TO: Licensees, Admitted Insurers, and Interested Parties
RE: ThirdParty Administrators Transacting Insurance Business in Alaska
In recent months, the division has received numerous inquiries seeking clarification and assistance as to when a person must obtain a ThirdParty Administrator (TPA) registration to transact the business of insurance in this state. The intent of this bulletin is to provide guidance and reiterate the requirements under Title 21, Chapter 27.
THIRDPARTY ADMINISTRATOR means a person who for residents ofthis state, or for residents of another jurisdiction from a place of business in this state, performs administrative functions including claims administration and payment marketing administrative functions, premium accounting, premium billing, coverage verification, underwriting authority, or certificate issuance in regard to life insurance, health, or annuities. (Alaska Statute (AS) 21.90.900(38))
"Person" includes an insurer, Lloyd's, fraternal benefits society, medical service or hospital service plan as defined in AS 21.87, reciprocal, or interinsurance exchange, syndicate, and any other legal entity engaged in the business of transacting insurance. (AS 21.90.900(28))
Alaska Statutes 21.27.63021.27.650 requires any person transacting the business of insurance as a TPA to obtain the statutorilyrequired registration, unless the person has qualified for and obtained exemption from the TPA registration.
WHEN A TPA REGISTRATION IS REQUIRED
Registration as a TPA is required if any authority conferred to you by an insurer falls within the TPA definition AND
In addition to a certificate of authority, a TPA registration may be required of an insurance company authorized to transact business in this state if the insurance company performs duties or functions for another insurer that fall under the purview of the TPA definition.
If there is excess or stop loss coverage involved and an admitted insurer is underwriting that portion, a TPA registration is required if the TPA is administering the excess or stop loss insurance underwritten by the admitted insurer. However, the registration requirement relates only to the excess or stop loss portion, not the selfinsured portion.
TPA REGISTRATION EXEMPTIONS
Alaska laws provide a mechanism for a person to claim exemption from the TPA registration if the person meets any one of the following conditions:
To obtain registration as a TPA in this state, the division must receive the filing requirements identified on the application forms. If you wish to receive an application packet or seek assistance with the registration requirements, you may contact the Linda Brunette, Licensing Supervisor, directly at (907) 465-2545 or fax your request/question to (907) 465-2816.
If you believe that you are not required to be registered as a TPA in this state, please advise the division what provision exempts you from registration for our evaluation. You will be informed of the division's determination.
We encourage you to evaluate your duties and responsibilities to determine if registration may be required for business transacted in our state. We hope that this bulletin provides the necessary information and guidance to assist you in evaluating compliance with our laws.
Dated this 5th day of May, 1997 in Juneau, Alaska.