Friday 25 April 2014

The Importance Of TPA License Renewal Compliance

By Eloise Hewitt


Currently, about forty four states have a requirement for third party licensing. Many companies consider state licensing and renewal regulations as complex. They hence opt for consulting services in order to obtain their licenses rather fast and efficient. Some states, particularly those without a TPA licensing requirement, have corporate adjuster compliance. Although there are similarities, each states TPA license renewal compliance is different.

Knowledge of information required for the process is important. To enhance the process, it is advisable to have insights on the information and the documents required for the exercise before embarking on it. This immensely saves the time and the effort of acquiring the license and the subsequent renewals. The compliance is defined by the regulation in play in your state.

The commissioner of commerce is the ultimate assessor as to who is eligible for the registration. The commissioner, upon application, satisfies whether the administrator is able to offer deliver third party administration or not. This is particularly based on the financial position of the administrator, that is, should be solved. The ability to process claims in timely and equitably is also a vital factor.

The conduct of the administrator in the previous periods also matters. For registration, the administrator is required by law to maintain a file of the dealings with clients. If such record is not satisfactory, then the application stands a chance of being scraped. The report illustrates the kind of services the administrator served to his clients within the period.

The required reports are embodied in an annual activity report that is filed within the last sixty days of the year. The report states the name and physical address of the clients that the licensee administered in the state during the previous year. Also, the area and the type of service performed to each plan and the commencing and termination dates each client was served. It is presented in the form of a letter bearing the company name and date on it.

The administrative incense shall be deemed to operate for a period of not more than 12 months. This starts immediately upon renewal. In many states, the reinstatement entails filing and submitting the following documents; an application form, bond continuation form, certificate of TPA licensing in home state, a list showing names and the address of individuals permitted to act at as agents. In case of any administrative action against you by any state, it is required that you append a copy of the same application.

In proving third party licensure, in case the home state does not conduct third party licensing, indicate the home state and provide surety that it is actually licensed there. Providing a bond continuation certificate is simply proving the renewal of the bond for TPA surety bond. In case the bond undergoes changes, be sure to attach a copy of the changes or of the new bond.

When submitting the application form, remember to carry along with you the necessary fee. The fee is paid by every applicant and it is often 100 dollars per application. Observe the necessary instructions when making the application.




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