Why The TPA License Renewal Compliance Is Important
Third party licensing regulations are currently used in about 44 states. They are regarded by many organizations as very tiresome and inconvenient. This explains why many businesses will contract the service of a consultant in securing the registration or the renewal thereof. Consultants are quite experienced and fast in this aspect. TPA license renewal compliance varies from state to state, although there are some close similarities.
Some information is often required by many states as a whole. It is therefore important to obtain a specific checklist concerning the state in which you intend to be licensed or renewed. The checklist and license guidelines save time that could otherwise be wasted in compiling unnecessary information and documents. Some of which may not be needed, according to your states of interest.
The license is granted upon the commissioner of commerce satisfying that the administrator is able to provide third party administration services. The administrator should also be financially solvent and, where applicable, is in a position to process claims promptly and in an equitable manner.
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 files are detailed in a yearly activity report prepared in the course of last 60 days in the year concerned. It spells out the details of clients administered by the licensee in the state within the period. The specific information includes the names and addresses of the clients, together with the kind of service administered. All these are embodied in a letter that bears the company name dated accordingly.
The administration license is considered to remain valid for a span of not more than 12 months. It commences operation on issuance and must undergo subsequent yearly updates for validity. The application itself entails filing the application for and accompanying it with the necessary documents. The documents include a bond continuation certificate, TPA license from home state and a list of the administrators contractors. The list must detail the names and addresses of people who have been consented by law to act as contractors to the administrator. Where served with any administrative action by any state, ensure to disclose and certify by copy.
Sometimes the home state may not exercise third party licensing. In this case, it is prudent to just indicate the state concerned and provide evidence that it is indeed licensed. It is also important to evidence the renewal of a bond. This is often the case with when presenting the continuation certificate for bonds. Changes in bonds should also be reflected through attaching a copy of the new state.
Every applicant is required to pay a renewal fee. The fee, currently stands at 100 dollars per license. In filing the application form, provide the information accurately and honestly. Other than this, there is need for clarifying the third administrator party status. Also, ensure to fill all the relevant fields and provide the name and contact of a resource person that can clarify any inquiries when necessary. It is always important to retain a copy of the same for future reference and follow up.
You can visit www.pattoncompliance.com for more helpful information about The Importance Of TPA License Renewal Compliance.
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