215 ILCS 5/511.106
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XXXI 1/4 - Third Party Administrators

 (from Ch. 73, par. 1065.58-106)(Section scheduled to be repealed on January 1, 2027)Sec. 511.106.     Administrator requirements.(a) Each administrator shall  identify to the Director any ownership interest or affiliation of any kind  with any plan sponsor or insurer responsible directly or through reinsurance  for providing benefits to any plan for which it provides services as an administrator.(b) An administrator shall provide services as an administrator pursuant  to a written agreement.  The written agreement shall be between the administrator  and the plan sponsor or insurer and shall be retained as part of the official  records of the administrator for the duration of said agreement and for  5 years thereafter.(c) An administrator shall maintain in its principal office for the duration  of the written agreement with any plan sponsor or insurer and for 5 years  thereafter adequate books and records of all transactions involving a plan  sponsor or insurer and covered individuals or beneficiaries.  Such books and  records shall be maintained in accordance with generally accepted standards  of business recordkeeping.  An administrator is not required to maintain  copies of books and records if such originals are returned to the plan sponsor  or insurer prior to the end of such 5 year period.  The administrator shall  maintain evidence of the return of the originals for the balance of the 5 year period.(d) The administrator shall file with the Director the names and addresses  of the insurers and plan sponsors with whom the administrator has written  agreements.  If an insurer or plan sponsor does not assume or bear the risk,  the administrator must disclose the name and address of the ultimate risk  bearer.  This filing requirement shall apply to the initial application  for an administrator's license and the renewal of such license.(e) An administrator shall use only advertising pertaining to the plan which  has been approved in advance by the plan sponsor or insurer.(f) Upon receipt of instructions from the plan sponsor or insurer, an  administrator shall deliver promptly to covered individuals or beneficiaries  all policies, certificate booklets, termination notices or other written communications.(g) An administrator shall not receive compensation from a plan sponsor  or insurer which is contingent upon the loss ratio of the plan.  This subsection  shall not, however, prevent the administrator from engaging in cost containment  activities with a plan sponsor or insurer.(h) An administrator shall not receive from any plan sponsor, insurer,  covered individual or beneficiary under a plan any compensation or other  payments except as expressly set forth in the written agreement between  the administrator and the plan sponsor or insurer.(i) Upon request of the Director, an administrator shall make available  for examination, either in the City of Springfield or at the licensee's  principal place of business, all basic organizational documents including  but not limited to articles of incorporation, articles of association, partnership  agreement, trade name certificate, trust agreement, shareholder agreement  and other applicable documents and all amendments thereto, bylaws, rules  and regulations or similar documents regulating the conduct of its internal affairs.    (Source: P.A. 84-887.)