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

HB 3508 requires insurers to conduct regular reviews and audits of third-party administrators (TPAs) handling insurance benefits for over 100 clients (such as policyholders or injured employees). Specifically, insurers must perform a semiannual review (at least twice yearly) of TPA operations and a biennial on-site audit (every two years). This applies to insurers using TPAs managing benefits for more than 100 clients, directly affecting those insurers and their contracted administrators. The bill amends Texas Insurance Code Section 4151.1042 and takes effect September 1, 2025, if passed.