Michigan Laws 550.930 – Provision of administrative services pursuant to written service contract; maintenance of books and records; TPA and manager as fiduciary
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(1) A TPA may only provide administrative services pursuant to a written service contract. For the duration of the service contract, a TPA shall maintain at its principal administrative office the TPA’s books and records of all transactions under the service contract in accordance with generally accepted accounting principles or as required by ERISA.
(2) A TPA and a manager are a fiduciary when collecting, expending, and maintaining money for the payment of claims pursuant to the service contract.
Terms Used In Michigan Laws 550.930
- Contract: A legal written agreement that becomes binding when signed.
- ERISA: means the employee retirement income security act of 1974, Public Law 93-406. See Michigan Laws 550.902
- Fiduciary: A trustee, executor, or administrator.
- manager: means an individual responsible for conducting the daily operations of a third party administrator. See Michigan Laws 550.902
- Service contract: means the written agreement for the provision of administrative services between the TPA and a plan, a sponsor of a plan, or a carrier. See Michigan Laws 550.902
- TPA: means a person that directly or indirectly processes claims under a service contract and that may also provide 1 or more other administrative services under a service contract, other than under a worker's compensation self-insurance program pursuant to section 611 of the worker's disability compensation act of 1969, 1969 PA 317, MCL 418. See Michigan Laws 550.902