X
    X
    X
    X

    Illinois Prohibits TPAs and UR Organizations from Performing Services Offshore

    Publications
    The Illinois Department of Insurance (“DOI”) issued Bulletin 2012-12 (“Bulletin”) on December 20, 2012, prohibiting the use of offshore third party administrators (“TPAs”) and utilization review organizations (“UR Organizations”) in connection with insurance contracts and healthcare plans covering Illinois residents. The DOI issued the Bulletin in response to the concerns that offshoring TPA or UR Organization functions may make it difficult for the DOI to access books and records kept on file in a foreign jurisdiction concerning Illinois business (for example, the DOI may need access to these records in connection with its company examination).  This is in line with the provisions of the Illinois Insurance Law requiring that the DOI be provided with convenient and free access at all reasonable hours to all books, records, documents, and papers relating to the business, performance, operations and affairs of the company in question.  Furthermore, the Bulletin expressly provides that maintaining records on a domestically located server will not satisfy the requirement to give the DOI free and convenient access to the documents, as onsite observation and interviewing of those who prepare the documents is often necessary to ensure the authenticity and integrity of the materials.

    Please click here for a copy of the Bulletin.

    Explore Additional Topics

    Disclaimer

    Please understand that your communications with Locke Lord LLP through this website do not constitute or create an attorney-client relationship with Locke Lord LLP. Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. Therefore, do not send or include any information in your email that you consider to be confidential or privileged.