§58-47-180. Premium collection and payment of claims

(a)        The TPA or service company, at a minimum, shall:

(1)        Periodically render an accounting to the self-insurer detailing all transactions performed by the TPA or service company pertaining to the business underwritten, premium or other charges collected, and claims paid by the self-insurer, when applicable.

(2)        Deposit all receipts directly into an account maintained in the name of the self-insurer.

(3)        Pay claims on drafts or checks of and authorized by the self-insurer.

(4)        Not withdraw from the self-insurer's account except for authority limited to pay claims and refund premiums.

(5)        Remit return premium, directly from the self-insurer's account, to the person entitled to the return premium.

(b)        Any check disbursement authority granted to the TPA or service company may be terminated upon the self-insurer's written notice to the TPA or service company or upon termination of the agreement. The self-insurer may suspend the check disbursement authority during the pendency of any dispute regarding the cause for termination.

(1997-362, s. 3.)