Section 550.930 - Provision of administrative services pursuant to written service contract; maintenance of books and records; TPA and manager as fiduciary.
THIRD PARTY ADMINISTRATOR ACT (EXCERPT)
Act 218 of 1984
550.930 Provision of administrative services pursuant to written service contract; maintenance of books and records; TPA and manager as fiduciary.
Sec. 30.
(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.
History: 1984, Act 218, Eff. Jan. 1, 1985