Relating to an insurer's responsibility to review and audit a third-party administrator.

SB 1151 requires Texas insurance companies to conduct semiannual reviews and biennial on-site audits of third-party administrators (TPAs) managing benefits for more than 100 clients (such as policyholders or injured workers) on their behalf. This law directly affects insurers using large-scale TPAs, mandating regular oversight to ensure proper administration of benefits. The key provisions set specific timelines: insurers must review TPA operations at least twice a year and perform in-person audits at least once every two years. The bill takes effect September 1, 2025, and amends Section 4151.1042 of the Texas Insurance Code.