(1) A third party administrator shall not enter into any agreement or understanding with an insurer the effect of which is to make the amount of the third party administratorís commissions, fees or charges contingent upon savings effected in the adjustment, settlement and payment of losses covered by the obligations of the insurer.
(2) This section does not prohibit:
(a) A third party administrator from receiving performance-based compensation for providing hospital or other auditing services; or
(b) A third party administrator from receiving compensation based on premiums or charges collected or on the number of claims processed.
(3) The third party administrator shall disclose to the insurer all charges, fees and commissions received from all sources in connection with the provision of administrative services for the insurer, including any fees or commissions paid by insurers providing reinsurance. [1991 c.812 §18]Section: Previous 744.718 744.720 744.722 744.724 744.726 744.728 744.730 744.732 744.734 744.736 744.738 744.740 744.800 744.802 744.804 Next
Last modified: August 7, 2008