Tenn. Comp. R. & Regs. 0780-01-81-.07 - COLLECTION OF MONIES AND PAYMENTS OF CLAIMS

(1) All monies collected by a third party administrator on behalf of or for an employer or pool, and the return of monies received from that employer or pool, shall be held by the third party administrator in a fiduciary capacity. The monies shall be immediately remitted to the person entitled to them or shall be deposited promptly in a fiduciary account established and maintained by the third party administrator in a federally or state insured financial institution. The written agreement between the third party administrator and the employer or pool shall provide for the third party administrator to periodically, but no less than quarterly, render an accounting to the employer or pool detailing all transactions performed by the third party administrator pertaining to the business underwritten by the employer or pool.

(2) If monies deposited in a fiduciary account have been collected on behalf of or for one or more employers or pools, the third party administrator shall keep records clearly recording the deposits in and withdrawals from the account on behalf of each employer or pool. The third party administrator shall keep copies of all the records and, upon request of an employer or pool, shall furnish the employer or pool with copies of the records pertaining to the deposits and withdrawals.

(3) All claims paid by the third party administrator from funds collected on behalf of or for an employer or pool shall be paid only on drafts, electronic transfer, or checks of and as authorized by the employer or pool.

(4) All third party administrators shall comply with the prompt pay standards set forth in both T.C.A. Title 50 and Title 56 for the payment of workers' compensation benefits.

Notes

Tenn. Comp. R. & Regs. 0780-01-81-.07

Original rule filed September 12, 2005; effective November 26, 2005.

Authority: T.C.A. §§ 50-6-405(b), 50-6-405(c), 50-6-405(h), 50-6-205, and 56-8-104.