On February 19, 2009, the Connecticut Committee on Insurance and Real Estate introduced House Bill 6529, An Act Concerning the Licensing and Regulation of Third Party Administrators (the “Bill”). The Bill based on the NAIC Model Act concerning third party administrators (“TPA”). If passed, the Bill would become effective on October 1, 2009 and require TPAs to obtain licensure, or register if exempt from licensure, with the Connecticut Insurance Department. The Bill is currently on the House of Representatives’ list to be raised for a vote, although no date has been set for the vote.
Under the Bill, the application process would include submission of the NAIC Uniform Application for TPAs and payment of a $500 license fee. The application would also require inclusion of organizational documents, biographical affidavits of the individuals responsible for the conduct of affairs of the applicant, company bylaws, audited financial statements, and a business plan.
In addition, there would be a registration requirement for a person who is exempt from the licensing requirement under the definition of a TPA, such as a licensed insurance producer or authorized insurer. Registration would be required annually on October 1st.