or sickness insurance coverage, or mutual benefit societies. Starting January 1, 2020, any person that acts as or holds out to be a TPA or Administrator in the State of Hawaii must be licensed with the Commissioner. A TPA license may be obtained by submitting a Third Party Administrator Checklist/Application Packet ("TPA Checklist/Application Packet") to the Insurance Division's Licensing Branch. The TPA Checklist/Application Packet may be found and downloaded at the following web address: http://cca.hawaii.gov/ins/producers/forms/. The TPA license is renewable every two years. A completed TPA Checklist/Application Packet with the applicable license fee may be mailed to: Licensing Branch, Insurance Division Department of Commerce & Consumer Affairs 335 Merchant Street, Room 213 Honolulu, HI 96813 A TPA must also file an annual report for the preceding calendar year on or before March 1 of each year, starting with the year 2020. The TPA annual report form is available at http://cca.hawaii.gov/ins/producers/forms/. MEMORANDUM 2019-7LIC July 10, 2019 Page 2 The TPA annual report may also be filed electronically at ins-examtpa@dcca.hawaii.gov and shall include the following: 1. Names and addresses of all insurers with which the administrator had an agreement during the preceding calendar year (due starting March 1, 2020); 2. Renewal certificate for the surety bond (due starting March 1, 2021); and 3. Annual financial statements for the most current fiscal year (due starting March 1, 2021). If you have any questions regarding TPA licensing, please contact the Licensing Branch at (808) 586-2788 or email inslic@dcca.hawaii.gov. If you have any questions regarding financial requirements and annual report filing for TPAs, please contact the Financial Surveillance and Examination Branch at (808) 586-3870 or email ins-examtpa@dcca.hawaii.gov.